North East subsea engineering specialist Tekmar Group plans to raise £4m from a share placing and has reported a pre-tax loss of £5.8m ahead of what it sees as a "transition year" for the business.
The Darlington headquartered group said it will place 8,900,000 ordinary shares at a price of 45p each in a bid to raise the funds to support new contracts, invest in operational efficiency improvements, support research and development and strengthen its balance sheet.
In a results update to investors covering the 18 months to the end of September 2021, the group said challenges posed by the pandemic had caused cost pressures and inefficiencies driven by lower volumes, supply chain and logistics challenges.
