Tekmar Group PLC on Monday said it expects to return to an adjusted profit in the current financial year as it reported a ballooned statutory loss on the back of a goodwill impairment and higher costs.

The Darlington, England-based provider of technology and services for global offshore energy markets said pretax loss widened 90% to £9.9 million in the financial year ended September 30, from £5.2 million a year prior.

Revenue climbed 32% to £39.9 million from £30.2 million. Cost of sales however also increased 32% to £30.6 million from £23.2 million.

Further, administrative expenses increased 60% to £18.6 million from £11.6 million.

Tekmar reported a £4.7 million impairment of goodwill in financial 2023, compared to no such cost a year prior.

Chief Financial Officer Alasdair MacDonald said: ‘Overall, the business made further progress in FY23 in improving operational and financial performance and delivered results in-line with market expectations.’

Looking ahead, the company expects to return to profit at the adjusted earnings before interest, tax, depreciation and amortisation level in the current year, swinging from a loss of £323,000 in financial 2023, which had narrowed from £2.3 million a year before.

CFO MacDonald said: ‘Our near-term plans and targeted investments support the opportunity we have to grow organically across our core markets. We are alert to the opportunities to complement organic growth through mergers & acquisitions that can increase our scale and strengthen our services offering across our end-markets, all consistent with building a leading, global offshore wind services platform over time.’

Tekmar shares were 0.3% lower at 10.72 pence each on Monday afternoon in London.

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