Tekmar Share Discussion Threads

[jonwig] 28/3/2019 07:27

Acquisition of Ryder Geotechnical Limited:



... pay £2 for 80% (!) with option to buy the rest for up to £2 million.
"In the published accounts for the year to 30 November 2017, Ryder Geotechnical had turnover of £102,315, profit of £48,385 and had net assets of £14,000."

Website:

Strange way to structure a deal!

[jonwig] 11/3/2019 16:48

Losing the higher margin contracts in H1 2019 means gross margins have fallen to ~20% from over 40% in FY 2018. The fact that this was announced in December was about as unhelpful as it could get.

So the market took this as a major profit warning rather than a slippage, but the company now has to demonstrate that it can perform to its undertaking in the H1 statement.
If that happens, and it becomes a secure link in the supply chain of the Sector Deal (why not?) the shares should progress from here.

No doubt buying on Friday followed this publication, and some holders are still determined to sell. But worth remembering that 90% of the shares are held by institutions who - we hope! - take a longer-term view.

[hiddendepths] 11/3/2019 11:54

Thanks Jon!

[thomshrike] 10/3/2019 10:47

Wow, great find!

[jonwig] 10/3/2019 08:53

The UK Offshore Wind Sector Deal released 7 March:



The offshore wind industry is welcoming today’s landmark announcement of a Sector Deal with the government. The agreement will help to create tens of thousands of highly-skilled jobs across the UK and attract billions of pounds in investment to this country.

The UK is already the world leader in offshore wind, with more capacity than any other country, the biggest offshore wind farms and the most powerful turbines. The supply chain extends to every part of the country, and UK companies are already exporting our offshore wind products and services to more than 20 countries. With the Sector Deal now in place, those exports are set to increase fivefold in value to £2.6 billion a year by 2030.

“By 2030 a third of our electricity will come from offshore wind, generating thousands of high-quality jobs across the UK, a strong UK supply chain and a fivefold increase in exports. This is our modern Industrial Strategy in action.”
Energi Coast is the north-east company cluster which will be at the centre of this development. Who is featured in this picture? ...

[hiddendepths] 08/3/2019 09:47

Virtually all today's trades are buys, despite them being logged as sells. It's clear there's a big seller but they are raising their sell price through the morning. The real buy price is now 110.

[thomshrike] 08/3/2019 09:20

See below some comments on offshore wind from yesterday’s Boskalis confcall that IMO can be seen as a nice read-across for Tekmar. Remember that Boskalis is one of Tekmar’s largest clients (the largest?) and they have an exclusivity agreement (i.e. Boskalis apparently only uses Tekmar’s products for offshore wind cable protection).

"But also in Offshore Energy, we've seen a significant increase in the order book and this is related to a number of things, you've seen the examples, you see particularly projects in the field of wind power, cable laying by the end of the year, we will have a significant number of or we have gained an significant number of projects, so an increase there as well."

"But apart from that, the portfolio looks very good on (...) the wind side, especially cables."

"We have a good feeling of our portfolio, especially in the cable section which is doing well for this year."

"Offshore wind finally, many, many prospects both in Europe and beyond. We do focus on Europe, in particular, of course, we are looking at Taiwan. We are looking at the United States, but (…) see Europe as the place that needs our focused look, both for the installation and for the cable-laying activities."

[rambutan2] 05/3/2019 02:40

Not over 3% but a good fund manager who holds:

[thomshrike] 27/2/2019 14:02

Thank you for posting the link to the interview. It is a nice introduction to the equity story. The stock was massively impacted by the shortfall in its maiden earnings release, which can be attributed to timing issues only. The LT demand is there (just look at any outlook for offshore wind) and they have 70%+ global market share. The company just got hired on a project to actually work on replacing a competitor's products. On top of that, they are extending their competences into the o&g field, where margins are slightly lower but the TAM is huge. This is essentially an assembly business, so capital intensity is low. Returns can increase materially as the company scales up.
The stock is covered by Berenberg only. I would expect that both materialisation of growth estimates and more brokers looking at the company to drive the stock significantly upwards.
All this IMO.

[aishah] 05/2/2019 11:51

Some decent IIs on board here.

[petewy] 05/2/2019 10:53

Looks as if a big shareholder is increasing its stake. ISs hold 70% of shares

[imperial3] 05/2/2019 09:52

Woken up.Something cooking?

[aishah] 05/2/2019 09:45

Sharp rise last couple of days. Why the sudden interest?

[thomshrike] 05/2/2019 09:43

Finally gaining momentum. Bargain hunting of a global niche leader?

[petewy] 12/1/2019 20:21

Subsea Innovation Ltd, part of Tekmar Group plc, has announced that it has been awarded DNV GL type approval for its SIClamp structural pipeline repair clamp technology. In doing so Subsea Innovation is the first manufacturer in the world to achieve this certification.

[pugugly] 04/12/2018 13:53

Nominal spread horrible - Trades well within the spread -
JONWIG: As you say could be following a well trodden AIM path - buy -warn - buy again - warn etc but same could apply to GSK after yesterday!! or a number of other 250 coys which we could both name where the Chaiman, ceo, FD etc go on a buying spree without being really aware of possible toxic holes.

[petewy] 04/12/2018 10:26

Quote today's report
As a consequence, the Group is expecting to generate record revenues in FY19, ahead of current market expectations. However, due to the change in margin relating to product mix, the Board now expects profit for FY19 to be closer to that achieved in FY18. It is important to note that this impact on FY19 profit is purely a timing issue, which will be partially mitigated by profits generated by newly acquired Subsea Innovation.

[jonwig] 04/12/2018 08:51

PUG - assuming adj-EBITDA of £4m (as 2018) which they suggested, forward EV/EBITDA is about 11x. So not at all cheap.

Although there are no stresses in the balance sheet (I think) the market may be reading this as the start of a familiar saga: IPO - warn - warn again ...

For a potential buyer, spread looks ridiculously off-putting.

[pugugly] 04/12/2018 08:37

Based on half year accounts and delays starting to look rather expensive (imo)

[jonwig] 07/10/2018 08:20

TGP expansion with a JV in South Korea (27 Sept):

[jonwig] 07/10/2018 08:16

Reading an article recently about undersea cable security (comms, O&G, etc.) I came across Global Marine Group, a private UK company. This seems to be the largest player in UK/Europe.

Looking at the accounts at Companies house, 2017 turnover was $170m, pre-tax profit $10m (hardly any tax!), net assets $270m (almost all tangible). It's also interesting to see they are as detailed as many PLC accounts.

Comparison will be interesting. TGP's HY end has passed, and results are due next month. Global Marine:

[modform] 03/10/2018 19:41

hitting all time high, remember this is very illiquid and in the absence of any seller, it will be very difficult to build a decent position.

[skyship] 03/10/2018 16:13

A bit of life in this one today - 166p-176p the headline price at the moment...

[jonwig] 12/9/2018 17:44

Meeting to approve merger/takeover - all resolutions passed. (Surprise?)

Couldn't get to the meeting but probably wouldn't have been much chance to ask questions.