TIDMGTC
RNS Number : 4375N
GETECH Group plc
25 September 2023
25 September 2023
Getech Group plc
("Getech" or the "Company")
Interim Results
Getech (AIM: GTC), a world leading locator of subsurface
resources, announces its unaudited interim results and report for
the six months to 30 June 2023 ("H1 2023" or the "Period").
'Restructured and re-focused on core expertise of locating
subsurface resources'
Operational and Strategic highlights
-- Strategic review of the business completed over the last 6
months, resulting in targeted objectives to:
o re- focus the Company on the core business of locating
subsurface resources;
o extend Globe's capabilities to identify a wider range of
assets e.g. Zinc, Lithium and Phosphates;
o reduce cost base by GBP2 million and switch to developing H2
Green's assets in partnership;
o generate future revenues from subscription sales and solutions
coupled to asset participation in large scale projects where
appropriate;
o become cashflow positive in the near term and
o increase and target marketing and sales activity towards the
$1 trillion Energy Transition market.
-- Significant progress has already been made on all of the strategic priorities set out above.
-- Interim executive Chairman Richard Bennett, appointed in
February 2023, has agreed to become Acting Chief Executive Officer
of the Group with Michael Covington, currently Non-Executive
Director, to be Chairman Designate. Both appointments expected to
be confirmed as permanent in due course.
Financial highlights
-- H1 2023 revenues of GBP1.9 million (H1 2022: GBP2.7 million
including a one-off GBP0.7 million transfer payment) reflects lower
sales volumes in oil and gas.
-- Strong orderbook value of GBP4.4 million (30 June 2022:
GBP4.8 million) with GBP1.4 million of the orderbook expected to
convert in H2 20 23, and a further GBP1.5 million due i n FY 2024.
This demonstrates multi-year commitment from our customers to use
the Globe geoscience platform.
-- Annualised recurring revenue increased to GBP2.6 million with
the addition of new Globe and software customers (December 2022:
GBP2.4 million).
-- On an unchanged cost base, recorded a loss before tax and
exceptional costs of GBP2.2 million (exceptional costs being GBP0.7
million)
-- Cash totalling GBP2.0 million at 30 June 2023 (31 December
2022: GBP4.3 million), with the proposed sale of Kitson House
progressing
Outlook
-- Good pipeline of orders support the traditionally stronger
second half of the year, boosted by the uplift in sales, marketing
and PR activity across the business, although tempered by delays to
spending decisions
Richard Bennett, Getech Executive Chairman commented:
"Completing the strategic review of the business has enabled us
to set out our plans for the Company's future. It was clear that
the Group was likely to become financially and operationally
over-extended. Accordingly, we have decided to focus on our core
expertise of locating subsurface assets, transforming our
predictive capabilities with the latest artificial intelligence
techniques, and to significantly reduce our cost base, thereby
creating a financially lighter and more focused business with which
to target future growth.
The results for H1 show a reduction in sales over the
comparative period in the prior year, when performance was boosted
by a large one-off payment. However, our order book is stable and
we are generating a good pipeline of future projects, the majority
of which come from outside of the oil and gas market. There is no
doubt that Getech's expertise is required to locate the resources
needed to power the substantial Energy Transition market - clean
energy and critical minerals - and we are positioning the business
to do exactly that."
Investor Meet Company presentation
The Company will hold an investor call on Monday 25 September at
10.00am to discuss the interim results. Investors can sign up to
Investor Meet Company for free and add to meet Getech via:
https://www.investormeetcompany.com/investor/company/getech-group-plc
.
Mello presentation
Taking place on Wednesday, 27 September 2023 at 12.30pm UK time
via Zoom. Investors can register for tickets via:
https://www.tickettailor.com/events/melloeventslimited/970931
For further information, please contact:
Getech Group plc Tel: 0113 322 2200
Richard Bennett, Executive Chairman
Cavendish Securities plc Tel: 0207 397 8900
Neil McDonald / Pete Lynch (Corporate Finance)
Michael Johnson / Dale Bellis (Sales)
Novella Tel: 020 3151 7008
Tim Robertson/Safia Colebrook
Notes to editors:
Getech Group plc (AIM: GTC) applies its world-leading geoscience
data and unique geospatial software products to accelerate the
Energy Transition by locating geoenergy projects and critical
minerals.
