GETECH

27-10-09

Final Results

GETECH Group plc
("GETECH", the "Company" or the "Group")
Preliminary results
for the 12 months ended 31 July 2009

GETECH Group plc (AIM: GTC), a leading oil services business specialising in the provision of data, studies and interpretation services to the oil and mining exploration sectors, announces its Preliminary results for the twelve months ended 31 July 2009.

Financial Highlights

• * Revenue down 20% to £3.31m (2008: £4.12m)
• * Loss before tax of £627,901 (2008: £900,000 profit)
• * No final dividend (2008: 0.7p), 0.6p for the full year (2008: 1.3p)
• * Acquisition of data and related assets from Lisle Gravity Inc
• * Cash balance £580,331 (2008: 1.69m)
• * Net assets down 7% to £4.34m (2008: £4.65m)
• * Fall in oil price and oil company budgets had negative impact on revenue

Operational highlights

• * Strong first half followed by weak second half
• * Acquisition of assets of Lisle Gravity Inc. in Denver, USA
• * Five major new geological studies completed, sold well and now in profit
• * Continued strengthening of library of data and studies
• * New strategies for growth developed and initiated

Post year end highlights

• * Significant pre-commitments for geological studies due for completion during 2009/10
• * Completed £1m debt facility with National Westminster Bank that provides assurance of cash levels


Commenting on outlook, Peter Stephens, Non-Executive Chairman of GETECH Group plc, said:
"The low and volatile oil prices at the end of 2008 combined with the global economic crisis saw the major international oil companies react by cutting and/or freezing their budgets for 2009 resulting in poor trading for GETECH in the second half of our financial year leading to the reported loss. I am pleased to say that since the end of the financial year interest levels from our clients justify our confidence for the current year and the future."


For further information: GETECH Group plc
Raymond Wolfson, Chief Executive Officer, Tel: 0113 322 2211

WH Ireland
Katy Mitchell, Tel: 0161 819 8875
Gary Marshall, Tel: 0113 394 6610

Walbrook PR Ltd
Ben Knowles, Tel: 020 7933 8788 or Mob: 07900 346 978, ben.knowles@walbrookpr.com
Paul McManus, Tel: 020 7933 8787 or Mob: 07980 541 893, paul.mcmanus@walbrookpr.com



GETECH GROUP PLC CHAIRMAN'S STATEMENT
Highlights of the Chairman's Statement


• * Revenue for the year £3,305,883 generating a loss before tax of £627,901
• * No final dividend (2008: 0.7p), 0.6p for the full year (2008: 1.3p)
• * Global economic crisis combined with volatile oil price affected client budgets in the second half of the year
• * Acquisition of the assets of Lisle Gravity Inc. in Denver, Colorado, was completed in December 2008
• * Trading was strong in the first half year, but weak in the second half year due to lack of available budgets
• * Debt funding arranged after the year end to provide assurance on cash levels - £1,000,000 from the National Westminster Bank

I report the fourth full year results, since its admission to AIM, of GETECH Group plc and its subsidiary company ("GETECH" or "the Group") for the year ended 31 July 2009. GETECH is a geoscience services business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors.

Results
I regret to report a Group loss before tax of £627,901 (2008: profit £900,000) after interest receivable of £27,749 (2008: £78,612) on revenue of £3,305,883 (2008: £4,125,981). The post-tax loss was £372,067 (2008: profit £601,571) giving a loss per share of 1.30p (2008: earnings per share of 2.17p).

The accounts have been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union.

Dividends
In view of the trading in the second half of the year GETECH is not proposing a final dividend, giving a total dividend of 0.6p for the year.

Business review
The first half year was very successful with completion of the five geological studies anticipated in our last report. These studies sold well and were all profitable by the end of the half year. There also continued to be strong interest in our data. However, the end of the calendar year 2008 saw low and volatile oil prices combining with the global economic crisis. Our main clients, major international oil companies, reacted by cutting and/or freezing their budgets for the calendar year 2009 with the result that trading in the second half of our financial year was very weak, leading to the reported loss. Revenue in the second half year fell to £900,000 compared with £2,400,000 in the first half year.

The oil price fell from a peak of $147 per barrel in July 2008 to the mid $30s in December before recovering to its present levels in excess of $70. The combined impact of this price volatility and the lack of credit to fund major exploration programmes caused a steep reduction in available exploration budgets from January 2009. While the current oil price in excess of $70 per barrel is economically satisfactory for most exploration, and has been relatively stable at this level, a further limiting factor has been substantial restructuring in many companies. Together, these factors have, in the Directors' opinion, affected the availability of our clients' budgets to purchase our data and studies.

The US domestic market has also been badly affected as this is, to a large extent, dependent on gas exploration, which has been hit by further factors including surplus supply and dumping of liquid natural gas (LNG). This is a result of increased production capacity and the global economic recession, which in turn led to the gas price being particularly volatile. Through 2009 to date it has remained at a historically weak level in relation to oil prices. There are signs that activity in the US domestic market is beginning to build up again, but this is expected to be slow.

