TIDMGTC
RNS Number : 3007B
GETECH Group plc
07 October 2020
Getech Group plc
("Getech" or the "Company" and together with its subsidiaries
the "Group")
Interim report for the six months ending 30 June 2020
These are the unaudited interim results for the period ending 30
June 2020.
Getech (AIM; GTC) provides products and services that
commercialise its expertise in the development, application and
deployment of the earth sciences and geospatial technology. To date
the Group has principally used these skills to build and sell data,
knowledge, and analytical products to petroleum market customers,
which they use to locate and improve the management of their assets
and resources.
The Group targets orderbook and recurring revenue growth. Having
maintained capital discipline, and a low level of variable costs,
Getech's balance sheet is strong, and cash profitability is highly
leveraged to revenue growth. Customer collaboration and continuous
product and service enhancement are central to Getech's strategy
and decision making.
Getech is also working to deliver diversified growth. The Group
already sells data products and geoscience services to mining
companies, and it has utilised its geospatial skills in the water,
transportation, nuclear, pipeline and electricity infrastructure
sectors. Whilst these end markets are not yet material in the
context of the Group's overall financial performance, Getech has
the expertise and technologies to create products, services, and
assets of significant value in these new markets.
H1 2020 overview
-- Projects continue to be delivered on time and to cost, orderbook continues to be honoured
-- Revenue GBP2.1 million (H1 2019: GBP2.5 million), plus new
forward sales of GBP1.4 million (H1 2019: GBP1.6 million)
-- Orderbook replenished, totalling GBP2.9 million at 30 June
2020 (31 December 2019: GBP3.1 million)
-- Monthly costs reduced by 26% from 1 May 2020, with H1 total
Group costs of GBP2.6 million (H1 2019: GBP3.2 million)
-- Profitability enhanced; EBITDA profit GBP0.1 million (H1 2019: GBP0.1 million loss)
-- Cash of GBP2.8 million (30 June 2019: GBP3.0 million), with
Globe invoicing in July increasing cash balances in H2 2020
-- Broad front of new business activity, with momentum building
around mining, geothermal and hydrogen opportunities
The Covid-19 pandemic has negatively impacted almost every
business globally across every sector, and as economic activity and
global mobility has declined, energy prices have fallen sharply. In
response, Getech's oil and gas customers reduced their 2020 total
capital budgets by c35%. Despite a significant, but partial,
rebound in crude oil, the threat of further waves of infection
presents economic uncertainty, which undermines customer
confidence.
Whilst Getech moved its staff to home working early in March,
the Group had already largely transferred its marketing, sales,
training, services, and product support activities to remote or
virtual platforms. Since implementing these changes, projects have
remained on time and to cost. The Group has also successfully
delivered on a number of new projects during this period and,
year-to-date, has released Globe 2020; new versions of Getech's
Data Assistant, Exploration Analyst and Unconventionals Analyst
software products; and an interim release of its innovative
MultiSat 2020 product.
Financially, Getech began 2020 with a strong orderbook (which
grew by 48% across 2019). This continues to unwind to revenue, with
no negative revisions. Importantly, in challenging markets, and net
of revenue delivered in H1 2020, the orderbook has been largely
replenished - totalling GBP2.9 million at 30 June 2020 (31 December
2019: GBP3.1 million). The orderbook remains an important downside
protection for the Group, with approximately GBP1.5 million of it
expected to convert to revenue in H2 2020.
Driving this performance was an encouraging licence renewal rate
and new customer wins for Globe and other software products. In
services, agreements were extended, and new contracts secured in
developing areas of activity. Getech also continues to deliver data
sales, although in this area customer budgets have been pared back
to essential needs. Whilst some other licence renewal discussions
have, perhaps unsurprisingly, been more protracted, Getech is
focused on concluding these by year-end.
To manage such risk, and the uncertainty of the duration of the
Covid-19 business environment, Getech took prudent steps in April
to protect its capital. Since May, monthly costs have been lowered
by c26%. Inclusive of two months of cost savings, the Group total
cost base [ ] in H1 2020 equalled cGBP2.6 million (H1 2019: GBP3.2
million) and for the six-months to 30 June 2020, Getech reports a
GBP0.1 million EBITDA profit (H1 2019: GBP0.1 million loss).