For further information, please visit www.getech.com .
CEO Statement
Introduction
After several years of investing in diversifying our business
from oil and gas (O&G), H1 2023 has seen us apply this
experience to better focus our operations on the best opportunities
- those that match our core expertise in subsurface understanding
and geospatial analysis, with a near-term expectation of generating
revenues. Getech has genuinely unique data and a talented pool of
highly knowledgeable staff - I am confident that the strategic
changes we have made and are making, coupled with a
transformational shift toward the use of machine learning and
artificial intelligence (AI), stands us in good stead for
significant future growth.
Financial Results
During the period the Company continued to win new business
across all our subsurface product lines to generate revenues of
GBP1.9m. This was lower than the same period in 2022, which was
boosted by a GBP0.7m transfer payment. During the period, costs
were higher than expected given a number of one-off costs including
redundancy payments and the restructuring of H2 Green. The cash
balance at the end of the period is GBP2.0m and, after the
implemented cost reductions coupled with the sale of Kitson House
there will be sufficient funds to operate the business.
Strategic Review
My key priorities for the past six months have been two-fold.
First, to ensure business continuation, and second, to undertake a
strategic review of the business and ensure that Getech
successfully diversifies its services and customer-base, while
growing profits from the wider Energy Transition. Today, it is my
pleasure to outline my conclusions and explain how we intend to
drive the business forward.
Re- focus on the core business of locating subsurface
resources
-- Our plan for Getech is to continue to sell products and
services to the global O&G sector to allow customers to develop
more sustainable future reserves; and to consolidate and focus hard
on the areas where we have been winning business and are able to
grow revenues, i.e. CCS, Geothermal and Critical Minerals. The
intention is for the majority of our revenues to come from clean
energy in due course.
Business Model
-- 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 historical 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. We are extending our business to look at
both revenue and project participation through carried equity and
royalties. A portfolio approach, based on future asset
participation and/or royalty revenue streams, is expected in time
to become a central part of Getech's value.
Cost reduction programme
-- We have taken a very hard look at our cost-base and
implemented a programme of cost reductions in staff and expenses
that will result in a c.GBP2m saving going into 2024. This
specifically includes removing the board and management overheads
from H2 Green, and utilising Getech's existing management team for
these functions. This will help us meet our objective of making
Getech cash flow positive in the near term. Costs associated with
H2 Green make up the majority of the reductions. Looking ahead into
2024 and beyond with a lighter cost-base and as the business grows,
we anticipate having the capital to recruit more appropriate skills
into the Group, to support development where we are generating
revenue and value traction, e.g. CCS, Geothermal, critical
minerals, data science and AI.
In addition, it remains a priority to reduce our office costs
and sell Kitson House so that we can move to more suitable
accommodation. While the real estate market is challenging, we are
confident of bringing this to a conclusion.
Globe Geoscience Platform and R&D
-- During the strategic review, we have identified opportunities
to expand the commerciality of the Company's core assets. The focus
of our work has been in utilising machine learning and AI
technologies to streamline our internal workflows and develop
advanced analytic capabilities within our products, and in
particular our Globe geoscience platform. Our work to date has
allowed us to significantly improve our predictive capabilities
across a range of heat and mineral resources. We expect to be able
to bring these capabilities to market and use them to develop new
asset participation opportunities. We have already successfully
used the Globe platform to support the exploration of copper with
clients including Nittetsu, geothermal with Eavor and have added
the capability for the exploration of natural hydrogen.
