This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement via a Regulatory Information Service, this inside information is considered to be in the public domain.

TEKMAR GROUP PLC

("Tekmar Group", "Tekmar", the "Group" or the "Company")

FINAL RESULTS

For the year ended 30 September 2025

Tekmar Group (AIM: TGP), a leading provider of asset protection technology and offshore energy services, announces its audited results for the 12-month period ended 30 September 2025 ("FY25" or the "Period").

Improving financial performance and strong commercial momentum as Project Aurora enables enhanced visibility for value creation

FY25 Highlights

· FY25 was a year of positive progress in executing Project Aurora, with the Group reorganised into two verticals, Asset Protection Technology and Offshore Energy Services, delivering a leaner cost base and improved commercial focus

· FY25 revenue of £28.7m (FY24: £32.8m) and Adjusted EBITDA of £0.1m (FY24: 1.7m) is in line with market expectations, with a £1.5m improvement in Adjusted EBITDA in the second half of the Period (H1 25 Adjusted EBITDA: £(0.7)m; H2 25 Adjusted EBITDA: £0.8m) driven by higher volumes and improved utilisation and commercial execution

· Disciplined commercial approach throughout the year helped deliver a gross profit margin of 34% for FY25, with gross profit margin in H2 25 of 38% (H1 25: 29%; FY24: 32%)

·  Commercial settlement agreements concluded on the majority of legacy defect notifications, substantially reducing historical risk exposure, with no admission of liability or conclusion of defect with the Company's products and nil cash impact for the Group

Post Year-End Highlights

· Continued positive business momentum driven by the implementation of Project Aurora has yielded £43m of new orders since 1 July 2025 and a current record order book of £40.7m

· This order book supports improved visibility with £26m of revenue already secured for FY26 and £15m for subsequent years

· Balance sheet strengthened, and the Group's cash position significantly improved, with the sale of Innovation House for £2.84m net of fees in February 2026. This provides additional headroom to support growth and investment under Project Aurora

Financial KPIs

Commercial KPIs

Notes:

Current trading and outlook   

The Board is encouraged by the positive momentum carried forward from H2 25 and the strong start to the current financial year, with a current order backlog of £40.7m, including £26m scheduled for delivery in FY26. This represents a marked improvement in revenue visibility as the strategic initiatives begin to deliver tangible results. The Board expects H1 26 performance to be ahead of H1 25 and full year performance to be in line with current market forecasts, reflecting a significant year-on-year improvement in performance.

Tekmar operates in markets underpinned by clear long-term structural growth drivers and the Group remains confident in its strategy to capture the opportunities available. The Board believes the Group is well-positioned to outperform these growing markets and to deliver sustainable growth, increasing shareholder value.

The Board believes the successful execution of Project Aurora will build a differentiated, diverse and profitable technology business with the attributes valued by investors, customers and colleagues alike.

Richard Turner, CEO of Tekmar Group plc, commented: "FY25 has been a pivotal and highly productive year for Tekmar as we launched and started to execute on Project Aurora. The Group delivered results in line with market expectations, alongside a material improvement in profitability in the second half.

"We are pleased to have been able to maintain our momentum post period end - in the first four months of FY26 we have delivered a record order book, with muti year visibility and have unlocked further growth potential by significantly strengthening our balance sheet. We are encouraged by the strong start to the new financial year and healthy pipeline we see ahead of us and are focused on delivering sustained, profitable growth and enhanced value for shareholders."

Enquiries:

About Tekmar Group plc

Tekmar Group plc collaborates with its partners to deliver robust and sustainable engineering led solutions that enable the world's energy transition.

Through our Offshore Energy and Marine Civils Divisions we provide a range of engineering services and technologies to support and protect offshore wind farms and other offshore energy assets and marine infrastructure. With near 40 years of experience, we optimise and de-risk projects, solve customer's engineering challenges, improve safety and lower project costs. Our capabilities include geotechnical design and analysis, simulation and engineering analysis, bespoke equipment design and build, subsea protection technology and subsea stability technology. 

We have a clear strategy focused on strengthening Tekmar's value proposition as an engineering solutions-led business which offers integrated and differentiated technology, services and products to our global customer base.