Encouragingly, we have started working with a number of new international and US domestic clients and are now contracting successfully for new types of work. We also have advance orders for a number of the geological studies currently under development.

Acquisition
In December 2008 we acquired the assets of Lisle Gravity Inc. which was based in Denver, Colorado. The assets included the largest commercially available library of onshore US gravity data. We have taken over the vendor's premises and now have a GETECH office in Denver.

While sales in the US domestic market, in line with the rest of the business, have been very slow, we have established a number of complementary relationships and believe we are well positioned to take advantage of an upturn in activity in this market.

Post-period event
In September 2009 we completed a £1m debt facility with the National Westminster Bank, which will provide a substantial cushion in the event that the current depressed market continues for any length of time. This is repayable over four years with a repayment holiday for six months after drawdown. Interest on the loan is variable at the rate of 1.6% over the London Inter Bank Offered Rate (LIBOR). The loan is secured by a fixed and floating charge over the assets of the business.

Outlook
Despite trading in the second half of the year being very weak, we have continued to market ourselves actively. I am pleased to say that since the end of our financial year, strong interest levels from our clients appear to justify our confidence for the current year and the future.

In the course of the year we have also developed a suite of strategies for growth. These are built around our current strengths and will be implemented progressively over the coming years. Elements of these strategies are already beginning to produce results and we look forward to reporting positive developments in the future.

Appointment
I am pleased to announce that in October Derek Fairhead accepted the invitation from the Board to take on the role of President of GETECH, superseding his role as Executive Chairman. He remains an Executive Director of the Company. As founder of GETECH and the principal driving force behind its success, this new position will enable him to develop further his activities in building and strengthening our relationships with governments, oil companies and academic institutions.

Finally, I would like to thank the staff and my fellow directors for all their hard work during what has proved to be a difficult year.

Peter Stephens Non-executive Chairman



GETECH GROUP PLC
OPERATING REVIEW
Highlights of the business year



• * A strong first half year was followed by a weak second half resulting from the global economic crisis and downturn in oil prices
• * Acquisition of the assets of Lisle Gravity Inc. was completed in December 2008
• * New strategies for growth have been developed and some initiated
• * All the five new geological studies referred to in the previous Operating Review were completed, marketed and moved into profit
• * The libraries of studies and data continue to grow

We report that in our fourth year as a public quoted company, GETECH Group plc ("GETECH" or "the Group") returned a pre-tax loss of £627,901 (2008: profit £900,000) for the year ended 31 July 2009.

Business setting
As reported in the Chairman's Statement the global economic crisis and the substantial fall in the oil price towards the end of 2008 together had a major impact on oil company budgets and expenditure plans for the year commencing January 2009. These factors led to a significant downturn in business.

At its current level in excess of $70 per barrel, the oil price is satisfactory in historic terms, and we believe that if it remains at or near this level it will not prove a barrier to oil company expenditure on exploration.

Company history
GETECH has its origins as a research group at the University of Leeds, Department of Earth Sciences (now part of the School of Earth and Environment). It started in 1986 by initiating the compilation of gravity data for the continent of Africa supported by a group of international oil and mining company sponsors.

In 1996, GETECH opened an office in Houston, Texas. In 2000, GETECH spun out from the University of Leeds as a private company (Geophysical Exploration Technology Limited) and subsequent business success and the formation of the Petroleum Systems Evaluation Group ("PSEG") in 2004 resulted in the flotation of the Company on AIM in September 2005, with a name change to GETECH Group plc. GETECH was the first spin out company from the University of Leeds to float on AIM.

Business activities
GETECH's business can be described as:
• * licensing global gravity and magnetic data to oil and mineral companies;
• * undertaking proprietary geophysical and geological work; and
• * the development and sale of studies evaluating the petroleum potential of hydrocarbon-bearing basins.

Oil, gas and mining companies license our data and studies when they are evaluating new exploration areas and/or when they wish to expand their current exploration activities into neighbouring regions. One of our great strengths is the ability to provide integrated solutions across a broad range of disciplines, involving both geological and geophysical contributions.

GETECH has grown slightly over the year to just over 50 staff, with the recruitment of an internationally recognised geochemist and an experienced explorationist to manage our Denver, Colorado office.

As a priority we have continued to maintain and develop relationships with our key clients through regular marketing including many company visits worldwide and attendance at international shows. This has given us strong confidence that our studies and products are attractive to our clients.

In our last report we referred to five major new geological studies that were due for completion in the current year (South Atlantic, Circum-Arctic, Taoudenni Basin, East Africa and South East China). These were all completed and have sold well in the first half year, each of them moving into profit. We now have a new generation of studies in progress, including several within our "Global" programmes and these are already attracting strong interest.