Routes to Market
The Company is now organised around selling solutions to
Explorers and Decarbonisers:
-- Decarbonisers are a new type of customer for Getech and
comprises global industrial companies that need to reduce carbon
emissions from industrial processes. Getech can help these large
organisations identify subsurface resources such as carbon storage
that can be used to store hard-to-abate emissions, as well as
geothermal potential that can be used as an alternative low-carbon
heat source to fossil fuels. We expect this to become a substantial
area of growth as companies seek to deliver their Net Zero
commitments.
-- Explorers are the main customers and revenue generators for
Getech and comprise exploration companies that are seeking to
identify and develop subsurface projects. This includes O&G,
minerals exploration and geothermal companies. Getech provides our
Globe geoscience platform, geoscience data, software and expert
services to accelerate and de-risk the exploration process. We
expect this to continue to be a growth area as companies seek to
develop the subsurface resources that are vital for the Energy
Transition.
Review of Operations
Oil, Gas and CCS
In our core oil and gas sector, customer retention for our Globe
platform has been strong, and we continue to see interest from
potential new customers. Globe 2023 was released in July 2023 with
new content and functionality, delivering even more value for
customers with enhanced application to multiple geoscience resource
sectors. In addition, we have added multiple new software
subscribers across both our Operator and Investor software
customer-base, driven in part by strong interest from the US shale
sector. At the same time, our GIS Services team continues to
deliver solid revenues across a range of geospatial energy sectors,
including exploration, production and pipeline sectors.
Unfortunately, our Gravity and Magnetic Solutions team has
experienced lower than customary data sales due to adverse market
conditions, as well as third-party delays to several large projects
which has had the effect of delaying revenues - naturally, we are
working hard to bring these projects on stream as soon as we
can.
There has been a notable policy shift in the UK to continue to
develop North Sea oil and gas fields and develop North Sea carbon
storage projects to store carbon dioxide resulting from blue
hydrogen projects, which offer to extend the lifespan for gas
usage, and in turn may extend exploration budgets.
We have also noted an increase in interest in exploration for
unconventional gas and natural hydrogen (or geologic hydrogen)
projects. We have responded by releasing software updates in our
Globe geoscience platform to facilitate the exploration of these
resources. In the case of natural hydrogen, it offers a potential
and substantial cost saving over green hydrogen production, and a
potential low-carbon diversification opportunity for energy
companies that have the necessary gas field development skills.
Geothermal
There is a renewed interest in geothermal projects around the
globe as a source of heating for homes and industries, as well as
to produce power.
Getech's subsurface expertise combined with advanced analytics
enables the rapid and cost-effective identification of locations
that are potentially prospective for geothermal energy. This is an
excellent fit with our core expertise of understanding subsurface
structure and heat flow. Continuing the trend of last year, in 2023
we have delivered multiple projects for new geothermal clients
across several continents, demonstrating and highlighting the
steady increase in demand and interest in this clean source of
energy.
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.
Critical Minerals
For the world to meet its decarbonisation goals, many industries
from automotive to steel mills are turning to electrification. This
requires enormous development of critical mineral assets such as
copper, cobalt and lithium, all of which are in the scope of Globe
geoscience platform.
In H1 2023, Getech has sold mineral exploration data and
solutions to three new Mining company customers, demonstrating
demand for our foundation geoscience data and interpretation in the
critical minerals sector. Based on this work, some of these
companies have licensed significant land positions for mineral
exploration, demonstrating the value of our offering. In addition,
we have continued to develop our R&D into predicting the
location of lithium and natural ("white") hydrogen resources, the
latter of which is receiving significant press attention. Getech is
in the process of bringing these new solutions to market.
H2Green
The market for green hydrogen has faced substantial challenges,
particularly for transportation which has been the primary focus of
H2 Green. In the UK, government policy has not been as decisive as
in Europe and the USA (e.g. through IRA incentives) and
consequently many investment decisions have been delayed. Given the
investment that Getech has made into H2 Green to date and the
ongoing cost, it has been vital to make hard and pragmatic choices
that protect the asset value but reduce the ongoing cost.
