Stock Exchange Announcements 2014

22-12-14 First orders under existing National Oil Company umbrella contract

Getech (AIM; GTC), the geoscience business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, is pleased that the first orders have been placed under the umbrella contract referred to in the announcement on 4th November 2014.

This contract is with a long standing client and provides a three-year extension to the previous, annually renewable, contract. Under this extension the client may purchase Globe, Regional Reports, data and Commissions work. The total value of this first order is £400k, all of which will be delivered during the current financial year.

Raymond Wolfson, Chief Executive of Getech Group plc, said: “As we had anticipated, this first order includes a number of products. Perhaps the most significant element is the purchase of a subset of our palaeoclimate and palaeotide models. These form part of Getech’s leading edge “Earth Systems suite”, which is available for purchase by Globe clients in addition to the core components.”

For further information, please contact:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

28-11-14 Director’s Dealings

The Company confirms today that on 26 November 2014, Veronica Stephens, the wife of Peter Stephens, a director of the Company, acquired 100,000 Ordinary Shares in the Company at a price of 44p each. Accordingly, Peter Stephens is now interested in 988,000 ordinary shares in the Company representing 3.26% of the issued share capital and total voting rights of the Company.

For further information, please contact:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

06-11-14 Director’s Dealings

The Company confirms today that Peter Stephens, a director of the Company, today acquired 25,000 Ordinary Shares in the Company at a price of 51p each. Accordingly, Peter Stephens now holds 888,000 ordinary shares in the Company representing 2.9% of the issued share capital and total voting rights of the Company.

For further information, please contact:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

04-11-14 Final Results for the year ended 31 July 2014

GETECH, the oil services business specialising in the provision of exploration data and petroleum systems studies and evaluations, announces its Final Results for the year ended 31 July 2014.

Financial highlights

  • Profit after tax of £1,575,228 (2013: £1,634,612) including impact of R&D tax relief claim
  • EPS of 5.21p (2013: 5.57p)
  • Revenue of £6,592,798 , 18% lower than prior year (2013: £8,011,250)
  • Profit before tax of £1,000,816 (2013: £2,246,496)
  • Proposed final dividend of 1.76p (up 10% on the final dividend for the year ended July 2013 of 1.60p) resulting in full-year dividend of 2.20p (2013: 2.00p)
  • Cash level £3,422,594 at 31 July 2014 (2013: £4,357,927)

Operational highlights

  • Strong growth in commissions revenue which doubled in year
  • Successful completion of the first three year build period of Globe
  • US$1.1m from two contracts related to the upgraded US domestic gravity data-set
  • 6 clients are now supporting our innovative three year multi-satellite gravity project with funding exceeding £1m
  • Post year end, the Company has signed its largest contract ever ($5 million with Sonangol), made good progress in the second phase of Globe and is seeing very strong demand for its commission work

Stuart Paton, Non-Executive Chairman of GETECH Group plc, said: “Following challenging business conditions through much of 2013, the Company had a strong final quarter and delivered a solid set of results for the full year. We have seen a very good start to this financial year, including the Company’s largest ever contract. The recent drop in oil price will likely impact on E&P companies’ exploration spend. However, the strong start to the year, forward committed income, increasing interest from national oil companies and the strength of our data sales in the US (where exploration spend remains high), give us confidence in the performance of the business going forward.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive
Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell
Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius
Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

Chairman’s statement

I am pleased to make my fourth report as Chairman of Getech Group plc and its subsidiary company for the year ended 31 July 2014. 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 report a Group profit before tax of £1,000,816 (2013:£2,246,496) after interest receivable of £32,914 (2013:£30,897) on revenue of £6,592,798 (2013: £8,011,250). The post-tax profit was £1,575,228 (2013: £1,634,612), giving earnings per share of 5.21p (2013: earnings per share 5.57p). The post-tax profit was positively impacted by UK R&D tax credits.

Dividends

Getech intends to continue its progressive dividend policy as appropriate and is proposing a final dividend of 1.76p per share in respect of the year to 31 July 2014 (2013: 1.60p per share) in addition to the interim dividend of 0.44p per share announced in April 2014. The final dividend will be paid on 18December to shareholders on the register of members on21November.