Headquartered in Newton Aycliffe, UK, Tekmar Group has an extensive global reach with offices, manufacturing facilities, strategic supply partnerships and representation in 18 locations across Europe, Africa, the Middle East, Asia Pacific and North America.

For more information visit: www.tekmargroup.com

Chairman's Statement

The 2025 financial year was an important period for Tekmar as we strengthened the business and focus on delivering sustained future returns for its shareholders. 

Under the leadership of Richard Turner as CEO, who joined in September 2024, the business has been aligned to deliver Project Aurora - our value creation strategy. The ambition we have for Tekmar is strong and the commercial traction we have now established, evidenced by our growing, more diversified and high-quality order book, demonstrates that the Tekmar team is delivering positive results. 

After a challenging first half in 2025, the financial performance in the second half of the year was significantly stronger and reflected the business' success in converting the healthy pipeline into orderbook and then orderbook into revenue. This positive momentum has continued into the new financial year with a current order book¹ of £40m+, the highest reported since Tekmar's admission to AIM in 2018. This gives us greater and improving revenue visibility over the next 12-24 months and a stronger platform to build on.  There is still a lot we can do, and are doing, to scale the business but, as a Board, we are greatly encouraged by the tangible progress the business is making.  This underpins the Board's confidence in a positive outlook for Tekmar.

We have a clear strategy to deliver value for shareholders and the team is in place to deliver the plan

Our organic growth plan remains to deliver strong financial results by leveraging our leading position in growing end markets and to utilise our exceptional asset base more fully. Importantly, we can drive significant growth with our current resources, amplifying the benefits of our operational gearing.

Our organic growth is augmented by our strategic investment strategy. We continue to assess new opportunities to add further scale and strengthen our offering. This is a balanced strategy that provides the Group multiple ways to accelerate shareholder value creation.  

As we execute on these plans, we are benefitting from the direction and support provided by our Board. The Board was substantially refreshed in the summer of 2024, with the appointments of Lars Bondo Krogsgaard and David Kemp as Non-Executive Directors. The Board members bring deep and highly relevant experience reflecting their diverse backgrounds in growing large, international businesses and creating value for investors.

In August 2025, we announced the appointment of Phil Lanigan as Chief Financial Officer. Phil brings a strong track record as a public and private market CFO and a wealth of experience in business transformation and integration, growth and M&A. With Phil's appointment the senior leadership team is in place to deliver on the medium-term value creation strategy.

Tekmar's highly differentiated market position is created by its expertise and the capability of its people

Tekmar plays a vital role in protecting critical assets and infrastructure in harsh marine environments. Our know-how and industry expertise are hard-earned and our technology is without equal in the industry - and highly valued by our customers. Our track record in offshore wind highlights this pedigree with our technologies protecting more than 50 GW of offshore wind capacity across over 120 projects worldwide. Similarly in Oil & Gas and Marine Infrastructure, our technology is deployed globally to ensure assets are able to operate reliably in complex and dynamic situations for the duration of their design life.

Our team is our greatest asset and brings unrivalled experience and expertise to provide innovative, high-quality solutions that support the success of clients' complex projects. They demonstrate this excellence consistently and this underpins the Group's reputation for technology leadership.

Their commitment to doing business the right way is also reflected in our safety record. We operate at world class Health, Safety & Environment levels. This not only protects our people, it supports operational effectiveness and exemplary customer service - it is our licence to operate and an important representation of our culture. On behalf of the Board, I would like to express our thanks to all Tekmar colleagues for their sustained efforts throughout 2025.

As a Board, we believe the successful execution of Project Aurora will build a differentiated, diverse and profitable technology business with the attributes that are valued by investors, customers and our people alike.

The Group is now well-positioned to capture the opportunity presented by the favourable prevailing demand across our end markets.  We have a strengthening order book and an unprecedented sales opportunity pipeline, centred around our own core IP, and a balanced strategy to capitalise on the growth opportunities ahead. This gives the Board confidence that we will continue to grow progressively and deliver increasing shareholder value.

Our commitment as a Board remains to be careful stewards of the business, to drive solid financial decisions that promote the best interests of Tekmar's people, shareholders and broader stakeholders as we build our path towards longer-term success.

Thank you.