We have therefore decided to substantially reduce business
development activity and to continue to develop our projects
in-line with the market demand for green hydrogen. For the
foreseeable future, it is our preferred model to develop projects
with partners and contractors rather than to build a dedicated
in-house engineering team. We believe this offers a sensible hedge
that reduces costs now while enabling us to maintain our existing
portfolio and commitments, yet be positioned to take advantage as
and when market conditions improve.
Outlook
I am very optimistic about Getech's future as I believe the
business is naturally well placed to seize opportunities within the
rapidly evolving energy and climate tech landscape and support the
decarbonisation of industry.
In the upcoming year, we will double-down 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.
The Company has implemented new sales, marketing and PR programs
which are demonstrably generating news stories and sales leads.
This is leading to a very healthy pipeline of prospective customers
and projects. However, this is tempered by the current economic
environment where companies are noticeably delaying spending
decisions which risks leading to longer than usual sales
cycles.
In conclusion, I would like to express my gratitude to our
shareholders, partners and employees for their unwavering support
and dedication and am confident that with your support we will
continue to achieve great success in our pursuit of a sustainable
and prosperous future.
Richard Bennett
Acting CEO
Financial Review
Revenue and sales
H1 2023 revenue totalled GBP1.9 million (H1 2022: GBP2.7
million), representing a 30% decrease. H1 2022 revenue benefitting
from a GBP0.7m transfer payment.
Renewals from software and Globe customers during H1 2022
resulted in orderbook value being maintained at GBP4.4 million
(December 2022: GBP4.6 million), GBP1.4 million is expected to
convert to revenue before year end, with a further GBP1.5 million
due in FY 2024.
In H1 Getech added a new Globe customer and five new software
customers, whilst maintaining a high rate of renewals from existing
customers. Annualised Recurring Revenue from subscriptions and
service contracts increased to GBP2.6m (31 December 2022:
GBP2.4m).
Cost management
Management has completed a six-month strategic review of the
business and has commenced a substantial cost reduction exercise.
On completion, this will remove c.GBP2m of cost from the business,
the benefits of this exercise will be fully realised in FY2024.
The group cost base in H1 2023 increased by 3% from H1 2022.
Cost savings made in H1 have been offset by cost inflation.
One-off costs relating to restructuring the business (GBP0.4m),
and impairment of goodwill relating to the acquisition of H2 Green
(GBP0.3m) have been expensed to the income statement.
12 months
6 months 6 months ended 31
ended 30 ended 30 December
June 2023 June 2022 2022
(unaudited) (unaudited) (audited)
Variance
from
prior
6 months GBP'000 GBP'000 GBP'000
--------------------------------- ---------- -------------- -------------- ------------
Cost of sales 1,058 1,006 3,681
Development costs capitalised 485 459 785
Administrative expenses 2,968 2,895 4,779
Depreciation and amortisation
charges (531) (580) (1,137)
Movement in provisions - - (104)
RDEC adjustments - - (22)
Share based payments (69) (30) (67)
Exchange adjustments (65) (31) -
Cost base excluding exceptional
items 3% 3,846 3,719 7,915
--------------------------------- ---------- -------------- -------------- ------------
Profitability
Excluding exceptional administrative costs detailed above Getech
reports a post-tax loss of GBP2.0 million (H1 2022: GBP1.0
million). This increases to GBP2.8 million including exceptional
costs.
Operating cash flow
Net cash outflow from operations totalled GBP1.6 million (H1
2022: GBP1.0 million). This includes restructuring costs of GBP0.4m
(H1 2022: GBPnil) and costs relating to Getech's hydrogen asset
development activities (H2 Green) of GBP1.0m (H1 2022: GBP1.1m) [1]
.
Liquidity
During H1 2023 there was overall net cash outflow of GBP2.3
million (H1 2022: GBP1.6 million outflow). Getech's cash balance at
30 June 2023 was GBP2.0m (GBP4.3 million at 31 December 2022).
Dividends
The Board has set a clear investment path that is focused on
growth through Energy Transition diversification. Accordingly the
Board has decided that it is not appropriate to pay a dividend at
this time.
