TIDMGTC
RNS Number : 5703B
GETECH Group plc
05 June 2023
5 June 2023
Getech Group plc
("Getech" or the "Company")
Final Results for the 12 months ended 31 December 2022
Getech (AIM: GTC), the geoenergy company and owner of hydrogen
developer, H2 Green, is pleased to announce its Final Results for
the 12 months ended 31 December 2022.
Financial Highlights
-- Double-digit revenue growth, ahead of market expectations:
GBP5.1 million (FY2021: GBP4.3 million) with a 66%/23% split
between transitional petroleum and critical minerals
-- Record orderbook: GBP4.6 million, a 39% increase (31 December 2021: GBP3.3 million)
-- Annualised recurring revenue: up 14% to GBP2.4 million (FY2021: GBP2.1 million)
-- Strong cash position: GBP4.3 million at 31 December 2022,
with cash held flat across H2 2022 by sales momentum and careful
capital management (31 December 2021: GBP5.9 million)
Operational Highlights
-- 42% YoY increase in the number of software subscriptions sold
-- New solutions developed to locate copper, gold, cobalt and helium
-- $900k largest-to-date critical minerals contract, with a
multi-mineral global mining company
-- Strategic partnership with global geothermal technology
company Eavor to jointly locate and appraise a portfolio of
geothermal projects in Latin America (post-period end)
-- First contract for integrated decarbonisation solution for a
global FMCG company (post-period end)
-- Wholly owned subsidiary, hydrogen developer H2 Green progress:
o Dr Graham Cooley appointed as H2 Green's Chair. As the former
CEO of ITM Power, Graham played a key role in transforming ITM
Power into a hydrogen market leader ( post-period end )
o Inverness Green Hydrogen Project has been selected for a UK
Government grant from its Net Zero Hydrogen Fund ( post-period end
)
o At Shoreham Port, H2 Green increased phase 1 capacity from 0.8
tonne/day to 2.5 tonne/day due to bigger local demand and extended
its commercial exclusivity to 2027
Outlook
-- Strong balance sheet, sales pipeline growth, plus good customer and partner momentum
-- Work to sell Kitson House is progressing
-- The macro environment outlook remains strong for Getech with
its clear focus on the energy transition
Richard Bennett, Getech Executive Chairman, commented:
"As we transition to clean energy, the importance of geoscience
in solving the energy "trilemma", the quest for affordable, clean
and secure energy source, is undisputed. Getech has spent the last
30 years collecting and analysing data primarily for use within the
petroleum sector, but we are now making a strategic shift to evolve
our solutions and our client base to encompass a much wider range
of corporates looking to reduce their carbon footprint.
Strong revenue performance and a record order book in 2022
reflects a robust environment for petroleum market activities
alongside new corporate demand to use our data to identify critical
minerals, geothermal and hydrogen locations, as well as CCS
projects. We have a very promising pipeline of opportunities and
are excited about the potential for developing our portfolio in
2023."
Richard Bennett will provide a live investor presentation
relating to the financial results via the Investor Meet Company
(IMC) platform on Thursday, 8 June 2023 at 10.00am UK time.
Investors can sign up to Investor Meet Company for free and add
to meet Getech via:
https://www.investormeetcompany.com/getech-group-plc/register-investor
Chairman's Statement
This is my first statement as Executive Chairman of the Company
since my appointment in February following the resignation of Dr
Jonathan Copus. The Board and I would like to thank Jonathan for
his seven years of service. Two years ago, Getech made the
strategic shift to also sell its subsurface global knowledge to
industries outside of the oil and gas sector. The success of this
shift in focus is reflected in our excellent financial performance
with revenues up 19% to GBP5.1 million, together with a record
order book up by 39% to GBP4.6 million alongside maintaining a
strong cash position of GBP4.3 million.
Historically, Getech generated 90+% of income from the oil &
gas sector, whereas this proportion now stands at 66% as new demand
for our services across a much broader corporate landscape
increases. This demand for our services is being driven by the
energy transition to clean energy, as companies need to locate new
materials and find new sources of energy. They also need our data
to know where to look for them underground.
It is clear that there is a valuable commercial opportunity in
front of Getech involving different markets and companies with very
different capabilities compared to our historic client base. Getech
therefore needs to adapt its commercial model to support those
companies and to participate fully in the upside of the global
energy transition.
Strategic Shift
In 2021, we devised a strategy to align our core competencies
with the energy transition. It was a logical step, with subsurface
knowledge being instrumental in most decarbonisation paths - from
finding critical minerals to locating sources of geothermal energy.
Today, we can confidently state that it was the right decision and
well executed by Getech's team.
In 2022, 23% of sales came from critical minerals solutions. The
phrase 'metals are the new oil' is now commonly used, as low carbon
technologies require significantly more metals than fossil
fuel-based ones. The production of metals must increase four-fold
in the next 20 years, potentially rivalling crude oil production.
To achieve this, substantial investment is required but also a
radically new approach to mineral exploration. There is therefore a
clear opportunity and need for Getech's extensive data on 400
million years of Earth's evolution, in helping to locate critical
minerals in previously unexplored territories.
In 2023, we are selling our data and expertise to an even wider
range of customers, from consumer goods to computing services
companies, all looking to become energy self-sufficient. With the
war in Ukraine and the energy and climate crisis, large corporates
are investing in taking control of their energy needs, exploring
ways to power their operations with geothermal, hydrogen, wind or
solar energy sources in proximity to their sites.
Positioned to Support New Market Entrants
According to a non-profit net zero tracker, 91% of the global
economy is now covered by net zero pledges by corporates.
Government commitments globally have further boosted the market led
by the US Inflation Reduction Act and EU Green Deal Industrial
Plan, reinforcing the ever-growing demand for subsurface
expertise.