Business review

The financial year 2013-14 was a much more challenging operating environment for the business than the previous two years. There was significantly lower capital expenditure in the upstream sector, due largely to uncertainty about the global economy and hence downward pressure on the oil price, and the cyclical reassessment of expenditure following a number of strong years with cost growth. This reduction appears to have particularly impacted on exploration expenditure, much of which is discretionary and can be cut back without having immediate impact on production and hence earnings. In addition, the last year has been disappointing generally for international exploration with a number of key wells, in new plays, being unsuccessful, which has led to companies reconsidering their exploration expenditure. These trends significantly impacted on Getech’s earnings in the first nine months of 2013-14 in particular.

The last quarter of the financial year showed a much stronger environment, with companies committing to expenditure with Getech and consequent impact on the sales pipeline and signed contracts. On 11 June 2014, the Company announced aUS$2m contract for a range of products, followed by two contracts worth US$600k and US$500k for US domestic data. The Company also announced that it had secured six clients for its innovative multi-satellite gravity project with income in excess of £1m. These contracts underpinned a strong final quarter for Getech. They demonstrate that Getech’s technical capabilities are still valued by the industry and that the Company offers key insights as part of the exploration process.

Outlook

Two interlinked factors will impact on Getech’s business in the current year and for the near future. There appears to be increasing concern about the growth prospects for the global economy, largely due to concerns about China. This is already having an impact on oil prices, which have softened significantly in the last few months. Given the pullback in exploration spending in 2014, we believe expenditure will not reach the previous high points of 2012 in the near future. We have, however, seen a strong start to the current financial year with a number of large contracts already secured.

There are four areas where we believe we have a strong foundation for growing the business in the short to medium term:

First, our Globe framework, which entered its second phase in August 2014, has seen continued support from the larger exploration and production companies. They clearly see the value of Getech’s support in improving their exploration performance. Globe continues to provide an environment that encourages increased interaction with our clients, which is essential to the longer-term benefits of improved exploration performance. With the increased number of clients the annual Globe workshops in Leeds and Houston have become a major event in the year.

Second, we have seen increased demand for proprietary projects. This is partly as a result of the Globe framework, but also increased interest from national oil companies (NOC), as most obviously witnessed by our largest ever contract ofUS$5m with Sonangol announced on 8 September. We are extremely pleased that we have continued our strong working relationship with Sonangol and hope that this will lead to further large contracts with other NOCs. The Globe framework also allows us to deal with a wider range of companies at geographical scales that are considerably smaller than previously and this will be a major focus of attention in the coming year.

Third, we have seen continuing sales of our gravity and magnetic data-sets, particularly in the US where exploration spend continues to be very strong.

Finally, our strong knowledge base and financial robustness allow us to look at new opportunities. We are in the process of developing new business streams, which build on our key strengths and which we hope will be major revenue generators in the medium term. We are also actively looking at acquisition opportunities, which will extend and grow our core areas of expertise.

I would like to say how pleased I am to continue to be involved with the Company and to thank the staff and my fellow Directors for all their hard work and dedication.

Dr Stuart Paton

Non-executive Chairman

Operating review

I report that in our ninth year as a public quoted company, Getech returned a pre-tax profit of £1,000,816 (2013: £2,246,496) for the year ended 31July 2014.

Business setting

The exploration market in the oil and gas sector went through a difficult period during the year. Poor exploration success combined with increasing seismic and well costs generated a cautious environment and expenditure on exploration in general was reduced. Many of the exploration service companies and consultancies suffered as a result. Getech could not avoid this effect, although its increased resilience due to the Globe sponsorship and a number of longer-term projects reduced the short-term impact. As we had signalled, towards the end of the period our very strong sales pipeline started to crystallise into sales, and June and July were exceptional months for new contracts.

Although the oil price weakened towards the end of the period, this did not have an obvious impact on sales and the level of interest in our products.

Business activities

In July 2014, Getech completed the first three year programme of Globe build, with ten major international companies as committed sponsors. Globe as a product has demonstrated that it provides explorationists with a tool that they can use for exploration at a range of scales: from global new ventures through to supporting basin-scale risk reduction.

Our Commissions division, which handles all proprietary work, continued to strengthen and grew significantly during the year. Revenue in the year showed growth of more than 100% on the previous year, reflecting our strategic focus and support for this part of the business.