Getech's balance sheet remains strong, with cash totalling
GBP2.8 million at 30 June 2020 (H1 2019: GBP3.0 million). In
addition, the Globe development cycle resulted in a significant
value of invoices being raised in July, which has unwound to cash
post the period end. The Group's Leeds headquarters also remains a
further significant asset.
New business and diversification activities
The need for action to stem rising global temperatures is
driving structural change in primary energy markets. With the world
reliant on hydrocarbons, the scale of the Energy Transition
required to decarbonise global energy supply is huge and almost all
commentators believe that current levels of investment fall
significantly short of what is required.
These changes are reshaping the needs of Getech's existing
energy and natural resource customers and opening opportunities to
service a new and expanded client base. Specifically, the Group is
encountering new low/zero carbon customers, operating across an
increasingly decentralised energy system, where Getech's skills and
technologies can add value. Getech has identified partner companies
who can help accelerate Getech's penetration into new markets and
five strategic Memorandums of Understanding are currently in
negotiation.
In navigating this new business landscape, Getech's strategy is
to grow and diversify its commercial activities in ways that
maximise the value of its core products and services, build on the
Group's customer relationships, and expand Getech's work in ways
that de-risk and accelerate the Energy Transition.
A low carbon world will be one with hugely increased demand for
battery raw materials and other metals. Ramping up production to
meet that demand is a significant challenge for the metals and
mining industries. Getech's data and services remain valuable tools
in these markets, and we are working to increase the penetration of
our products.
Getech's oil and gas clients will remain important to the global
energy mix for several decades, and core to Getech's offering as it
develops new areas of activity. There is also a heightened
responsibility for these companies to focus on the efficiency,
safety and sustainability of their activities. Getech already
designs and maintains geospatial systems that assist in the
monitoring of hydrocarbon production operations - utilising real
time data for asset and people tracking and to manage emissions and
emergency response systems. The Group has also built scalable data
management platforms for pipeline and electricity infrastructure
projects, which customers use to ensure system integrity and to
maintain regulatory compliance. Getech's services and
software/platform solutions are deployed in some of the world's
most operationally challenging and environmentally sensitive
locations, and the business benefits - increased efficiency,
safety, environmental protection and sustainability - are tangible,
quantifiable and valuable.
The Group also continually evaluates technological and value
chain opportunities in low/zero carbon markets. Year-to-date, this
has generated service contracts that include renewables projects
for local government, and earth observation projects that utilise
Getech's satellite remote sensing, data and analytical skills.
Although the materiality of these activities in the context of the
wider Group remains low, they are a platform on which Getech is
building.
Getech is also combining its earth science data, skills and
knowledge with its geospatial expertise to address new areas of
energy problem solving. Areas of opportunity where Getech is
committing resource include geothermal energy and the hydrogen
economy. In geothermal, Getech is constructing an offering that
uses its geophysical data and heat-flow tools to de-risk access to
clean energy. In hydrogen, Getech is exploring ways to build cost
efficient optionality into emergent value chains. The Group sees
potential to develop projects and services, as well as the ability
to enhance returns through a role in asset and/or value chain
development.
These diversification initiatives are focused on opportunities
that have the potential to materially grow Getech. To date,
activity has been delivered through organic product investment,
service enhancement and innovation. The Group is also working to
accelerate this journey through acquisitions that target Energy
Transition related opportunities where Getech sees the potential to
deliver a stepwise series of growth-focused transactions. Year to
date, Getech has screened c.100 acquisition opportunities, seven of
which have been taken to detailed due diligence. Diligence and
negotiations continue on two of these opportunities.
Outlook
As Getech navigates the Covid-19 business environment, the Group
is focused on striking a balance between mitigating risk and
capturing opportunity. To this end, Getech has been careful to
maintain the capacity to deliver both its orderbook and a full
programme of new business activities. This focuses on strengthening
Getech's core business, whilst also using the Group's skills,
technologies and network to pivot its offering into new parts of
the energy value chain.
As well as charting the Group's future path, it remains key to
maintain and progress its core sales pipeline. The scale and
structure of this pipeline reflects the current business
environment, but Getech continues to maintain a broad, healthy
foundation of customer conversations. Such conversations typically
build in momentum during H2, and in a normal year, Getech's revenue
cycle is H2 weighted with a 40:60 balance reflecting the spending
bias of the Group's customers.