There is no line of business that will remain unaffected by
climate or energy challenges and Getech is well-positioned to
assist, providing expertise through 4 operational hubs:
Critical Minerals Metals and Mining companies need to locate
significant volumes of critical minerals
and battery metals, such as Lithium, Cobalt,
Copper & Gold
Geothermal (includes Assessing and locating sites that are highly
Corporate decarbonisation) prospective for low-carbon geothermal energy
for geothermal companies and any company
looking to generate power from land they
own to meet net zero targets
------------------------------------------------
H2 Green Wholly owned hydrogen project developer
and operator of two projects in Inverness
and Shoreham Port
------------------------------------------------
Transitional Petroleum Locating oil & gas and carbon capture and
storage opportunities for global energy
companies who are decarbonising their products
------------------------------------------------
Having concluded the year with a record order book, we have an
even more promising pipeline of opportunities. Specifically, the
Company is seeking to support the expanding customer base on a
long-term basis working on each project with, using a flexible
revenue model that could range from encompass selling data on a
subscription basis toto working on a longer -term basis on
selective projects using on an asset participation basis. A
portfolio appraisal, based on future asset participation and/or
royalty revenue streams, is expected in time to become a central
part of Getech's value.
The Getech advantage
Given the size and substantial value of the energy transition
market, there is increasing competition. However, Getech has
natural advantages having spent the last 30 years meticulously
collecting data, refining analytics, testing hypotheses and
building relationships. We use AI and machine learning in our work,
but our core strengths lie in our unique data and exceptional team
with the knowledge and vision to use that data to address specific
energy challenges. Entering our market without a similar depth of
experience is challenging.
Relationships are key and the team is proud to count most
blue-chip energy companies among its long-standing clients. In
these partnerships, we contribute our extensive exploration
expertise and deep understanding of subsurface challenges, while
our partners bring their cutting-edge operational capabilities and
innovative technologies. As a result, we are not only seen as a
trusted partner, but we have also cultivated a vast network of
complementary skills and expertise.
Among the new partners we've signed after the reporting period
is the global geothermal technology company Eavor.
H2 Green
H2 Green has an exciting portfolio of hydrogen and renewable
energy projects and to maximise its potential as a 'pure play' UK
project developer, one of my first actions as Executive Chairman
was to appoint Dr Graham Cooley as H2 Green's Chair. As the former
CEO of ITM Power, Graham played a crucial role in transforming the
company into a hydrogen market leader. That Graham accepted the
role, reflects well on H2 Green and its future potential. With
experience in the sector and working with the UK government, Graham
brings invaluable expertise to support H2 Green's expansion and
development.
Corporate governance
I would like to emphasise that at Getech, we place great
importance on corporate governance, aiming to maintain a high level
of transparency and accountability. We believe that effective
governance is crucial for the long-term success and sustainability
of our business. We value open communication and robust engagement
with our shareholders, understanding that their support is
fundamental to our success. To that end, we are committed to
fostering a constructive dialogue with our investors, ensuring they
receive timely and accurate information about our business,
performance, and prospects.
Outlook
I am very optimistic with regard to Getech's future as I believe
the business is naturally well placed to seize opportunities within
the rapidly evolving energy and climate tech landscape.
In the upcoming year, we will continue to focus on growing and
diversifying our revenue streams. While remaining financially
prudent, we will also continue to invest in research and
development to ensure that our products and services remain at the
forefront of the industry, allowing us to provide the best
solutions for our clients as they navigate the energy
transition.
In conclusion, I would like to express gratitude to our
shareholders, partners and employees for their unwavering support
and dedication and that with your continued support we will
continue to achieve great success in our pursuit of a sustainable
and prosperous future.
Richard Bennett
Executive Chairman
Operational Review
Getech has had a successful year, showcasing significant
progress in all operational areas. The company maintained high
petroleum customer retention rates while repurposing its data,
software and analytics to identify critical minerals and ideal
locations for geothermal, hydrogen and carbon capture and storage
(CCS) projects. In 2022, customers purchased Getech's latest energy
transition solutions to locate copper, gold, cobalt and helium;
manage carbon storage licensing rounds; and explore for geothermal
energy.
Business Overview
Getech's strategy focuses on monetising its proprietary data and
expertise through subscription sales, solutions and selective asset
participation. We generate revenue by locating new energy and
mineral resources using our proprietary Earth digital twin, called
"Globe". Developed over nearly 13 years, Globe uniquely models
Earth's evolution over the past 400 million years, combining
extensive data with a user-friendly software interface. Its
integrated geological, climatic and oceanographic data offer
valuable insights for locating natural resources in the subsurface.
These solutions are provided in an accessible digital map format
using energy industry standard geographic information system
technology.
Getech's subsurface expertise is crucial for numerous net zero
strategies, positioning the company to advance decarbonisation
across multiple industries.
Transitional Petroleum and CCS
In response to a renewed focus on energy security, Getech saw a
strong recovery in its petroleum market activities in 2022,
accompanied by an expansion into the emerging CCS sector. CCS is
crucial for achieving net-zero targets by capturing carbon dioxide
emissions from industrial processes and storing them safely
underground. Integrating CCS into our portfolio allows us to expand
our engagement with our key oil and gas customers while working to
reduce the carbon footprint of industrial sectors as part of the
energy transition. Getech's solutions were employed by the North
Sea Transition Authority to support the UK's first carbon storage
licensing round and we also gained new software customers in the
carbon storage sector.
Getech's work in exploration, development optimisation and
operational spatial management has resulted in Getech adding two
new Globe customers - including a global supermajor energy company
- and a 42% YoY increase in software subscriptions. In addition to
new software sales in the petroleum exploration market, Getech
expanded its customer base in the US onshore shale gas operations
and investment banking sectors. A key strategic contract with a
major energy company joint venture was renewed for multiple years,
ensuring strong future revenue visibility.
