REG - GETECH Group plc - Trading and Technology Update

GetechAnnouncement

21/03/2024 07:00

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RNS Number : 6850H  GETECH Group plc  21 March 2024

21 March 2024

Getech Group plc

("Getech" or the "Company")

Trading and Technology Update

 

Getech (AIM: GTC), a world-leading locator of subsurface resources, is
pleased to provide an update on current trading and development of the Group's
AI and ML led technology.

Trading Highlights

Getech has made a strong start to 2024, with revenues for the first two months
c. 40% ahead of the same period in 2023.

In 2024 to date, Getech has secured contract wins totalling £0.9m, including
three new annual software subscription customers as well as the renewal of
eight annual licenses for the Globe geoscience platform and software products.
As a result, annual recurring revenue has increased to £2.9m (31 December
2022: £2.4m; 31 December 2023: £2.8m) and, with the addition of new
contracts, Getech's order book value has been maintained at £4.5m (31
December 2023: £4.6m; 31 December 2022: £4.6m).

The sale of the Kitson House part of Getech's office completed for £0.65m, as
announced in January 2024. The Company has retained freehold ownership of
Nicholson House, which was independently valued in December 2023 at £0.86m.
Both buildings are located at the same site in Roundhay, Leeds.

Getech has previously identified the opportunity to reduce annual costs by
£2m, as announced in 2023. The full benefit of these cost reductions is
expected in 2024, assisting Getech in realising positive EBITDA and cashflow.
The Company's focus on cost reduction continues, with further savings
identified and expected to be realised through 2024.

AI- and ML-led Technology

Getech has evolved its subscription model for Globe by offering additional
capabilities for further human and Machine Learning-based analysis of its
data. This model is well suited to large exploration companies, while for
junior exploration companies the Company introduced a hybrid equity
participation model, as demonstrated by the recently announced partnership
with East Star Resources.

Artificial Intelligence (AI) and Machine Learning (ML) is accelerating the
value of the Company's core asset and skills, namely its Globe geoscience
platform and expert services. Getech has amassed a vast collection of global
magnetic, gravity and other geoscience data that was universally deployed by
the oil and gas industry over the last 3 decades and it is now applying
advanced AI and ML to make this data useful to other subsurface industries
including mining, geothermal and unconventional gas including natural
hydrogen.

By leaning on the collective knowledge base of its geological team, Getech is
leveraging AI and ML to source details of known occurrences of mineral
deposits and create a digital-genome to search through our global data sets.
The objective is to model the "genetic systems" of known deposits, and using
Getech's global datasets, search for these same geological conditions to
identify new targets. Currently, the Company is verifying this approach with a
small number of 'beta' clients with the expectation of making it more widely
available to the market.

Getech's approach is particularly applicable to the search for natural
hydrogen, also known as "white" or "geologic" hydrogen. Natural hydrogen is
believed to be an abundant resource and a potential game-changer for the
energy transition. Getech is well placed to not only identify likely source
locations but also, using its oil and gas expertise, identify conditions where
natural hydrogen is likely to become trapped in reservoirs with economic
potential. Getech is already commercially engaged to screen for natural
hydrogen and expects to launch an enhanced AI-driven natural hydrogen search
capability in the coming months.

Richard Bennett, CEO, comments "Getech has had a good start to 2024 and I am
pleased by the improved financial position of the Company. Importantly,
prospects for the business continue to build as we retain our long-term
clients, as well as attract new brands to our growing subscription base.
 Alongside this, the capabilities of our Globe geoscience platform are being
significantly enhanced with the application of AI and ML. So much so, that it
is arguably a different system from that of 12 months ago - our job now is to
demonstrate this to our markets."

 

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 / Safia Colebrook
 getech@novella-comms.com (mailto:getech@novella-comms.com)

 

Notes to editors:

 

About Getech

Getech is a leading locator of the energy and mineral resources essential
for the world's energy transition. Getech's unique data encompassing the most
recent 400 million years of Earth's evolution, coupled with its geoscience
expertise, AI-driven analytics and extensive GIS capabilities, enables the
company to provide valuable and actionable insights to support resource
discovery and development.

The company's client portfolio is wide-ranging, from governments,
municipalities, natural resources and energy companies to consumer goods and
computing services companies, all striving to become energy and minerals
self-sufficient and drive towards net zero.

Founded in 1994 Getech is listed on the Alternative Investment Market of the
London Stock Exchange ("AIM"), with ticker symbol GTC.

For further information, please visit www.getech.com (http://www.getech.com/)
.

 

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