TIDMGTC
RNS Number : 9108A
GETECH Group plc
28 September 2022
28 September 2022
Getech Group plc
("Getech" or the "Company")
Interim report for the six months ended 30 June 2022
Getech (AIM: GTC), the geoenergy and green hydrogen company,
announces its unaudited interim results and report for the six
months to 30 June 2022 ("H1 2022" or the "Period").
Financial highlights
-- Demand for Getech products and services continues to
accelerate and diversify - revenue up 11% year-on-year to GBP2.7
million (H1 2021: GBP2.4 million).
-- Record orderbook value of GBP4.8 million, a 118% increase
year-on-year (30 June 2021: GBP2.2 million) and 45% increase since
the end of 2021 (31 December 2021: GBP3.3 million).
-- Strong visibility in revenue generation, with GBP1.5 million
of the orderbook expected to convert in H2 20 22, and a further
GBP1.6 million due i n FY 2023.
-- Gross profit margin of 63% (H1 2021: 59%) driven by increased product revenue.
-- Robust cash position of GBP4.3 million at 30 June 2022 (31
December 2021: GBP5.9 million), plus GBP2.4 million of receivables
invoiced post Period-end for payment in H2.
Corporate and operational highlights
-- Continued implementation of 'locate, develop, operate'
business model, using foundation products and services to grow
revenue and unlock transformational asset investment
opportunities.
-- Investment to grow products and services rewarded with
multi-million-pound contracts and diversification across
transitional petroleum, critical minerals, geothermal, carbon
storage.
-- Green hydrogen developments advancing at pace - with
expansion in tangibility, scale and scope:
-- Completion of engineering and commercial feasibility studies
for both Shoreham and Inverness, resulting in extension of the
Shoreham Green Energy Port exclusivity for five years (through to
first production and beyond), groundworks at Inverness SGN
gasholder site, and progress towards concluding terms on a
multi-hub Joint Venture Agreement with The Highland Council.
-- Phase 1 hydrogen production design capacity of Shoreham and
Inverness increased to 2.5 tonnes/day (6 MW) in response to strong
indicators of initial hydrogen demand - with c.5 tonnes/day of
potential identified and targeted for production start-ups in
2025.
-- Owned and operated wind and solar generation assets added to
the development plan of the Shoreham and Inverness green energy
hubs, expanding the revenue generation potential and reducing the
cost of hydrogen production.
-- The hydrogen project pipeline now totals c.240 MW of production capacity.
Current trading and outlook
-- The macro-economic environment continues to drive robust
demand for Getech's products and services, demonstrated by further
revenue and orderbook momentum into H2 2022 , with additional Globe
contracts closed.
-- Asset development pipeline is expanding into the geothermal and critical minerals sectors.
Dr Jonathan Copus, Getech CEO commented:
"With global energy investment forecast to rise to $2.4 trillion
[1] in 2022, driven mainly by the accelerating need for clean and
secure energy, Getech continues to see escalating and widening
demand for our industry-leading geoscience data and proprietary
geospatial software. This is evidenced by sustained increases in
revenue and rapid orderbook growth - both of which have continued
to grow post Period end. Inclusive of investment to extend the
reach of our foundation products and services, they generated an H1
2022 cash profit. This underscores the strength of our foundation
business, which also benefits from US dollar strength.
Against a backdrop of increasing global investment in green
hydrogen and recognition of its critical role in energy security,
we are making strong progress with our development projects at
Shoreham and Inverness. When in operation, Inverness will be the
first regional green hydrogen network in the UK and Shoreham a
vital local green economic hub in the South of England. Both
projects have the potential to demonstrate the suitability of green
hydrogen as a decarbonisation solution and provide a framework for
future scalability and repeatability across the UK and
internationally.
With a clear business model of locating, developing and
operating geoenergy and green hydrogen projects, a unique
foundation offering and a strong team, Getech is well positioned to
drive growth through the acceleration in energy investment."
Investor Meet Company presentation
The Company will hold an investor call on Wednesday 5 October at
11.00am BST to discuss the interim results. Investors can sign up
to Investor Meet Company for free and add to meet Getech via:
https://www.investormeetcompany.com/investor/company/getech-group-plc.
Investors who already follow Getech on the Investor Meet Company
platform will automatically be invited. Questions can be submitted
pre-event via your Investor Meet Company dashboard up until 9am the
day before the meeting or at any time during the live
presentation.
For further information, please contact:
Getech Group plc Tel: 0113 322 2200
Dr Jonathan Copus, Chief Executive
Cenkos Securities plc
Neil McDonald / Pete Lynch (Corporate Finance)
Michael Johnson / Dale Bellis (Sales) Tel: 0207 397 8900
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 .
Chairman and CEO review
The global energy transition offers new business opportunities
that are reliant on a diverse range of solutions. These are often
'local' in nature and the success of their deployment requires
technical, spatial and economic analysis of energy sources,
customer needs and infrastructure options. Therefore, Getech is
well positioned to address these requirements.
