REG - GETECH Group plc - Interim Results
28/09/2022 07:00
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RNS Number : 9108A GETECH Group plc 28 September 2022
28 September 2022
Getech Group plc
("Getech" or the "Company")
Interim report for the six months ended 30 June 2022
Getech (AIM: GTC), the geoenergy and green hydrogen company, announces its
unaudited interim results and report for the six months to 30 June 2022 ("H1
2022" or the "Period").
Financial highlights
· Demand for Getech products and services continues to accelerate
and diversify - revenue up 11% year-on-year to £2.7 million (H1 2021: £2.4
million).
· Record orderbook value of £4.8 million, a 118% increase
year-on-year (30 June 2021: £2.2 million) and 45% increase since the end of
2021 (31 December 2021: £3.3 million).
· Strong visibility in revenue generation, with £1.5 million of
the orderbook expected to convert in H2 2022, and a further £1.6 million due
in FY 2023.
· Gross profit margin of 63% (H1 2021: 59%) driven by increased
product revenue.
· Robust cash position of £4.3 million at 30 June 2022 (31
December 2021: £5.9 million), plus £2.4 million of receivables invoiced post
Period-end for payment in H2.
Corporate and operational highlights
· Continued implementation of 'locate, develop, operate' business
model, using foundation products and services to grow revenue and unlock
transformational asset investment opportunities.
· Investment to grow products and services rewarded with
multi-million-pound contracts and diversification across transitional
petroleum, critical minerals, geothermal, carbon storage.
· Green hydrogen developments advancing at pace - with expansion in
tangibility, scale and scope:
· Completion of engineering and commercial feasibility studies for both
Shoreham and Inverness, resulting in extension of the Shoreham Green Energy
Port exclusivity for five years (through to first production and beyond),
groundworks at Inverness SGN gasholder site, and progress towards concluding
terms on a multi-hub Joint Venture Agreement with The Highland Council.
· Phase 1 hydrogen production design capacity of Shoreham and Inverness
increased to 2.5 tonnes/day (6 MW) in response to strong indicators of initial
hydrogen demand - with c.5 tonnes/day of potential identified and targeted for
production start-ups in 2025.
· Owned and operated wind and solar generation assets added to the
development plan of the Shoreham and Inverness green energy hubs, expanding
the revenue generation potential and reducing the cost of hydrogen production.
· The hydrogen project pipeline now totals c.240 MW of production
capacity.
Current trading and outlook
· The macro-economic environment continues to drive robust demand
for Getech's products and services, demonstrated by further revenue and
orderbook momentum into H2 2022, with additional Globe contracts closed.
· Asset development pipeline is expanding into the geothermal and
critical minerals sectors.
Dr Jonathan Copus, Getech CEO commented:
"With global energy investment forecast to rise to $2.4 trillion 1 (#_ftn1)
in 2022, driven mainly by the accelerating need for clean and secure energy,
Getech continues to see escalating and widening demand for our
industry-leading geoscience data and proprietary geospatial software. This is
evidenced by sustained increases in revenue and rapid orderbook growth - both
of which have continued to grow post Period end. Inclusive of investment to
extend the reach of our foundation products and services, they generated an H1
2022 cash profit. This underscores the strength of our foundation business,
which also benefits from US dollar strength.
Against a backdrop of increasing global investment in green hydrogen and
recognition of its critical role in energy security, we are making strong
progress with our development projects at Shoreham and Inverness. When in
operation, Inverness will be the first regional green hydrogen network in the
UK and Shoreham a vital local green economic hub in the South of England. Both
projects have the potential to demonstrate the suitability of green hydrogen
as a decarbonisation solution and provide a framework for future scalability
and repeatability across the UK and internationally.
With a clear business model of locating, developing and operating geoenergy
and green hydrogen projects, a unique foundation offering and a strong team,
Getech is well positioned to drive growth through the acceleration in energy
investment."
Investor Meet Company presentation
The Company will hold an investor call on Wednesday 5 October at 11.00am BST
to discuss the interim results. Investors can sign up to Investor Meet Company
for free and add to meet Getech via:
https://www.investormeetcompany.com/investor/company/getech-group-plc
(https://www.investormeetcompany.com/investor/company/getech-group-plc) .
Investors who already follow Getech on the Investor Meet Company platform will
automatically be invited. Questions can be submitted pre-event via your
Investor Meet Company dashboard up until 9am the day before the meeting or at
any time during the live presentation.
