Tekmar Share Discussion Threads

[shallwe] 21/6/2018 08:06

...And if they use Burford Capital for their litigation finance, then it could be a double win for me ;)

[jonwig] 21/6/2018 06:31

I've seen much worse risk factors than these in ipo documents! But it's right to seek out possible baddies, not just the good bits.

I've put the link to the admission document in the header. If you capitalise at least one of h t t p it won't get corrupted.

The patent infringement has TGP as plaintiff, which is the right side as an investor.

The EU investment risk is generic across the offshore sector, and probably overblown (pun intended) given the EU's green aspirations. Also, offshore wind is just about viable without gov't support I believe.

[shallwe] 20/6/2018 22:06

Blimey Euclid, did you read any good news?The debt payment was general knowledge and is a big positive. It pays back the backers that helped the management buy the company a few years ago. So the company is as good as debt free now so the increasing profits will now be used along with the £10m left over from the flotation for expansion and acquisitions.

[euclid5] 20/6/2018 21:39

RISKS RELATING TO THE INDUSTRY AND ASSOCIATED REGULATORY REGIMES IN WHICH
THE GROUP OPERATES Delay in European offshore wind farm projects
A large proportion of the Group’s current and projected future business and revenues is underpinned by the provision of cable protection systems to offshore wind farm projects in the EU.

There can be no guarantee that the EU will continue to support investment in and commission the development of these projects, in the immediate or longer term. Similarly, there can be no guarantee that the Group will continue to supply protection systems for these projects should they continue to be commissioned. Any such change, whether it be a reduction or delay, to this source of business could have a material adverse impact on the Group’s financial position and performance.

hxxps://investors.tekmar.co.uk/app/uploads/2018/06/Tekmar-Group-plc-Admission-Document-15-June-2018.pdf

[euclid5] 20/6/2018 21:36

16.2 Tekmar Energy is currently involved in a patent infringement dispute against a competitor in respect of alleged infringement of Tekmar Energy’s UK patent GB2463940(C) for Protection Assembly for Elongate Flexible Member and Method of Installation of such Member. Counsel has been instructed to draft proceedings in respect of the claim.

see pg 109 for the above

[euclid5] 20/6/2018 21:33

seems they paid off £40m debt according to the Admission doc

see pg 78

hxxps://investors.tekmar.co.uk/app/uploads/2018/06/Tekmar-Group-plc-Admission-Document-15-June-2018.pdf

[modform] 20/6/2018 13:28

I got an initial position this morning via a call to my broker as i was going out but he said it wasnt easy to buy since almost 80% held by ii. When the debt is paid off, the company is actually quite profitable with a very healthy margin.

[jonwig] 20/6/2018 11:53

Quite an impressive list of institutions have bought in, accounting for about 80% of the total.
Previous 100% owner (Ritchie-Bland) has sold down quite significantly.

A narrow market ahead?

[jonwig] 20/6/2018 10:42

Seemed to take forever, but bought in at 150p.

Will add detail to the header soon.

[shallwe] 20/6/2018 10:37

Ramridge. That was exactly what I was looking at over the weekend, going through their last few years of company results. Once the debt was paid off by this flotation the figures looked extremely encouraging for the future, hence my buy-in.Onwards and upwards. GLA.

[ramridge] 20/6/2018 10:03

Their net finance cost was basically eating up all profits. Now they will be debt free, actually net debt taking into account cash on the pro forma balance sheet makes it -11m.

So on my calculation they should be showing a forecast net profit of £3m - £4m
Also cash flow in FY2018 was near £6m. That's pretty healthy against revenues of £21.9m

I bought an initial position this morning.

[jonwig] 20/6/2018 09:20

shallwe - Hi. Good luck, but whereas I thought 130p or so would be good value, I'm not so sure at 150p. Their growth rate is pretty impressive, so it may not get any cheaper. Maybe spread will narrow.

EDIT: yes, 145-150 now.

[shallwe] 20/6/2018 09:15

It took a bit of time until I got a quote and manned to buy in. Not a great price and the spread is wide but the fundamentals looked promising for the future.

[jonwig] 20/6/2018 08:15

Looks busy, and a good start. Couldn't get a quote - online broker didn't even recognise the name!

[jonwig] 20/6/2018 07:07

First dealings today, 20 June 2018.

Will be 50,000,000 shares in issue at 130p.
Seems to be mainly a PE exit with debt (£32m) repayment.