During the year we developed a high resolution global satellite-derived gravity model covering the oceans. We also commenced a major magnetic compilation of Europe and Mediterranean regions which is now sufficiently well advanced to enable us to offer it as a sponsored study during the coming year.

Acquisition
In December 2008 we acquired the assets of Lisle Gravity Inc. based in Denver, Colorado. The purchase has resulted in GETECH acquiring the largest commercially available onshore US gravity database as well as establishing a strong foothold in the US domestic oil and gas exploration market. In common with international markets, the US domestic market experienced a significant downturn in the first half of the calendar year 2009.

During the period of acquisition, we invited a very experienced US domestic explorationist to manage our Denver office, and have begun to promote the GETECH name to US domestic companies. The Denver office is ideally located in an area where there are many oil and gas exploration companies within walking distance. We have expanded the activities of the US office to include value-added data interpretation which leverages the value of the data to our clients. In addition we have established a number of working relationships with complementary companies and consultants, enabling us to integrate their datasets with ours, so we are well positioned to take advantage when the market recovers. One initiative is a major new collaborative and integrated study (the Haynesville study) on which work commenced during the year, and marketing started after the year end.

The future
While there was a significant slow-down in the market in the first half of 2009, the recovery in the oil price to satisfactory levels and a stronger global economic environment provide us with optimism that the coming year will show a significant improvement.

In the second half year we focused on our growth strategies and have begun to develop a number of new business streams built around our current strengths. Quality control of new ground and airborne gravity and magnetic acquisition surveys has been the first of the new elements of the strategy to generate income during the year. This type of work naturally opens the prospect of follow-on interpretation projects and, after the year end, work commenced on the first such project.

We continue to strengthen our library of commercially available data and studies and we will shortly be finalising the upgrade of our digital database archiving system. We already have significant pre-commitments to the geological studies we are due to complete this year and remain optimistic about sales of these and the existing studies.

Finally we would like to thank all our staff and Board colleagues for their unstinting efforts on behalf of GETECH. We have made it a company that people want to work for and our team look forward to the new challenges that the future years will bring.

Professor Derek Fairhead
President

Raymond Wolfson
Chief Executive Officer



GETECH GROUP PLC
CONSOLIDATED INCOME STATEMENT
for the year ended 31 July 2009

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the year ended 31 July 2009

All activities relate to continuing operations.
The accompanying notes form an integral part of these financial statements.


GETECH GROUP PLC

CONSOLIDATED BALANCE SHEET
as at 31 July 2009
Company registration number 2891368



The financial statements were approved by the Board of Directors on 26 October 2009.

P F H Stephens
Director

The accompanying notes form an integral part of these financial statements.


GETECH GROUP PLC

CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 July 2009

The accompanying notes form an integral part of these financial statements.

GETECH GROUP PLC

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 July 2009

Nature of operations
The principal activity of GETECH Group plc and its subsidiary company Geophysical Exploration Technology Inc. (collectively "GETECH" or "the Group") is the provision of gravity and magnetic data, services and geological studies to the petroleum and mining industries to assist in their exploration activities.

General information
GETECH Group plc, a limited liability company, is the Group's ultimate Parent Company ("the Parent Company"). It is incorporated in England and Wales and domiciled in England (CRN: 2891368). The address of its registered office is Convention House, St. Mary's Street, Leeds LS9 7DP. Its principal place of business is Kitson House, Elmete Hall, Elmete Lane, Leeds LS8 2LJ. GETECH Group plc shares are admitted to trading on the London Stock Exchange's AIM.

Basis of preparation
These consolidated financial statements ("the financial statements") have been prepared in accordance with International Financial Reporting Standards (IFRS) in issue as adopted by the European Union (EU) and as issued by the International Accounting Standards Board (IASB).

These consolidated financial statements have been prepared under the historical cost convention except in relation to financial instruments held at fair value through profit or loss or held at amortised cost.

The accounting policies set out below have been applied consistently throughout the Group for the purpose of preparation of these consolidated financial statements.

The Parent Company financial statements have been prepared using United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Dividends

(Loss)/earnings per share
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to equity holders of the Group by the weighted average number of the Ordinary Shares in issue in the year.

All options in issue at 31 July 2009 and 31 July 2008 were anti-dilutive.

Annual Report and Accounts:
The Annual Report and Accounts will be despatched to shareholders and available from the company's website (www.getech.com) on Monday 9 November 2009.

Annual General Meeting:

The Annual General Meeting of GETECH Group plc will be held at 12.00pm on 3 December 2009 at Kitson House, Elmete Hall, Elmete Lane, Leeds, LS8 2LJ.



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07-01-09

Directors' shareholding

The shares held by Peter Stephens and the approximate percentage of the current issued share capital of the Company quoted in the Directors' Shareholding announcement released on 6 January 2009 at 16:34 under RNS No. 2130L were incorrect and should read 953,000 Ordinary shares, representing approximately 3.26 per cent.