For further information, please contact:
Getech Group plc Tel: 0113 322 2200
Dr Jonathan Copus, Chief Executive
Cenkos Securities plc
Neil McDonald / Pete Lynch (Corporate Finance)
Michael Johnson / Dale Bellis (Sales) Tel: 0207 397 8900
Camarco Tel: 020 3781 8331
James Crothers / Toby Strong / Charles Dingwall
Notes to editors:
Getech Group plc (AIM: GTC) applies its world-leading geoscience data and
unique geospatial software products to accelerate the energy transition by
locating, developing and operating geoenergy and green hydrogen projects.
For further information, please visit www.getech.com (http://www.getech.com) .
Chairman and CEO review
The global energy transition offers new business opportunities that are
reliant on a diverse range of solutions. These are often 'local' in nature and
the success of their deployment requires technical, spatial and economic
analysis of energy sources, customer needs and infrastructure options.
Therefore, Getech is well positioned to address these requirements.
In H1 2022 our customers used our market-leading data, software and services
to locate and develop new sources of energy, new deposits of critical
minerals, and sites for the secure storage of CO(2). As a result of our unique
industry position with involvement across energy sectors, Getech can
collaborate with companies and governments at each step of their energy
transition journey to bring diversified yet integrated, low-carbon solutions.
Employing Getech's 'locate, develop, operate' business model, we are also
establishing our own scalable portfolio of low carbon assets to transform the
Company's value proposition.
Unique technology, data and expertise to accelerate the energy transition
Unprecedented energy market volatility, the cost of climate change and threats
to energy security highlight the need for a sustainable, secure, and
accelerated path to decarbonisation. A diversified and resilient energy system
is required to deliver this and in 2022 governments have announced bold policy
action alongside significant infrastructure and innovation investment
programmes.
Getech set out a plan in H1 2021 to target the rapidly expanding market for
energy transition solutions. By investing to extend the application of our
geoscience and geospatial petroleum products and services into the critical
minerals, geothermal, green hydrogen and carbon storage sectors we have since
grown our orderbook to a record high, and H1 2022 revenue increased by 11%
year-on-year.
Getech products and services are routinely used to locate and develop natural
resource assets of very significant value. This allows us to demonstrate our
expertise and build new strategic partnerships. Through these partnerships we
are successfully accessing low carbon asset participation opportunities. These
opportunities further transform the value proposition of our business model,
having the potential to deliver a step-change in Getech's value creation and
revenue generation. Our ambition is to establish at least 500MW of new
geoenergy and green hydrogen assets by 2030.
Developing assets to achieve scale
Our asset development strategy is based on employing Getech data and analytics
to identify and value operational locations where there is a clear and
compelling decarbonisation pathway. By combining spatial analytics with our
data, economic and technical expertise, we can rapidly assess the cost
competitiveness and commercial viability of a site versus other locations.
Having identified potential, we mature opportunities using a rigorous
phase-gate processes. We have redeployed this from the petroleum industry, and
we are applying it to clean energy solutions using our decades of energy
industry experience.
The process strengthens our resource allocation decisions and is familiar to
strategic and financial investment partners. This aids their understanding of
Getech projects and accelerates engagement.
Green hydrogen
Our first asset developments are in green hydrogen and our aim is to provide
this clean energy source to customers at an acceptable price, in the location,
volume and at the time they need it. We are working to establish networks of
hubs, where green hydrogen (which uses renewable energy to separate oxygen and
hydrogen atoms from water) is produced, stored, and supplied.
Where practical, we intend to develop renewable energy generation assets
alongside our hydrogen production. The associated increase in capital scale is
offset by the diversification of low-carbon revenue streams (spilling surplus
power to the grid) whilst lowering the principal operational expense of
hydrogen production and reducing merchant power price volatility. This
produces an overall more robust, larger scale investment opportunity with
improved returns and reduced risk.
In H1 2022 our green hydrogen hub projects at Shoreham and Inverness reached
an important stage in their development, passing fundamental commercial and
operational milestones that confirm feasibility and a robust foundation of
hydrogen demand (covered in the operational review below). Given the scale of
potential demand we are seeing, the site capacities have both been increased
to a Phase 1 target production capacity of 2.5 tonnes/day (6 MW) and peak site
capacities of 10 tonnes/day (25 MW each).
This is against a backdrop of intensifying government energy investment and
policy actions in 2021, including the $369 billion US Clean Energy Bill and
coordinated cross-border initiatives such as REPowerEU(( 2 (#_ftn2) )). The
European Commission has also just announced a €3 billion investment fund to
help build the hydrogen economy.