Group Statement of Comprehensive Income
for the six months ended 30 June 2023
6 months 12 months
ended 6 months ended 31
30 June ended 30 December
2023 June 2022 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
---------------------------------------------------------- ------------ ------------ ----------
Revenue 1,851 2,697 5,070
Cost of sales (1,058) (1,006) (3,681)
----------------------------------------------------------- ------------ ------------ ----------
Gross profit 793 1,691 1,389
Other operating income - - 205
Administrative expenses (2,968) (2,895) (4,779)
Operating loss before exceptional administrative expenses (2,175) (1,204) (3,185)
Restructure costs (397) - -
Impairment of goodwill (335) - -
----------------------------------------------------------- ------------ ------------ ----------
Operating loss (2,907) (1,204) (3,185)
Finance income 12 1 8
Finance costs (25) (23) (45)
Other gains and losses - - 125
----------------------------------------------------------- ------------ ------------ ----------
Loss before tax (2,920) (1,226) (3,097)
Income tax 161 253 269
----------------------------------------------------------- ------------ ------------ ----------
Loss for the period (2,759) (973) (2,828)
Other comprehensive income
Currency translation differences 47 66 110
----------------------------------------------------------- ------------ ------------ ----------
Total comprehensive loss for the
period (2,712) (907) (2,828)
----------------------------------------------------------- ------------ ------------ ----------
Earnings per ordinary share
Basic (pence/share) (4.10) (1.45) (4.21)
Diluted (pence/share) (4.10) (1.45) (4.21)
----------------------------------------------------------- ------------ ------------ ----------
Group Statement of Financial Position
as at 30 June 2023
30 June 30 June 31 December
2023 2022 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------ --- ------------- ------------- ------------
Non-current assets
Goodwill 296 631 631
Intangible assets 3,481 3,409 3,413
Property, plant and equipment 2,254 2,368 2,282
Investment property 17 122 69
Deferred tax assets 226 218 200
----------------------------------- ------------- ------------- ------------
6,274 6,748 6,595
---------------------------------- ------------- ------------- ------------
Current assets
Trade and other receivables 1,238 2,104 1,202
Current tax recoverable 440 716 318
Cash and cash equivalents 1,981 4,262 4,322
----------------------------------- ------------- ------------- ------------
3,659 7,082 5,842
---------------------------------- ------------- ------------- ------------
Total assets 9,933 13,830 12,437
----------------------------------- ------------- ------------- ------------
Current liabilities
Trade and other payables 2,559 1,913 2,304
Current tax liabilities - - 9
Borrowings 110 113 110
2,669 2,026 2,423
---------------------------------- ------------- ------------- ------------
Net current assets 990 5,056 3,419
----------------------------------- ------------- ------------- ------------
Non-current liabilities
Borrowings 527 611 570
Trade and other payables - 15 39
Long-term provisions - 25 25
----------------------------------- ------------- ------------- ------------
527 651 634
---------------------------------- ------------- ------------- ------------
Net assets 6,737 11,153 9,380
----------------------------------- ------------- ------------- ------------
Equity
Called up share capital 168 167 168
Share premium account 8,685 8,685 8,685
Merger reserve 2,601 2,601 2,601
Share based payment reserve 176 206 196
Currency translation reserve 155 64 108
Retained earnings (5,048) (570) (2,378)
----------------------------------- ------------- ------------- ------------
Total equity 6,737 11,153 9,380
----------------------------------- ------------- ------------- ------------
Group Statement of Changes in Equity
for the six months ended 30 June 2023
Currency
Share Share Merger SBP translation Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- -------- -------- -------- -------- ------------ --------- --------
1 January 2023 168 8,685 2,601 196 108 (2,378) 9,380
Loss for the year - - - - - (2,759) (2,759)
Other comprehensive
income - - - - 47 - 47
------------------------- -------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income - - - - 47 (2,759) (2,712)
Transactions with owners
of the company
Share-based payment
charge - - - 69 - - 69
Transfer of reserves - - - (89) - 89 -
------------------------- -------- -------- -------- -------- ------------ --------- --------
30 June 2023 (unaudited) 168 8,685 2,601 176 155 (5,048) 6,737
------------------------- -------- -------- -------- -------- ------------ --------- --------
For the six months ended 30 June 2022