All other details remain unchanged.

The full amended text is shown below.

GETECH Group plc

(the "Company")

Directors' shareholding

The Company announces that Peter Stephens, Non-executive Chairman, has today acquired 20,077 ordinary shares of 0.25p each in the Company ("Ordinary Shares") at 24p per share. Following this acquisition, Peter Stephens holds 953,000 Ordinary Shares, representing approximately 3.26 per cent. of the current issued share capital of the Company.

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09-01-09

Directors' shareholding

The Company announces that Peter Stephens, non-executive Chairman, has today acquired 20,000 ordinary shares of 0.25p each in the Company ("Ordinary Shares") at 23p per share. Following this acquisition, Peter Stephens holds 973,000 Ordinary Shares, representing approximately 3.33 per cent. of the current issued share capital of the Company.

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12-01-09

Directors' Holding in the Company and Exercise of Employee Share Options

The Company was notified today that Paul Markwick, a director of the Company, has exercised options over 23,404 of Derek Fairhead's ordinary shares of 0.25 pence each in the capital of the Company ("Ordinary Shares"), subject only to payment of the consideration monies which are anticipated to be paid on or before 30 January 2009.

As detailed in the Company's admission document dated 22 September 2005, on 26 August 2005, Derek Fairhead (executive chairman) granted call options to certain individuals, in order to incentivise key employees, for the transfer of a total of 472,340 Ordinary Shares from his personal holding.

The options have an exercise price of 9.87 pence per Ordinary Share.

Following this exercise, Derek Fairhead is interested in 8,916,878 Ordinary Shares, representing 30.51% of the issued share capital of the Company and Paul Markwick is interested in 23,404 ordinary shares in the Company representing 0.08% of the issued share capital of the Company.

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20-01-09

Directors' shareholding

The Company announces that Peter Stephens, non-executive Chairman, has today acquired 10,000 ordinary shares of 0.25p each in the Company ("Ordinary Shares") at 19.5p per share. Following this acquisition, Peter Stephens holds 983,000 Ordinary Shares, representing approximately 3.36 per cent. of the current issued share capital of the Company.

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30-03-09

Half yearly REPORT

for the six months ended 31 January 2009

GETECH Group plc (AIM: GTC), a leading oil services business specialising in the provision of data, studies and interpretation services to the oil and mining exploration sectors, announces its half yearly report for the six months ended 31 January 2008. 

Highlights

* Revenue for the six months of £2,419,000 (six months ended 31 January 2008: £2,235,000)

* Profit before tax of £187,000 (six months ended 31 January 2008: £603,000)

* Interim dividend of 0.6p per share (2008: interim 0.6p, final 0.7p)

* Acquisition of data and related assets from Lisle Gravity Inc 

* Cash balances returned to £1,626,000 at the end of the period

* Net assets £5,038,000 (31 January 2008: £4,582,000)

* Four major new non-exclusive studies completed in the period

Commenting on outlook, Peter Stephens, Non-Executive Chairman of GETECH Group plc, said:

"Most major oil companies appear to be prepared to continue spending on our data and studies in order to help maintain their long-term reserves."

"GETECH's result for the full year to July 2009 is dependent on the crystallization of a number of deals that are currently under negotiation and the pattern of demand in the remaining few months of the year."

"We remain confident about our medium and long term prospects despite the current global economic climate. Indeed, the relative stability of the crude oil price since December 2008 is seen as a positive indicator in itself." 

For further information:

GETECH Group plc
Raymond Wolfson, Chief Executive Officer	Tel: 0113 322 2211
WH Ireland
Katy Mitchell	Tel: 0161 819 8875
Gary Marshall	Tel: 0113 394 6610
Parkgreen Communications Ltd
Paul McManus	Tel: 020 7933 8787 or Mob: 07980 541 893
	paul.mcmanus@parkgreenmedia.com
Ben Knowles	Tel: 020 7933 8788 or Mob: 07900 514 242 ben.knowles@parkgreenmedia.com

Chairman's statement

I report the interim accounts of GETECH Group plc and its subsidiary company (collectively "GETECH"), the oil services business specialising in the provision of data, studies and services to the oil and mining exploration sectors, for the six month period to 31 January 2009.

Results

GETECH is pleased to report a Group profit before tax of £187,345 (six months ended 31 January 2008: profit of £603,630) after interest receivable of £16,924 (six months ended 31 January 2008: £32,267) on revenue of £2,418,756 (six months ended 31 January 2008: £2,235,275). The post-tax profit was £72,601 (six months ended 31 January 2008: profit of £413,897). 

The accounts have been prepared under IFRS.

Dividend

Your Board remains confident for the future and recommends an interim dividend of 0.6p per share, costing £175,384 to be paid on 7 May 2009 to shareholders on the register at 14 April 2009. 