Outlook
With a clear business model, a unique foundation offering and a strong team,
Getech is well positioned to drive growth at this unique time when governments
and companies are working to transform global primary energy sources and
delivery systems.
In support of this, we continue to invest in our team, with key recent
appointments demonstrating the exciting potential we see in hydrogen and
geothermal. Our broader investment in technical disciplines, business
development, marketing, communications and sales, focus on both maintaining
innovation and accelerating our growth profile. The success of these
investments is demonstrated by the record strength of our orderbook and the
progress across our asset developments.
In our 'locate' operations, revenue and orderbook momentum has continued into
H2 2022, with further Globe contracts closed. In our 'development' operations,
we see potential to rapidly expand our participation activities across our
focus sectors - building an asset portfolio of transformational scale.
With the world focused on the delivery of a sustainable and secure transition
to a low carbon future, we believe Getech's products, services and expertise
to be uniquely positioned to meet accelerating demand. As we continue to
invest in our products and services, we target sustained profitability and
growth in our foundation business. In parallel, we continue to invest in our
asset developments, which we expect to present a step-change in revenue
generation and profitability from 2025. We are excited by the opportunities
ahead to deliver transformational shareholder value.
Operating review
Locate
Widening applicability of our industry-leading geoscience data and unique
geospatial software
We continue to update our products and services to meet demand and provide
solutions with a wide range of benefits for our customers by accelerating
growth, increasing returns, making operations safer and improving efficiency.
This supports our customers in navigating decarbonisation, which involves both
low-carbon solutions, but also the transitional role of petroleum in providing
affordable, reliable and efficient energy needed for a responsible and
resilient transition.
Transitional petroleum and carbon storage
Driven by a resurgence of focus on transitional petroleum's role in
maintaining energy security and the path to net zero, Getech's work in
opportunity identification, development optimisation and operational spatial
management has been particularly strong. We have added new customers for our
Globe platform, which included a $1.1 million multi-year contract with a major
international energy company post-Period end, as well as notable new software
customers. Globe 2022 was recently released with new content and functionality
to deliver even more value for customers and application to transitional uses.
Progress on carbon storage, is demonstrated by the UK Government's North Sea
Transition Authority (NSTA) contracting Getech to deploy our proprietary
geospatial software and subsurface expertise to support its first carbon
storage licensing round. Using Getech's Exploration Analyst software, we are
working with the NSTA to create strategic maps that define optimal areas for
CO(2) storage. The opportunity to scale our participation in carbon storage is
large. In 2021, c.130 new commercial-scale CO(2) capture and storage projects
were announced, and the International Energy Agency forecasts that carbon
storage capital spending could exceed US$40bn by 2024 (from US$1.8bn in 2021).
The world however must locate and develop a further 700 carbon storage
projects at this scale by 2030 to stay on track for the IEA's 2050 Net Zero
Emission Scenario.
Critical minerals
Activities in the critical minerals sector are growing thanks to Getech's
unique product offerings and proprietary data, which enable customers to
locate and define economic concentrations of resources. The value these bring
is demonstrated by new contracts with leading mining companies in H1 2022 to
explore for sedimentary copper in Australia, iron oxide-copper-gold deposits
in South America, and other minerals in North America. With copper demand
forecast to total 25.5 million tonnes per year by 2030 versus current annual
supply of 19.1 million tonnes, this shortfall must be met with new exploration
discoveries. Our new sediment-hosted copper solutions provide an innovative
path to bridge this gap. In addition, with c.60% of world's cobalt (required
in many green technologies) mined from sedimentary hosted deposits, there is
potential for Getech to unlock a much broader front of value across a range of
critical mineral needs. Illustrative of this, in June, Getech signed a $0.9
million multi-product sale with a global diversified minerals company. This is
Getech's largest critical minerals contract to date.
Geothermal
Getech is ramping up its work in the geothermal sector, undertaking work in
Europe and North America that ranges from regional evaluation to site-specific
studies for power generation and heat distribution projects. Alongside this
client-led work, we are maturing a portfolio of potential asset investment
opportunities that leverage our proprietary Heat Seeker solution. Heat Seeker
integrates below-ground energy opportunities with above-ground demand and
offtake potential to find optimal locations for geothermal projects. With
global geothermal capacity growing at c.250MW per year, the sector is expected
to expand into a $50 billion market by 2027. We are also working to integrate
our geothermal and critical minerals activities to unlock direct lithium
extraction from geothermal brines. There is potential for Getech to make
geothermal licence applications which we can use our data and expertise to
target in the most favourable areas for heat and lithium resources.