Steve Lockard

Chairman

1. Current order book is defined as revenue to be recognised from executed contracts and purchase orders post 1 October 2025

CEO Review

Overview - an improved H2 25 performance and record order book

In FY25, the Group delivered revenue of £28.7m (FY24: £32.8m) and Adjusted EBITDA² of £0.1m (FY24: £1.7m). This was in line with market expectations and showed a material improvement in second half profitability.  FY25 was my first year as CEO of Tekmar following my appointment in September 2024. It has been a productive year as we have reorganised the business as well as launching and starting to execute on Project Aurora - our value creation strategy.

In early December 2025, we provided a market update on Project Aurora. In the update, we highlighted positive business momentum including a leaner and more focussed organisation structure, improvements to the balance sheet and the increasing pipeline of opportunities that had yielded £43m of new orders secured since 1 July 2025. This positive momentum has continued into the first half of FY26 with further significant contract wins with our Order Book¹ standing at £40.7m as at the date of this announcement. 

This is not only a record level for the business but is also well balanced across our end markets and geographies. The business is in a much better position than it was a year ago. We are in a good position to continue to deliver sustained progress and results in FY26 and beyond.

Significant progress on Project Aurora

In December 2024, three months after I joined Tekmar, and following a review of the business at all levels, we set out the Project Aurora strategic plan. In this framework we identified three "pillars" of strategic initiatives; Scaling the Business, Operational Excellence and Strategic Investment - the delivery of which will result in a significantly larger, more diversified and more resilient business.

We are very encouraged by the progress we are making on these key elements of the plan:

Scaling the business

Growing orderbook and longer-term visibility

In H1 25 order volumes were low which translated to revenue of £12.3m and an Adjusted EBITDA loss of £0.7m. Following the launch of Project Aurora, we reorganised and refocused the front end of our business and implemented the first steps of our sales growth plan. We saw the benefit of our improved commercial effectiveness progressively throughout the year, with the increasing order intake supporting revenue of £16.5m and Adjusted EBITDA of £0.8m for the second half.

Since 1 July 2025, Tekmar has secured new orders of £43m supporting an order book as at the date of this release of £40.7m. This is 116% per cent higher than the equivalent period one year ago. These orders support significantly improved revenue visibility with approximately £26m of revenue already secured for FY26 and £15m for subsequent years. This is a fundamentally stronger position for the business. 

Key markets - a balanced portfolio 

Tekmar is a technology leader in three primary global markets; Offshore Wind, Oil & Gas and Marine Infrastructure

The significant number of contract awards since the start of July 2025 demonstrate that the strategy to drive balanced growth across end markets and geographies is working:

Offshore Wind - Since the beginning of December 2025, we have announced three significant contract awards supporting offshore wind projects in Europe and cumulative orders value in that period in excess of £20m. These contracts see Tekmar partnering with leading EPC customers and reinforce our position as the market leader in subsea asset protection, with our technologies protecting two thirds of the world's installed offshore wind capacity. The scope of these contracts includes Front End Engineering and Design (FEED) and supply of our latest Cable Protection System (CPS) technology. These are typically multi-year contracts and our bidding success provides increasing revenue visibility for the Group over the next two to three years.

Oil & Gas - Since the start of July 2025, the Group has received contract awards with a cumulative value in excess of £42m, of which c.£22m are for Oil & Gas customers. This includes a US$10m contract to provide CPS technology for a major offshore energy project in the United Arab Emirates. This was followed by a €3.5m contract in November 2025 with a leading global oilfield services provider. These contracts evidence our successful focus on broadening our commercial activity in this very active region. We also delivered a £2m+ contract in the Middle East announced in July 2025 to supply engineered subsea structures for a new pipeline project. This highlights the significant quick turnround work that Tekmar has the capacity to deliver. Furthermore, through our Offshore Energy Services division we have been very successful in securing repeat business for our offshore grouting services, both during new foundation installation but also in the Inspection Maintenance and Repair (IMR) market where we have supported multiple pipeline rectification projects deploying Tekmar's in-house remediation design and deployment technology. 

Marine Infrastructure - In October 2025, Tekmar announced a $1.5m contract award for the provision of bespoke engineered scour protection and specialised deployment equipment for a new port development. This was followed by a further contract award of a similar size to supply engineered scour protection solutions for a major port infrastructure development in the Middle East.  Marine Infrastructure including ports & harbours and flood defence represents a significant growth opportunity for the Group, extending its asset protection expertise beyond offshore energy into wider marine infrastructure applications.  We anticipate further success in this growing market segment.

