Tekmar Group PLC (LON:TGP) have seen their shares plummet as the firm told the market that they are set to miss expectations.
The firm said that financial 2020 earnings will miss market and analyst expectations, but should remain in line with results posted one year ago.
Tekmar alluded to the current coronavirus crisis as the main factor which led to the poor performance outlined today.
We have had news of the coronavirus spreading around the globe for a few weeks now – and Tekmar are not the only business that have been affected by the outbreak.
The coronavirus has had disastrous effects on not just businesses, but also stock indices and general welfare of people.
A few weeks on from the initial outbreak, it seems that the situation is now being controlled. However UK Health Secretary Matt Hancock did warn that the coronavirus or COVID-19 could be around for months.
Tekmar reported a pretax profit of £2 million, with revenue of £28.1 million.
The firm alluded to mandatory business operational closures and suspensions which hampered business. Additionally, travel restrictions played a part in bruising the firms’ performance.
Tekmar added that the company had decided to officially shut down its Shanghai Office, notably this office serves the Asia Pacific region.
Alasdair MacDonald, Chairman of Tekmar Group, said: “The disruption caused by the outbreak of the coronavirus on the Group’s activities and performance has been unpredictable and rapid, impacting the Group materially in our crucial, heavily weighted Q4 period. With the situation in China and the surrounding APAC countries evolving, we are not yet able to evaluate the full impact of the virus on FY21 and will provide further updates as necessary.”
Tekmar’s fortune falls short
In December, the firm reported that it had seen a positive start to its financial year.
The Group’s posted a ‘Record Order Book’ of £15.9 million, which was up 23.26% year-on-year for the same period.
Its headline status was earned, however, with its fundamentals. Its revenues widened from £7.1 million to £17.1 million on-year for the six month period, while its EBITDA swung from a £0.8 million loss, to a £2.0 million profit.
Tekmar Group continued and said that the long term global outlook for its key markets was improving, with forecasts fro future wind generation up 43.5% year-on-year. The Group also stated that it remains debt-free, with a positive cash balance of £3.9 million.
Namaka also hit by the coronavirus
Tekmar joined Namaka (LON:NAK in alluding to the coronavirus as the main factor which led to poor results.
The recruitment firm said that trading to the end of March has met expectations, however the final quarter presented challenges.
Namaka said that revenue was bruised by the outbreak of coronavirus in both Hong Kong and Singapore, as local businesses look to delay new hiring until the virus assessment has been fully completed.
The firm said: “The impact of Coronavirus on revenues for both Hong Kong and Singapore have been immediately felt. As a result of the curbs on movement of people imposed by regional governments, firms are currently choosing to delay, in some cases indefinitely, the start dates of new hires until the full impact of the virus has been determined, directly impacting revenue recognition for the Group.”
The coronavirus is now seemingly under control – and there will be a hope that business operating particularly in China can bounce back from the troubles seen in the last few weeks.
Shares in Tekmar Group trade at 112p (-27.18%). 18/2/20 11:48BST.