Develop and Operate
Hydrogen will play a critical role in the decarbonisation of commercial
transport and sectors that are difficult to electrify. In H1 2022 the scale of
national and international government support for hydrogen continued to
expand, with the UK doubling and the EU quadrupling their respective supply
targets. The UK's ambition, upgraded to 10 GW of installed capacity by 2030 3
(#_ftn3) , is supported by various funding programmes and incentives, for
which our projects are eligible. The EU's demand is even greater, targeting 40
GW in 2030 with 10 million tonnes of renewable hydrogen production 4 (#_ftn4)
. In response to this escalating demand and strengthening support of green
hydrogen as a crucial element of decarbonisation, Getech accelerated its
planned expansion onto the continent by hiring of senior business development
personnel in Germany.
Developing scalable green hydrogen networks to facilitate the energy
transition
Since acquiring H2 Green in 2021, Getech has secured exclusive development
rights for green hydrogen hubs at Shoreham Port (West Sussex) and in Inverness
(Scotland). Onsite production facilities at both locations can be expanded to
25 MW of offtake capacity (10 tonnes per day of hydrogen production). In
parallel, we have grown our hydrogen opportunity pipeline to c. 240 MW, which
we are working to advance into new exclusive development opportunities.
Shoreham Green Energy Hub
The Shoreham Green Energy Hub will integrate onsite renewable energy
generation with hydrogen production, storage and dispensing. There is also
potential to significantly expand the hub's scale via the import of green
ammonia. Shoreham Port is a testbed example of a back-to-base hydrogen hub,
with over 830 heavy goods vehicle (HGV) movements in and out per day supported
by large on-site fleets of large diesel-powered forklift trucks. Assessing the
opportunity using geospatial economics, we have been able to optimise the
facility design for optimum return on investment (ROI).
Following successful engineering and commercial outcomes in H1 2022, Getech
agreed an extended exclusivity with the Port of Shoreham through to Q3 2027.
Importantly, this now secures hydrogen, renewable energy and ammonia
development rights for Getech through to first production.
Inverness Hydrogen Hub
The Inverness Hydrogen Hub will be the cornerstone of our Highlands Hydrogen
Network of production, storage, and dispensing facilities. Our bold, unique
vision of a network attracted the support of The Highland Council, resulting
in a Memorandum of Understanding with the council to accelerate the regional
deployment.
As a large, rural, and mountainous region, with a relatively cold climate, the
Highlands is proving less suitable to battery electrification for transport
and more likely to adopt hydrogen electric in a wholesale fashion. This has
encouraged us to upgrade our view on market potential to include a greater
percentage of Light Goods Vehicles (LGVs) and passenger vehicles in our
offtake assumptions.
Under continued exclusivity, Getech and The Highland Council are working
toward concluding terms of a Joint Venture Agreement. This will define how the
parties collaborate to deliver a regional hydrogen network and a conclusion to
discussions is targeted in Q4 2022.
Robust feasibility successfully completed at both hubs
Both Shoreham and Inverness will be developed in multiple phases of expansion
that will be scaled in alignment with demand growth. In H1 2022, both projects
advanced through a robust feasibility process, passing critical commercial and
operational milestones that have built tangibility, scope and scale. Details
of these steps are given below.
· Engineering - feasibility studies have been completed at both
locations. These integrate a broad range of hydrogen production, storage and
supply configurations with various on-site grid, wind and solar energy supply
systems. Following a rigorous assessment process and applying an industry
standard 50% contingency to all 'feasibility' capital cost estimates, this
work confirmed operational and commercial viability, with hydrogen priced at
or near diesel parity.
· Renewables - At Shoreham, Getech holds exclusivity for wind and solar
developments at the port. H1 2022 engineering has confirmed the site's
capacity to support 13.8 MW of onshore wind and 1.6 MW of rooftop solar. We
also confirmed grid connectivity for import and future export of renewable
power. These confirmations deliver significant value as renewable power will
protect the development from electricity price volatility and it simplifies
access to high value Renewable Transport Fuel Credits. Shoreham benefits from
the best wind speeds and hours of sunshine in the UK, and existing wind and
solar assets onsite provide demonstrable generational data to predict future
generational capacity.