EV/EBITDA will be between 8 and 10 times on a rough check.
No early dividends planned.

[jonwig] 20/6/2018 07:06

. .



"Tekmar is a market leading provider of subsea cable, umbilical and flexible pipe protection systems."

Admission document;


50m shares placed at 130p on 20 June 2018.
50,645,161 in issue on 12/09/18.
Accounting dates 30/09 (H1), 31/03 (FY).

Significant shareholdings:
Total number of shares ... 51,367,227 (Aug 2021)
Schroders plc ............. 8,549,433 16.7%
Berenberg Bank ............ 4,950,000. 9.9%
J O Hambro Cap Mgt ........ 4,000,000. 7.8%
Hargreave Hale ............ 3,400,000. 6.8%
Sarasin & Ptnrs ........... 3,065,879. 6.0%
Ameriprise ................ 3,019,185. 5.9%
Legal & General Inv Mgt ... 3,000,000. 5.9%
BGF Investments ........... 2,580,000. 5.1%
River and Mercantile ...... 2,554,250. 5.0%
Impax Asset Mgt Ltd ....... 2,099,221. 4.1%
Oryx International ....... .2,075,000. 4.1%
Miton Group ............... 2,024,001. 4.0%
Threadneedle Asset Mgt .... 2,000,000. 4.0%
Barralina Asset Mgt GmbH .. 1,200,000. 2.4%

Financial year end ............ 31 March 2019
Full-year results ............. 25 June 2019
Publication of Annual Report .. July 2019
Annual General Meeting ........ August 2019
Half-year results ............. 3 December 2019

[ukinvestor220] 01/6/2009 15:39

New thread ? - Certainly Sir

[rivaldo] 01/6/2009 12:27

Supreme mo, Paul Frodsham bought 300,000 shares late last year and 810,000 in July'07, so that effectively counts as insider buying. I wonder if the directors are hamstrung by the TFL CCTV trial news - they would not be allowed to buy if there was an announcement to be made. Let's hope so!

So TGP is now known as C21 - anyone fancy setting up a new thread?

[supreme mo] 29/5/2009 20:52

I would have hoped the directors would have bought shares in the market while things seem low.that is always a good sign to the market and for shareholders as they tend to be in it for the long term.

[rivaldo] 29/5/2009 14:33

Agreed 8trader, it's just frustrating until the day comes when those erroneous forecasts are exposed. Or at least I hope they're erroneous. Since there's likely to be an H1 trading update next month hopefully the wait won't be that long in TGP's case.

Gogoneko, great link to elsternwick's excellent AGM report, thx. I think it's worth having a copy here for future reference, hope elsternwick doesn't mind.

The points about the Directors only being in the money at 10p, and that a government agency is buying the £2.7m property, are both extremely reassuring:

"I attended AGM as usual. The Chairman is always guarded about what he says, partly because of the history of this company when previous Board members talked up the Conpany on nothing more than dreams.

I am quietly optimistic. The declining legacy business has all but disappeared and replaced with products for which there is a demand. Security and fuel management reflect where we are today in terms of society and energy costs.

Orders are going well and they have only just begun to work this market. When Arriva eventually report that they are saving >10% annually because of eco-manager the market should be really stimulated. There's also additional upside to follow because the gizmos that 21stCT fit can do other things and generate additional income for the Company.

Also the land appears to be a done deal now with the Driving Standards Agency purchase - only planning requirements are slowing this down but, apparently, it will complete.

The 21stCT owners have accepted a significant number of shares as part of the deal which shows their faith and in fact they will only make money when the shares hit 10p. Cheapest Director share options are also 10p so this has to be the short term target and I believe it's do-able.

Good luck to all investors."

[8trade] 27/5/2009 23:26

Take it from me it's good to have really low estimates as the
shareprice usually reacts well to beating them.

I remember Amu now called Mubl, my favourite stock.

When it's market cap was around 10-12 million it would announce
profits of 5 mil but because they were forcast to make 5.5 mil
or higher the price would drop because because it "missed" targets.

Totally crazy when you compare the market cap to profits so it might be
a blessing in disguise here !

[nod] 27/5/2009 21:56

In it's last update Daniel Stewart stayed with its EPS of 0.3p for this year and 0.4p for next.

We'll have to wait and see whether the better than expected trading in 21C is greater than the losses in the legacy business. As house broker and nomad DAN has been pretty accurate with its forecasts and i would guess the next update will be about right. The 2010 estimate will be of great interest.