Interim Results

GETECH Group plc 29 March 2007 For immediate release 29 March 2007 GETECH Group plc INTERIM RESULTS For the six months to 31 January 2007 The Board of GETECH Group plc is pleased to announce the Interim Results for the six month period ended 31 January 2007. For further information, please contact: GETECH Group Plc www.getech.com Derek Fairhead, Managing Director 0113 322 2200 Colin Glass, Finance Director 07831 258494 Teather & Greenwood 020 7426 9000 Rob Naylor Buchanan Communications 01943 883990 Eric Burns/Alastair Watson, Chairman's Statement I report the results of GETECH Group plc ('GETECH' or 'the Company'), the oil services business specialising in the provision and interpretation of exploration data and petroleum systems evaluations, for the six months ended 31 January 2007. Results Whilst your Board has strong confidence in the longer term performance of the Company, the half year results were nevertheless disappointing. The Company reported a loss before tax of £21,214 (six months ended 31 January 2006: profit £430,843) after interest receivable of £91,940 (six months ended 31 January 2006: £59,121) on a turnover of £825,811 (six months ended 31 January 2006: £1,636,082). The post tax loss was £36,214 (six months ended 31 January 2006: profit £301,843) giving a loss per share of 0.13p (six months ended 31 January 2006: profit per share of 1.09p). The figures include the adoption of Financial Reporting Standard 20 'Share Based Payment' in respect of the amortised cost of share option schemes. This has reduced the profit of the six months previously reported to 31 January 2006 by £17,000 and the year ended 31 July 2006 by £38,000. Dividend Your Board is confident of the medium and long-term future for the Company and intends to pay a dividend of 0.4p per share, costing £110,769, on 8 May 2007 to shareholders registered on 10 April 2007. Business Review As previously reported on 24 January 2007, the agreement permitting GETECH to commence exclusive marketing of the Russian Arctic Shelf aeromagnetic data was signed in December 2006 and the first order for this data set (£840,000) was signed in January 2007. The revenue from this sale will be taken into the accounts in the second half of the financial year once the deliverable product has been generated. This order resulted from one of several discussions with oil majors and we are reasonably optimistic that at least one more sale of these data will be made in the second half of the current financial year. Generally, the demand for the Company's data and services remains strong but your Board is fully aware of the dependence on winning a small number of large contracts to achieve its revenue targets. This situation should ease as the Petroleum Systems Evaluation Group ('PSEG') continues to increase the number of off-the-shelf products available for sale. Currently, three studies have been completed, whilst a further three are in progress of which one should be completed before the financial year end. These studies are in addition to three proprietary projects, commissioned by oil companies, already completed by PSEG. We believe that sales of existing data, the continuous acquisition of new data and the growth of PSEG will continue to underpin the profitability of the Company. By building upon our inherent strengths and with a medium to long-term strategy of synergistic acquisitions, we intend to ensure a sound platform for the growth of GETECH. Premises The Company has now successfully relocated to larger and more appropriate premises, with minimal disruption, and we are already noticing the benefits of superior working conditions on the morale and efficiency of our team, whilst providing an environment which is more attractive to potential new staff. Outlook We continue to have a first class reputation as a supplier and interpreter of gravity and magnetic data to oil, gas and mineral companies worldwide and our reputation for petroleum systems studies is growing such that your Board is optimistic for the future of the Company. Peter Stephens Chairman 29 March 2007 FULL RESULTS BELOW CONSOLIDATED PROFIT AND LOSS ACCOUNT for the six months ended 31 January 2007 Six months Six months Year ended ended ended 31 January 31 January 31 July 2007 2006 2006 Unaudited Unaudited Audited (restated ) (restated) £'000 £'000 £'000 Turnover 826 1,636 3,229 Cost of sales (124) (454) (784) Gross profit 702 1,182 2,445 Operating expenses (795) (793) (1,575) Operating (loss)/profit before share option amortisation (93) 389 870 Amortised cost of share option schemes (20) (17) (38) Operating (loss)/profit (113) 372 832 Interest receivable 92 59 140 (Loss)/profit on ordinary activities before taxation (21) 431 972 Taxation (15) (129) (276) (Loss)/profit retained and transferred to reserves (36) 302 696 Basic earnings per share (0.13)p 1.19p 2.62p Diluted earnings per share (0.13)p 1.19p 2.62p CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES for the six months ended 31 January 2007 Six months Six months Year ended ended ended 31 January 31 January 