This revenue pattern has become established across the upstream
service sector, and for all parties Covid-19 adds a complex overlay
to predicting the Group's customers' year-end spend. Day-to-day
Getech is focused on remaining close to these customers, delivering
on their most pressing needs. With important licence negotiations
underway in H2 2020, as well as a number of tender submissions due
to be announced before year-end, Getech is to date encouraged that
its engagement continues to be rewarded with product licence and
service contract success.
Operational Review
Getech's Earth Science staff are experts in geology, potential
fields geophysics, seismic geophysics, geochemistry, structural
geology, plate tectonics, geodynamics, palaeoclimate modelling and
remote sensing. The Group's Geospatial staff are experts in
designing, implementing and managing geographical information
systems (GIS) technology that is used to spatially integrate and
analyse business data in order to derive unique insights.
In line with UK Government guidance, all Getech staff moved to
home working in early March. Since then, projects have continued to
operate on schedule and on budget whilst being delivered remotely -
this is testament to the efforts of Getech's staff, their technical
skills and the high quality delivery processes and IT systems that
have been implemented across the Group over the last 2 years.
The Gravity and Magnetic Solutions team is widely recognised as
a market leader in the provision of potential fields data and
expertise. Despite data sales being lower than originally forecast
in H1 2020 due to the uncertain exploration sector, the team
delivered a steady baseline of bespoke gravity and magnetic
services contracts. In addition, the team continued key projects to
research, update and enhance our strategically important data
products in order to bring new products to market for 2021 -
including Getech's unique MultiSat data product, a significant
sized project that remains on schedule and within budget.
In H1 2020, the Group released a new version of its flagship
Globe product, developed by the Geoscience Knowledge Products team.
Despite the potential operational interruption of the global
Covid-19 pandemic, the "Globe 2020" release was delivered to
customers on time and within budget. This latest release again
delivered enhancements drawing on the Group's geoscience,
geospatial and software expertise to deliver new information,
analytic tools and usability improvements for Globe customers,
including an initial release of Globe for ArcGIS Pro. The Group's
work to re-position Globe for the current exploration market was
further rewarded in H1 2020 by securing a new super-major customer
and strong renewal rates for existing customers.
A key focus for the GIS Software team since 2016 has been to
migrate the Group's software products to ArcGIS Pro, Esri's latest
desktop GIS application and ArcMap replacement. Building on initial
software versions supporting ArcGIS Pro released in 2019, H1 2020
saw the release of the new ArcGIS Pro versions of Exploration
Analyst and Data Assistant - again demonstrating the Group's
ability to 'weather the storm' of the global Covid-19 pandemic
operationally. Over H1 2020 software renewal rates remained high
despite significant uncertainty in the E&P sector, and the
Group was able to add several new customers.
The GIS Services team is recognised as expert in the use of the
Esri ArcGIS platform within the petroleum, pipeline, energy and
natural resources sectors. Through H1 2020 the team was highly
utilised, continuing to deliver on our strategic long-term GIS
support contracts while gaining new customer projects in the local
government and earth observation sectors. In addition, the team
successfully delivered a wide variety of global GIS training events
via the use of the Group's long-established remote training
delivery platform.
The market for Geoscience Services remains challenging and, in
response, the Group continue to lower costs and re-position its
service offerings through H1 2020. In parallel, Geetch's Government
Advisory Services continued - working in partnership with the
Sierra Leone Petroleum Directorate on the country's Fourth
Licensing Round.
Getech's new group-wide Innovation team, established in 2019,
continued with its the remit to research and develop
cross-discipline opportunities for new markets, capabilities,
partnerships, products and services. In H1 2020 the team focussed
on energy transition and geospatial opportunities and has
contributed enormously to the Group's digital marketing efforts,
which were stepped up significantly in H1 2020 due to the
travel-limiting effects of the Covid-19 pandemic.
Financial Review
In response to the Covid-19 pandemic Getech took steps to
protect its capital position whilst also preserving the Group's
ability to both deliver on its orderbook and to progress a broad
front of new business initiatives. Having secured sales that both
delivered H1 2020 profitability and refilled the Group's orderbook,
this provides a degree of downside protection to Getech's 2020
financial performance and maintains the Group's strong balance
sheet.
Revenues and Sales
H1 2020 revenue totalled GBP2.1 million (H1 2019: GBP2.5
million). The 15% drop in revenue for the period can be attributed
to Covid-19 restrictions, and the knock-on impact on oil prices and
the curtailment of customers' exploration budgets.