Business review

During the half year under review, we completed and delivered four major non-exclusive geological studies, all of which have sold well, and the £441,000 of work in progress that had been carried in the accounts as inventory at July 2008 has now been fully recovered against sales, The impact of recovering the value of this inventory was that the costs accounted for in the period were increased, with the effect of reducing the profit despite the strong sales performance.

In December 2008, our US subsidiary acquired from Lisle Gravity Inc its data and a number of other assets. Lisle Gravity Inc held what we believe to be the largest commercial database of onshore US gravity data, along with other magnetic and magnetotelluric data. This acquisition is expected to be both earnings enhancing and to deliver medium and long-term strategic benefits in enhancing our presence in the US domestic market. The acquisition was paid for mainly by internal funds but supported by a placing of £400,000, which was oversubscribed. Despite the first payment of $1,400,000 in December 2008 for the acquisition, the group cash balances had returned to £1,626,000 by 31 January 2009 (31 January 2008: £1,589,000).

Outlook

Looking forward to the second half of this financial year, we will complete an additional new study which we anticipate will generate further sales along with additional sales from our existing library. A number of our major clients have already requested follow-on work arising from earlier studies and pre-committed to new non-exclusive studies that we will commence in the second half and later.

The turmoil in the financial markets and lower oil prices in the region of $45 per barrel appears to have had limited impact on GETECH's business in the first half of the year. This is in part due to the new diversity of GETECH's products with a global range of multi-client petroleum geology studies, and partly because the oil price, although around $45 per barrel, is still a healthy price on a historical basis. Most major oil companies appear to be prepared to continue spending on our data and studies in order to help maintain their long-term reserves.

The Directors believe that our reputation in the field of gravity and magnetic data and interpretation studies continues to be excellent, and several substantial proprietary non-exclusive geophysical projects are in advanced stages of discussion. The acquisition of the assets from Lisle Gravity Inc should also leverage our position and reputation in the US domestic oil and mining markets.

The pattern of follow-on purchases of our products by oil companies appears to confirm that within a period of less than four years we have also established a strong market position and an excellent reputation with our non-exclusive petroleum geology studies. We now have a significant library of completed multi-client studies available for sale.

GETECH's result for the full year to July 2009 is dependent on the crystallization of a number of deals that are currently under negotiation and the pattern of demand in the remaining months of the year. That result may well be adversely affected by budget restraints seen in oil companies since the start of 2009.

However, we remain confident about our medium and long term prospects despite the current global economic climate. Indeed, the relative stability of the crude oil price since December 2008 and its recent improvement are seen as encouraging. 

PETER STEPHENS
NON-EXECUTIVE CHAIRMAN

30 MARCH 2009

CONDENSED CONSOLIDATED INCOME STATEMENT

for the six months ended 31 January 2009

			Six months	Six months	Year
			ended	ended	ended
			31 January	31 January	31 July
			2009	2008	2008
			Unaudited	Unaudited	Audited
			£'000	£'000	£'000
Revenue			2,419	2,235	4,125
Cost of sales			(335)	(578)	(940)
Gross profit			2,084	1,657	3,185
Administrative costs			(1,908)	(1,086)	(2,363)
Operating profit			176	571	822
Finance income			17	32	78
Finance costs			(6)	-	-
Profit before tax			187	603	900
Income tax expense			(114)	(189)	(298)
Profit for the period attributable to equity holders
of the parent			73	414	602
Earnings per share
Basic earnings per share			0.26p	1.50p	2.17p
Diluted earnings per share			0.26p	1.38p	2.17p

CONDENSED CONSOLIDATED STATEMENT OF TOTAL RECOGNISED INCOME AND EXPENSE

for the six months ended 31 January 2009

	Six months	Six months	Year
	ended	ended	ended
	31 January	31 January	31 July
	2009	2008	2008
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Profit for the period	73	414	602
Currency translation differences	120	1	28
Tax on items taken directly to equity	(33)	-	(7)
Net expense recognised directly in equity	87	1	21
Total recognised income and expense for the period
attributable to equity holders of the parent	160	415	623

All activities relate to continuing operations.