31 July 2007 2006 2006 Unaudited Unaudited Audited (restated) (restated) £'000 £'000 £'000 (Loss)/profit for the financial period (36) 302 696 Total recognised gains and losses for the financial period (36) 302 696 Prior year adjustment (see note 2) (38) - - Total gains and losses recognised since the last financial (74) 302 696 statements CONSOLIDATED BALANCE SHEET as at 31 January 2007 31 January 31 January 31 July 2007 2006 2006 Unaudited Unaudited Audited (restated) (restated) £'000 £'000 £'000 Fixed assets Intangible assets 1 1 1 Tangible assets 46 61 38 47 62 39 Current assets Stocks 300 - 166 Debtors 1,930 927 808 Investments 24 - 24 Cash at bank and in hand 3,806 4,208 4,318 6,060 5,135 5,316 Creditors - amounts falling due within one year (2,291) (1,503) (1,357) Net current assets 3,769 3,632 3,959 Net assets 3,816 3,694 3,998 Capital and reserves Called up share capital 69 69 69 Share premium account 2,461 2,461 2,461 Share option reserve 58 17 38 Profit and loss account 1,228 1,147 1,430 Equity shareholders' funds 3,816 3,694 3,998 CONSOLIDATED CASH FLOW STATEMENT For the six months ended 31 January 2007 Six months Six months Year ended ended ended 31 January 31 January 31 July 2007 2006 2006 Unaudited Unaudited Audited (restated) (restated) £'000 £'000 £'000 Net cash (outflow)/inflow from operating activities (418) 297 653 Returns on investments and servicing of finance Interest received 92 51 140 Net cash inflow from returns on investments and servicing of finance 92 51 140 Taxation - corporation tax paid - - (222) Capital expenditure Payments to acquire tangible fixed assets (20) (44) (46) Net cash outflow from capital expenditure (20) (44) (46) Equity dividends paid (166) - (111) Net cash (outflow)/inflow before financing (512) 304 414 Financing Issue of share capital - 3,000 3,000 Costs of share issue - (520) (520) Net cash inflow from financing - 2,480 2,480 (Decrease)/increase in cash (512) 2,784 2,894 Reconciliation of operating (loss)/profit to net cash (outflow)/ inflow from operating activities Operating (loss)/profit (113) 372 832 Depreciation 12 18 43 Amortisation of share option schemes 20 17 38 (Increase) in stocks (134) - (167) (Increase) in debtors (1,122) (274) (163) (Increase) in investments - - (24) Increase in creditors 919 164 94 Net cash (outflow)/inflow from operating activities (418) 297 653 NOTES TO THE INTERIM REPORT For the six months ended 31 January 2007 1 The figures for the six months ended 31 January 2007 and 31 January 2006 are unaudited. The financial information shown in the publication does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. 2 The interim financial statements have been prepared on the same basis and using the same accounting policies as used in the full financial statements for the year ended 31 July 2006, except for the adoption of FRS 20 ' Share Based Payment'. Prior period figures have been restated as appropriate. The interim financial statements, which have been neither audited nor reviewed by the Company's auditors, have been approved by the Board. 3 Taxation has been provided at the estimated effective rate of 30% for the year as a whole (2006: 30.5%). 4 Basic earnings per share is calculated on the basis of the profit for the period after tax, divided by the weighted average of ordinary shares in issue in the period (six months ended 31 January 2007: 27,692,307, year ended 31 July 2006: 26,575,666 and six months ended 31 January 2006: 25,477,232). 5 Diluted earnings per share is calculated on the basis of the profit for the year after tax, divided by the weighted average number of shares in issue plus the weighted average number of shares which would be issued if all options granted were exercised. The addition to the weighted average number of ordinary shares used in the calculation of diluted earnings per share for the six months ended 31 January 2007 is Nil (year ended 31 July 2006: Nil, and six months ended 31 January 2006: Nil). 6 Adjusted earnings per share is calculated as if all 27,692,307 shares in issue at 31 January 2007 had been in issue for the whole of the period (six months ended 31 January 2007: (0.13)p, year ended 31 July 2006: 2.51p, and six months ended 31 January 2006: 1.09p). 7 Earnings per share have been restated as a result of the adoption of FRS 20 'Share Based Payment', see Note 2 above. The figures previously reported were: year ended 31 July 2006: basic 2.76p, diluted 2.76p, adjusted 2.65p and six months ended 31 January 2006: basic 1.25p, diluted 1.25p, adjusted 1.15p. 8 A dividend of 0.4p per share (2006: 0.4p) has been recommended and is payable on 8 May 2007 to members on the register at 10 April 2007. 9 This statement is being sent to the shareholders of the Company and will be available at the Company's registered office at Convention House, St. Mary's Street, Leeds LS9 7DP. ENDS This information is provided by RNS The company news service from the London Stock Exchange

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GETECH Group (GTC)
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