Tekmar Group Plc · LSE:TGP
Tekmar — H1 2024 Earnings Presentation
23 slides from Tekmar's earnings presentation, May 15, 2024
Slide 1: Half Year Results
Half Year Results For the 6-month period ending 31 March 2024 TGP-MAR-E-PLC (2024 HiHalf-Vear Results) | StrictlyConfidential | 15 May 2024 | Paget
Slide 2: Disclaimer
This document, which comprises a presentation of the results for the 6 months ended 31 March 2024 (the "Presentation"), has been prepared by, and is the sole responsibility of, Tekmar Group PLC (the "Company"). The Presentation is being made only to, and is only directed at, persons to whom such pre
Slide 3: Agenda
Alasdair MacDonald Agenda CHIEF EXECUTIVE OFFICER Results Overview • CEO Perspectives • KPIs Financial Review Market Review Leanne Wilkinson Strategic & Operational Review CHIEF FINANCIAL OFFICER Summary & Outlook
Slide 4: Satisfactory results with trading in-line with the Board's expectations
Satisfactory results with trading in-line with the Board’s expectations Trading profit of £1.8m is highest in four-year period, driven by 33% gross profit margin Order intake of £23.7m (as at 31 March 2024) at a blended 31% gross margin The return to trading profitability of our Offshore Energy divi
Slide 5: Key performance indicators
6m to Mar-24 6m to Mar-23 12m to Sep-23 £m £m £m Revenue £16.2 £15.9 £35.6 Gross Margin 33% 28% 23% Adjusted EBITDA1 1.8 0.6 0.6 Net Cash (3.6) (3.2) (2.9) Order Book2 £24.1 £23.7 £19.9 Order Intake3 £23.7 £24.5 £44.2 *Order Book and order Intake include Subsea Innovation Limited for current year an
Slide 6: Financial Review
Financial Review
Slide 7: Income statement summary
Revenue 6m to Mar-24 6m to Mar-23 12m to Sep-23 • Revenue broadly in line with the prior year £m £m £m Gross Profit • 33% in HY24 compared to 28% in HY23 Revenue 16.2 15.9 35.6 • Marine Civils (Pipeshield) – increased from 34% in HY23 to 39% in HY24 Gross Profit 5.4 4.4 8.3 • Offshore Energy (mostly
Slide 8: Balance Sheet
• Intangible assets - Goodwill impairment charge in FY23 of £4.6m Balance Sheet relating to offshore energy division As at As at As at £m Mar-24 Mar-23 Sep-23 • Inventory – reduction in WIP relating to timing of Marine Civils projects Fixed Assets 6.7 6.3 6.5 • Trade Receivables • overdue billed ME
Slide 9: Cash flow
6 months 6 months 12 months 6 months 6 months 12 months HY24 HY23 FY23 Cash flows from operating HY24 HY23 FY23 Cash flows from investing and £m £m £m activities £m £m £m financing activities Loss before taxation (0.7) (1.8) (9.9) Purchase of PPE / Intangible assets (0.5) (0.6) (1.3) Adjustments for
Slide 10: An evolving offshore energy market
@lekmar Group plc An evolving offshore energy market
Slide 11: Project confidence: journey to 2030 country pipeline
70 GW is fully commissioned 40GW in construction or FID Visibility of over 13.6% CAGR to 2030 High probability projects represent 102% increase by 2030 300 projects Journey to 2030 - Country pipeline by project status and confidence. * 261 GW MEDIUM LOW GW Fixed 17 7.4 Floating PROJECT CONFIDENCE 10
Slide 12: 12.3GW record year for FID supporting volume growth
12.3GW Record year for FID* supporting volume growth in offshore wind projects for Tekmar Group 14 13.1 12.3 12 10 9.1 8 6.4 6.6 6 4.2 3.8 4 3.2 3.1 1.6 2 2 2 1 0.8 0.2 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 The positive macro view needs to be tempered in the ne
Slide 13: Sustained upcycle in the offshore EPC forecast 2023-2028
We see a sustained upcycle in the offshore EPC forecast through 2023 - 2028, with EPC spending expected to total $91bn. This is a 21% increase compared to the preceding five-year period. Market Spend by region ($ billion) 20.0 18.0 16.0 14.0 2021 – 2027+ consistency of higher CAPEX spend in 12.0 thi
Slide 14: Long-term outlook
Long-term outlook Beyond 2030, Governments’ declared ambitions to increase installed capacity from 70GW to 758GW, an 11x increase • Europe looks to increase capacity by 105% from 124GW (2030) to 255GW • APAC looks to increase capacity by 540% from 32.5GW (2030) to 208GW • Americas looks to increase
Slide 15: Strategic & Operational Review
@lekmar Group plc Strategic & Operational Review A review of near-term priorities
Slide 16: Near-term priority 1: Revenue and gross margin
Near-term priority 1 6m 6m 6m 6m 6m 6m 6m 6m 6m Mar-24 Sep-23 Mar-23 Sep-22 Mar-22 Sep-21 Mar-21 Sep-20 Mar-20 Revenue 16.2 19.7 15.9 17.2 13.0 17.9 13.9 15.2 23.8 Gross Margin 33% 20% 28% 24% 22% 16% 26% 31% 28% Adjusted EBITDA1 1.8 0.0 0.6 (0.3) (1.8) (1.8) (1.1) 0.8 2.7 The 6-month periods ending
Slide 17: Balanced contract awards across Energy Transition and Offshore Wind
Near-term priority 2 Balanced contract awards across Energy Transition and Offshore Wind projects • Higher quality projects being secured • Improving risk/reward balance • More selective tendering • Improving supply chain pricing to acceptable margin levels • Encouraged by the strength of the enquir
Slide 18: Teklink Grouting, Subsea and Marine Civils
Near-term priority 3 1 2 3 Teklink Grouting Subsea and Marine Civils Protection Further enhance subsea and port Product & Analysis Evolution Grow footprint in energy transition and supported by regionalised engineering extend into offshore wind and marine scour prevention solutions with consultancy
Slide 19: Disposal of Subsea Innovation Limited
Near-term priority 4 - Predominantly oil and gas customers with relatively low pipeline visibility Strategic rationale - EBITDA loss of £1.4m for FY23 - Divesting the business streamlines our focus on prime growth opportunities Aggregate cash consideration of £1.9m - Initial cash payment of £27,000
Slide 20: Growth through M&A and SCF relationship
Near-term priority 5 Build value through scale and Alert to energy transition quality of earnings opportunities Strengthen the technology and services Leverage our relationship with SCF and we offer our customers through the £18m capital available through the complementary product/market synergies C
Slide 21: Summary and Outlook
@lekmar Group plc Summary and Outlook
Slide 22: Satisfactory results in-line with the Board's expectations
Satisfactory results in-line with the Board’s expectations Order intake is robust with a blended gross margin of 31% Improving market environment although risk of project delays continues We expect FY24 to deliver a clear improvement in trading profit over the prior year Continue to pursue M&A oppor
Slide 23: Glossary and footnotes
Glossary • FID is Final Investment Decision • TekLink is cable protection systems provided from Tekmar to clients all over the world Footnotes used through the presentation: (1) Adjusted EBITDA is a key metric used by the Directors. Earnings before interest, tax, depreciation and amortisation are ad