Critical Minerals
Crucial to electrification required for the energy transition,
the copper market has an expected supply gap of 7.8 million tonnes
by 2030. Getech's unique data and analytics are ideal for
discovering new sedimentary-hosted copper deposits in unexplored
areas, which account for only about 20% of total copper production
today. However, this source is more widely distributed than others
and can be processed with a lower carbon footprint. Additionally,
80% of cobalt, a key component of batteries that also plays a
critical role in the energy transition, comes from sediment-hosted
copper mines.
In 2022, Getech sold its sediment-hosted copper solution to
three critical minerals companies, producing high-confidence
targeting maps for unexplored areas in Australia, North America and
Canada. Based on this work, some of these companies have licensed
significant land positions for mineral exploration, demonstrating
the value-add of Getech's unique offering. These companies have
also become repeat customers.
Furthermore, Getech secured its largest-ever critical minerals
contract, a $900,000 data and software deal with a multi-mineral
global mining company. Getech has also expanded its copper
solutions into iron oxide-copper-gold and epithermal gold deposits.
Getech delivered data and analytics to Helium One - a native helium
explorer - and advanced R&D work on solutions to predict the
location of lithium and natural ("white") hydrogen resources.
Getech anticipates bringing these new solutions to market in
2023.
H2 Green
H2 Green Ltd, a Getech subsidiary, designs and develops green
hydrogen hubs in the UK. Utilising renewable power, these hubs
produce hydrogen for decarbonising transport and industry. Post
year end, Dr Graham Cooley has been appointed as H2 Green's Chair.
As the former CEO of ITM Power, Graham played a key role in
transforming the company into a hydrogen market leader. With
experience in the cleantech sector and ties to the UK government,
Graham brings valuable expertise to H2 Green's expansion and
development.
Inverness Project
H2 Green is currently developing a major green hydrogen hub in
central Inverness. The project encompasses green hydrogen
production, storage, dispensing and on-site renewable energy
generation. Initially, the hub will supply green hydrogen to key
Scottish rail, bus and HGV transport customers, supporting their
decarbonisation efforts. This marks the first phase of H2 Green's
green energy Highlands network, which will also distribute surplus
hydrogen from the Inverness hub to a broader region.
The hydrogen facility will scale from a 6 MW alkaline
electrolyser capacity (equivalent to generating up to 2.5 tonnes of
green hydrogen per day) to more than 10 tonnes per day (equivalent
to 24 MW) over time. The facility will utilise wind and/or solar PV
renewable energy generation assets and be backed by a
grid-connected renewable energy supply.
In 2022, H2 Green's partner, SGN, completed the deconstruction
of Inverness's former gas holder, paving the way for converting the
site into a green hydrogen storage and distribution facility. After
the reporting period, the project was chosen to receive a UK
Government grant from the Net Zero Hydrogen Fund - Strand 1
Development Expenditure.
Shoreham Port Project
Expanding into the port and maritime energy sector, H2 Green
secured exclusive development rights for hydrogen, renewable energy
and importing ammonia at Shoreham Port in West Sussex to establish
a green energy hub.
In 2022, after completing engineering and commercial feasibility
work, Shoreham Port extended H2 Green's exclusivity on all
hydrogen, ammonia and renewable energy activities until August
2027. Due to faster-than-anticipated growth in hydrogen demand -
supported by offtake pledges, letters of intent and MoUs - H2 Green
increased the Phase 1 design capacity from 0.8 tonnes/day to 2.5
tonnes/day and started planning Pre-FEED (Front End Engineering
Design) studies.
The macro environment continues to be supportive for hydrogen
development, with the UK hydrogen strategy targeting 10GW of low
carbon hydrogen production capacity by 2030.
Geothermal and Corporate Decarbonisation
Getech's subsurface expertise combined with advanced analytics
enables the rapid and cost-effective identification of locations
that are potentially prospective for geothermal energy. In 2022,
Getech successfully completed projects for clients on multiple
continents and expects continued expansion of its geothermal
offering, given the projected double-digit annual growth rate
towards 2030 in geothermal energy investments.
In January 2023 Getech and Eavor - a global geothermal
technology company - signed a strategic partnership to jointly
locate and appraise a portfolio of geothermal projects in Latin
America. Eavor was already a customer of Getech's data and
services, and through this work Getech has generated revenue and
demonstrated its geothermal expertise. This has now translated to
an asset-based partnership that is broader, more strategic and more
valuable for both parties.
Eavor has attracted venture capital funding from BP, Chevron and
BHP (all customers of Getech petroleum and/or mineral exploration
solutions) and recently secured development financing, totalling up
to EUR1bn, for the development of at least five geothermal projects
in North America and Europe.
Getech also offers tailored decarbonisation solutions that help
customers replace high-emission energy sources with low-carbon
alternatives, such as geothermal, green hydrogen, CCS, wind and
solar energy. These solutions include global screening of
manufacturing sites and logistics operations, as well as
location-specific feasibility studies. With expertise in geospatial
energy optimisation, Getech can determine the most efficient
approach to lower the emissions of assets. Our new integrated
decarbonisation solution is valuable for many industries and will
help us to grow and diversify our revenue streams.
Post-period end, Getech completed a geothermal screening project
for the manufacturing sites of a multinational FMCG company. We
rapidly ranked c.130 sites worldwide based on their potential to
replace current energy consumption with geothermal energy for
decarbonisation purposes. The ranking was determined through the
evaluation of numerous subsurface and above-ground factors. In
addition to assessing the geothermal potential of each site, Getech
provided a comparison against the relative potential for solar and
wind energy.
We believe there are many industries that could benefit from our
integrated decarbonisation solution - from consumer goods,
manufacturing, to logistics companies. Our proprietary data and
unparalleled expertise in applying geoscience and geospatial
analytics to solve specific energy challenges makes Getech a
perfect partner in the net zero transition.