Having built a wealth of renewables knowledge at Shoreham, we now intend to
explore the development of wind assets at Inverness, where wind speeds mean
renewable energy potential is strong. If executed this will expand the land
requirement at Inverness, but this will also allow development of the SGN site
to be optimised for high-volume rail customers. At this location, SGN expects
to soon conclude the removal of a redundant gas holder, readying the site for
development.
· Demand development expands Phase 1 scale - We have received strong
indicators of green hydrogen demand from potential customers at both Shoreham
and Inverness. Pledges, Letters of Intent, Expressions of Interest and
Memorandums of Understanding have been collected over both locations totalling
3 tonnes of hydrogen equivalent per day in 2025 growing to 5.5 tonnes per day
in 2030. A further 2 tonnes of qualified near-term demand potential has been
identified across Shoreham and Inverness. The sum of Pledges, Letters of
Intent, Expressions of Interest and Memorandums of Understanding and qualified
demand across the two hubs already exceeds the Phase 1 design capacity, three
years ahead of project start-up.
Whilst we do not expect all identified volumes to convert to offtake
contracts, the strong market pull received at this early-stage drives
confidence in demand exceeding production capacity in the early stages of the
project life. The focus now lies on ensuring the project phasing can scale
quickly enough to capitalise on early market growth. This has led to expansion
of Phase 1 design capacity from 800 kg/day to 2.5 tonnes per day (c. 6 MW of
electrolyser capacity), with three subsequent phases to deliver a peak
production capacity of 10 tonnes/day (25 MW). At these scales, both projects
also qualify for UK Government Net Zero Hydrogen Fund capital expenditure
support.
· Tangibility and funding - By building Shoreham and Inverness's
tangibility, the pace of engagement with strategic and investment
counterparties has accelerated. In parallel, we have also entered several
grant funding rounds. The Shoreham Port Green Energy Hub has achieved early
success, with the Port securing £100k from the Regional Projects Business
Case Development Fund - Coast to Capital to help fund third party costs.
Next development steps
Both projects are now moving into Front End Engineering and Design (FEED) to
mature the engineering design to support Final Investment Decision (FID). In
support of this, Getech will soon appoint specialist third parties to further
advance our engineering, commercial and planning workstreams.
With FID expected to be made in H2 2023/H1 2024, first gas is anticipated in
2025. When in production, Getech will assume the role of asset operator in
return for a management fee. In preparation for this role, we embarked on
extending our ISO certifications to H2 Green in H1 2022. This underscores our
commitment to robust quality, safety and environmental practices.
Financial review
Revenue and sales
H1 2022 revenue totalled £2.7 million (H1 2021: £2.4 million), representing
a 11% increase.
Significant new contract wins in multiple sectors during H1 2022 resulted in a
record orderbook value of £4.8 million (December 2021: £3.3 million),
representing a 45% increase over six months and an 118% increase over 12
months. Encompassing products subscriptions and specialist services, our
diverse orderbook comprises customers across transitional petroleum, critical
minerals, geothermal and carbon storage markets. £1.5 million is expected to
convert to revenue before year end, with a further £1.6 million due in FY
2023.
Annualised Recurring Revenue from subscriptions and service contracts
continues to be healthy at £2.1m (31 December 2021: £2.1m). In July this
increased to £2.4m through new contract wins.
By delivering product innovations around key energy transition themes, Getech
is meeting increasing and broadening market demand, demonstrated for example
by our work with the NSTA to define optimal carbon storage areas.
The strong USD in H1 has been favourable for the sale of products and services
in US markets, which represented a significant portion of our H1 revenue.
Cost management
In April 2021, Getech completed an equity raise to fund the diversification of
the business. Since then, Getech has used the proceeds of this fundraise, and
free cash flow from our transitional petroleum operations, to invest in our
products, services, business development, marketing, communications and sales
teams to maintain innovation and accelerate our growth profile.
The Group has developed new products and services, with enhanced applicability
to decarbonisation, as well as acquiring H2 Green in 2021. In 2022, a wealth
of project management and engineering experience has been added to the
hydrogen team to drive development in this sector.
The cost of these activities is included in administrative expenses.