Currency
Share Share Merger SBP translation Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- -------- -------- -------- -------- ------------ --------- --------
1 January 2022 167 8,685 2,601 258 (2) 321 12,030
Loss for the year - - - - - (973) (973)
Other comprehensive
income - - - - 66 - 66
------------------------- -------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income - - - - 66 (973) (907)
Transactions with owners
of the company
Share-based payment
charge - - - 30 - - 30
Transfer of reserves - - - (82) - 82 -
------------------------- -------- -------- -------- -------- ------------ --------- --------
30 June 2022 (unaudited) 167 8,685 2,601 206 64 (570) 11,153
------------------------- -------- -------- -------- -------- ------------ --------- --------
For the year ended 31 December 2022
Currency
Share Share Merger SBP translation Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- -------- -------- -------- ------------ --------- --------
1 January 2022 167 8,685 2,601 258 (2) 321 12,030
Loss for the year - - - - - (2,828) (2,828)
Other comprehensive
income - - - - 110 - 110
----------------------- -------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income - - - - 110 (2,828) (2,718)
Transactions with owners
of the Company
Issue of share capital 1 - - - - - 1
Share-based payment
charge - - - 67 - - 67
Transfer of reserves - - - (129) - (129) -
----------------------- -------- -------- -------- -------- ------------ --------- --------
31 December 2022
(audited) 168 8,685 2,601 196 108 (2,378) 9,380
----------------------- -------- -------- -------- -------- ------------ --------- --------
Consolidated Statement of Cash Flows
for the six months ended 30 June 2023
12 months ended 31 December
6 months ended 30 June 2023 6 months ended 30 June 2022 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
----------------------------- --------------------------- --------------------------- -----------------------------
Operating activities
Loss before tax (2,920) (1,226) (3,097)
Adjusted for non-cash items:
Fair value gains and losses (125) - (125)
Depreciation charge 114 101 329
Amortisation of intangible
assets 417 479 808
Impairment of goodwill 335 - -
Share-based payment charge 69 30 67
Finance income (12) (1) (8)
Finance costs 25 23 45
RDEC adjustments within
administrative expenses - - (22)
Foreign exchange adjustments 65 31 -
----------------------------- --------------------------- --------------------------- -----------------------------
(2,032) (563) (2,003)
(Increase)/decrease in trade
and other receivables (35) (513) 390
Increase/(decrease) in trade
and other payables 434 (208) 357
----------------------------- --------------------------- --------------------------- -----------------------------
Cash generated from
operations (1,633) (1,284) (1,256)
Income tax refunded 5 327 788
----------------------------- --------------------------- --------------------------- -----------------------------
Net cash outflow from
operations (1,628) (957) (468)
Investing activities
Development costs capitalised (485) (459) (785)
Purchase of property, plant
and equipment (33) (115) (73)
Interest received 12 1 8
----------------------------- --------------------------- --------------------------- -----------------------------
Net cash used in investing
activities (506) (573) (850)
----------------------------- --------------------------- --------------------------- -----------------------------
Financing activities
Proceeds from issue of shares - - 1
Repayment of bank loans (46) (44) (89)
Payment of lease liabilities (117) (41) (199)
Interest paid (25) (23) (40)
----------------------------- --------------------------- --------------------------- -----------------------------
Net cash generated from/(used
in) financing activities (188) (108) (327)
----------------------------- --------------------------- --------------------------- -----------------------------
Net increase/(decrease) in
cash and cash equivalents (2,322) (1,638) (1,645)
Cash and cash equivalents at
the beginning of the period 4,322 5,864 5,864
Effect of foreign exchange
rates (19) 36 103
----------------------------- --------------------------- --------------------------- -----------------------------
Cash and cash equivalents at
the end of the period 1,981 4,262 4,322
----------------------------- --------------------------- --------------------------- -----------------------------
Notes to the Interim Report
for the six months ended 30 June 2023
Corporate information
Getech Group plc ("the Company" and ultimate Parent of "the
Group") is a public limited company domiciled and incorporated in
England and Wales. The Company's registered office and principal
place of business is Kitson House, Elmete Lane, Leeds LS8 2LJ.