Being able to deliver this breadth of protection technology and complementary services sets us apart in the market and puts us ahead of the competition in being able to support the full lifecycle of offshore energy and marine infrastructure projects.

In addition to these secured orders, we are extending and deepening our partnerships with blue-chip customers, including through framework agreements. Two key frameworks were announced in 2025, one with Jan De Nul in October 2025, supporting TenneT's 2GW Program in Germany, and one with Nexans, announced in February 2025. These multi-year agreements reflect our standing in the market and our commitment to providing innovative, high-quality solutions that support the success of our partners' projects.

Product Development

As pioneers and technical leaders, we are constantly learning, challenging and pushing the boundaries to find solutions to tomorrow's challenges.  Our technology roadmap is built on several key principles:

·    Evolving design methods, principles and testing practice to meet industry needs

·    Incremental developments to our core asset protection technology products and services

·    Incorporation of digital condition monitoring solutions into our asset protection technology

·    Development of sustainable, ecological solutions that reduce CO2 footprint and reduce impact on marine life

·    Diversification of core capabilities into adjacent sectors such as subsea energy infrastructure defence

·   We also collaborate with Industry stakeholders at all levels, and are active members of several Joint Industry Programs (JIPs) aimed at driving technological advancements to reduce LCOE

Growth financing

Tekmar has an improving balance sheet which supports the delivery of the objectives through Project Aurora.  During 2025 Tekmar renewed its £4m trade loan facility with Barclays, which is 80% backed by UK Export Finance. Tekmar also established a new amortising £2m three-year term loan with the British Business Bank, which replaced the £3m CBILs loan which was repaid in October 2025. Together these facilities provide flexible support for ongoing working capital.

Going forward, the balance sheet provides further opportunity to support growth. The growing backlog provides an improved level of revenue visibility for the next 12 to 24 months supporting Tekmar's ability to secure competitive financing options. The disciplined approach to costs and cash management also continues to support an improving balance sheet.

Operational Excellence

Greater volume translating into greater profitability

Tekmar is very well equipped to deliver significantly higher volumes than it has produced in recent years. Operationally we are able to more than treble our output without the need for significant expansionary capex. The aggregated demand from our primary markets is increasing and our sales growth initiatives gives us multiple routes to outperform this growth in market demand. This means that our utilisation will steadily increase giving us a significant gearing effect in our P&L.

We saw this effect very clearly in FY25, where in the first half, due to lower levels of volume we incurred a loss of £0.7m Adjusted EBITDA. In the second half of the year, utilisation increased progressively and our revenue with it. We maintained a disciplined commercial approach throughout the period and this helped deliver a gross profit margin of 34%, ahead of the prior year's 32% and H2 25 Adjusted EBITDA of £0.8m. 

We also kept tight controls on overhead costs although the impact of the lower volumes and revenue in the first half limited the level of Adjusted EBITDA we were able to deliver for the full year.

A simpler, more streamlined business

Our changes to our organisational design give us greater accountability on sales and operational effectiveness and are allowing us to both secure sustainably higher volumes of good quality work, but also to deliver it on time and on budget.

Reflecting the core capabilities of the Tekmar Group, we have reorganised the business across two scalable value streams:

Asset Protection Technology: this includes our end-to-end engineering and analysis capability, from feasibility, through to installation, commissioning and operations, augmented with our advanced technology in polymer and hybrid-concrete protection systems. These capabilities have been the primary profit generators for Tekmar historically and we expect this revenue stream to continue to grow as we deliver the organic growth potential of the Group under Project Aurora.

Offshore Energy Services: this includes our grouting and offshore equipment rental services, where we have an established fleet of assets. Although a smaller proportion of Group revenue today, we see the opportunity for revenues to increase to be a significant proportion of Group revenue - we are targeting 25% over the time horizon of Project Aurora. Demand for these services is increasing, and this market segment provides the opportunity to access recurring revenue streams as well as exposure to the large and predictable IMR market within offshore energy.

We are aligning our resources with these revenue streams to drive order intake and deliver revenue. Our strategic investment roadmap is also aligned and complementary to this structure.

