TIDMGTC
RNS Number : 3895H
GETECH Group plc
06 April 2022
6 April 2022
Getech Group plc
("Getech" or the "Company")
Trading Update and Outlook
A transformational year, facilitating a strong outlook
Getech, a geoenergy and green hydrogen company, is pleased to
provide an update on its trading and outlook ahead of the
publication of its full year results for the year ended 31 December
2021 ("FY2021"), which will be announced during May 2022.
Highlights
-- Following receipt of GBP6.25 million of equity proceeds in
April 2021, Getech repositioned its business model and strategy to
support the accelerated delivery of a secure and sustainable path
to decarbonisation.
-- During FY2021, the Company has done this by:
o expanding the application of Getech's unique geoscience and
data products into essential tools for locating and developing new
geothermal, critical minerals, carbon/energy storage and green
hydrogen projects;
o establishing a new low carbon 'locate-develop-operate'
business model;
o investing in the team - hiring senior executives in
engineering, economics, project delivery and business development,
and adding Board skills in business scale up, ESG and low carbon
asset management;
o leveraging its status as a trusted partner to build strategic
relationships for participation in decarbonisation projects;
and
o acquiring a green hydrogen development company, and securing
the first two development projects in Shoreham and Inverness.
-- Strong performance in FY2021 has continued into FY2022:
o FY2021 revenue from geoenergy products and services rose c.
20% to GBP4.3m (2020: GBP3.6m), in line with market
expectations;
o orderbook grew by 25% to GBP3.3m at 31 December 2021 (31
December 2020: GBP2.7m);
o focus on responsible capital management with strong net cash
position of GBP5.1m at 31 December 2021; and
o growth in revenues and sales continued into FY2022 with robust
Q1 22 performance, facilitating a strong outlook ahead.
Getech - a geoenergy and green hydrogen company
Geoenergy encompasses technologies, raw materials and energy
sources that interact with the geological subsurface and these
dovetail with other distributed energy solutions, such as green
hydrogen. Getech's expertise and focus are on the following
sectors:
-- Green Hydrogen . Getech is developing its own network of
green hydrogen hubs that convert renewable power into green
hydrogen aimed at decarbonising commercial transport.
-- Geothermal . Getech identifies and develops geothermal
projects using its geoscience and geospatial capabilities to
provide low carbon, baseload and flexible power and heat.
-- Critical minerals. Getech analyses and establishes the
specific factors responsible for the location and economic
concentration of minerals critical to the energy transition.
-- Sustainable carbon production and storage. Getech supports
the delivery of a sustainable energy transition by identifying the
highest value hydrocarbons with lowest carbon footprint and the
development of integrated carbon capture and storage solutions.
Business model
Getech's newly established business model is to locate, develop
and operate geoenergy and green hydrogen assets :
Locate - The Company provides products and services to asset
owners to help locate, de-risk and optimise geoenergy projects to
meet the energy transition targets.
To align with these needs, during FY2021 Getech built and
released a number of solutions positioning them as essential tools
for the energy transition with usability features for carbon
storage, critical minerals and geothermal sectors.
Develop and operate - Getech's products and services enable it
to establish revenue-generative relationships with both natural
resource asset owners and energy consumers, which Getech can then
expand into strategic alliances to build its own portfolio of low
carbon assets.
During FY2021, Getech completed its first direct asset
investment in green hydrogen, purchasing H2 Green, a company
developing green hydrogen networks of production, storage, and
distribution facilities to decarbonise commercial transport. New
hires and leverage of Getech's capabilities, has considerably
strengthened the operational capability of the Group's hydrogen
development operations - streams of excellence added in facility
design, project management, economic modelling and business
development. As a result of this work, the Company signed strategic
alliances with a number of industry partners, secured exclusivity
across a wide portfolio of hub locations, and is now working to
develop its first green hydrogen hubs.
Outlook and growth strategy
I ncreased global demand for sustainable and secure energy
provides a solid platform for Getech to deliver growth and
expansion. Aligned with growing revenue, a strong balance sheet and
a robust business development pipeline, Getech's Board is confident
in the Company's outlook.
The growth in sales and revenue achieved during FY2021 has
continued into Q1 2022, demonstrating strong demand for Getech's
products and services in locating and de-risking a wide range of
energy and mineral resources, across different geographies. The
Company anticipates this growth momentum to continue as the pace of
progress to net zero accelerates.
The Company's first two green hydrogen hubs in Inverness and
Shoreham are progressing towards development. In Shoreham, the
Company is finalising a detailed development schedule, which it
expects to review and agree with the port authority in Q2 2022.
Development planning is also underway at the Inverness site, with
an agreement with the Highland Council opening the potential for
this anchor project to be scaled into a regional green hydrogen
network.
Across the balance of 2022 Getech's focus will be on the
continued delivery of its growth strategy, which is positioned to
accelerate the energy transition and deliver shareholder value
by:
o expanding the Company's robust pipeline of products and
services for the energy transition;
o replicating and scaling up its green hydrogen asset
development model, both in UK and internationally;
o building strategic partnerships to secure and develop
geothermal energy projects; and
o pursuing energy co-location opportunities within the critical
minerals sector.
Getech's Chief Executive Office, Dr Jonathan Copus,
commented:
"It is clear the world needs to substantially increase energy
investment to meet the goals of energy security and transition to a
low carbon future. In 2022, fuelled by growth in company and
government spend, energy investment could total as much as 13% of
global GDP, the highest level on record.
Getech is ideally positioned to support this 'waterfront'
expansion in energy capital spending. T his has driven revenue and
orderbook growth by 20% and 25% respectively in FY2021 and has
resulted in a significant broadening in our sales and business
development pipelines, with the positive trend continuing into
2022.
By investing in our unique geoscience data and software
products, we are extending their application to high-growth
geoenergy sectors beyond petroleum - targeting geothermal, critical
minerals, hydrogen and carbon storage. T he rapid expansion of our
green hydrogen development activities also demonstrates how we are
leveraging our foundation products and expertise to build strategic
relationships that open opportunities for Getech to participate in
high-value decarbonisation projects.
We have positioned our locate-develop-operate business model to
maximise the value of our products, technologies, and skills, and
to deliver transformational growth in shareholder value. We have
moved into 2022 with confidence and look forward to increasing our
share of a primary energy market that is undergoing unprecedented
change and growth."
This update is provided in advance of the financial statements
for the year ended 31 December 2021. The information and commentary
provided is based on unaudited management accounts and other
internal performance measures and is subject to concluding the
routine annual accounting adjustments as well as any adjustments
that arise as a result of the external audit process.
This announcement contains inside information.
For further 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 (Corporate Finance)
Michael Johnson / Dale Bellis (Sales)
Camarco Tel: 020 3781 8331
James Crothers / Toby Strong / Charles Dingwall
Notes to editors:
Getech Group plc (AIM: GTC) applies its world-leading geoscience
data and unique geospatial software products to accelerate the
energy transition by locating, developing and operating geoenergy
and green hydrogen projects.
For further information, please visit www.getech.com .
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