GETECH Group plc AGM Statement (6302R)

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RNS Number : 6302R

GETECH Group plc

13 December 2016

Getech Group plc

("Getech" or the "Company")

AGM Statement

At today's Annual General Meeting, Jonathan Copus, the Chief Executive Officer of Getech (AIM; GTC), a provider of data, studies and services to the natural resources and energy sectors, will give the following update:

"In 2016 Getech focused its operations on targeted investment in our core business, counter-cyclical M&A, and the active management of costs. These actions combined to deliver a significant rebound in profitability in the second half of our 2016 financial year. Since reporting 2016 results, we have secured several strategically important new contracts and our day-to-day activities continue to be focused around the customer, profitability and diversified growth.

Business update

In 2016 Globe entered its sixth year of continuous customer support, the MultiSat programme was delivered, a wide range of new Regional Reports were released and we completed an extensive, multi-disciplinary basin review for Sonangol. We continued to support the Mozambique Government's petroleum activities, captured new World Bank funded consultancy opportunities in Sierra Leone and in June 2016 we strengthened our offering through the acquisition of Exprodat, a provider of cutting-edge Geographic Information Systems (GIS) services and software products.

Since the completion of this transaction, Getech has focused its geoscience, GIS, software and consulting skills on growing the Group's operations both within and beyond our core oil & gas exploration customer base. It is pleasing therefore to announce that we are ending the calendar year having secured a new sale of Globe phase-two to a super-major, and we have been contracted by the UK Oil and Gas Authority (the "OGA") to develop and implement a GIS information management strategy. This work for the OGA extends our operations beyond our core exploration market, being focused on spatial data that spans the full E&P asset life-cycle. In addition, having won our first contract within the nuclear industry in the previous financial year, Getech is currently at an advanced stage of discussions to expand on this work.

Financials

As previously announced, financially, 2016 was a year of two distinct halves. In the first half, slow trading and higher costs lead to a loss before tax of GBP704,000. In response, Getech took a range of hard decisions and implemented a significant programme of cost control measures. From a lower cost base, and with a 14% rebound in revenues, our underlying performance significantly improved in H2-16; the Group reporting a full year profit before tax of GBP671,000.

We believe these operational and financial highlights illustrate that despite the challenges faced by the wider natural resources market, our clients continue to see value in our integrated, multi-disciplinary approach, which in turn is underpinned by excellent data, high quality staff, and a strong GIS platform.

The Board however also continues to act with prudence. The Group remains focused on cost control throughout the business and the Board decided to not propose a 2016 dividend.

Outlook

Looking to 2017, although the outlook for our core exploration market remains uncertain, feedback from customers leaves us cautiously encouraged by the market mood. We have no intention however to sit back and wait for a rebound.

With an expanded operational skill set, Getech is entering a period where we are focused on profitability and opportunities to enhance and diversify our commercial offering. We will do this through an improved value proposition around our activities, the provision of better access to our data/analysis and refocusing of our products and services so that they more practically address the day-to-day commercial challenges faced by our customers; our goal being to deliver products and services with practical applications and demonstrable value".

Stuart Paton, Chairman of Getech Group plc, said: "I am extremely pleased with the progress that the Company has made in the last four months under the leadership of our new CEO Dr Jonathan Copus. The market remains challenging and we continue to have to make difficult decisions to ensure the robustness of the business. However, with new leadership, diversification into new areas, and a stronger oil price, I am confident in the future growth of Getech. Central to achieving this is cultural change, and at the heart of this lies the continued integration of activities across our project teams and offices. I would like to take this opportunity to thank all of Getech's staff for their continued hard work and dedication."

Enquiries:

 
 Getech Group plc           Tel: [phone] 
  Stuart Paton, Chairman 
  Jonathan Copus, 
  Chief Executive 
------------------------  -------------------- 
 WH Ireland Limited         Tel: [phone] 
  Katy Mitchell 
------------------------  -------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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December 13, 2016 02:00 ET (07:00 GMT)