REG - GETECH Group plc - Trading Update

GetechAnnouncement

20/01/2025 07:00

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RNS Number : 8549T  GETECH Group plc  20 January 2025

This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulation No 596/2014 which is part of English
Law by virtue of the European (Withdrawal) Act 2018, as amended. On
publication of this announcement via a Regulatory Information Service, this
information is considered to be in the public domain.

 

Getech Group plc

("Getech" or the "Company")

Trading Update

 

Good progress in 2024, well positioned for an improved 2025

Getech (AIM: GTC), a world-leading locator of subsurface resources, is
pleased to provide the following trading update for the financial year ended
31 December 2024.

The Company expects to report a 17% increase in revenues to £4.7m (2023:
£4.0m). The rise in sales came from the retained client base and new services
income from the growing portfolio of work supporting sub-surface exploration
for materials connected to the Energy Transition such as natural or white
hydrogen, battery materials or geothermal sources of energy. The Group
orderbook as at 31 December 2024 was £4.1m (2023: £4.5m), with the slight
reduction due to the successful unwinding of the contracted orderbook to
revenue during the year.

Annual recurring revenue ("ARR") in FY24 was £2.9m (2023: £2.8m) with the
management team continuing to focus on expanding ARR income through a
subscription model and aiming to both add new clients and increase the scope
of services and value-add provided to existing clients.

In August 2024, the Company raised gross proceeds of £1.7m through a Placing
and Retail Offer, thereby strengthening the financial position of the Company
and providing new capital to invest in the Group's sales and R&D teams. As
at 31 December 2024, the Company had net cash of £0.9m (including a £0.1m
project security bond).

Cost reduction activity was a key focus in 2024. Approximately £2m of
annualised costs have been taken out of the business alongside the closure of
the H2 Green projects. However, the cost reduction programme has taken longer
to implement than initially estimated, impacting the EBITDA margin in FY24,
and EBITDA is expected to be in the region of £0.5m loss (2023: £2.7m loss).

Having sold part of the Company's HQ in January 2024, the final building,
Nicholson House, is currently under offer. Once sold, this will release £300k
of net proceeds back to the business after repayment of the secured working
capital facility.

The Company continues its diversification beyond the Group's core oil and gas
sector clients into the Energy Transition. Utilising its market leading
globally comprehensive magnetic, gravity and geoscience data, Getech is
applying advanced AI and ML to search for new mineral and energy assets to
accelerate the Energy Transition.

Natural hydrogen is an area of strength as potential hydrogen source rocks can
be quite clearly fingerprinted in magnetic and gravity data. Given this,
Getech is quickly establishing itself in this nascent but potentially vast
market, working on several searches during the course of 2024 alongside
developing new joint exploration agreements which have the potential to move
the Company from being a service provider to be more akin to an explorer with
the possibility of greater commercial returns.

Geothermal is another area of expanding business development for Getech. For
institutions and companies geothermal can be a highly sustainable and economic
solution to meet future energy requirements. In July 2024, Getech was
contracted to conduct a country-wide search for geothermal energy sources at a
value of more than £180k, which represented the largest consulting project
the Company has completed in recent years.

Outlook for 2025

As part of our drive to increase revenues, the team was expanded with two
sales hires in recent months, both focused on increasing recurring revenue
from the Globe family of geoscience products and services. We see demand for
data-led exploration increasing, particularly from organisations seeking to
locate natural resources essential for the Energy Transition and expect to
benefit from the investments we have made.  We are expanding the drive to
reduce costs and so better align the business with our revenue base. The Board
is confident of a continued improvement in trading and in the outlook for the
business.

For further information, please contact:

 Getech Group plc

 Richard Bennett, CEO                               Tel:  0113 322 2200

 Chris Jepps, COO

 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

 

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/)
.

This update is provided in advance of the financial statements for the year
ended 31 December 2024. The information and commentary provided is based on
unaudited management accounts and other internal performance measures and is
subject to concluding the routine annual accounting adjustments as well as any
adjustments that arise as a result of the external audit process. Certain
statements made in this trading update are forward-looking statements. Such
statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual events or results to differ
materially from any expected future events or results referred to in these
forward-looking statements.

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