We continued to develop our reputation as a provider of leading-edge solutions and in July announced that our multi‑satellite project, which is a global roll-out of the Cryosat R&D pilot project, had achieved funding in excess of £1m to cover a three year programme to June 2017. This project combines the gravity data from several satellites in a way that generates higher resolution results than otherwise available, thereby increasing the value of the data for exploration purposes.

The performance of our US gravity data business during the year was exceptional. In June and July we announced two sales out of our upgraded data-set with aggregate value of US$1.1m. We believe that this resulted from a combination of the major upgrade to the data-set that we had completed the previous year, and an increased interest in North America as an exploration target.

While the year started slowly in terms of major contracts, it ended very strongly. In June, the Directors determined that it was necessary to give the market a trading update, but in view of the strength of the sales pipeline, we signalled in the same announcement that we anticipated a significant flow of new contracts in the near future. Following the trading update, we made the following announcements:

  • in June, we announced a new contract worth US$2m including the second three year Globe Programme, high resolution data-sets and subscription to our three year Global depth-to-basement project;
  • in June, we also announced a major new sale from our upgraded US gravity data-set valued at US$600k;
  • in July, we announced a further major sale from our upgraded US gravity data-set worth US$500k; and
  • in July, we announced that funding for our three year multi-satellite project had then exceeded £1m.

The future

The first Globe Programme developed a product which was primarily of interest to global new ventures teams. During the next period we will extend Globe as a flexible and robust data framework that is capable of meeting the needs of a much broader community of clients.

The second three year period of build for the Globe framework started in July 2014. Five sponsors have already committed to the core data-layers and discussions with others are on-going. In this second period the Globe framework will be upgraded to increase its resolution, within a structure that can be easily delivered to clients in several forms: as a global set of core deliverables; as regional deliverables; or in bespoke parts which can be at any scale and contain any constituent “data-layers” extracted from the overall framework. This will make it attractive to a wider range of clients, of all sizes, operating in all regions of the world and at smaller scales.

The full Globe framework comprises many “data-layers”, some of which are delivered as part of the core Globe sponsorship, some of which are only available as additional products. It provides a springboard for the efficient development of new, more focused, regional reports and provides an added-value starting point for new proprietary contracts. Globe is therefore a major asset from which value will be derived in a number of different ways and through a number of different delivery mechanisms.

Our strategy for the Commissions division started to show success in the year just completed by doubling its income year on year. This strategy included an explicit objective to target key clients capable of having a material impact on our performance. In September this part of the strategy achieved its first success when we signed our largest ever contract, with a value of US$5m. This was with the Angolan national oil company, Sonangol, and involves interpretation work on the geological basins in Angola. Such contracts are in line with our corporate strategy to increase the visibility of income by a number of means, one of which is through longer-term proprietary contracts.

Finally, the feedback we have been receiving from clients suggests the Company and its products remain very well regarded and that there is a clear intent to include our products in their 2015 budgets. This, combined with the committed income we already have for the coming year, gives us confidence that 2014-15 will be a very much better year.

Raymond Wolfson

Chief Executive Officer

Consolidated statement of comprehensive income

For the year ended 31 July 2014

Note 2014 £ 2013 £
Revenue 5 6,592,798 8,011,250
Cost of sales (2,126,433) (2,520,500)
Gross profit 4,466,365 5,490,750
Administrative costs (3,497,841) (3,269,391)
Operating profit 6 968,524 2,221,359
Finance income 8 32,914 30,897
Finance costs 9 (622) (5,760)
Profit before tax 1,000,816 2,246,496
Income tax credit/(expense) 10 574,412 (611,884)
Profit for the year attributable to owners of the Parent 1,575,228 1,634,612
Other comprehensive income
Items that may be reclassified subsequently to profit or loss: Currency translation differences on translation of foreign operations (95,030) (38,539)
Total comprehensive income for the year attributable to owners of the Parent 1,480,198 1,596,073
Earnings per share
Basic earnings per share 12 5.21p 5.57p
Diluted earnings per share 12 4.95p 5.30p

All activities relate to continuing operations.