Against this backcloth, positives can be taken from the renewal
of several key contracts and subscriptions in H1 2020, as well as
the winning of a number of new customers. This has helped to
maintain a healthy order book (30 June 2020: GBP2.9 million, 30
June 2019: GBP3.0 million), a significant portion of which will be
released to revenue in H2 2020. Annualised recurring revenue at the
end of H1 2020 amounted to GBP2.2 million (30 June 2019: GBP2.3
million).
Cost management
Getech took significant cost saving measures in April that
reduced monthly cash out flow by approximately 26%. As a result,
Getech's H1 2020 cost base has reduced by 18% to GBP2.6 million
compared to GBP3.2 million in H1 2019, the most significant portion
of these savings being realised in May and June. Cost savings have
been achieved through overhead cost management, a loan c apital
repayment holiday, limited use of the UK Government Job Retention
Scheme and salary reductions that range from 20% for Getech's Board
to c8% for most other staff. The Group will continue to monitor
costs and retains significant flexibility to react to any
deterioration (or improvement) in the broader business
environment.
More detail is given in the table below:
Percent Six months Six months 12 months
variance ended ended ended
from 30 June 30 June 31 Dec
prior 2020 2019 2019
six Unaudited Unaudited Audited
months GBP'000 GBP'000 GBP'000
------------------------------------------- --------- ---------- ---------- ---------
Cost of sales 824 1,206 2,533
Development costs capitalised 553 569 1,108
Administrative costs 1,801 1,827 3,809
Payment of lease liabilities 40 - 71
Depreciation and amortisation charges (572) (437) (1,156)
Exchange adjustments (28) 33 (3)
Cost base, excluding one-off restructuring
costs (18)% 2,618 3,198 6,362
------------------------------------------- --------- ---------- ---------- ---------
Cost base is measured as: cost of sales, administrative costs,
development costs capitalised and payment of lease liabilities,
less depreciation and amortisation, and adjusted for movement
foreign exchange and non-cash provisions.
Profitability
With both revenues and direct costs lower, the net impact was
that Getech maintained its Gross Profit at GBP1.3 million (H1 2019:
GBP1.3 million).
Getech also made savings to administrative costs (H1 2020 and H1
2019: GBP1.8 million), however some of this was offset by higher
depreciation and amortisation charges versus H1 2019 (H1 2020:
GBP0.6m, H1 2019: GBP0.4m - included in administrative costs). As a
result of these savings, H1 2020 EBITDA [++] has increased to
GBP0.1 million compared to GBP0.1 million EBITDA loss in H1
2019.
Getech's post-tax loss was GBP447,000 (H1 2019: GBP361,000
loss).
Operating cash flow
Cash generated from operating activities, before working capital
adjustments was GBP0.1 million (H1 2019: GBP0.1 million out
flow).
In H1 2019, Getech benefitted from a large cash inflow from
working capital movements. This related to a significant sale
towards the end of 2018, the cash related to the sale was received
in H1 2019.
Investment and capital expenditure
Investment in the Globe platform and Software products totalled
GBP553,000 (H1 2019: GBP569,000). Work has now commenced on the
next annual phase of Globe development.
Liquidity
Due to the seasonality of revenues, which are typically weighted
towards H2, and the timing of Globe invoicing (Globe's investment
phase runs from August to July, and as a result, Globe invoicing
follows the same timing for a significant portion of its
customers), Getech's cash cycle typically follows a pattern of
stronger cash generation in H2 when compared to H1. This also
results in strong cash generation in July/August, a pattern that
repeated in 2020.
Capital discipline, and immediate cost reduction measures in
April 2020, have limited the outflow of cash H1. Adjusting for
working capital movements, during H1 there was a Group cash out
flow of GBP0.6 million (H1 2019: GBP0.8 million out flow).
At 30 June 2020, the Group cash balance was GBP2.8 million (30
June 2019: GBP3.0 million). The Globe development cycle resulted in
a significant value of invoices being raised in July, which has
unwound to cash post the period end. Getech's debt at 30 June 2020
totalled GBP0.8 million, and has maturity date of 2023. For
prudence, Getech secured a capital repayment holiday on its loan
for 12 months from April 2020.