In H1 2022 our customers used our market-leading data, software
and services to locate and develop new sources of energy, new
deposits of critical minerals, and sites for the secure storage of
CO(2) . As a result of our unique industry position with
involvement across energy sectors, Getech can collaborate with
companies and governments at each step of their energy transition
journey to bring diversified yet integrated, low-carbon
solutions.
Employing Getech's 'locate, develop, operate' business model, we
are also establishing our own scalable portfolio of low carbon
assets to transform the Company's value proposition.
Unique technology, data and expertise to accelerate the energy
transition
Unprecedented energy market volatility, the cost of climate
change and threats to energy security highlight the need for a
sustainable, secure, and accelerated path to decarbonisation. A
diversified and resilient energy system is required to deliver this
and in 2022 governments have announced bold policy action alongside
significant infrastructure and innovation investment
programmes.
Getech set out a plan in H1 2021 to target the rapidly expanding
market for energy transition solutions. By investing to extend the
application of our geoscience and geospatial petroleum products and
services into the critical minerals, geothermal, green hydrogen and
carbon storage sectors we have since grown our orderbook to a
record high, and H1 2022 revenue increased by 11% year-on-year.
Getech products and services are routinely used to locate and
develop natural resource assets of very significant value. This
allows us to demonstrate our expertise and build new strategic
partnerships. Through these partnerships we are successfully
accessing low carbon asset participation opportunities. These
opportunities further transform the value proposition of our
business model, having the potential to deliver a step-change in
Getech's value creation and revenue generation. Our ambition is to
establish at least 500MW of new geoenergy and green hydrogen assets
by 2030.
Developing assets to achieve scale
Our asset development strategy is based on employing Getech data
and analytics to identify and value operational locations where
there is a clear and compelling decarbonisation pathway. By
combining spatial analytics with our data, economic and technical
expertise, we can rapidly assess the cost competitiveness and
commercial viability of a site versus other locations.
Having identified potential, we mature opportunities using a
rigorous phase-gate processes. We have redeployed this from the
petroleum industry, and we are applying it to clean energy
solutions using our decades of energy industry experience.
The process strengthens our resource allocation decisions and is
familiar to strategic and financial investment partners. This aids
their understanding of Getech projects and accelerates
engagement.
Green hydrogen
Our first asset developments are in green hydrogen and our aim
is to provide this clean energy source to customers at an
acceptable price, in the location, volume and at the time they need
it. We are working to establish networks of hubs, where green
hydrogen (which uses renewable energy to separate oxygen and
hydrogen atoms from water) is produced, stored, and supplied.
Where practical, we intend to develop renewable energy
generation assets alongside our hydrogen production. The associated
increase in capital scale is offset by the diversification of
low-carbon revenue streams (spilling surplus power to the grid)
whilst lowering the principal operational expense of hydrogen
production and reducing merchant power price volatility. This
produces an overall more robust, larger scale investment
opportunity with improved returns and reduced risk.
In H1 2022 our green hydrogen hub projects at Shoreham and
Inverness reached an important stage in their development, passing
fundamental commercial and operational milestones that confirm
feasibility and a robust foundation of hydrogen demand (covered in
the operational review below). Given the scale of potential demand
we are seeing, the site capacities have both been increased to a
Phase 1 target production capacity of 2.5 tonnes/day (6 MW) and
peak site capacities of 10 tonnes/day (25 MW each).
This is against a backdrop of intensifying government energy
investment and policy actions in 2021, including the $369 billion
US Clean Energy Bill and coordinated cross-border initiatives such
as REPowerEU ([2]) . The European Commission has also just
announced a EUR3 billion investment fund to help build the hydrogen
economy.
Outlook
With a clear business model, a unique foundation offering and a
strong team, Getech is well positioned to drive growth at this
unique time when governments and companies are working to transform
global primary energy sources and delivery systems.
In support of this, we continue to invest in our team, with key
recent appointments demonstrating the exciting potential we see in
hydrogen and geothermal. Our broader investment in technical
disciplines, business development, marketing, communications and
sales, focus on both maintaining innovation and accelerating our
growth profile. The success of these investments is demonstrated by
the record strength of our orderbook and the progress across our
asset developments.
In our 'locate' operations, revenue and orderbook momentum has
continued into H2 2022, with further Globe contracts closed. In our
'development' operations, we see potential to rapidly expand our
participation activities across our focus sectors - building an
asset portfolio of transformational scale.
With the world focused on the delivery of a sustainable and
secure transition to a low carbon future, we believe Getech's
products, services and expertise to be uniquely positioned to meet
accelerating demand. As we continue to invest in our products and
services, we target sustained profitability and growth in our
foundation business. In parallel, we continue to invest in our
asset developments, which we expect to present a step-change in
revenue generation and profitability from 2025. We are excited by
the opportunities ahead to deliver transformational shareholder
value.