Consolidated statement of financial position

As at 31 July 2014 Company registration number 2891368

Note 2014 £ 2013 £
Assets
Non-current assets
Property, plant and equipment 13 2,747,916 2,752,597
Intangible assets 14 513,476 616,257
Deferred tax assets 10 311,644 128,543
5 3,573,036 3,497,397
Current assets
Inventories 15 180,092 166,000
Trade and other receivables 16 2,850,538 2,123,384
Other financial assets 17 500,000
Current tax assets 812,767 138,885
Cash and cash equivalents 18 3,422,594 4,357,927
7,265,991 7,286,196
Total assets 10,839,027 10,783,593
Liabilities
Current liabilities
Borrowings 119,048
Trade and other payables 19 2,707,710 3,524,420
Current tax liabilities 108,932
2,707,710 3,752,400
Non-current liabilities
Trade and other payables 19 16,338
Deferred tax liabilities 10 321,452 110,175
321,452 126,513
Total liabilities 3,029,162 3,878,913
Net assets 7,809,865 6,904,680
Equity
Equity attributable to owners of the Parent
Share capital 22 75,790 75,319
Share premium account 3,012,960 2,993,092
Capital redemption reserve 6 6
Share option reserve 125,948 122,717
Currency translation reserve (130,757) (35,727)
Retained earnings 4,725,918 3,749,273
Total equity 7,809,865 6,904,680

Dr Stuart Paton

Director

Consolidated statement of cash flows

For the year ended 31 July 2014

Note 2014 £ 2013 £
Cash flows from operating activities 
Profit before tax 1,000,816 2,246,496
Share-based payment charge 21,186 22,574
Depreciation and amortisation charges 13/14 239,704 213,592
Finance income (32,914) (30,897)
Finance costs 622 5,760
Exchange adjustments 44,686 (77,058)
Increase in inventories (14,092) (106,000)
(Increase)/decrease in trade and other receivables (727,154) 839,544
(Decrease)/increase in trade and other payables (833,048) 208,761
Cash (used in)/generated from operations (300,194) 3,322,772
Income taxes paid (180,226) (851,036)
Net cash (used in)/generated from operating activities (480,420) 2,471,736
Cash flows from investing activities
Purchase of property, plant and equipment 13 (106,897) (190,463)
Development costs capitalised 14 (82,867)  –
Funds transferred into fixed term deposits 500,000 (500,000)
Interest received 32,914 30,897
Net cash generated from/(used in) investing activities 343,150 (659,566)
Cash flows from financing activities
Proceeds from issue of share capital 20,339 153,780
Repayment of long-term borrowings (119,048) (285,714)
Equity dividends paid  11 (616,538) (351,668)
Interest paid (622) (5,760)
Net cash used in financing activities (715,869) (489,362)
Net (decrease)/increase in cash and cash equivalents (853,139) 1,322,808
Cash and cash equivalents at beginning of year 4,357,927 3,010,782
Exchange adjustments to cash and cash equivalents at beginning of year (82,194) 24,337
Cash and cash equivalents at end of year 18 3,422,594 4,357,927

Consolidated statement of changes in equity

For the year ended 31 July 2014

Share capital £ Share premium account £ Capital redemption reserve £ Share option reserve £ Currency translation reserve £ Retained earnings £ Total £
At 1 August 2012 73,093 2,841,538 6 188,502 2,812 2,377,970 5,483,921
Dividends (351,668) (351,668)
Issue of capital under share-based payment options 2,226 151,554 (88,359) 88,359 153,780
Share-based payment charge 22,574 22,574
Transactions with owners 2,226 151,554 (65,785) (263,309) (175,314)
Profit for the year 1,634,612 1,634,612
Other comprehensive income
Currency translation differences (38,539) (38,539)
Total comprehensive income for the year (38,539) 1,634,612 1,596,073
At 31 July 2013 75,319 2,993,092 6 122,717 (35,727) 3,749,273 6,904,680
Dividends (616,538) (616,538)
Issue of capital under share-based payment options 471 19,868 (17,955) 17,955 20,339
Share-based payment charge 21,186 21,186
Transactions with owners 471 19,868 3,231 (598,583) (575,013)
Profit for the year 1,575,228 1,575,228
Other comprehensive income
Currency translation differences (95,030) (95,030)
Total comprehensive income for the year (95,030) 1,575,228 1,480,198
At 31 July 2014 75,790 3,012,960 6 125,948 (130,757) 4,725,918 7,809,865

Notes to the consolidated financial statements

For the year ended 31 July 2014

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 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. IFRS include interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC).