CONDENSED CONSOLIDATED BALANCE SHEET

as at 31 January 2009

			31 January	31 January	31 July
			2009	2008	2008
			Unaudited	Unaudited	Audited
			£'000	£'000	£'000
Assets
Non-current assets
Property, plant and equipment			2,788	2,805	2,791
Goodwill			-	1	-
Other intangible assets			1,890	-	-
Deferred tax assets			47	-	37
			4,725	2,806	2,828
Current assets
Inventories			20	344	441
Trade and other receivables			1,125	1,852	1,602
Other current assets			-	22	-
Cash and cash equivalents			1,626	1,589	1,688
			2,771	3,807	3,731
Total assets			7,496	6,613	6,559
Liabilities
Current liabilities
Trade and other payables			1,751	1,906	1,767
Current tax payable			122	125	99
			1,873	2,031	1,866
Non-current liabilities
Trade and other payables			558	-	-
Deferred tax liabilities			27	-	41
			585	-	41
Total liabilities			2,458	2,031	1,907
Net assets			5,038	4,582	4,652
Equity
Equity attributable to shareholders of the parent
Share capital			73	69	69
Share premium account			2,841	2,461	2,461
Share option reserve			169	105	133
Currency translation reserve			87	(21)	(1)
Retained earnings			1,868	1,968	1,990
Total equity			5,038	4,582	4,652

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 31 January 2009

	Six months	Six months	Year
	ended	ended	ended
	31 January	31 January	31 July
	2009	2008	2008
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Cash flows from operating activities
Operating profit	187	571	900
Share-based payments	36	26	54
Depreciation and amortisation charges	73	36	73
Impairment loss recognised	-	-	1
Finance income	(17)	-	(79)
Finance costs	5	-	-
Exchange adjustments	120	1	28
Decrease/(increase) in inventories	421	(151)	(248)
Decrease in debtors	500	186	497
(Decrease)/increase in creditors	(382)	484	345
Cash generated from operations	943	1,153	1,571
Income taxes paid	(172)	(254)	(453)
Net cash generated from operating activities	771	899	1,118
Cash flows from investing activities
Purchase of property, plant and equipment	(36)	(41)	(64)
Purchase of other intangible assets	(1,004)	-	-
Interest received	17	32	79
Net cash (used in)/generated from investing activities	(1,023)	(9)	15
Cash flows from financing activities
Proceeds from issue of share capital	400	-	-
Costs of issue of share capital	(16)	-	-
Equity dividends paid	(194)	(222)	(388)
Net cash generated from/(used in) financing activities	190	(222)	(388)
Net (decrease)/increase in cash and cash equivalents	(62)	668	745
Cash and cash equivalents at beginning of period	1,688	921	943
Cash and cash equivalents at end of period	1,626	1,589	1,688

NOTES TO THE INTERIM REPORT

for the six months ended 31 January 2009

1 NATURE OF OPERATIONS

The principal activity of GETECH Group plc and its subsidiary company Geophysical Exploration Technology Inc. (collectively "GETECH" or "the Group") is the provision of gravity and magnetic data, services and geological studies to the petroleum and mining industries to assist in their exploration activities.

2 GENERAL INFORMATION

GETECH Group plc, a limited liability company, is the Group's ultimate parent company. It is incorporated in England and Wales and domiciled in England (CRN: 2891368). The address of its registered office is Convention House, St. Mary's Street, Leeds LS9 7DP. Its principal place of business is Kitson House, Elmete Hall, Elmete Lane, Leeds LS8 2LJ. GETECH's shares are admitted to trading on the London Stock Exchange's AIM.

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. These condensed consolidated interim financial statements (the "interim financial statements"), which have neither been audited nor reviewed by the Group's auditor, have been approved by the Board.

The Group's statutory financial statements for the year ended 31 July 2008, which were prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union, have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 237(2) of the Companies Act 1985.

3 BASIS OF PREPARATION 

The interim financial statements are for the six months ended 31 January 2009. They have been prepared using the recognition and measurement principles of IFRS. They do not include all the information required for full annual financial statements and should be read in conjunction with the financial statements of the Group for the year ended 31 July 2008. 

The interim financial statements have been prepared under the historical cost convention. 

The interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 July 2008 except in respect of the accounting policies on other intangible assets and financial liabilities, detailed below, as a result of the acquisition of assets from Lisle Gravity Inc. during the period. 

The accounting policies have been applied consistently throughout the Group for the purpose of preparation of the interim financial statements. 

4 CHANGES TO ACCOUNTING POLICIES

4.1 OTHER INTANGIBLE ASSETS

Other intangible assets include acquired data holdings, trade name and domain name that qualify for recognition as intangible assets in a business combination. They are accounted for using the cost model whereby capitalised costs are amortised on a straight line basis over their estimated useful lives, as these assets are considered finite. Residual values and useful lives are reviewed at each reporting date. In addition, they are subject to impairment review. The following useful lives are applied:

Data holdings    -    10 years

Trade name    -    10 years
Domain name    -    10 years

Amortisation has been included within 'depreciation, amortisation and impairment of non-financial assets'.

4.2 FINANCIAL LIABILITIES

There has been no change to the Group's policy in this regard, other than in respect of the recognition of a financial liability categorised as at fair value through profit or loss to account for the contingent consideration described in Note 5. Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities categorised as at fair value through profit or loss are recorded initially at fair value and all transaction costs are recognised immediately in the income statement. All other financial liabilities are recorded initially at fair value, net of direct issue costs. 