Outlook
Goldman Sachs has forecast that resolving the dual challenge of
energy affordability and security, across both clean energy and
hydrocarbons, will require a $1 trillion per year increase in
energy investment. At the same time, the incremental cost of
achieving net zero carbon continues to improve, making it more
financially attractive. The US Inflation Reduction Act is
potentially the most transformational policy in clean tech, making
green hydrogen, carbon capture and geothermal energy some of the
more cost-effective paths for energy transition in the US.
Meanwhile, the European Union has launched its Green Deal
Industrial Plan, aiming to become the world's first climate-neutral
continent by 2050 and reduce emissions by at least 55% by 2030. The
UK Government has updated its net-zero strategy, allocating a GBP20
billion budget for capturing and storing CO2 beneath the North Sea,
as well as investing in hydrogen, offshore wind and expanding the
electric vehicle charging network.
Getech's corporate strategy reflects this underlying trend and
focuses on monetising the company's core capabilities in the most
efficient and valuable ways. We are investing to evolve our
offerings and unique propositions, growing our order book,
expanding our pipeline and are confident in the outlook for the
business.
Chris Jepps
Chief Operating Officer
Financial Review
In 2022, Getech remained committed to growth and diversification
by strategically investing in sales, business development, and
marketing initiatives. This focus has yielded a significant revenue
growth of 19%, building on the 20% growth achieved in 2021. Our
efforts have culminated in a record order book of GBP4.6m,
reflecting a substantial 39% growth. Additionally, our Annual
Recurring Revenue (ARR) has increased by 14% to GBP2.4m, thanks to
the addition of new Globe and other software customers, further
strengthening our financial position and setting the stage for
continued success.
Table 1 - Financial summary 2022 2021
============================================
Reported Reported Adjusted (1) (unaudited)
(audited) (audited) GBP'000
GBP'000 GBP'000
============================================ =========== =========== =========================
Revenue 5,070 4,280 4,280
Cost base (see table 3) 7,915 6,455 6,455
Loss after tax (2,828) (1,949) (1,649)
Earnings per share (4.21)p (3.27)p (2.77)p
Net cash outflow from operating activities (468) (799) (799)
Development costs (785) (847) (847)
Net (decrease)/increase in cash (1,645) 3,665 3,665
Cash and cash equivalents 4,322 5,864
Net cash 3,642 5,095
Orderbook 4,591 3,333
Annualised recurring revenue 2,409 2,094
============================================ =========== =========== =========================
(1) Exceptional items
In 2021 Getech incurred a one-off amortisation charge of
GBP300,000 related to the acquisition of H2 Green Limited.
Revenue
In 2022, Getech signed over 100 new contracts with a total value
of GBP6.5 million, driving a 19% increase in revenue to GBP5.1
million (2021: GBP4.3 million). This marks the second consecutive
year of double-digit revenue growth since Getech completed its
GBP6.25 million equity raise in 2021. Transitional petroleum
accounted for 66% of revenue, while critical minerals contributed
23%. The Company aims to further diversify its revenue streams.
A significant portion of this growth has been license-based and
recurring in nature. In 2022, the number of software licences sold
rose by 42% and Getech secured two new customers for Globe.
Consequently, Getech's order book expanded by 39% to a record
year-end position of GBP4.6 million (31 December 2021: GBP3.3
million). Annualised recurring revenue also increased by 14% to
GBP2.4 million (31 December 2021: GBP2.1 million).
Gross margin
Cost of sales included costs associated with the asset
development business of GBP1.2m (2021: GBP0.4m), which impacts
Group profit margin. However, underlying profit margins for both
products and services were healthy, summarised in the table
below:
Table 2 - Segmental analysis 2022 2021
Revenue Profit/(loss) Gross margin % Revenue Profit Gross margin %
GBP'000 GBP'000 GBP'000 GBP'000
Products 3,684 2,012 55% 3,509 2,267 65%
Services 1 ,286 4 80 3 7% 771 145 19%
Asset development 1 00 ( 1,103) - - (447) -
Group total 5,070 1,389 27% 4,280 1,965 46%
============================== ========= ============== =============== ========= ========= ===============
The new reporting segment "asset development" includes the
activities of Getech's subsidiary H2 Green, a green hydrogen
developer.
Cost base
Getech's cost base has increased to GBP7.9m from GBP6.5m. Table
3 - Cost base reconciliation shows how our cost base aligns with
the financial statements.
In addition to expanding its asset development capabilities
through H2 Green, Getech has invested in its Business Development,
Marketing and Sales capabilities to drive revenue growth in
2023.
Table 3 - Cost base reconciliation % variance 2022 2021
GBP'000 GBP'000
Cost of sales 3,681 2,315
Development costs capitalised 785 847
Administrative costs (excluding exceptional items) 4,779 4,733
Depreciation and amortisation charges (excluding exceptional items) (1,137) (1,225)
Movement in provisions (104) (88)
RDEC adjustments (22) (127)
Share based payments (67) -
Cost base, excluding exceptional items 23% 7,915 6,455
========================================================= ============ ========= =========
Cost base is measured as: cost of sales, administrative costs
and development costs capitalised, less depreciation and
amortisation, movement in provisions.
Getech reported an adjusted loss after tax of GBP2.8m (2021:
GBP1.6m loss).
Operating cash flows
Getech's cash outflow from operations was GBP0.5m (2021: GBP0.8m
outflow), which includes costs of sales totalling GBP1.2m related
to Getech's asset development business (2021: GBP0.4m).
Liquidity and going concern
At the end of 2022, Getech held GBP4.3m in cash and cash
equivalents (2021: GBP5.9m). Net of debt, Getech's cash balance was
GBP3.6m (2020: GBP5.1m).
Getech's business activities and the factors likely to affect
our future development, performance and position are set out in the
Operational Review. The financial position of the Group, our cash
flows and liquidity position are described in the financial
statements.
