Getech Share Discussion Threads

[hybrasil] 31/10/2017 07:47

Very thorough chairman s statement
Much more positive than I had thought things would be.
Outlook good. Green shoots (I love them) appearing.
I suspect the market will push this ahead

[bookbroker] 30/10/2017 15:43

They will not set the world alight by any means, business is very tough for them, but I hope much of the bad news is factored in already, particularly with their derisory mkt cap.!

[cockerhoop] 30/10/2017 15:13

Results tomorrow

[cockerhoop] 27/10/2017 10:02

H1 results scheduled early next week so we should have a little more outlook commentary.

[bookbroker] 27/10/2017 09:51

Let’s hope they are getting paid for it, share price would have you assume the company’s managing on bread crumbs and water!

[cockerhoop] 27/10/2017 09:35

Appears to be some sort of collaboration between the different parts of the business

[cockerhoop] 26/10/2017 13:10

They are presenting in Leeds on 14th November at the ShareSoc Event if anyone is interested in asking questions face to face with the management.



These events are always worthwhile imo

Could also be seen as a positive that they are keen to engage with investors again?

[yump] 26/10/2017 12:39

fwiw I don't think the sentiment and the actual business correlate at the moment, in that the sentiment is being driven by the past, in the absence of anything significantly positive, other than the business trundling along. Given that, it will take a while for investors to decide whether the business has stabilised, or whether its prospects are likely to improve.

[bookbroker] 26/10/2017 12:06

All a bit late in the day, this might go under unless Coupe can engineer a turnaround, sentiment is simply awful, just a pathetic valuation, don’t think I can remember it being so low!

[yump] 25/10/2017 10:17

Yes, doesn't look like they were the most skillful in making good acquisitions. Hopefully now got a decent core to build on.

[bookbroker] 25/10/2017 09:53

The oil and gas market was already turning when they acquired them, ok advisory services offered a string to their bow, previous guy booted rather than left as a result, that speaks volumes!

[yump] 25/10/2017 09:46

Well if the market had improved, then the purchases would probably look a lot better timed.

Friend of mine bought property over both the 80's and recent recessions period and at times lost sleep worrying when the recovery took longer than expected. Now the purchases look like the work of a seasoned pro.

I suppose the difference might be that there has been a housing shortage over all those period, whereas oil supply/demand cycles.

[bookbroker] 23/10/2017 20:15

These falls clearly front-running the results this week, but the valuation of this company now becoming marginal, they should attempt to sell their HQ. and move to a more practical location, seems they operate out of a once private residence north of Leeds, but is the mortgage of £100 p.a. really necessary!

[yump] 20/9/2017 17:20

Got it now thanks. So assuming your calcs. their overall costs for this year should be at 2016 levels or lower ie. the £7.5mln ish. Unless their 32% refers back to 2016. Or 'underlying costs' is not the same as 'cost base'.

So basically dependent on an increase in revenue, to move into profit.

I guess we'll see if their revenue has bottomed out in the next 6 months or so.

[tmfmayn] 20/9/2017 15:40

GTC referred to cost base in note 5 in the interim results and showed £11m for 2016. The figure includes cost of sales and other adjustments. Company said cost base reduced by 33% in the interim results and I assume the 32% for the full year stated today was on the same basis.I can't deduce a significant profit being made from the changes to the cash position, but I may have missed something what with all the late payments, exceptional and H1 tax refund etc.

[yump] 20/9/2017 14:55

I don't know where that £11mln of cost base appears, or what the like-for-like refers to ??

They had 6 months of Exprodat at 2017 interims and admin. costs of £2.23mln.

Unless there is no longer a first to second half drop in admin. costs, then £7.7mln revenue, wherever it comes from, should generate a decent profit, excluding exceptionals.

When they are referring to cost base, I don't imagine they mean total costs including cost of sales. Normally cost base is overheads, salaries, fixed costs etc. Cost of sales is a variable, generally proportional to sales volumes.

[tmfmayn] 20/9/2017 10:02

A few other figures to ponder on

2016 FY pre-tax profit was favourably massaged by a £800k-plus write-back relating to the reduced value of an acquisition earn-out. So GTC really made an underlying loss that year.

Have to remember with these 2017 figures that GTC bought Exprodat in June 2016.

GTC's 2017 annual report said Exprodat produced revenue of £2.4m during FY 2016, and contributed £0.4m during its time of ownership that year, and so group revenue would have been c£9.0 had GTC owned Exprodat for the full 12 months.

So... revenue of £7.7m for 2017 (with a full year of Exprodat) means underlying sales fell about 15%. I get the impression H2 sales fell more than 15%.

Also, the like-for-like cost base for 2016 was cited at £11m within the H1 results.

So a 32% reduction for 2017 gives a cost base of c£7.5m, which leaves a £0.2m profit for the full-year. I think the H1:H2 profit split is roughly £120k:£80k.

[cockerhoop] 20/9/2017 09:08

My understanding is they are due to present at ShareSoc Leeds on 14th November if anyone is interested in attending.

[yump] 20/9/2017 08:59

chrisdgb

Sit on hands and wait till next year ! Interest will come back if it starts performing.

[yump] 20/9/2017 08:57

I'm hoping they can maintain their revenue, or even grow it a bit through the new offerings and produce a decent profit of at least £1mln clean.

On paper, just the increase to £7.7mln should have quite a drastic effect, assuming costs are somewhere near my calcs. Even with the 2016 costs, that would have given earnings of 3p, excluding exceptionals, which won't be there next time.

Then they could easily be on a p/e of less than 10 with growth to come and a bonus if the exploration environment eventually picks up.

I had a load on the last dip to this level, so not getting any more quite yet.

[chrisdgb] 20/9/2017 08:55

Title of the thread sums up.............

[bookbroker] 20/9/2017 08:51

The figures were ok, in terms of revenue, cash inflow good and sharp cost cuts essential, the purchase of the Henley based concern two years ago overpaid, but Copus doing a good job so far in difficult environment, what is more important is what is down the line, but consultancy their forte, and revenue there will be the key, and diversifying away from what essentially has been more towards the oil and gas sector.

[yump] 20/9/2017 08:45

At least those exceptionals are proper exceptionals ie. one-offs.

First time I've seen anything positive expressed for a while about sales prospects and the figures do show that they've delivered on what their aim was.

If it helps anyone, here's a few figures to ponder on:

In 2015 they did £8.5mln revenue, giving eps of about 5p.
In 2016 it was £7mln, giving eps of about 3p, including a tax credit (400k ish)

In general you get 3p earnings for every £1mln pre-tax profit.

Just as an exercise:

2016 Profit before tax, excluding the tax credit was 671K.
Admin. costs were £2835.
They say they've reduced underlying costs by 32%. Not sure what the like-for-like means.
So in theory that £2835 would now be 900K.

So 671K + 900K = £1.5mln pretax = earnings of 4.5p.

I know its not that simple of course, but its a start.

So if they are now doing £7.7mln revenue...

Of course, cost of sales might have gone up, but as far as I can see GTC must be pretty badly undervalued based on what figures could easily appear in 6 months time. (cost of sales 2016: 50% and in first half 2017: 54%)

I guess the change of accounting year will confuse investors a bit, so that could mean there's quite a long opportunity to work out what's going on.

(PS. Admin. costs are heavily first half weighted eg. 2016 1st. half: £1970, full year: £2835, so I've taken the 32% reduction over the whole year costs)

[pugugly] 20/9/2017 08:33

Surprised no comment yet on trading update - Appear to put the best possible spin on a dire and increaingly challenging situation - Watching but not jumping -