Variance from prior 6 months 6 months ended 30 June 2022 6 months ended 30 June 2021 12 months ended 31 December 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cost of sales 1,006 992 2,315
Development costs capitalised 459 417 847
Administrative expenses 2,895 2,032 5,033
Payment of lease liabilities - 6 -
Depreciation and amortisation charges (580) (583) (1,525)
Movement in provisions - - (88)
RDEC adjustments - (46) (127)
Exchange adjustments (31) (89) -
Cost base 37% 3,749 2,729 6,455
Profitability
Getech's H1 2022 gross profit margin is 63% (H1 2021: 59%). This is due to
increased revenues against a largely fixed cost base and a change in sales
mix, with lower royalty payments in H1 2022 compared to H1 2021.
As a result of increased administrative expenses, detailed above, Getech
reports a post-tax loss of £0.9 million (H1 2021: £0.5 million).
Operating cash flow
Net cash outflow from operations totalled £0.96 million (H1 2021: £0.6
million). This includes net working capital outflows of £0.7 million (H1
2021: £0.4 million outflow), which relates to the timing of invoicing and
trading activities during the Period.
Operating cash flows also include c.£1.1 million of costs relating to
Getech's hydrogen and geothermal asset development activities. Excluding these
asset-related costs, the operating cash inflow from Getech's foundation
business was £0.9m, before working capital adjustments. After funding
development costs capitalised (£0.5m) and property, plant and equipment (PPE)
purchases (£0.1m), the foundation business generated £0.3m of free cash
flow.
Liquidity
During H1 2021 there was overall net cash outflow of £1.6 million (H1 2021:
£4.6 million inflow, inclusive of £6.25 million fundraise). Getech's cash
balance at 30 June 2022 was £4.3m (£5.9 million at 31 December 2021).
Getech's sales invoicing cycle is weighted to H2, and a large proportion of
the Group's subscription-based customers have July renewals. This has a
significant impact on half-year working capital movements. In July and August,
Getech issued c.£2.4 million in invoices, in addition to base monthly
invoicing, with cash inflow expected during H2 2022.
Dividends
The Board, as part of the recent equity fundraise, has set a clear investment
path that is focused on growth through energy transition diversification.
Getech's Board has therefore decided that it is not appropriate to pay a
dividend at this time.
Group Statement of Comprehensive Income
for the six months ended 30 June 2022
6 months ended 30 June 2022 6 months ended 30 June 2021 12 months ended 31 December 2021
(unaudited)
(unaudited)
(audited)
£'000
£'000
£'000
Revenue 2,697 2,421 4,280
Cost of sales (1,006) (992) (2,315)
Gross profit 1,691 1,429 1,965
Other operating income - - 176
Administrative expenses (2,895) (2,032) (4,733)
Operating loss before exceptional items (1,204) (603) (2,592)
Exceptional items - - (300)
Operating loss (1,204) (603) (2,892)
Finance income 1 3 -
Finance costs (23) (34) (55)
Other gains and losses - - 60
Loss before tax (1,226) (634) (2,887)
Income tax 253 102 938
Loss for the period (973) (532) (1,949)
Other comprehensive income
Currency translation differences 66 88 24
Total comprehensive loss for the period (907) (444) (1,925)
Earnings per ordinary share
Basic (pence/share) (1.45) (1.01) (3.27)
Diluted (pence/share) (1.45) (1.01) (3.27)
Group Statement of Financial Position
as at 30 June 2022
30 June 2022 30 June 2021 31 December 2021
(unaudited)
(unaudited)
(audited)
£'000
£'000
£'000
Non-current assets
Goodwill 631 1,293 631
Intangible assets 3,409 3,557 3,431
Property, plant and equipment 2,368 2,483 2,355
Investment property 122 - 174
Deferred tax assets 218 404 214
6,748 7,737 6,805
Current assets
Trade and other receivables 2,104 2,264 1,591
Current tax recoverable 716 448 793
Cash and cash equivalents 4,262 6,769 5,864
7,082 9,481 8,248
Total assets 13,830 17,218 15,053
Current liabilities
Trade and other payables 1,913 1,949 2,127
Borrowings 113 113 110
2,026 2,062 2,237
Net current assets 5,056 7,419 6,011
Non-current liabilities
Borrowings 611 699 659
Trade and other payables 15 747 102
Deferred tax liabilities - 200 -
Long-term provisions 25 - 25
651 1,646 786
Net assets 11,153 13,510 12,030
Equity
Called up share capital 167 167 167
Share premium account 8,685 8,685 8,685
Merger reserve 2,601 2,601 2,601
Share based payment reserve 206 257 258
Currency translation reserve 64 62 (2)
Retained earnings (570) 1,738 321
Total equity 11,153 13,510 12,030
Group Statement of Changes in Equity
for the six months ended 30 June 2022