In making the going concern assessment, the Board of Directors
has considered Group budgets and detailed cash flow forecasts to 30
June 2024. The detailed forecasting models are built from Board
approved budgets. From these budgets, revenue forecasting is
regularly updated to take into consideration new contractually
committed revenues, market sentiment, our current sales pipeline,
and any other influencing factors. The Directors then further apply
sensitivity testing to the revenue profiles based on the
achievement of various levels of revenue from noncontractually
committed sources.
Getech's bank loan includes a balloon payment of GBP0.5m that
falls due in October 2024. The Group intends to either repay this
amount early on successful sale of Kitson House, or re-financing
the balance to achieve a similar repayment profile to that
currently being paid.
These cash flow projections and sensitivities, when considered
in conjunction with Getech's existing cash balances and its ability
to adjust costs in accordance with forecast levels of revenue,
demonstrate that the Group has sufficient working capital for the
forecast period. Consequently, the Directors are fully satisfied
that it is appropriate to prepare the accounts on a going concern
basis.
Andrew Darbyshire
Chief Financial Officer
Sustainability
Getech remains committed to sustainability and ESG principles,
which form the backbone of our corporate strategy. Our focus on
planet and people ensures that we continuously strive for a
sustainable future and create value for our stakeholders.
Planet: Innovating for Sustainability
Building on our pledge to become carbon neutral by 2030, Getech
has made progress in reducing scope 1 and 2 emissions. This year,
we have implemented further initiatives to minimise our
environmental footprint:
-- Enhanced energy efficiency through optimised workspace design
-- Increased employee participation in our green commuting schemes
-- Switching to renewable electricity and green gas suppliers
In 2023, we have outlined the following objectives to further
our sustainability efforts:
-- Assess and quantify our Scope 1 and 2 emissions
-- Establish ESG metrics grounded in a materiality assessment
-- Begin developing an auditable roadmap to fulfil Getech's
commitment to achieving net-zero emissions by 2030
In 2022, in line with our mission to unlock the world's
subsurface geoenergy potential and locate essential energy and
mineral resources needed for decarbonisation, we expanded our
product portfolio by introducing innovative solutions that
contribute to a greener and more sustainable future. Our research
and development efforts have yielded the following
advancements:
-- A novel solution for identifying future facing minerals,
including sedimentary hosted copper deposits
-- An enhanced geothermal screening solution that locates and
high-grades geothermal opportunities
-- A comprehensive approach to industrial decarbonisation
-- An improved methodology for locating and monitoring subsurface sites for carbon storage
Sedimentary Hosted Copper
With the looming copper deficit, sedimentary hosted copper
deposits offer a promising and sustainable alternative for meeting
the increasing global demand for this energy transition critical
mineral. These deposits account only for 20% of the world's total
copper production today and offer several advantages compared to
non-sedimentary deposits such as porphyry deposits found in igneous
settings, including:
-- Sedimentary-hosted copper deposits, being more widely
distributed, often present fewer ESG issues, minimising
environmental problems, promoting equitable economic distribution
and reducing transport emissions.
-- These deposits typically require less energy-intensive processing methods.
Another critical aspect of sedimentary hosted copper deposits is
their significant cobalt content. Approximately 80% of the world's
cobalt, a key component in batteries, comes from these deposits.
This positions Getech at the forefront of supporting the growing
demand for essential minerals in the clean energy and electric
vehicle industries.
Geothermal Screening
Geothermal energy is a reliable and renewable energy source that
utilises the Earth's natural heat to generate electricity and
provide heating solutions with minimal environmental impact. By
tapping into this vast resource, we can significantly reduce our
reliance on fossil fuels and contribute to global efforts in
mitigating climate change.
Our advanced geothermal screening technology enables the
efficient evaluation of subsurface conditions, allowing us to
pinpoint areas with high potential for geothermal development.
Furthermore, our expertise allows us to tailor our screening
approach to the specific requirements of different geothermal
technologies, such as closed-loop and open-loop systems.
Closed-loop systems involve circulating a heat transfer fluid
through a sealed underground network of pipes, while open-loop
systems extract geothermal fluid directly from the ground,
utilising its heat before returning it to the subsurface.
By identifying optimal locations for these various technologies,
we can minimise exploration risks and reduce the overall costs
associated with geothermal projects, making them more accessible
and attractive to investors and energy producers. Our tailored
approach also ensures that the most suitable and efficient
geothermal technology is employed for each specific site,
maximising the potential benefits and minimising the environmental
impact.
Our expertise in geothermal screening not only benefits our
customers by providing them with valuable insights into promising
geothermal resources and tailored solutions, but also makes this
energy source more affordable and competitive when compared to
fossil fuels.
Integrated Decarbonisation for Industry
At Getech, we recognise the critical role that industries play
in the global effort to reduce greenhouse gas emissions and
transition to a low-carbon future. To support this transition, we
offer tailored, integrated decarbonisation solutions that help our
customers replace high-emission energy sources with sustainable,
low-carbon alternatives, such as geothermal, green hydrogen, carbon
capture and storage (CCS), wind and solar energy.
Our comprehensive approach to decarbonisation involves global
screening of manufacturing sites and logistics operations, combined
with location-specific feasibility studies. With our expertise in
geospatial optimisation and advanced analytics, we can determine
the most efficient and cost-effective strategies to lower emissions
across various assets and operations.
By providing industries with customised, data-driven insights,
we enable them to make informed decisions about their energy mix
and emission reduction initiatives. This empowers companies to not
only meet their sustainability goals but also improve their overall
environmental performance and long-term competitiveness in a
rapidly changing global landscape.
Carbon Capture and Storage
As the urgency to address greenhouse gas emissions and combat
climate change grows, carbon capture and storage (CCS) technologies
have become an indispensable component in the pursuit of a
sustainable and comprehensive solution to mitigate the detrimental
effects of carbon dioxide emissions. CCS involves the capture of
CO2 generated by industrial activities, power generation, and other
sources, followed by the transportation and secure storage of the
CO2 in underground geological formations, thus preventing its
release into the atmosphere.