Significant progress in resolving legacy warranty claims

During FY25, we announced commercial settlement agreements with two customers concerning legacy defect notifications relating to the industry-wide issue regarding abrasion of legacy cable protection systems installed at offshore windfarms. Tekmar agreed settlement terms with both customers with no admission of liability and no conclusion of defect with the Company's products and were fully covered by the insurance monies already received by Tekmar with nil net cash impact for Tekmar. Discussions remain ongoing to close out the final legacy defect notifications.

Strategic Investment

Continuing to actively assess and progress accretive investment opportunities

We continue to work hard on our strategic investment strategy which is based on accelerating scale and strengthening our offering through a logical broadening of the portfolio via expansionary Capex or M&A.

There is an active acquisition pipeline in place with discussions ongoing with selected targets. The Board continues to adopt a disciplined approach to assessing acquisition opportunities to ensure value for shareholders.  We are also developing a number of business cases for growth investment in additional asset capacity in Offshore Energy Services as well as targeted R&D in AI/digitalisation and cable system defence.

Current trading and outlook

The Board is encouraged by the positive momentum carried forward from H2 25 and the strong start to the current financial year, with a current order backlog of £40.7m, including £26m scheduled for delivery in FY26. This represents a marked improvement in revenue visibility as the strategic initiatives begin to deliver tangible results. The Board expects H1 26 performance to be ahead of H1 25 and full year performance to be in line with current market forecasts, reflecting a significant year-on-year improvement in performance.

Tekmar operates in markets underpinned by clear long-term structural growth drivers and the Group remains confident in its strategy to capture the opportunities available. The Board believes the Group is well-positioned to outperform these growing markets and to deliver sustainable growth, increasing shareholder value.

The Board believes the successful execution of Project Aurora will build a differentiated, diverse and profitable technology business with the attributes valued by investors, customers and colleagues alike.

Richard Turner

Chief Executive Officer

9 March 2026

2. Adjusted EBITDA is a key metric used by the Directors. '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 Group Results section of this report. Adjusted EBITDA might not be comparable to other companies.

CFO Review

For the year ended 30 September 2025

3. Adjusted EBITDA is a key metric used the Directors. '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 Group Results section of this report. Adjusted EBITDA might not be comparable to other companies.

For the year ended 30 September 2025, the Group reported revenue of £28.7m (FY24 £32.8m). The shortfall in revenue on FY24 reflects a period of lower volume that commenced in second half of FY24 with recovery commencing in the second half of FY25. Revenue in second half of FY25 was £16.5m which was up 33% on the first six months. The increase in revenue fed through to an Adjusted EBITDA of £0.8m H2 25 compared to reported Adjusted EBITDA loss of £0.7m in H1 25.

The Adjusted EBITDA for the full year of £0.1m (FY24 £1.7m) was offset by exceptional costs of £1.8m (FY24 £2.4m), depreciation and amortisation charges of £1.8m (FY24 £3.2m) and net finance costs of £0.7m (FY24 £0.7m). The Group's loss before tax from continuing operations was £4.2m (FY24 £4.5m).

Whilst revenue was lower than prior year, the Group's improved contracting policies, project execution and strategic supply chain initiatives helped margins to improve. Gross margin in the year was 34.2% an increase of 2.2% on prior year.

The Group has been restructured in the year into Asset Protection Technology and Offshore Energy Services to better align products and services with markets to generate synergies in revenue and deliver cost savings.

Revenues in Asset Protection Technology were down 15.2% on FY24 at £26.5m. These revenues delivered an Adjusted EBITDA of £1.8m (FY24 £4.6m). Gross margins showed an improvement on prior year of 35.1% (34.2%). The division recorded an operating loss of £0.4m (FY24 loss £0.3m).

Within Asset Protection Technology £17.6m (FY24 £17.1m) of revenue was derived from Offshore Wind and Renewables reflecting the Group's heritage in this market. The other major sector served by the division is Oil & Gas and revenues in FY25 were £8.4m (FY24 £14.5m) primarily from the Middle East.

Marine Infrastructure represent the major proportion of the remaining revenue with Tekmar supporting ports & harbours projects. This market represents a potential growth opportunity for the Group in future years.