Share capital Share premium Merger reserve SBP reserve Currency translation reserve Retained earnings Total equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
1 January 2022 167 8,685 2,601 258 (2) 321 12,030
Loss for the year - - - - - (973) (973)
Other comprehensive income - - - - 66 - 66
Total comprehensive income - - - - 66 (973) (907)
Transactions with owners of the company
Share-based payment charge - - - 30 - - 30
Transfer of reserves - - - (82) - 82 -
30 June 2022 (unaudited) 167 8,685 2,601 206 64 (570) 11,153
For the six months ended 30 June 2021
Share capital Share premium Merger reserve SBP reserve Currency translation reserve Retained earnings Total equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
1 January 2021 94 3,053 2,407 251 (26) 2,270 8,049
Loss for the year - - - - - (532) (532)
Other comprehensive income - - - - 88 - 88
Total comprehensive income - - - - 88 (532) (444)
Transactions with owners of the Company
Share-based payment charge - - - 6 - - 6
Issue of share capital 73 5,632 194 - - - 5,899
30 June 2021 (unaudited) 167 8,685 2,601 257 62 1,738 13,510
For the year ended 31 December 2021
Share capital Share premium Merger reserve SBP reserve Currency translation reserve Retained earnings Total equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
1 January 2021 94 3,053 2,407 251 (26) 2,270 8,049
Loss for the year - - - - - (1,949) (1,949)
Other comprehensive income - - - - 24 - 24
Total comprehensive income - - - - 24 (1,949) (1,925)
Transactions with owners of the Company
Issue of share capital 73 6,179 194 - - - 6,446
Share-based payment charge - - - 7 - - 7
Costs of share issue deducted from share premium - (547) - - - - (547)
31 December 2021 (audited) 167 8,685 2,601 258 (2) 321 12,030
Consolidated Statement of Cash Flows
for the six months ended 30 June 2022
6 months ended 30 June 2022 6 months ended 30 June 2021 12 months ended 31 December 2021
(unaudited)
(unaudited)
(audited)
£'000
£'000
£'000
Operating activities
Loss before tax (1,226) (634) (2,887)
Adjust for non-cash items:
Fair value gains and losses - (86) (60)
Depreciation charge 101 82 299
Amortisation of intangible assets 479 501 1,226
Expected credit loss provisions - (70) -
Share-based payment charge 30 6 7
Finance income (1) (3) -
Finance costs 23 34 55
RDEC adjustments within administrative expenses - (46) (127)
Foreign exchange adjustments 31 89 -
(563) (127) (1,487)
(Increase)/decrease in trade and other receivables (513) (880) (245)
Increase/(decrease) in trade and other payables (208) 455 710
Cash generated from operations (1,284) (552) (1,022)
Income tax refunded 327 (37) 223
Net cash outflow from operations (957) (589) (799)
Investing activities
Business combinations (net of cash received) - (54) (54)
Development costs capitalised (459) (417) (847)
Purchase of property, plant and equipment (115) (4) (29)
Interest received 1 3 -
Net cash used in investing activities (573) (472) (930)
Financing activities
Proceeds from issue of shares - 6,250 6,250
Share issue costs - (546) (547)
Repayment of bank loans (44) (23) (66)
Payment of lease liabilities (41) (6) (199)
Interest paid (23) (34) (44)
Net cash generated from/(used in) financing activities (108) 5,641 5,394
Net increase/(decrease) in cash and cash equivalents (1,638) 4,580 3,665
Cash and cash equivalents at the beginning of the period 5,863 2,192 2,192
Effect of foreign exchange rates 37 (3) 7
Cash and cash equivalents at the end of the period 4,262 6,769 5,864
Notes to the Interim Report
for the six months ended 30 June 2022
Corporate information
Getech Group plc ("the Company" and ultimate Parent of "the Group") is a
public limited company domiciled and incorporated in England and Wales. The
Company's registered office and principal place of business is Kitson House,
Elmete Lane, Leeds LS8 2LJ.
The principal activity of the Group is to provide data, knowledge, software
and analytical products and services to help governments and investors locate
and manage new energy and mineral resources and to optimise their development.
Basis of preparation
The interim results are for the six months ended 30 June 2022. They have been
prepared using the recognition and measurement principals of international
accounting standards in conformity with the requirements of the Companies Act
2006. As permitted, this interim report has been prepared in accordance with
the AIM rules and not in accordance with IAS 34 'interim financial reporting'
and therefore the interim information is not in full compliance with
international accounting standards.