Getech is at the forefront of this critical initiative -
identifying potential storage sites, modelling subsurface
structures and monitoring operations. The selection of an
appropriate site is of utmost importance, with three primary
factors to consider: storage capacity, injectivity and containment.
Identifying the ideal geological formation entails finding rocks
with ample storage potential, characterised by high porosity and
permeability, an effective caprock and a stable environment to
ensure long-term secure storage of CO2. Through this rigorous
screening process, we can confidently ensure that captured CO2
remains contained within designated geological formations,
minimising the risk of leakage and maximising the overall
effectiveness of CCS solutions.
Moreover, our dedication to collaboration enables us to forge
partnerships with a diverse range of stakeholders - such as
government authorities, industry leaders and research institutions
- in order to advance CCS technology and promote its global
adoption. By joining forces, we can expedite the transition towards
a sustainable, low-carbon economy.
People: Empowering Our Workforce and Communities
Health, Safety and Wellbeing
At Getech, we are passionate about our people and truly value
each individual contribution to the wider success of the business.
Employee satisfaction and commitment are crucial for driving
Getech's growth and fostering a thriving work environment,
resulting in the retention and happiness of our valued employees.
As such, our attractive benefits package, alongside our continued
efforts to make Getech a great place to work, aims to incentivise
our current talent to stay onboard, while attracting new, high
calibre individuals to join us. Our retention rate for 2022 was 92%
(2021: 95%).
Getech remains committed to providing a physically and
psychologically safe and supportive work environment, investing in
the following initiatives:
-- Regular health and safety training
-- Mental health and well-being assistance programme
-- Enhanced flexible working arrangements to promote work-life balance
-- Financial advice from experienced wealth management
-- Life, private medical and business travel insurance
-- Bereavement support
-- Discounts on gym memberships and physiotherapy
Several initiatives benefit our employees while advancing energy
transition goals:
-- Cycle to Work Scheme
-- Electric Vehicle Salary Sacrifice Scheme
We also support a range of extracurricular activities including
a workplace cricket league and a sports and social club, which
provide team building opportunities for all staff.
Equality, Inclusion and Diversity
Equality, inclusion and diversity are vital to Getech to create
a safe and inclusive workplace. The Group's Equality, Inclusion and
Diversity Policy sets out the expectations of all employees and
Board to create this environment. We actively support diversity and
inclusion and ensure that all employees are valued with dignity and
respect.
The employment practices and procedures as part of our Quality
Management System (QMS) exemplify fairness and transparency
throughout the employment lifecycle, including recruitment and
promotion.
To strengthen our commitment to equality, we have initiated pay
gap analysis reports this year to ensure equal pay across gender,
race, and ethnicity. Although we have not yet completed pay gap
checks, we have consistently provided equal pay raises based on
experience and performance. In 2023, a 4% pay rise was granted
equally to all employees, excluding those with less than six months
of service.
Transparency in remuneration is also essential to our
commitment. We include salaries in job postings, basing them on the
most recent salary for existing roles or conducting benchmarking
for new positions.
The robust appraisal system at Getech directly supports
inclusion and diversity by providing equal opportunities for growth
and advancement to all employees, regardless of their background.
By engaging regularly with their managers, employees from diverse
backgrounds can openly discuss their career aspirations and receive
tailored guidance to achieve their goals.
This appraisal system emphasizes the recognition of individual
skills and achievements, ensuring that employees are evaluated
based on merit, rather than on factors unrelated to their
performance. This merit-based approach fosters an inclusive work
environment where diverse perspectives and talents are valued.
These appraisals help employees understand their career development
path, which is vital in promoting diversity and inclusion. When
employees can see how their unique skills and experiences align
with Getech's vision, they feel more engaged and motivated to
contribute to the company's success. This alignment also encourages
a sense of belonging, enabling employees from diverse backgrounds
to thrive in their roles.
Lastly, by identifying skills gaps or areas requiring further
training, Getech ensures that all employees have equal access to
resources that enable them to reach their full potential. This
commitment to continuous learning and development further supports
an inclusive workplace culture where every employee can succeed,
irrespective of their background or identity.
Investing in People
At Getech, we are committed to fostering the professional
development of our employees. We achieve this by offering targeted
training programs that not only enhance team day-to-day performance
but also prepare them for new roles and responsibilities.
Following the reporting period, we implemented an improved
appraisal process that emphasises values and behaviours, ensuring
improved development and training opportunities while maintaining
adaptability in a dynamic environment. To facilitate continuous
growth and open communication, appraisals will be conducted
multiple times per year, providing ample opportunities for two-way
feedback.
Community Engagement
Getech continues to give back to our communities through charity
partnerships and volunteering efforts. During 2022, financial
support was provided to Freedom4Girls, a charity fighting against
period poverty. The fundraiser helped to provide safe period
products and menstrual health education to thousands of women and
girls across Leeds, Kenya, and Uganda - enabling them to attend
school and work without the stigma and gender inequalities
associated with period poverty.
In December 2022, Getech staff raised GBP300 for a local
community foodbank to provide Christmas dinner and additional food
supplies to their service users in Harehills, one of the most
financially deprived areas of Leeds.
After the reporting period, in response to the tragic earthquake
and its aftermath in Turkey and Syria, Getech supported the DEC's
Earthquake Appeal. Our Leeds office held a cake sale to raise
funds. Getech staff donated a total of GBP335, with Getech
contributing an additional GBP250. Employees across all offices
were encouraged to donate directly to the DEC, with the added
benefit of being able to gift aid their contributions.
Since 2016, our staff have also volunteered for MapAction -
providing assistance with mapping, data, and training. The charity
is currently involved with supporting humanitarian efforts in
relation to the Ukraine conflict, providing life-saving geospatial
data, visualisation, and mapping. We are seeking ways to increase
our role in supporting MapAction charity, including donations and
training.