Dividends
Getech's Board is appreciative of the value that payment of a
dividend can bring to shareholders. It is also focused on ensuring
that the Group can operate with the confidence to deliver a
dividend policy that is both sustainable and progressive, whilst
also maintaining its programme of organic and acquisitional
investment.
Having considered the continued volatility of the oil and gas
investment environment , as well as the current pressures and
uncertainties surrounding the global economy, Getech's Board
decided that it was not appropriate to pay a dividend at this
time.
Stuart Paton Dr Jonathan Copus Chris Jepps Andrew Darbyshire
Chairman Chief Executive Chief Operating Chief Financial
Officer Officer Officer
For more information please contact:
Getech Group plc Tel: 0113 322 2200
Jonathan Copus, Chief Executive
Cenkos Securities plc Tel: 0207 397 8900
Neil McDonald / Pete Lynch / Pearl Kellie
(Corporate Finance)
Michael Johnson / Julian Morse (Sales)
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2020
12 months
6 months 6 months ended
ended ended 31 Dec
30 June 30 June 2019
2020 Unaudited 2019 Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------------------------ ---- --------------- --------------- ---------
Revenue 2,085 2,461 6,058
Cost of sales (824) (1,206) (2,533)
Gross profit before exceptional items 1,261 1,255 3,525
Exceptional cost of sales - - 325
Gross profit 1,261 1,255 3,850
Administrative costs (1,801) (1,827) (3,809)
------------------------------------------------ ---- --------------- --------------- ---------
Operating (loss)/profit before exceptional
administrative expenses (540) (572) 41
Exceptional administrative expenses - - (3,132)
Operating loss (540) (572) (3,091)
Finance income 1 5 14
Finance costs (22) (31) (64)
------------------------------------------------ ---- --------------- --------------- ---------
Loss before tax (561) (598) (3,141)
Income tax credit 114 237 53
------------------------------------------------ ---- --------------- --------------- ---------
Loss for the period attributable to owners
of the Parent Company (447) (361) (3,088)
Other comprehensive income
Items that may be reclassified subsequently
to profit or loss:
Currency translation differences on translation
of foreign operations (6) 0 6
------------------------------------------------ ---- --------------- --------------- ---------
Total comprehensive income for the period
attributable to owners of the Parent Company (453) (361) (3,082)
------------------------------------------------ ---- --------------- --------------- ---------
Earnings per share 4
Basic earnings per share (1.19)p (0.96)p (8.22)p
------------------------------------------------ ---- --------------- --------------- ---------
Diluted earnings per share (1.19)p (0.96)p (8.22)p
------------------------------------------------ ---- --------------- --------------- ---------
Consolidated Statement of Financial Position
As at 30 June 2020
Company registration number: 02891368
30 Jun 30 Jun 31 Dec
2020 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------ ---------- ---------- --------
Non-current assets
Goodwill 296 3,428 296
Intangible assets 3,671 4,258 3,568
Property, plant and equipment 2,814 3,004 2,906
Deferred tax asset 346 312 346
------------------------------- ---------- ---------- --------
7,127 11,002 7,116
------------------------------ ---------- ---------- --------
Current assets
Trade and other receivables 2,043 2,413 1,994
Tax receivable 290 295 136
Cash and cash equivalents 2,819 2,990 3,554
------------------------------- ---------- ---------- --------
5,152 5,698 5,684
------------------------------ ---------- ---------- --------
Total assets 12,279 16,700 12,800
------------------------------- ---------- ---------- --------
Current liabilities
Short-term borrowings 20 113 78
Trade and other payables 1,654 2,790 1,697
1,674 2,903 1,775
------------------------------ ---------- ---------- --------
Net current assets 3,478 2,795 3,909
------------------------------- ---------- ---------- --------
Non-current liabilities
Long-term borrowings 815 782 776
Trade and other payables 381 494 421
Deferred tax liabilities 109 137 109
------------------------------- ---------- ---------- --------
1,305 1,413 1,306
------------------------------ ---------- ---------- --------
Total liabilities 2,979 4,316 3,081
------------------------------- ---------- ---------- --------
Net assets 9,300 12,384 9,719
------------------------------- ---------- ---------- --------
Equity
Share capital 94 94 94
Share premium 3,053 3,053 3,053
Merger reserve 2,407 2,407 2,407
Share based payment reserve 276 217 242
Currency translation reserve 25 (6) 31
Retained earnings 3,445 6,619 3,892
------------------------------- ---------- ---------- --------
Total equity 9,300 12,384 9,719
------------------------------- ---------- ---------- --------
Consolidated Statement of Cash Flows
For the six months ended 30 June 2020
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 Dec
2020 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------------------------- ---------- ---------- ---------
Cash flows from operating activities
(Loss)/profit before tax (561) (598) (3,141)
