LONDON, UK: Tekmar Group (AIM: TGP), a leading provider of technology and services for the global offshore energy markets, announced the sale of Subsea Innovation Limited (SIL) to Unique Group through its subsidiary, Unique System (UK) Limited, for a total cash consideration of £1.9 million.
Subsea Innovation Limited provides engineering consultancy and subsea products to the energy industry, particularly the oil and gas sector. 38 employees will transfer with SIL to the Purchaser.
Innovation House, the premises in Darlington currently occupied by SIL, is being retained by the Unique Group. The property was valued at £2.8 million as at the latest audited financial statements to 30 September 2023. The Group has agreed for the purchaser to use the property on a rent-free basis for a 12-month period following completion, with the option for both parties to enter into a lease agreement after the rent-free period.
The consideration value comprises an initial cash payment of £27,000, a cash payment of £1.4 million relating to a trade debtor, payable post-completion, and a further cash payment of £549,000 payable 12 months post-completion.
These proceeds will be available to support the Group’s disciplined investment programme to drive near-term growth and for general working capital purposes.
For FY23, the latest audited period prior to announcing the Transaction, SIL reported an Adjusted EBITDA loss of £1.4 million and net assets of £1.4 million. The effect of the disposal on the ongoing Group is expected to be broadly EBITDA neutral for FY24.
Alasdair MacDonald, CEO, commented: “The disposal of SIL reflects our strategic focus on strengthening Tekmar’s performance and financial position through efficient resource allocation and portfolio management. SIL has an established reputation in the energy industry and we are particularly pleased for SIL’s employees and customers that they can look forward to realising its full potential under the ownership of Unique.
From a Tekmar perspective, we continue to execute our strategy to drive profitable growth organically across our balanced portfolio, and to complement this growth through targeted M&A to strengthen and broaden our core offering. The disposal supports this objective. We also reiterate our expectations for FY24 to be a year of profit improvement for the business with the Group having delivered Adjusted EBITDA profit in the first half in line with management’s expectations.”