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

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

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

The Directors have instituted regular reviews of trading and cash flow forecasts and have considered the sensitivity of these forecasts to different assumptions about future income and costs. With the sound cash levels and continued prospects for profitable trading, the Directors are fully satisfied that the Group is a going concern and will be able to continue trading for the foreseeable future.

Financial information

The financial information set out above, which was approved by the Board on 3 November 2014, is derived from the full Group accounts for the year ended 31 July 2014 and does not constitute the statutory accounts within the meaning of section 434 of the Companies Act 2006. The Group accounts on which the auditors have given an unqualified report, which does not contain a statement under section 498(2) or (3) of the Companies Act 2006 in respect of the accounts for 2014, will be delivered to the Registrar of Companies in due course.

The statutory accounts for the year ended 31 July 2013 which have been delivered to the Registrar of Companies, contained an unqualified audit report and did not include a statement under s498(2) or s498(3) of the Companies Act 2006.

Dividends

2014 £ 2013 £
Paid during the year
Final dividend in respect of the year ended 31 July 2013 at 1.6p per share (2012: 0.8p) 482,125 234,442
Interim dividend at 0.44p per share (2013: 0.4p) 134,413 117,226
616,538 351,668
Proposed after the year end (not recognised as a liability)
Final dividend in respect of the year ended 31 July 2014 at 1.76p per share (2013: 1.6p) 533,565 482,125

The proposed final dividend per share for the year ended 31 July 2014 is subject to approval by shareholders at the Annual General Meeting on 9 December 2014.

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 year.

2014 2013
Profit attributable to equity holders of the Group £1,575,228 £1,634,612
Weighted average number of Ordinary Shares in issue 30,249,212 29,323,481
Basic earnings per share 5.21p 5.57p
Diluted earnings per share 4.95p 5.30p

Diluted 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 which would be in issue if all the options granted, other than those which are anti-dilutive, were exercised. The addition to the weighted number of the Ordinary Shares used in the calculation of diluted earnings per share for the year ended 31 July 2014 is 1,560,109 (2013: 1,494,138).

Notice of Annual General Meeting

The Annual General Meeting of Getech Group plc (“the Company”) will be held at Kitson House, Elmete Hall, Elmete Lane, Leeds LS8 2LJ on 9 December 2014 at 12 noon.

04-11-14 National Oil Company umbrella contract

Getech (AIM; GTC), the geoscience business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, announces a three-year extension to an existing umbrella contract with a well-known National Oil Company.

This contract is with a long standing client and provides a three-year extension to the previous, annually renewable, contract. Under this extension the client may purchase Globe, Regional Reports, data and Commissions work.

Raymond Wolfson, Chief Executive of Getech Group plc, said: “This type of contract substantially reduces the administration required to place and receive orders for new products and services. The previous such contracts with this client have generated regular and substantial income for Getech. We regard this as substantial affirmation of the value of the continuing relationship with this client.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

24-10-14 Substantial sale of data products

GETECH, the oil services business specialising in the provision of exploration data and geological exploration studies, announces a further sale from its global data library.
The Company is pleased to announce that it has signed a licence agreement for gravity and magnetic data products which will generate gross income of $864k. Delivery is scheduled to be within the next three months.

Getech’s Chief Executive, Raymond Wolfson, commented, “Sales from our global data library continue to be a major part of our business. The gravity and magnetic datasets generate direct income for the Company. However, they are also the foundation for much of our value-added work and therefore underpin a large part of our other business.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

08-09-14 Largest ever new contract – $5 million

Getech (AIM; GTC), the geoscience business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, announces its largest ever single new contract, worth $5 million.

This new proprietary services contract has a gross value of $5 million and will be undertaken by the Company’s Commissions division. The contract was awarded by the Angolan National Oil Company, Sonangol, which has responsibility for overseeing and managing the oil and gas exploration and production in the Republic of Angola.

The aim of the project is to generate structural and related interpretations for the geological basins of Angola. The work involves a wide range of Getech’s skills including gravity and magnetic data interpretation, structural mapping, plate modelling, depositional modelling, palaeogeographic reconstruction and palaeodrainage analysis. The project will also require the integration of large datasets including seismic and well data in order to generate a well-founded and comprehensive interpretation and framework for future exploration across the region.

The work is due to start immediately and the Company anticipates that most of the income will be recognised in the current financial year. This is an excellent start to the year and gives confidence that the Company will meet the current year market forecasts.

