Offshore cabling group Tekmar has hailed a "big step forward" having secured £22m investment to support its future.
Last month the North East firm indicated it would raise up to £25m through a shares subscription, placing and retail offer, and £18m of convertible loan notes - including commitments from US-based private equity firm SCF Partners. The move follows the launch of a 'strategic review' last year in which Tekmar appointed North East advisors Bamburgh Capital and effectively put itself up for sale.
The £30m turnover business - which specialises in systems that protect the subsea cables that connect offshore wind farms - has been loss making in recent years owing to challenges posed by the pandemic, cost pressures and inefficiencies driven by lower volumes, supply chain and logistics challenges. Speaking to BusinessLive, Tekmar CEO Alasdair MacDonald said the investment would mainly be used to support growth but that a small proportion - previously indicated as £5m - would be used as working capital.
