Key Highlights

  • Tekmar Group (LSE:TGP) makes cable protection systems that shield subsea power cables linking offshore wind turbines to shore.
  • The order book reached 31.7 million pounds at 31 March 2026, roughly two-and-a-half times higher year on year.
  • Shares recovered from a 52-week low of 4.55p to around 14.5p, tripling from their lows amid the improved order momentum.
  • Half-year Revenue to 31 March 2026 rose 31% to 16.2 million pounds, with adjusted EBITDA turning positive at 0.1 million pounds.
  • The Business remains loss-making at the Bottom Line and carries net Debt of 2.7 million pounds, leaving execution risk elevated.

Tekmar Group protects the cables that connect offshore wind farms to shore. After a brutal downturn, a record order book and a tripling share price suggest a turnaround is under way, but the tiny AIM supplier still has plenty to prove.

Offshore wind is one of the defining infrastructure themes of the energy transition, yet the companies that Supply it have endured a punishing few years of delayed projects, cost Inflation and cancelled auctions. Tekmar Group, a small AIM-listed engineer based in the north-east of England, sits at the sharp end of that story. It makes the protection systems that stop subsea power cables from being damaged where they meet turbines and substations, unglamorous but essential kit. After a bruising downturn that nearly halved its share price, Tekmar has rebuilt a record order book and its stock has tripled from last year's lows. The question for investors is whether this is a durable recovery riding the next wave of alternative-energy investment, or a fragile rebound in a stubbornly cyclical niche.

The Company

Tekmar Group plc, listed on London's AIM market under the ticker TGP, is headquartered in Newton Aycliffe, County Durham, and floated in 2018. Its core product is the cable protection system, engineered sleeving and ancillary components that shield the inter-array and export cables carrying electricity from offshore wind turbines back to the grid. The group also serves oil and gas customers and offers wider offshore energy engineering services.

Following a period of losses, management undertook a restructuring branded "Project Aurora", reorganising the business into two divisions, Asset Protection Technology and Offshore Energy Services. The strategy is to focus on higher-margin engineering and supply work while using existing capacity to deliver a growing Backlog without heavy Capital spending. Tekmar's addressable market is expanding as governments in Europe, Asia and beyond target large increases in offshore wind capacity, and the company has been winning work in newer markets such as Japan.

Why the Stock Is in Focus

Tekmar has become a talking point among small-cap investors because of a striking turnaround in momentum. The shares hit a 52-week low of 4.55p in September 2025 but had recovered to around 14.5p by mid-2026, touching 16.8p in June, valuing the group at roughly 20m pounds. Driving the re-rating is a flood of new orders: the company reported an order book of 31.7m pounds at 31 March 2026, up around two-and-a-half times year on year, after order intake of 29.5m pounds in the six months to March.

The commercial run has continued with a string of contract wins, including a contract worth more than 8m euros from an existing EPC customer for a UK offshore wind farm, deals on a Japanese project and further European awards. Crucially, the order book has rebalanced towards renewables, with roughly three-quarters now tied to offshore wind. After years in which Tekmar's fortunes tracked a fickle project pipeline, management argues the business finally has the visibility to deliver profitable growth.

Financial Position

The financial recovery is real but early. For the year to 30 September 2025 Tekmar reported revenue of 28.7m pounds, down from 32.8m pounds, with adjusted EBITDA (earnings before interest, tax, Depreciation and amortisation) of just 0.1m pounds against 1.7m pounds a year earlier. Encouragingly, a second-half adjusted EBITDA of 0.8m pounds followed a 0.7m pound first-half loss, and gross margins improved to 34% from 32%.

The half-year figures to 31 March 2026, published in June, showed the turnaround gathering pace: revenue rose 31% to 16.2m pounds, adjusted EBITDA returned to a small positive 0.1m pounds from a prior-year loss, and the loss after tax narrowed by 59% to 1.1m pounds. Net debt stood at 2.7m pounds. The Balance Sheet was helped by a property disposal that generated around 2.8m pounds of net proceeds. These are unaudited interim figures and should be read as such; Tekmar remains loss-making at the bottom line even as trading improves.

Bull Case

The bullish argument rests on operational gearing. Tekmar has a largely Fixed Cost base and low capital intensity, so as the record backlog converts into revenue, incremental sales should fall disproportionately to profit. Management has guided to a materially better financial performance in the current year and expects a stronger second half. The structural backdrop is supportive: offshore wind build-out across Europe and Asia implies years of Demand for cable protection, and Tekmar's early wins in Japan hint at geographic diversification. With the shares still valued at only around 20m pounds and revenue near 29m pounds, a return to sustained profitability could support a meaningful re-rating from a low base, and the shift towards higher-margin engineering work could lift returns further.

Bear Case and Risks

The risks are considerable. Tekmar's recent history is a warning that offshore wind growth does not translate smoothly into earnings: auctions get cancelled, developers defer final Investment decisions, and supply-chain bottlenecks bite. The company is still lossmaking, carries net debt, and depends on a relatively small number of large contracts, so slippage or cancellation of any one can swing results. It is a minnow competing in a capital-intensive global market and remains exposed to project timing, currency movements and disruption in regions such as the Middle East, which management has already flagged. Order books can shrink as fast as they grow, and a single profit warning could unwind much of the recent share-price recovery given how far the stock has already run.

What Investors Should Watch Next

The most important near-term test is delivery. Investors should watch for the full-year results covering the year to 30 September 2026, expected in early 2027, to confirm whether the promised second-half acceleration and "material improvement" over the prior year have materialised. Order-book updates and new contract announcements will indicate whether commercial momentum is holding, while the mix between offshore wind and oil and gas will show how successfully Tekmar is pivoting to renewables. Progress on turning positive EBITDA into genuine, sustained bottom-line profit and further reducing net debt will ultimately determine whether the turnaround endures.

Outlook

Tekmar Group is a classic high-risk, high-reward small-cap situation. The premise behind the headline has genuine substance: the company is a specialist supplier to a growing structural market, its order book stands at record levels, revenue is climbing and profitability is inflecting after a torrid stretch. That combination explains why the shares have tripled from their lows. Yet the caveats are equally real. Tekmar is still lossmaking, small and heavily exposed to the timing of a handful of large offshore projects in an industry that has repeatedly disappointed. For patient investors comfortable with volatility, it offers leveraged exposure to the offshore-wind supply chain; for others, the stealth-winner thesis remains unproven until the profits, not just the order book, follow through.