Raymond Wolfson, Chief Executive of Getech Group plc, said: “This contract represents our largest proprietary project to date. Such contracts are only feasible because we have built a large team of geoscientists, many of whom are specialists in the particular disciplines required and who can integrate their disciplines into our Globe exploration platform.

“This is an excellent example of how the Globe framework provides a robust starting point for projects, contributing immediate value to work at a wide range of scales. It is also exactly the type of project that fits the skill base we have built. We have already indicated that we see consultancy and proprietary projects as a growth area and in 2013 set up the Commissions Division to manage and build this business stream. This new contract is an illustration of our future ambitions.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

08-09-14 Pre-Close Trading update

Getech (AIM; GTC), the geoscience business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, provides a pre-close trading update for the year ended 31 July 2014.

Pre-Close Trading update to 31 July 2014

As referred to in the trading update on 10 June 2014, the first part of the financial year witnessed lower spending across the whole oil and gas exploration sector.

However, as anticipated in the trading update on 10 June 2014, the Company had a strong end to its financial year and subsequently signed several new Globe, data and study contracts with an aggregate value in excess of $5m.

Provisional results for the 12 months to 31 July 2014

Unaudited preliminary results for the financial year are expected to show revenue of £6.6m, profit before tax of £1.0m, profit after tax of £1.4m and an estimated EPS of 4.6p.

As at 31 July 2014, the Company held cash reserves of £3.4 million which, along with committed income for the next period of Globe and other projects, provides a strong balance sheet for expanding current operations, developing new business streams related to our current activities and to consider strategic acquisition targets.

The Company recently retained specialist advice with regard to the UK Science and Technology Research and Development Tax Credits (“R&D Tax Credits”) and expects to receive significant retrospective tax credits for the previous two financial periods. The provisional figures above include the impact of the anticipated tax credits. The Company also believes that it will be eligible for R&D Tax Credits at similar levels for the year 2013/14 and future financial years.

Outlook

Looking forward, the Company remains well placed for growth:

  • The Company’s market leading gravity and magnetic data continue to provide a major source of income, with the US gravity data being particularly strong due to ongoing growth in expenditure focussed on onshore unconventional gas and oil. The Company is also seeing the results of investment in leading edge technology such as the multi-satellite gravity data project.
  • The Company is seeing strong demand for its consultancy services and is confident that this will continue to grow in the current financial period
  • The first three-year period of Globe was completed successfully in July 2014 and the Company already has a significant number of commitments to the second period of Globe, with further sales expected. It also anticipates significant additional sales of Globe in its regional format, which makes it more attractive to a wider range of clients.

Raymond Wolfson, Chief Executive of Getech Group plc, said: “The tight exploration market during the period since early 2013 made trading for many exploration service companies very difficult. While we were similarly affected, we have seen a significant upturn in recent weeks and consider that, under the challenging business environment, we have delivered a strong set of results.

“Looking forward, our Globe framework provides a unique opportunity from which we can deliver bespoke client solutions. We have entered the second three-year build period and can now target a wider market by providing Globe in a regional as well as global format. We believe the regional format will appeal to a range of client companies who wouldn’t normally buy global scale products, and to additional business units within our existing Globe clients. As a result, we anticipate that these regional products will be a substantial source of income in the coming years. Initial client discussions confirm the value of this approach, particularly in the current exploration market.

“With the availability of Globe in regional format, the growing library of study products and the increasing levels of consultancy work, there is a requirement for additional sales resource. We have therefore recruited two further sales staff and are actively seeking at least one more.

“We ended the year 2013/14 with strong sales performance. We enter the new financial year with a sound balance sheet, an increased product library, an enlarged sales team, and with confidence that we can deliver substantially improved performance.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

28-07-14 Issue of Options

Getech confirms today that it has granted options (“New Options”) to certain of its directors, as set out below.

Name Number of Options issued today Number of Options Previously held Total Number of Options now held
Raymond Wolfson 200,000 82,979 (exercisable at 9.87p each)200,000 (exercisable at 21.3p each) 482,979
Paul Carey 200,000 200,000 (exercisable at 21.3p each) 400,000
Paul Markwick 200,000 200,000 (exercisable at 21.3p each) 400,000

In addition to the above, Raymond Wolfson holds 400,000 ordinary shares representing 1.32% of the issued shares in the Company and Paul Markwick holds 172,553 ordinary shares representing 0.57% of the issued share capital of the Company.