For further information, please contact:
Getech Group plc
Irina Logutenkova, Head of Investor Relations Tel: 0113 322 2200
Cenkos Securities plc
Neil McDonald / Pete Lynch (Corporate Finance) Tel: 0207 397 8900
Michael Johnson / Dale Bellis (Sales)
N ovella Communications T el: 0203 151 7008
Tim Robertson / Claire de Groot / Safia Colebrook
getech@novella-comms.com
Notes to editors:
Getech Group plc (AIM: GTC) generates revenue by locating new
energy and mineral resources using its proprietary Earth digital
twin. The Group works for governments and companies who seek to
decarbonise their operations. Getech has expanded the use of data
and technologies built for the petroleum industry to critical
minerals, geothermal, hydrogen, and carbon storage.
For further information, please visit www.getech.com .
H2 Green Limited, a wholly owned subsidiary, that is a designer
and developer of Green Hydrogen Hubs in the UK. Each hub utilises
renewable power to produce large volumes of hydrogen that is uses
to decarbonise transport and industrial applications.
Group Statement of Comprehensive Income
For the year ended 31 December 2022
2022 2021
GBP'000 GBP'000
Revenue 5,070 4,280
Cost of sales (3,681) (2,315)
Gross profit 1,389 1,965
Other operating income 205 176
Administrative expenses (4,779) (4,733)
Operating loss before exceptional items (3,185) (2,592)
Exceptional items - (300)
======================================================================================= ========= =========
Operating loss (3,185) (2,892)
--------------------------------------------------------------------------------------- --------- ---------
Finance income 8 -
Finance costs (45) (55)
Other gains and losses 125 60
======================================================================================= ========= =========
Loss before taxation (3,097) (2,887)
Income tax income 269 938
======================================================================================= ========= =========
Loss for the year (2,828) (1,949)
Other comprehensive income:
Items that may be reclassified to profit or loss
Currency translation differences 110 24
Total items that may be reclassified to profit or loss 110 24
Total other comprehensive income for the year 110 24
======================================================================================= ========= =========
Total comprehensive income for the year attributable to owners of the Parent Company (2,718) (1,925)
======================================================================================= ========= =========
Earnings per ordinary share (EPS)
Basic EPS (4.21)p (3.27)p
Diluted EPS (4.21)p (3.27)p
======================================================================================= ========= =========
All activities relate to continuing operations.
Group Statement of Financial Position
as at 31 December 2022
2022 2021
GBP'000 GBP'000
Non-current assets
Goodwill 631 631
Intangible assets 3,413 3,431
Property, plant and equipment 2,282 2,355
Investment property 69 174
Deferred tax asset 200 214
==================================== ========= =========
6,595 6,805
=================================== ========= =========
Current assets
Trade and other receivables 1,202 1,591
Current tax recoverable 318 793
Cash and cash equivalents 4,322 5,864
==================================== ========= =========
5,842 8,248
=================================== ========= =========
Total assets 12,437 15,053
==================================== ========= =========
Current liabilities
Trade and other payables 2,304 2,127
Current tax liabilities 9 -
Borrowings 110 110
2,423 2,237
=================================== ========= =========
Net current assets 3,419 6,011
Non-current liabilities
Borrowings 570 659
Trade and other payables 39 102
Long-term provisions 25 25
==================================== ========= =========
634 786
=================================== ========= =========
Net assets 9,380 12,030
==================================== ========= =========
Called up share capital 168 167
Share premium account 8,685 8,685
Merger reserve 2,601 2,601
Share-based payment (SBP) reserve 196 258
Currency translation reserve 108 (2)
Retained earnings (2,378) 321
==================================== ========= =========
Total equity 9,380 12,030
==================================== ========= =========
The financial statements were approved by the Board of Directors
and authorised for issue on 2 June 2023 and are signed on its
behalf by:
Mr A L Darbyshire
Director
Group Statement of Changes in Equity
For the year ended 31 December 2022
Share Currency
Share premium Merger translation Retained
capital account reserve SBP reserve reserve earnings Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
1 January 2021 94 3,053 2,407 251 (26) 2,270 8,049
Loss for the
year - - - - - (1,949) (1,949)
Other
comprehensive
income - - - - 24 - 24
=============== ============= ============= ============= ============ ============ ============= =============
Total
comprehensive
income - - - - 24 (1,949) (1,925)
Transactions
with owners:
Issue of share
capital 73 6,179 194 - - - 6,446
Share-based
payment
charge - - - 7 - - 7
Costs of share
issue
deducted from
share premium - (547) - - - - (547)
=============== ============= ============= ============= ============ ============ ============= =============
31 December
2021 167 8,685 2,601 258 (2) 321 12,030
=============== ============= ============= ============= ============ ============ ============= =============
Loss for the
year - - - - - (2,828) (2,828)
Currency
translation
differences - - - - 110 - 110
=============== ============= ============= ============= ============ ============ ============= =============
Total
comprehensive
income - - - - 110 (2,828) (2,718)
Transactions
with owners:
Issue of share
capital 1 - - - - - 1
Share-based
payment
charge - - - 67 - - 67
Transfer of
exercised and
lapsed
share-based
payment
charges - - - (129) - 129 -
=============== ============= ============= ============= ============ ============ ============= =============
31 December
2022 168 8,685 2,601 196 108 (2,378) 9,380
=============== ============= ============= ============= ============ ============ ============= =============
Group Statement of Cash Flow
For the year ended 31 December 2022
2022 2021
GBP'000 GBP'000
Operating activities
Loss before tax (3,097) (2,887)
Adjusted for non-cash items:
Fair value gains and losses (125) (60)
Depreciation charge 329 299
Amortisation of intangible assets 808 1,226
Share-based payment expense 67 7
Finance income (8) -
Finance costs 45 55
RDEC adjustments within administrative expenses (22) (127)
(2,003) (1,487)
(Increase)/decrease in trade and other receivables 390 (245)
Increase/(decrease) in trade and other payables 357 710
========================================================= ========= =========
Cash generated from operations (1,256) (1,022)
Income tax refunded 788 223
========================================================= ========= =========
Net cash outflow from operating activities (468) (799)
========================================================= ========= =========
Investing activities
Business combinations (net of cash received) - (54)
Development costs capitalised (785) (847)
Purchase of property, plant and equipment (73) (29)
Interest received 8 -
======================================================== ========= =========
Net cash used in investing activities (850) (930)
========================================================= ========= =========
Financing activities
Proceeds from issue of shares 1 6,250
Share issue costs - (547)
Repayment of bank loans (89) (66)
Payment of lease liabilities (199) (199)
Interest paid (40) (44)
========================================================= ========= =========
Net cash generated from/(used in) financing activities (327) 5,394
========================================================= ========= =========
Increase/(decrease) in net cash and cash equivalents (1,645) 3,665
Cash and cash equivalents at the beginning of the year 5,864 2,192
Effect of exchange rates 103 7
Cash and cash equivalents at the end of the year 4,322 5,864
========================================================= ========= =========
Notes to the Group Financial Statements
for the year ended 31 December 2022
Basis of preparation
The financial information set out in this preliminary
announcement does not constitute statutory accounts as defined by
section 434 of the Companies Act 2006. The financial information
above has been extracted from the Group's 2022 statutory financial
statements, which have been prepared in accordance with UK-adopted
International Accounting Standards and with the requirements of the
Companies Act 2006. The principal accounting policies of the Group
have remained unchanged from those set out in the Group's 2021
annual report as delivered to the Registrar of Companies.
