GETECH Group plc AGM Statement (6302R)
December 13 2016 - 2:00AM
UK Regulatory
TIDMGTC
RNS Number : 6302R
GETECH Group plc
13 December 2016
Getech Group plc
("Getech" or the "Company")
AGM Statement
At today's Annual General Meeting, Jonathan Copus, the Chief
Executive Officer of Getech (AIM; GTC), a provider of data, studies
and services to the natural resources and energy sectors, will give
the following update:
"In 2016 Getech focused its operations on targeted investment in
our core business, counter-cyclical M&A, and the active
management of costs. These actions combined to deliver a
significant rebound in profitability in the second half of our 2016
financial year. Since reporting 2016 results, we have secured
several strategically important new contracts and our day-to-day
activities continue to be focused around the customer,
profitability and diversified growth.
Business update
In 2016 Globe entered its sixth year of continuous customer
support, the MultiSat programme was delivered, a wide range of new
Regional Reports were released and we completed an extensive,
multi-disciplinary basin review for Sonangol. We continued to
support the Mozambique Government's petroleum activities, captured
new World Bank funded consultancy opportunities in Sierra Leone and
in June 2016 we strengthened our offering through the acquisition
of Exprodat, a provider of cutting-edge Geographic Information
Systems (GIS) services and software products.
Since the completion of this transaction, Getech has focused its
geoscience, GIS, software and consulting skills on growing the
Group's operations both within and beyond our core oil & gas
exploration customer base. It is pleasing therefore to announce
that we are ending the calendar year having secured a new sale of
Globe phase-two to a super-major, and we have been contracted by
the UK Oil and Gas Authority (the "OGA") to develop and implement a
GIS information management strategy. This work for the OGA extends
our operations beyond our core exploration market, being focused on
spatial data that spans the full E&P asset life-cycle. In
addition, having won our first contract within the nuclear industry
in the previous financial year, Getech is currently at an advanced
stage of discussions to expand on this work.
Financials
As previously announced, financially, 2016 was a year of two
distinct halves. In the first half, slow trading and higher costs
lead to a loss before tax of GBP704,000. In response, Getech took a
range of hard decisions and implemented a significant programme of
cost control measures. From a lower cost base, and with a 14%
rebound in revenues, our underlying performance significantly
improved in H2-16; the Group reporting a full year profit before
tax of GBP671,000.
We believe these operational and financial highlights illustrate
that despite the challenges faced by the wider natural resources
market, our clients continue to see value in our integrated,
multi-disciplinary approach, which in turn is underpinned by
excellent data, high quality staff, and a strong GIS platform.
The Board however also continues to act with prudence. The Group
remains focused on cost control throughout the business and the
Board decided to not propose a 2016 dividend.
Outlook
Looking to 2017, although the outlook for our core exploration
market remains uncertain, feedback from customers leaves us
cautiously encouraged by the market mood. We have no intention
however to sit back and wait for a rebound.
With an expanded operational skill set, Getech is entering a
period where we are focused on profitability and opportunities to
enhance and diversify our commercial offering. We will do this
through an improved value proposition around our activities, the
provision of better access to our data/analysis and refocusing of
our products and services so that they more practically address the
day-to-day commercial challenges faced by our customers; our goal
being to deliver products and services with practical applications
and demonstrable value".
Stuart Paton, Chairman of Getech Group plc, said: "I am
extremely pleased with the progress that the Company has made in
the last four months under the leadership of our new CEO Dr
Jonathan Copus. The market remains challenging and we continue to
have to make difficult decisions to ensure the robustness of the
business. However, with new leadership, diversification into new
areas, and a stronger oil price, I am confident in the future
growth of Getech. Central to achieving this is cultural change, and
at the heart of this lies the continued integration of activities
across our project teams and offices. I would like to take this
opportunity to thank all of Getech's staff for their continued hard
work and dedication."
Enquiries:
Getech Group plc Tel: 0113 322 2200
Stuart Paton, Chairman
Jonathan Copus,
Chief Executive
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WH Ireland Limited Tel: 0161 832 2174
Katy Mitchell
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This information is provided by RNS
The company news service from the London Stock Exchange
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