Financial liabilities categorised as at fair value through profit or loss are remeasured at each reporting date at fair value, with changes in fair value being recognised in the income statement. All other financial liabilities are recorded at amortised cost using the effective interest method, with interestߛrelated charges recognised as an expense in finance costs in the income statement. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are charged to the income statement on an accruals basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.

Financial liabilities are categorised as at fair value through profit or loss where they are classified as heldߛfor-trading or designated as at fair value through profit or loss on initial recognition. Financial liabilities are designated as at fair value through profit or loss where they eliminate or significantly reduce a measurement (or recognition) mismatch.

A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled or expires.

5 PURCHASE OF NON-CURRENT ASSETS IN THE PERIOD

On 11 December 2008 the Group acquired assets from Lisle Gravity Inc., a US company based in Denver, Colorado. The acquisition was made to enhance the geographical reach of the Group's data holdings.

The total cost of the acquisition was £1.9m, of which £0.7m is the fair value of contingent consideration which is designated as a financial liability through profit or loss. The contingent consideration is an estimate of the final purchase price, the exact amount of which depends on the income generated by the assets acquired over the first three years of trading following the acquisition.

The amounts recognised for each class of the assets acquired recognised at the acquisition date are as follows:

	Recognised
	at acquisition
	date
	£'000
Non-current assets
Property, plant and equipment	28
Intangible assets	1,896
	1,924
Cost of acquisition
Designated as financial liabilities
Trade and other payables - current liabilities	362
Trade and other payables - non-current liabilities	558
	920
Satisfied in cash and net outflow on acquisition	1,004
	1,924

6 SHARE CAPITAL

	31 January	31 January	31 July
	2009	2008	2008
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Authorised
90,000,000 ordinary shares of £0.0025 each
(2008: 90,000,000)	225	225	225
	225	225	225
Issued, called up and fully paid
29,230,768 ordinary shares of £0.0025 each
(2008: 27,692,307)	73	69	69
	73	69	69

On 17 December 2008 1,538,461ordinary shares of £0.0025 each were allotted at 26p per share. The total consideration was £400,000. The amount credited to the share premium account was £379,997 after deducting costs of the issue amounting to £16,157.

7 DIVIDENDS

	Six months	Six months	Year
	ended	ended	ended
	31 January	31 January	31 July
	2009	2008	2008
	Unaudited	Unaudited	Audited
	£'000	£'000	£'000
Paid during the period
Final at 0.7p per share (2008: 0.8p)	194	222	222
Interim at 0.6p per share	-	-	166
	194	222	388
Proposed after the period end (not recognised as a liability)
Final at 0.7p per share	-	-	194
Interim at 0.6p per share (2008: 0.6p)	175	166	-

The proposed dividend is payable on 7 May 2009 to members on the register at 14 April 2009.

8 EARNINGS PER SHARE

Basic earnings per share is calculated on the basis of the profit for the period after tax, divided by the weighted average of ordinary shares in issue in the period of 28,076,922 (six months ended 31 January 2008 and year ended 31 July 2008: 27,692,307). 

Diluted earnings per share is calculated on the basis of the profit for the year after tax, divided by the weighted average number of shares in issue plus the weighted average number of shares which would be issued if all options granted were exercised. The addition to the weighted average number of ordinary shares used in the calculation of diluted earnings per share for the six months ended 31 January 2009 is £197,723 (six months ended 31 January 2008: 2,372,346, and year ended 31 July 2008: nil). 

9 INTERIM REPORT 

This statement is being sent to the shareholders of GETECH and will be available at its registered office.

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30-03-09

Directors' shareholding

The Company announces that Peter Stephens, Non-executive Chairman, has today acquired 20,000 ordinary shares of 0.25p each in the Company ("Ordinary Shares") at 20p per share. Following this acquisition, Peter Stephens holds 1,003,000 Ordinary Shares, representing approximately 3.43 per cent. of the current issued share capital of the Company.

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31-03-09

Directors' shareholding

The Company announces that on 30 March, 2009, Colin Glass, non-executive Finance Director, acquired 10,000 ordinary shares of 0.25p each in the Company ("Ordinary Shares") at 19p per share. Following this acquisition, Colin Glass holds 573,828 Ordinary Shares, representing approximately 1.96 per cent. of the current issued share capital of the Company.

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01-04-09

Directors' Holding in the Company and Exercise of Employee Share Options

The Company was notified today that an employee has exercised options over 23,404 of Derek Fairhead's ordinary shares of 0.25 pence each in the capital of the Company ("Ordinary Shares"), subject only to payment of the consideration monies.

The options have an exercise price of 9.87 pence per Ordinary Share.

Following this exercise, Derek Fairhead is interested in 8,893,474 Ordinary Shares, representing 30.43% of the issued share capital of the Company.