Finance income (1) (5) (14)
Finance costs 22 31 64
Depreciation and amortisation charges 572 437 1,156
Impairment of goodwill - - 3,132
Impairment of intangible assets - - 621
Adjustment to direct cost accruals - - (946)
Provision for RDEC income (40) - -
Share-based payment charge 34 34 59
Exchange adjustments 28 (33) 3
---------------------------------------------- ---------- ---------- ---------
Cash (outflow)/inflow from operating
activities 54 (134) 934
Movement in working capital:
Decrease/(increase) in trade and other
receivables (49) 2,528 2,861
(Decrease) in trade and other payables (41) (185) (336)
---------------------------------------------- ---------- ---------- ---------
Cash generated from/(used in) operations (36) 2,209 3,459
Income taxes refunded/(paid) (1) 39 37
---------------------------------------------- ---------- ---------- ---------
Net cash generated from operating activities (37) 2,248 3,496
---------------------------------------------- ---------- ---------- ---------
Cash flows from investing activities
Purchase of property, plant and equipment (31) (25) (30)
Purchase of intangible assets - - (5)
Development costs capitalised (553) (569) (1,108)
Interest received 1 5 14
---------------------------------------------- ---------- ---------- ---------
Net cash used in investing activities (583) (589) (1,129)
---------------------------------------------- ---------- ---------- ---------
Cash flows from financing activities
Repayment of loan (19) (37) (78)
Repayment of lease liabilities (40) (2) (71)
Interest paid (22) (31) (64)
---------------------------------------------- ---------- ---------- ---------
Net cash used in financing activities (81) (70) (213)
---------------------------------------------- ---------- ---------- ---------
Net increase/(decrease) in cash and cash
equivalents (701) 1,589 2,154
Cash and cash equivalents at beginning
of period 3,554 1,400 1,400
Exchange adjustments to cash and cash
equivalents at beginning of period (34) 1 -
---------------------------------------------- ---------- ---------- ---------
Cash and cash equivalents at end of period 2,819 2,990 3,554
---------------------------------------------- ---------- ---------- ---------
Consolidated Statement of Changes in Equity
For the six months ended 30 June 2020
Share
based Currency
Share Share Merger payment translation Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- -------- -------- -------- ------------ --------- --------
At 1 January 2020 94 3,053 2,407 242 31 3,892 9,719
-------------------- -------- -------- -------- -------- ------------ --------- --------
Loss for the period - - - - - (447) (447)
Other comprehensive
income - - - - (6) - (6)
-------------------- -------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income - - - - (6) (447) (453)
-------------------- -------- -------- -------- -------- ------------ --------- --------
Transactions with
owners:
Share-based payment
charge - - - 34 - - 34
At 30 June 2020 -
unaudited 94 3,053 2,407 276 25 3,445 9,300
-------------------- -------- -------- -------- -------- ------------ --------- --------
For the six months ended 30 June 2019
Share
based Currency
Share Share Merger payment translation Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- -------- -------- -------- ------------ --------- --------
At 1 January 2019 94 3,053 2,407 183 25 6,980 12,742
-------------------- -------- -------- -------- -------- ------------ --------- --------
Loss for the period - - - - - (361) (361)
Other comprehensive
income - - - - (31) - (31)
-------------------- -------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income - - - - (31) (361) (392)
-------------------- -------- -------- -------- -------- ------------ --------- --------
Transactions with
owners:
Share-based payment
charge - - - 34 - - 34
At 30 June 2019 -
unaudited 94 3,053 2,407 217 (6) 6,619 12,384
-------------------- -------- -------- -------- -------- ------------ --------- --------
For the 12 months ended 31 December 2019
Share
based Currency
Share Share Merger payment translation Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- -------- -------- -------- ------------ --------- --------
At 1 January 2019 94 3,053 2,407 183 25 6,980 12,742
-------------------- -------- -------- -------- -------- ------------ --------- --------
Loss for the year - - - - - (3,088) (3,088)
Other comprehensive
income - - - - 6 - 6
-------------------- -------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income - - - - 31 (3,088) (3,082)
-------------------- -------- -------- -------- -------- ------------ --------- --------
Transactions with
owners:
Share-based payment
charge - - - 59 - - 59
At 31 December 2019 94 3,053 2,407 242 31 3,892 9,719
-------------------- -------- -------- -------- -------- ------------ --------- --------
Notes to the Interim Report
For the six months ended 30 June 2020
1. Corporate Information
Getech Group plc (the 'Company' and ultimate Parent of the
Group) is a public limited company domiciled and incorporated in
England and Wales. The Company's registered office and principal
place of business is Kitson House, Elmete Hall, Elmete Lane, Leeds,
LS8 2LJ.
