FY23 Results Presentation, March 2024: click here to

This document, which comprises a presentation of the results for the year ended 30 September 2023 (the "Presentation"), has been prepared by, and is the sole responsibility of, Tekmar Group PLC (the "Company").

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This Presentation is for information purposes only and contains certain forward-looking statements. Statements herein, other than statements of historical fact, regarding our future results of operations, financial condition, cash flows, business strategy, plans and future objectives are forward-looking statements. Words such as "targets", "believe", "expect", "aim", "intend", "plan", "seek", "will", "may", "should", "anticipate", "continue", "predict" or variations of these words, as well as other statements regarding matters that are not historical fact or regarding future events or prospects, constitute forward-looking statements.

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1. unanticipated delays or cancellation of projects; (iv) the competitive environment; (v) the global macro-economic environment; (vi) disruptions, expenses and risks associated with any acquisitions and divestitures; (vii) the loss of, or deterioration in our relationship with, any significant clients; (viii) the outcome of legal proceedings or governmental inquiries; (ix) uncertainties inherent in operating internationally; (x) the effects of a pandemic or epidemic or a natural disaster; and (xi) changes in, or our failure to comply with, applicable laws and regulations. As a result you should not rely on these forward-looking statements.

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	Alasdair MacDonald	Agenda
	CHIEF EXECUTIVE OFFICER
		Results Overview
		•	CEO Perspectives
		•	KPIs
		Financial Review
		•	CFO Perspectives
		•	Financial Results
		Market Review
		•	Offshore Wind
	Leanne Wilkinson	•	Energy Transition

CHIEF FINANCIAL OFFICER

Strategic & Operational Review

Summary & Outlook

FY23 results in-line with expectations

Business stabilised and path to profitability established.

Group orderbook of £20m (as at 31 January 2024)

We anticipate incremental improvement in offshore wind market conditions in FY24

We benefit from a balanced business portfolio and highlight with these results the consistently good performance of our Pipeshield business / Marine Civils division

We are being targeted and disciplined with capex and investing selectively in strategic priorities that can yield the greatest near-term results

We are starting to explore M&A opportunities to strengthen and broaden the portfolio, leveraging SCF's strategic investment

1. Enquiry Book is defined as all active lines of enquiry within the Tekmar Group. Expected revenue recognition within 3 years.
2. Order intake is the value of contracts awarded in the Period, regardless of revenue timing.
3. Order Book is defined as signed and committed contracts with clients.
4. Adjusted EBITDA is defined 'Earnings before interest, tax, depreciation and amortisation' are adjusted for material items of a one-off nature and significant items which allow comparable business performance. Adjusted EBITDA is a non-GAAP metric used by management and is not an IFRS disclosure

Marine Civils division continues strong growth trajectory with YoY improvement in gross margin % - this business is scalable via current product offering and new service revenue streams.

Incremental growth in Offshore Energy, with healthier margin backlog. Ability to benefit quickly from volume.

Further refinement of cost base during H2 FY23 from wider group integration and business improvement measures.

The Group's balance sheet was stabilised in April 2023 following £6.4m (£5.3m net of expenses) capital investment from SCF Partners and associated fund raise, with £18m CLN.

Bank facilities remain important to support working capital needs. Challenging Middle East payment profiles persist albeit ability to apply leverage across wider group projects.

Investment focused on developing current product offering in addition to new service lines and continued regional expansion.

Stronger foundation for growth and sustainable profitability.

	Audited	Audited
	12M ended	12M ended
	Sep-23	Sep-22
	£m	£m
Revenue	39.9	30.2
Gross Profit	9.3	7.0
Adjusted EBITDA(1)	(0.3)	(2.3)
(LBT)	(9.9)	(5.2)
Adjusted EPS(2)	(4.5p)	(8.1p)

Adjusted EBITDA is a key metric used by the Directors.

(1)'Earnings before interest, tax, depreciation and amortisation' are adjusted for material items of a one-off nature and significant items which allow comparable business performance. Details of the

adjustments can be found in the adjusted EBITDA section below. Adjusted EBITDA might not be comparable to other companies.

(2)Adjusted EPS is a key metric used by the Directors and measures earnings are adjusted for material items of a one-off nature and significant items which allow comparable business performance. Earnings for EPS calculation are adjusted for share-based payments, £508k (£nil FY22), amortisation on acquired intangibles £168k (£605k FY22), Impairment of goodwill £4,745k (£nil FY22).

Revenue

• 32% increase from prior year
• Continued growth per half year (H2 £22.7m v H1 £17.7m)

Gross Profit

• 23% consistent with prior year
• • Marine Civils - Margin growth of 700 basis points
  • Offshore Energy - reduced to 18% in FY23 from 25% reported in prior year - lower margin backlog projects adequately provisioned to completion
  • Backlog gross margin improved to 28%

Adjusted EBITDA

• Result largely in line with our expectations, transition year as expected improving on the adjusted EBITDA losses of (£2.3m) and (£2.0m) reported for prior years respectively

Loss Before Tax

• Offshore Energy division goodwill impairment charge of £4.7m
• Lower amortisation and depreciation offset by other one-off items and FX loss of £0.9m

Balance Sheet
£m	FY23	FY22
Fixed Assets	6.8	5.9
Other non-current assets	19.4	24.6
Inventory	2.1	4.6
Trade & other receivables	19.7	13.4
Cash	5.2	8.5
Current liabilities	(16.9)	(16.9)
Other non-current liabilities	(1.7)	(0.8)

The Group's balance sheet was stabilised in April 2023 following £6.4m (£5.3m net of expenses) capital investment from SCF Partners and associated fund raise.

• Fixed Asset addition - ROU asset relating to manufacturing facility lease renewal
• Goodwill impairment charge of £4.7m relating to offshore energy division
• Trade Receivables - overdue ME and China debt
• Cash position of £5.2m, supported by banking facilities.
• Net debt of £1.4m

	Equity	34.6	39.2