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03-04-09

Issue of Equity

The Company announces that it has received a notice of exercise to issue 6,383 new ordinary shares of 0.25p each in the Company ("Ordinary Shares") at 9.87p per share pursuant to the Company's EMI share option scheme.

Application has been made for the admission of 6,383 new Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 9 April, 2009. On admission, the Company will have 29,237,151 shares in issue.

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28-04-09

Trading Contracts

GETECH, a leading oil services business specialising in the provision of data, studies and interpretation services to the oil and mining exploration sectors, announces new contracts relating to its geological studies.

The Company is pleased to announce that one of its major oil company clients has contracted to purchase five of its multi-client geological studies, for a total value of £290,000. One of these was recently completed and the other four are in the form of pre-commitment to new studies that will be completed in 2009 and 2010. These studies not only represent the application of a broad range of technical disciplines, but also cover a wide geographical area including India, South East Asia and South East China.

Raymond Wolfson, Chief Executive commented "We are very pleased with these purchases, which come at a time when oil company budgets are still being cut or frozen. This provides further recognition of the very positive way that the Company's skills and exploration studies are being viewed by our clients"

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30-04-09

Total Voting Rights

For the purposes of the Financial Services Authority's Disclosure and Transparency Rules, the total number of ordinary shares in the capital of the Company in issue as at the date of this notice is 29,237,151 with each share carrying the right to one vote.

There are no shares held in treasury.

Therefore, the total number of voting rights in the Company is 29,237,151.

The above figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.

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05-06-09

Trading Update

GETECH, a leading oil services business specialising in the provision of data, studies and interpretation services to the oil and mining exploration sectors, announces a trading update.

Despite the recovery of the oil price to in excess of $60 per barrel, the Company is experiencing delays in orders for its data and studies. While clients, largely very substantial companies, remain demonstrably interested in the Company's products, they are indicating that current restraints on their exploration budgets mean that they do not have funds available to make the purchases at this time. The Directors believe that this position will not now be reversed before the end of its financial year, and that its year-end result will therefore be substantially below market expectations.

The Directors are comfortable with the strength of the Company's balance sheet, which has no current borrowings and includes unencumbered ownership of its freehold property in Leeds. It is nevertheless taking a number of courses of action to reduce the impact of the budget restraints over the period until the recovery occurs.

Raymond Wolfson, Chief Executive commented "Despite a number of positive signs in the market, the oil and gas companies are still operating on a constrained basis and the budget freezes and cuts that I referred to on 28 April 2009 have continued. We have therefore experienced the frustration of simultaneous interest from clients and their inability to find funds to buy products and services from us. The continuing level of interest in our products and services does, however, give us confidence for the future."

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10-09-09

Debt Facility

GETECH, a leading oil services business specialising in the provision of data, studies and interpretation services to the oil and mining exploration sectors announces completion of a debt facility.

The Company has today executed an agreement with the National Westminster Bank plc pursuant to which a loan facility of £1million has been made available to the Company (the "Loan Facility"). It is anticipated that the full amount of the Loan Facility will be drawn down over the next few weeks.

Any amount drawn down pursuant to the Loan Facility is repayable over four years, although repayments are deferred for a period of six months from the date of the agreement. This loan is secured by a fixed and floating charge over all the Company's assets, including the property at Elmete Hall. Interest on amounts drawn down under the Loan Facility is variable and charged at 1.6% over the London Interbank Offered Rate ("LIBOR").

Raymond Wolfson, Chief Executive commented "While we continue to see strong interest in our products and services, we believe it prudent to ensure that cash does not become an issue even if oil company budgets remain tight for an extended period. This loan reflects confidence from our bank in the future of the Company, a confidence which I believe is fully justified".

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03-12-09

Chairman's Statement

Chairman's trading statement to the AGM

At the Annual General Meeting of the Company on 3rd December 2009, Peter Stephens, the Chairman, will say:

"In our latest accounts for the year to 31 July 2009, we were disappointed to report a loss before tax of £627,901, on turnover of £3,305,883, despite having reported a profit before tax at the half year of £187,345.

As previously indicated, the loss arose when the oil and gas company budgets for the calendar year 2009 were severely curtailed as a result of the global financial crisis and the collapse in oil prices in the second half of 2008. Since then the oil price has recovered significantly and appears to be relatively stable in the range $75-80 per barrel, a level which gives much more confidence to our oil company clients contemplating exploration expenditure. Reserve replacement remains absolutely key to any oil company.

I am pleased to report that since our July year end, the level of enquiries and sales has started to pick up. We have won a number of substantial contracts for data and interpretation services, we have pre-commitments for new studies currently underway and we anticipate that our sales of geological studies will be significantly stronger than in the second half of 2008/9. We are particularly pleased to note that activity in our new Denver office, which targets the US domestic market, has increased noticeably since August.

In summary, we remain optimistic that the business is recovering, and that with the cushion provided by the debt facility completed in September, we will be able to develop and extend our business as planned."

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