REG - GETECH Group plc - Multiple New Contract Wins

GetechAnnouncement

03/01/2024 07:15

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RNS Number : 4314Y  GETECH Group plc  03 January 2024

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DOMAIN

 

03 JANUARY 2024

 

Getech Group plc

("Getech" or the "Company")

Multiple New Contract Wins

 

Getech (AIM: GTC), a world-leading locator of subsurface resources, is
pleased to announce eight new contract wins that represent in aggregate a
total value £1.8m. The contract wins comprise of subscriptions to the
Company's Globe platform, geoscience data and the purchase of expert
consulting services.

The Company expects to recognise £0.6m of revenue from these contracts in the
year to 31 December 2023 ("FY23") and expects unaudited revenue for FY23 to be
approximately £4.0m. The balance of £1.2m will be added to the Company's
order book, which currently totals £4.6m (30 June 2023: £4.4m). As
previously highlighted in our trading statement in December 2023, due to a
growing level of caution amongst the Company's client base a number of
projects expected to close in FY23 will now occur in this financial year, and
so Getech enters 2024 with a strong pipeline.

Alongside new business activity, the Company is now signing up all new
customers to its subscription model, as well as migrating existing customers
to longer term contracts - which typically have a minimum commitment period of
three years. As a consequence, the Company is pleased to report annual
recurring revenue ("ARR") has increased to £2.8m (FY22 £2.4m). Our objective
is to migrate all customers to a subscription model as contracts come up for
renewal.

Included in the new contracts announced today is a three year renewal contract
for Getech's Globe platform from an Asian multinational energy company. Globe
is Getech's proprietary digital platform of earth science data that
facilitates the exploration and location of subsurface resources that are
vital for the energy transition, including carbon storage, geothermal, natural
hydrogen and critical mineral assets.  Globe is an innovative product that
collects geoscience and geophysical data, and through proprietary
computational modelling and AI-led machine learning techniques, identifies
favourable exploration opportunities for its customers.

Also included in the contracts is a first global license subscription for
Getech's Data Assistant software. The contract was signed with a US-based
multinational energy company. Data Assistant is an easy-to-use extension to
ArcGIS Pro that enables customers to easily transfer geoscience data into
their existing project workflows leading not only to efficiency cost-savings
but also to better geospatial decision making. A video overview of the product
can be found here:

https://getech.com/getech-explore/products/technology/data-assistant/
(https://getech.com/getech-explore/products/technology/data-assistant/)

Richard Bennett, acting CEO said, "Entering 2024 with our substantially
reduced costbase, increased order book and growing ARR means the business is
undoubtedly better placed following a year of transition in 2023.

We have also invested in expanding our exploration capabilities, targeting
resources associated with the energy transition. The recent COP28 demonstrated
again the world's commitment to phasing down fossil fuels and in 2024 we
expect to benefit from this by helping our customers locate the subsurface
future facing resources such as critical minerals and geothermal projects that
are so vital to the energy transition."

 

For further information, please contact:

 

 Getech Group plc

 Richard Bennett, CEO                                        Tel:  0113 322 2200

 Cavendish Capital Markets Limited

 Neil McDonald / Pete Lynch (Corporate Finance)              Tel:  0207 397 8900

 Michael Johnson / Dale Bellis (Sales)

 Novella Communications                                      Tel: 0203 151 7008
 Tim Robertson / Claire de Groot / Safia Colebrook
 getech@novella-comms.com (mailto:getech@novella-comms.com)

 

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/)
.

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