All the New Options are exercisable at any time between 2 and 10 years after the date of grant at an exercise price of 48p. The exercise price is the Getech closing price on 23 July 2014.

For further information, please contact:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

16-07-14 Multi-satellite project funding now exceeds £1m

Multi-satellite project funding now exceeds £1m

Getech (AIM: GTC), the oil services business specialising in the provision of exploration data and petroleum systems studies and evaluations, is pleased to announce that it has now signed further clients to fund its new global multi-satellite gravity project.

In July 2013, the Company announced that it had funding in excess of £500k to commence a global roll-out of the CryoSat pilot study. This pilot project aimed to develop and demonstrate methodologies to improve the exploration value of satellite gravity data by combining new data from CryoSat-2 with existing data. The Company is now pleased to announce that additional sponsors of the global project have brought the total funding to more than £1m. This project is due to run over a three year period to June 2016, with the majority of this income to be recognised over the next two financial years.

Getech’s Chief Executive, Raymond Wolfson, commented “We now have six sponsors for the global roll-out of this project. Based on over twenty years of satellite altimetry processing we have developed methods to combine data from multiple satellites to provide increased resolution gravity data over marine areas. This adds significant value to geological interpretation using the data and therefore benefits hydrocarbon exploration.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

03-07-14 New contract worth $500k

Getech (AIM; GTC), the geoscience business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, announces it has won a new contract with a total value of $500k for immediate delivery.

The Company is pleased to announce that, as anticipated, it has signed a further contract for delivery of its US gravity dataset at a price of $500k, for immediate delivery. The income from this sale will therefore be recognised in the current financial year. This client had already purchased a substantial part of the dataset prior to the major upgrade by Getech in 2012 and 2013. Under the current sale the client will receive the upgraded onshore US dataset.

Raymond Wolfson, Chief Executive of Getech Group plc, said: “This sale is to an existing and technically knowledgeable client and is the third major sale we have reported out of this dataset. It is also of note that, while many clients work in both conventional and unconventional resources, we believe this client currently only operates in unconventionals.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

30-06-14 New contract worth $600k

Getech (AIM; GTC), the geoscience business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, announces it has won a new contract with a total value of $600k.

The Company is pleased to announce that, as anticipated, it has signed a contract for delivery from its recently upgraded US gravity dataset at a price of $600k. The data are for immediate delivery and all the income will be recognised in the current financial year.

The US gravity data business, including the earlier version of the dataset, was acquired from Lisle Gravity Inc in December 2008. In 2012 and 2013, in a technically complex project, Getech applied the skills it has acquired over more than twenty years as a leading interpreter of gravity and magnetic data, and reprocessed the entire dataset to generate the current upgraded version. This comprises more than 3.4 million proprietary gravity stations.

Raymond Wolfson, Chief Executive of Getech Group plc, said: “Typical sales from our US gravity dataset tend to be for specific areas of interest to our clients. However, this is the second major sale we have reported out of the dataset. To put it in context, these two sales alone have virtually matched the full acquisition price that we paid for this business.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

11-06-14 TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: GETECH GROUP PLC
2 Reason for the notification (please tick the appropriate box or boxes):
An acquisition or disposal of voting rights
An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached
An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments
An event changing the breakdown of voting rights
Other (please specify):
3. Full name of person(s) subject to the
notification obligation:
HARGREAVE HALE LIMITED
4. Full name of shareholder(s)
(if different from 3.):
DISCRETIONARY CLIENTS
5. Date of the transaction and date on
which the threshold is crossed or
reached:
10 JUNE 2014
6. Date on which issuer notified: 11 JUNE 2014
7. Threshold(s) that is/are crossed or
reached:
5%

11-06-14 New contract worth $2m

Getech (AIM; GTC), the geoscience business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, announces it has won a major new contract with a total value of $2m.

As indicated in the trading update released on 10th June 2014, whilst several significant contracts were expected to be signed before the end of the current financial year, predicting the timing of these contracts remained difficult. The Company is therefore pleased to announce that it has signed a major contract with a leading US oil and gas independent valued at $2m. This contract includes:

  • renewal of the Globe subscription which will cover the second period of Globe from July 2014 to July 2017
  • a long term licence for regional high resolution gravity and magnetic data
  • subscription to our global depth to basement project which started in April 2014 and is planned to complete in Q4 2015

Whilst the Company believes this contract illustrates the compelling value proposition its products have in its key target markets, due to the Company’s revenue recognition policy, the majority of the income under this contract will be realised in future years. This does not therefore affect the financial expectations of the Company outlined in the announcement of 10th June 2014.