The principal activity of the Group is locating energy and
minerals essential for the Energy Transition. Getech 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.
Basis of preparation
The interim results are for the six months ended 30 June 2023.
They have been prepared using the recognition and measurement
principals of international accounting standards in conformity with
the requirements of the Companies Act 2006. As permitted, this
interim report has been prepared in accordance with the AIM rules
and not in accordance with IAS 34 'interim financial reporting' and
therefore the interim information is not in full compliance with
international accounting standards.
This interim report does not constitute full statutory financial
statements within the meaning of section 434(5) of the Companies
Act 2006 and the financial statements are unaudited. The unaudited
interim financial statements were approved for issue by the board
on 22 September 2023.
The financial statements are prepared on a going concern basis
under the historical cost convention, with the exception of certain
items measured at fair value, and are presented to the nearest
thousand pounds (GBP'000), except as otherwise stated. They have
been prepared in accordance with the accounting policies adopted in
the last annual financial statements for the year ended 31 December
2022. A copy of the audited financial statements for the period
ended 31 December 2022 has been delivered to the Registrar of
Companies. The Auditor's opinion on those financial statements was
unqualified, did not draw attention to any matters by way of an
emphasis of matter paragraph, and it contained no statement under
section 498(2) or section 498(3) of the Companies Act 2006.
In making the going concern assessment, the Board has considered
the Group budgets and detailed cash flow forecasts for the next 12
months. 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 non-contractually
committed sources. These cash flow projections and sensitivities,
when considered in conjunction with the Group'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 - has this process
been done and was this what we saw today?]
Earnings per share
Basic Earnings Per Share is calculated by dividing the profit
attributable to equity holders of the Group by the weighted average
number of the Ordinary Shares in issue in the period.
12 months
6 months 6 months ended 31
ended 30 ended 30 December
June 2023 June 2022 2022
(unaudited) (unaudited) (audited)
----------------------------------------- ------------- ------------- -----------
Loss attributable to the equity holders
of the Group (GBP'000) (2,759) (973) (2,828)
Weighted average number of Ordinary
Shares in issue 67,296,225 67,208,417 67,251,505
Basic and diluted earnings (pence/share) (4.10)p (1.45)p (4.21)p
----------------------------------------- ------------- ------------- -----------
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 period.
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
period, 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.
Directors, officers and advisors
Directors and officers
Richard Bennett Executive Chairman
Michael Covington Non-executive Director
Andrew Darbyshire Chief Financial Officer
Chris Jepps Chief Operating Officer
Emma Parker Non-executive Director
Dr Stuart Paton Non-executive Director
Company number
Registered in England and Wales, company number 02891368
Registered office
Kitson House
Elmete Lane
Leeds LS8 2LJ
Nominated advisor and broker
Cavendish plc
1 Bartholomew Cl, London EC1A 7BL
Financial PR and IR
Novella Communications Ltd
South Wing, Somerset House
London
London WC2R 1LA
Auditor
Grant Thornton UK LLP
No 1 Whitehall Riverside
Leeds LS1 4BN
Solicitors
Womble Bond Dickinson LLP
No 1 Whitehall Riverside
Leeds LS1 4BN
Principal bankers
National Westminster Bank plc
PO box 183, 8 Park Row
Leeds LS1 5HD
Registrars
Link Group Ltd
Northern House
Woodsome Park
Fenay Bridge
Huddersfield HD8 0GA
[1] Including sector overhead allocations
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END
IR UOVNROVUKUAR
(END) Dow Jones Newswires
September 25, 2023 02:00 ET (06:00 GMT)
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