Tekmar, an offshore engineering group based in County Durham, has reported a significant improvement in its financial performance, with revenue rising by 31% to £16.2 million and operating losses narrowing from £2.3 million to £877,000 in the six months to March 2026. The company, which specializes in cable protection systems for offshore energy, also saw its after-tax losses decrease to £1.1 million, compared to £2.7 million in the same period last year.
Record order book boosts confidence
The Newton Aycliffe-based firm highlighted a record level of work during the half-year, with a current order book valued at £30.1 million. This is expected to drive revenue and profits in the second half of the fiscal year. Despite uncertainties caused by conflicts in the Middle East, which have disrupted some projects and supply chains, Tekmar's management expressed confidence that trading momentum will continue, leading to improved full-year results for 2026.
CEO comments on strategic progress
Chief Executive Officer Richard Turner commented: "The business performed well in the first half of this year, delivering a material improvement in year-on-year profitability consistent with our guidance. We are encouraged by the continued progress we are making in delivering on the Project Aurora strategic plan." He added that the reorganization and refocus of the company's front-end operations, combined with improved commercial effectiveness, have enabled the group to operate with a record level of work, increased utilization, improved visibility, and a stronger balance sheet.
Divisional growth and project wins
Growth was observed across both of Tekmar's divisions: asset protection technology and offshore energy services, with revenue increases of 30% and 52%, respectively. However, gains in offshore energy services fell below management expectations due to low revenue in 2025 and delays to project starts exacerbated by the Middle East conflict. Since the launch of its Project Aurora transformation plan in 2025, Tekmar has secured work worth over £20 million from three European offshore wind projects, which will contribute significantly to revenue beyond the 2026 financial year. Additionally, the company has secured high-quality oil and gas projects and made encouraging progress in marine infrastructure revenues, including two important contracts supporting ports and harbour infrastructure projects.
Outlook for the second half
Looking ahead, the board anticipates strong revenue and profit delivery in the second half of the year as the company continues to build improved revenue visibility into FY27. Turner concluded: "This momentum, together with the healthy pipeline we see ahead of us, supports our confidence in delivering sustained, profitable growth and enhanced value for shareholders."