Revenues in Offshore Energy Services increased to £2.2m (FY24 £1.5m), an increase of 46%, primarily driven by offshore grouting services. The division recorded an Adjusted EBITDA of £0.3m (FY24 loss £0.3m) as the business became more established and customers' increasing confidence in the business delivered a more consistent flow of work.

Operating expenses

Operating expenses for the 12-month period to 30 September 2025 were £13.5m compared to £14.4m for the previous year.

As part of Project Aurora, the Group has sought to balance the requirement to cut costs with the need to invest in the right areas. We have invested in our people supporting them with cost of living pay rises and improvements in pension contributions, in addition to the higher employer national insurance contributions. We have invested in management resource in FY25 in the Middle East to support our growth aspirations in this region.

The implementation of our new ERP system, SAGE Intacct, commenced last year and went live this year. The system provides a platform for the Group to centralise functions improving cost efficiency which commenced in FY25.

FY24 included a goodwill impairment charge of £1.5m relating to offshore energy CGU within Asset Protection Technology division, there is no requirement for further impairment in FY25.

Adjusted EBITDA

Adjusted EBITDA is a primary measure used by management to monitor and provide a consistent measure of trading performance from one period to the next.  The adjustments to EBITDA remove material items of a one-off nature or of such significance that they are considered relevant to the user of the financial statements as it represents a useful measure that is reflective of the comparable performance of the business.

The below table shows the adjustments that have been made to calculate Adjusted EBITDA in the year ended 30 September 2025. 

The one-off costs treated as exceptional in FY25 were restructuring £0.9m (£0.2m), these costs included the departure of former CEO and CFO, and recruitment costs for replacements. The other exceptional cost included £0.5m (FY24 £0.5m) further provision against unpaid invoices from China plus professional fees supporting recovery of those old invoices to be paid and payable, warranty provision costs £0.2m (FY24 £0.7m), share based payments £0.2m (FY24 £0.2m) and IT costs relating to new ERP system £0.1m (FY24 £0.2m). FY24 exceptional costs included FX losses of £0.6m.

73% (FY24 82%) of the Group's projects and revenue is derived from sales outside of the United Kingdom and, as a result, the Group has exposure to fluctuations in foreign currency rates.

The Group mitigates exposure to fluctuations in foreign exchange rates by the use of derivatives, mainly forward currency contracts and options. At the year end the Group held forward currency contracts to mitigate the risk of receivables balances for both Euros and Dollars. At the year end the Group had a derivative liability of £0.1m (FY24 asset of £0.3m).

On certain overseas projects the Group can, in some cases, create a natural hedge by matching the currency of the supply chain to the contracting currency, this helps to mitigate the Group's exposure to foreign currency fluctuations.

The Group uses derivatives to assist in managing its FX exposures and these helped mitigate the Group's FX risk. The Group's net loss from FX in FY25 was minimal (FY24 £0.6m).

The Group's financing costs were £0.7m (FY24: £0.7m) with reduction in UK interest rates and lower utilisation of the Trade Loan. The average draw down in FY25 was £2.5m (FY24 £3.1m) reducing the Group's bank interest charges. Financing costs include £0.1m (FY24 £Nil) relating to the unwind of discount applied to provisions within long term liabilities.

The tax credit for the year is £0.2m (FY24 charge £0.6m). The tax credit in FY25 is due to reversal of timing differences and a small taxation charge on profits earned overseas. The FY24 tax charge includes an adjustment in respect of prior years.

The result for the period is a loss of £3.9m (FY24: £6.6m). The loss in FY24 contains losses of £1.3m from Subsea Innovation Limited, a business sold in FY24 and treated as discontinued operations.

Balance Sheet

A summary balance sheet is presented below:

Trade and other receivables are down £6.1m from 30 September 2024. Included within Trade and other receivables on 30 September 2024 was a £5.2m Warranty Insurance Debtor. These monies were received in the financial year and a significant proportion paid out as settlement on warranty issues without admission of liability.

At 30^th September 2025, the Group holds a debt of £1.1m outside of standard credit terms with a customer in China, following recoveries of £1m+ in FY25. Prior to FY24, the Group had recovered 100% of receivable balances and no credit losses have previously been accounted for. In FY24, the Group made a credit loss provision in line with IFRS9 of £0.5m in relation to a specific historic debt in China. This has been increased by £0.5m in FY25 which includes fees incurred in supporting the recovery of monies totalling approximately £1.5m. The loss provision covers all amounts not party to the formal recovery agreement with the Chinese customer.