This interim report does not constitute full statutory financial statements
within the meaning of section 434(5) of the Companies Act 2006 and the
financial statements are unaudited. The unaudited interim financial statements
were approved for issue by the board on 27 September 2022.
The financial statements are prepared on a going concern basis under the
historical cost convention, with the exception of certain items measured at
fair value, and are presented to the nearest thousand pounds (£'000), except
as otherwise stated. They have been prepared in accordance with the accounting
policies adopted in the last annual financial statements for the year ended 31
December 2021. A copy of the audited financial statements for the period ended
31 December 2021 has been delivered to the Registrar of Companies. The
Auditor's opinion on those financial statements was unqualified, did not draw
attention to any matters by way of an emphasis of matter paragraph, and it
contained no statement under section 498(2) or section 498(3) of the Companies
Act 2006.
In making the going concern assessment, the Board has considered the Group
budgets and detailed cash flow forecasts for at least the next 12 months. The
Board has considered the sensitivity of these forecasts with regards to
different assumptions about future income and costs. These cash flow
projections, when considered in conjunction with the Group's existing cash
balances demonstrate that the Group has sufficient working capital for the
foreseeable future. Consequently, the Directors are fully satisfied that the
Group is a going concern.
Earnings per share
Basic Earnings Per Share is calculated by dividing the profit attributable to
equity holders of the Group by the weighted average number of the Ordinary
Shares in issue in the period.
6 months ended 30 June 2022 6 months ended 30 June 2021 12 months ended 31 December 2021
(unaudited)
(unaudited)
(audited)
Loss attributable to the equity holders of the Group (£'000) (973) (532) (1,949)
Weighted average number of Ordinary Shares in issue 67,208,417 52,400,161 59,612,590
Basic and diluted earnings (pence/share) (1.45)p (1.01)p (3.27)p
Basic EPS is calculated by dividing the profit attributable to equity holders
of the parent by the weighted average number of ordinary shares outstanding
during the period.
Diluted EPS is calculated by dividing the profit attributable to equity
holders of the parent by the weighted average number of ordinary shares
outstanding plus the weighted average number of shares that would be issued on
conversion of all the dilutive share options into ordinary shares. In the
current and comparative period, the Group has incurred losses and as such has
not presented any dilution of earnings per share in accordance with IAS 33
'Earnings per share'. However, these dilutive shares would dilute the earnings
per share should the Group become profitable.
About us
Getech (AIM; GTC) applies its world-leading geoscience data and unique
geospatial software products to accelerate the energy transition by locating,
developing and operating geoenergy and green hydrogen projects.
For further information, please visit www.getech.com.
Directors, officers and advisors
Directors and officers
Richard Bennett Non-executive Chairman
Dr Jonathan Copus Chief Executive Officer
Michael Covington Non-executive Director
Andrew Darbyshire Chief Financial Officer
Chris Jepps Chief
Operating Officer
Emma Parker Non-executive
Director
Dr Stuart Paton Non-executive Director
Company number
Registered in England and Wales, company number 02891368
Registered office
Kitson House
Elmete Lane
Leeds LS8 2LJ
Nominated advisor and broker
Cenkos Securities plc
6 7 8 Tokenhouse Yard
London EC2R 7AS
Financial PR and IR
Capital Market Communications Ltd
3rd Floor, Cannongate House
62-64 Cannon Street
London EC4N 6AE
Auditor
Grant Thornton UK LLP
No 1 Whitehall Riverside
Leeds LS1 4BN
Solicitors
Womble Bond Dickinson LLP
No 1 Whitehall Riverside
Leeds LS1 4BN
Principal bankers
National Westminster Bank plc
PO box 183, 8 Park Row
Leeds LS1 5HD
Registrars
Link Group Ltd
Northern House
Woodsome Park
Fenay Bridge
Huddersfield HD8 0GA
1 (#_ftnref1) Source: IEA, 22 June 2022
2 (#_ftnref2) The European Commission's programme to rapidly reduce
dependence on Russian fossil fuels and fast forward the green transition well
before 2030 -
https://ec.europa.eu/commission/presscorner/detail/en/IP_22_3131.
3 (#_ftnref3)
https://www.gov.uk/government/news/government-unveils-investment-for-energy-technologies-of-the-future
4 (#_ftnref4)
https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/689332/EPRS_BRI(2021)689332_EN.pdf
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