Raymond Wolfson, Chief Executive of Getech Group plc, said: “This order is from an existing Globe client and although the income had been substantially factored into our expectations, we are extremely pleased that the contract is now signed. We remain confident that further significant contracts will also be signed in the near future. This brings the value of new contracts signed in the period since mid-May 2014 to over $3m and, given that much of the income will be recognised after this year, contributes to providing a sound base for the future.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

10-06-14 Trading Update

Getech (AIM; GTC), the geoscience business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, announces a trading update for the twelve month period to 31 July 2014.

Trading Update

As previously reported, the Company has continued to see strong demand for its consultancy work and is still receiving high levels of interest and positive feedback on its major product, Globe. However, in common with much of the upstream oil and gas service industry, actual purchasing by clients has been slow by comparison with last year and predicting the timing of new contracts has been difficult.

The Company has now built what it regards to be a very strong sales pipeline including close to £2m of leads where clients have recently given written or oral confirmation that they intend to proceed. We are therefore confident that a number of significant contracts, including several Globe renewals, will be signed in the very near future. However, with the expected cycle time to convert the sales pipeline into contracts and then revenue, the Directors believe that the Company will deliver pre-tax profit for the 12 month period to 31 July 2014 which is significantly below the market expectation.

Outlook

The Directors are seeing increasing signs that clients are disposed to start spending again and that the market is returning to normal. This, when combined with the strength of the sales pipeline, gives confidence about the short and medium term prospects.

Looking further forward, the visibility of income is still improving. Sponsors signing up to the second period of Globe commit to funding for the period from July 2014 to July 2017. The multi-satellite project, which is a three-year project running from mid 2013 to mid 2016 now has £800k of funding. A global depth to basement project has also now started and runs from April 2014 to late 2015. The Company fully expects further clients to sign up to each of these projects which, when combined with Globe commitments and the growth in consultancy contracts, will enhance the forward visibility of income.

Raymond Wolfson, Chief Executive of Getech Group plc, said: “We continue to believe that the present position is the result of an industry-wide slowdown, and are disappointed that this has lasted longer than we expected. However, since mid-May we have signed more than $1.2m worth of new contracts, including our first contractual commitment to the second phase of Globe. There are clear signs that the inertia in the market is lifting and, given the favourable reception we are receiving from our clients, we believe normal trading conditions have resumed.”

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Paul Cornelius Tel: 020 7933 8780 or getech@walbrookpr.com
Mob: 07841 917 679
Mob: 07866 384 707

17-02-14 Trading Update

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

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

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

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

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

Enquiries:

GETECH Group plc
Raymond Wolfson, Chief Executive Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell Tel: 0161 832 2174

Walbrook PR
Helen Westaway
Tel: 020 7933 8790
Mob: 07841 917 679
helen.westaway@walbrookpr.com

03-02-14 Notification of Change of Interest

The Company announces today that it has received the following notification of change in interest in the Company’s share capital:

Following a disposal 65,000 Ordinary Shares in the Company, Quilter Cheviot is now directly interested in 1,471,000 Ordinary Shares in the Company representing 4.85% of the total issued share capital of the Company and 4.85% of the total voting rights of the Company.

For further information, please contact:

GETECH Group plc
Raymond Wolfson, Chief Executive
Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell
Tel: 0113 394 6618

23-01-14 Exercise of Options

The Company announces that it has received a notice of exercise to issue 28,000 new ordinary shares of 0.25p each in the Company (‘Ordinary Shares’) at 15.0p per share pursuant to the Company’s EMI share option scheme.

Application has been made for the admission of 28,000 new Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 30 January 2014. On admission, the Company will have 30,316,184 shares in issue.

There are no shares held in treasury, therefore the total number of voting rights in the Company will be 30,316,184. This 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 under the Disclosure and Transparency Rules.

For further information, please contact:

GETECH Group plc
Raymond Wolfson, Chief Executive
Tel: 0113 322 2200

WH Ireland Limited
Katy Mitchell
Tel: 0161 832 2174