Trading update

RNS Number : 1728A

GETECH Group plc

17 February 2014

 



Getech Group plc

("Getech" or the "Company")

Trading update

Getech, the geoscience services business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, provides the following trading update for the six month period ended 31 January 2014.

The Company has seen strong demand for its consultancy work in the first half of the current financial year. However, irregular purchasing patterns across the customer base, driven by cyclical budgetary constraints, have resulted in reduced levels of overall revenue in comparison to the previous period. The Company expects revenue for the first half to be £3.0m (2013: £3.9m) giving a profit before tax substantially lower compared with the corresponding period last year (2013: £1.4m).

The balance sheet remains strong with over £4.0m in cash at the end of the period. The Company proposes to continue a progressive Interim dividend policy given the continued strong cash balance at the period end and the belief that there is no fundamental change in its future prospects.

The Company remains focussed on delivering results in line with full year expectations. A substantial part of second half income has already been committed, and a return to a more regular purchasing pattern by customers is expected in the second half given the continued significant interest in Getech's products and services. On this basis, and subject to the conversion of a number of leads already in the sales pipeline, the Directors believe that the Company will still trade in line with expectations for the full year.  The Company will keep shareholders updated as the year progresses.

Stuart Paton, Non-Executive Chairman of Getech Group plc, said: "Whilst we have witnessed lower than expected revenue in the first half, we believe this is an industry wide issue and anticipate a return to normal demand cycles in the second half. The positive feedback we have received from clients has confirmed there is no reason to question the value proposition of our products and we remain optimistic that we will see further significant contracts coming through in the second half."

Enquiries:

Getech Group plc Raymond Wolfson, Chief Executive	Tel:  [phone]
WH Ireland Limited Katy Mitchell	Tel:  [phone]
Walbrook PR Helen Cresswell Paul Cornelius	Tel:  [phone] or [e-mail] Mob: [phone] Mob: [phone]

 

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