The Group continues to operate in global markets where payment practices surrounding large contracts can be different to those within Europe. The flow of funds on large capital projects within China tend to move only when the windfarm developer approves the completion of the project. The Group has a number of trade receivable balances, within its subsidiary based in China, which have been past due for more than 1 year. Following receipt of £1.1m over the past year, the value of the overdue trade receivables had reduced to £1.1m (FY24 £2.0m), of a total outstanding trade receivable balance for the entity of £1.2m (FY24 £2.2m). These amounts are not in dispute from the customer, however given the range of possible outcomes and duration of the outstanding debt, the Group has increased the expected credit loss provision in relation to the outstanding China debt by £0.2m to £0.7m. Further details can be found in note 16 of the Annual Report.

Included within other current liabilities is a provision of £2.0m (FY24 £5.1m) and non-current liabilities a provision of £nil (FY24 £0.7m). The provision covers the warranty matters outlined in note 20 of the Annual Report.

The gross cash balance at 30 September 2025 was £3.4m with net debt (gross cash less bank facilities) of £2.9m. The Group's cash position at year end includes £1.1m received from Insurers for settlement of warranty claims and its use is restricted.

The Group repaid its CBILs facility of £3.0m in full on 30 October 2025 and replaced it with a GGS Loan of £2.0m. The GGS loan is repayable at quarterly intervals over 3 years. The UKEF backed trade loan facility of £4.0m remains available to Tekmar, with the next annual review date with Barclays Bank being in June 2026. These facilities continue to support the working capital requirements of the Group in delivering the projects the Group undertakes. The expected continued renewal of the banking facilities forms part of the Directors going concern assumptions which are set out in Note 2b below.

Of the £4.0m trade loan facility available, £2.8m was drawn against supplier payments at the year end and is repayable within 90 days of drawdown. The FY24 comparative is £3.2m. The change in the value borrowed is dependent on the timing of the loan drawdowns and the Group's immediate funding requirements. The trade loan facility balance and the CBILS loan of £3.0m are reported within current liabilities as both are fully repayable within 12 months of the balance sheet date.

Cashflow

The Group experienced a net outflow of cash in the year of £1.2m (FY24 outflow £0.3m).

The net cash outflow from operating activities was £1.3m (FY24 £0.5m) with lower Adjusted EBITDA of £0.1m (FY24 £1.7m) being offset by significant one-off costs including restructuring costs and further credit provision against old Chinese receivables.

There was no real net movement on Working Capital in the year with the recovery of £1.1m of old Trade Receivables in China helping to offset other working capital movements.

The net cash inflow from investing activities was £1.09m (FY24 outflow £1.96m). £1.74m was deferred consideration received from sale of Subsea Innovation.

Net cash outflows from financing activities of £1.29m (FY24 £1.61m). The decrease is primarily due to lower interest costs of £0.52m (FY24 £0.79m) arising from reduction in UK interest rates and lower average utilisation of the Trade Loan compared to FY24. The average drawdown on the Trade Loan in FY25 was £2.5m (FY24 £3.2m).

Effective cash management remains a priority for management to ensure that the growth opportunities available to the Group can be supported from its existing resources as the business scales.

Post Balance Sheet Events

On 30 October 2025, the CBILS facility of £3.0m was repaid in full. On 30 October 2025, the Group entered into a new £2m GGS loan which was drawn down in full. The GGS loan is repayable at quarterly intervals over 3 years.

On 27 February 2026, the Group legally completed the sale of Innovation House and adjacent land. The property was held in the accounts as an "asset held for resale" at a value of £2.84m. The net proceeds, after deduction of selling expenses, are estimated to be £2.84m. 

Summary

The business has had a challenging twelve months but has emerged in a stronger position, better positioned to succeed in the future. Further progress has been made in dealing with past issues, including non-core operations, legacy warranty issues and old China debtors.

The improved performance in H2 25 provides an indicator of what the business can deliver with an improving orderbook which converts into profitable revenues. 

The recent contract wins and agreement to sell the Investment property represent a good start to FY26 building upon the foundations laid over the past year.

Philip Lanigan

Chief Financial Officer

9 March 2026