The financial statements are prepared in sterling, which is the
functional currency of the Group. Monetary amounts in these
financial statements are rounded to the nearest GBP'000.
The financial statements have been prepared under the historical
cost convention, except for the revaluation of investment property
and financial instruments.
Statutory accounts for the years ended 31 December 2022 and 31
December 2022 have been reported on by the Independent Auditor. The
Independent Auditor's Reports on the Annual Report and Financial
Statements for the periods ended 31 December 2022 and 31 December
2021 were unqualified, did not draw attention to any matters by way
of emphasis, and did not contain a statement under 498(2) or 498(3)
of the Companies Act 2006.
The statutory accounts for the year ended 31 December 2022 were
approved by the board on 2 June 2023 but have not yet been
delivered to the Registrar of Companies. The statutory accounts for
the year ended 31 December 2021 have been delivered to the
Registrar of Companies.
Going concern
In making the going concern assessment, the Board of Directors
has considered Group budgets and detailed cash flow forecasts to 30
June 2024. The detailed forecasting models are built from Board
approved budgets. From these budgets, revenue forecasting is
regularly updated to take into consideration new contractually
committed revenues, market sentiment, our current sales pipeline,
and any other influencing factors. The Directors then further apply
sensitivity testing to the revenue profiles based on the
achievement of various levels of revenue from noncontractually
committed sources.
Getech's bank loan includes a balloon payment of GBP0.5m that
falls due in October 2024. The Group intends to either repay this
amount early on successful sale of Kitson House, or re-finance the
balance to achieve a similar repayment profile to that currently
being paid.
These cash flow projections and sensitivities, when considered
in conjunction with Getech's existing cash balances and its ability
to adjust costs in accordance with forecast levels of revenue,
demonstrate that the Group has sufficient working capital for the
forecast period. Consequently, the Directors are fully satisfied
that it is appropriate to prepare the accounts on a going concern
basis.
Earnings per share
2022 2021
Number Number
Number of shares
Weighted average number of ordinary shares for basic EPS 67,251,505 59,612,590
========================================================== =========== ===========
2022 2021
GBP'000 GBP'000
Earnings (all attributable to equity shareholders of the company)
Loss for the period from continued operations (2,828) (1,949)
=================================================================== ========= =========
Basic and diluted EPS
From continuing operations (pence/share) (4.21) (3.27)
========================================== ======= =======
Basic EPS is calculated by dividing the profit attributable to
equity holders of the parent by the weighted average number of
ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to
equity holders of the parent by the weighted average number of
ordinary shares outstanding plus the weighted average number of
shares that would be issued on conversion of all the dilutive share
options into ordinary shares. In the current and comparative year
the Group has incurred losses and as such has not presented any
dilution of earnings per share in accordance with IAS 33 'Earnings
per share'. However, these dilutive shares would dilute the
earnings per share should the Group become profitable.
Adjusted Earnings per share
The Directors use "Adjusted Earnings" as a Key Performance
Measure, which is defined as earnings before exceptional items. In
the current year this includes a material component of
non-recurring amortisation which has only arisen because of the
business combination with H2 Green Limited. Adjusted Earnings is
considered to represent and measure the ongoing profitability and
performance more faithfully.
The calculated Adjusted Earnings for the current period is as
follows:
2022 2021
GBP'000 GBP'000
Loss for the period from continued operations (2,828) (1,949)
Adjusted for:
Exceptional items - 300
================================================= ========= =========
(2,828) (1,649)
================================================= ========= =========
Basic adjusted earnings per share (pence/share) (4.21) (2.77)
================================================= ========= =========
Notice of Annual General Meeting
The Annual Report and Accounts and notice convening the Annual
General Meeting of the Company will be posted to shareholders on 8
June 2023 and will be available from the Company's website
www.getech.com from that date. The Annual General Meeting of Getech
Group plc will be held on 29 June 2023 at 12.00 noon.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR EAKKDEDPDEFA
(END) Dow Jones Newswires
June 05, 2023 02:00 ET (06:00 GMT)
Getech (LSE:GTC)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Getech (LSE:GTC)
Gráfica de Acción Histórica
De May 2023 a May 2024