The principal activity of the Group is to provide geoscience and
geospatial products and services that companies and governments use
to de-risk their exploration programmes and improve their
management of natural resources.
2. Basis of Preparation
The interim results are for the six months ended 30 June 2020.
They have been prepared using the recognition and measurement
principals of IFRS. As permitted, this interim report has been
prepared in accordance with the AIM rules and not in accordance
with IAS 34 'Interim Financial Reporting'.
This interim report does not constitute full statutory financial
statements within the meaning of section 434(5) of the Companies
Act 2006 and the financial statements are unaudited. The unaudited
interim financial statements were approved for issue by the board
on 6 October 2020.
The financial statements are prepared on a going concern basis
under the historical cost convention with the exception of certain
items measured at fair value and are presented to the nearest
thousand pounds (GBP'000) except as otherwise stated. They have
been prepared in accordance with the accounting policies adopted in
the last annual financial statements for the period ended 31
December 2019. A copy of the audited financial statements for that
period has been delivered to the Registrar of Companies. The
Auditors' opinion on those financial statements was unqualified,
did not draw attention to any matters by way of an emphasis of
matter paragraph, and it contained no statement under section
498(2) or section 498(3) of the Companies Act 2006.
In making the going concern assessment, the Board of Directors
has considered the Group budgets and detailed cash flow forecasts
beyond December 2021. The board has considered the sensitivity of
these forecasts with regards to different assumptions about future
income and costs, and various scenarios have been run on the
potential impact of Covid-19. These cash flow projections, when
considered in conjunction with Getech's existing cash balances, and
the cost saving measures implemented, demonstrate that the Group
has sufficient working capital for the foreseeable future.
Consequently, the Directors are fully satisfied that Getech is a
going concern.
3. Dividends
Six months Six months 12 months
ended ended ended
30 June 30 June 31 Dec
2020 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------------------- ---------- ---------- ---------
Paid during the year
No final dividend in respect of the year ended
31 December 2019 (period ended 31 December 2018:
GBPnil per share) -- -- --
------------------------------------------------- ---------- ---------- ---------
4. Earnings Per Share
Basic Earnings Per Share is calculated by dividing the profit
attributable to equity holders of the Group by the weighted average
number of the Ordinary Shares in issue in the period.
Six months Six months 12 months
ended ended ended
30 June 30 June 31 Dec
2020 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------------------------- ------------ ------------ --------------
Profit/(loss) attributable to equity holders
of the Group GBP(447,000) GBP(361,000) GBP(3,088,000)
Weighted average number of Ordinary Shares in
issue 37,563,615 37,563,615 37,563,615
Basic earnings per share (1.19)p (0.96)p (8.22)p
Diluted earnings per share (1.19)p (0.96)p (8.22)p
---------------------------------------------- ------------ ------------ --------------
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 six months ended 30 June 2020 would have been 570,218 (six
months ended 30 June 2019: 685,112; year ended 31 December 2019:
978,623).
Notes to Editors:
The Getech Group provides the expertise, support and knowledge
that companies and governments need to better discover, develop and
manage natural resources. Our data-rich products, GIS solutions and
government advisory services help our customers to achieve their
business goals of cost control, operational excellence, regulatory
compliance and environmental responsibility.
For more information, please visit our website at
www.getech.com
[ ] Cost base is measured as: cost of sales, administrative
costs, development costs capitalised and payment of lease
liabilities, less depreciation and amortisation, and adjusted for
movement foreign exchange and non-cash provisions.
[++] Earnings before interest, tax, depreciation and
amortisation, share based payment charge and foreign exchange
gain/loss
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END
IR MFBLTMTMMBMM
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