Operating review
Locate
Widening applicability of our industry-leading geoscience data
and unique geospatial software
We continue to update our products and services to meet demand
and provide solutions with a wide range of benefits for our
customers by accelerating growth, increasing returns, making
operations safer and improving efficiency. This supports our
customers in navigating decarbonisation, which involves both
low-carbon solutions, but also the transitional role of petroleum
in providing affordable, reliable and efficient energy needed for a
responsible and resilient transition.
Transitional petroleum and carbon storage
Driven by a resurgence of focus on transitional petroleum's role
in maintaining energy security and the path to net zero, Getech's
work in opportunity identification, development optimisation and
operational spatial management has been particularly strong. We
have added new customers for our Globe platform, which included a
$1.1 million multi-year contract with a major international energy
company post-Period end, as well as notable new software customers.
Globe 2022 was recently released with new content and functionality
to deliver even more value for customers and application to
transitional uses.
Progress on carbon storage, is demonstrated by the UK
Government's North Sea Transition Authority (NSTA) contracting
Getech to deploy our proprietary geospatial software and subsurface
expertise to support its first carbon storage licensing round.
Using Getech's Exploration Analyst software, we are working with
the NSTA to create strategic maps that define optimal areas for
CO(2) storage. The opportunity to scale our participation in carbon
storage is large. In 2021, c.130 new commercial-scale CO(2) capture
and storage projects were announced, and the International Energy
Agency forecasts that carbon storage capital spending could exceed
US$40bn by 2024 (from US$1.8bn in 2021). The world however must
locate and develop a further 700 carbon storage projects at this
scale by 2030 to stay on track for the IEA's 2050 Net Zero Emission
Scenario.
Critical minerals
Activities in the critical minerals sector are growing thanks to
Getech's unique product offerings and proprietary data, which
enable customers to locate and define economic concentrations of
resources. The value these bring is demonstrated by new contracts
with leading mining companies in H1 2022 to explore for sedimentary
copper in Australia, iron oxide-copper-gold deposits in South
America, and other minerals in North America. With copper demand
forecast to total 25.5 million tonnes per year by 2030 versus
current annual supply of 19.1 million tonnes, this shortfall must
be met with new exploration discoveries. Our new sediment-hosted
copper solutions provide an innovative path to bridge this gap. In
addition, with c.60% of world's cobalt (required in many green
technologies) mined from sedimentary hosted deposits, there is
potential for Getech to unlock a much broader front of value across
a range of critical mineral needs. Illustrative of this, in June,
Getech signed a $0.9 million multi-product sale with a global
diversified minerals company. This is Getech's largest critical
minerals contract to date.
Geothermal
Getech is ramping up its work in the geothermal sector,
undertaking work in Europe and North America that ranges from
regional evaluation to site-specific studies for power generation
and heat distribution projects. Alongside this client-led work, we
are maturing a portfolio of potential asset investment
opportunities that leverage our proprietary Heat Seeker solution.
Heat Seeker integrates below-ground energy opportunities with
above-ground demand and offtake potential to find optimal locations
for geothermal projects. With global geothermal capacity growing at
c.250MW per year, the sector is expected to expand into a $50
billion market by 2027. We are also working to integrate our
geothermal and critical minerals activities to unlock direct
lithium extraction from geothermal brines. There is potential for
Getech to make geothermal licence applications which we can use our
data and expertise to target in the most favourable areas for heat
and lithium resources.
Develop and Operate
Hydrogen will play a critical role in the decarbonisation of
commercial transport and sectors that are difficult to electrify.
In H1 2022 the scale of national and international government
support for hydrogen continued to expand, with the UK doubling and
the EU quadrupling their respective supply targets. The UK's
ambition, upgraded to 10 GW of installed capacity by 2030 [3] , is
supported by various funding programmes and incentives, for which
our projects are eligible. The EU's demand is even greater,
targeting 40 GW in 2030 with 10 million tonnes of renewable
hydrogen production [4] . In response to this escalating demand and
strengthening support of green hydrogen as a crucial element of
decarbonisation, Getech accelerated its planned expansion onto the
continent by hiring of senior business development personnel in
Germany.
Developing scalable green hydrogen networks to facilitate the
energy transition
Since acquiring H2 Green in 2021, Getech has secured exclusive
development rights for green hydrogen hubs at Shoreham Port (West
Sussex) and in Inverness (Scotland). Onsite production facilities
at both locations can be expanded to 25 MW of offtake capacity (10
tonnes per day of hydrogen production). In parallel, we have grown
our hydrogen opportunity pipeline to c. 240 MW, which we are
working to advance into new exclusive development
opportunities.
Shoreham Green Energy Hub
The Shoreham Green Energy Hub will integrate onsite renewable
energy generation with hydrogen production, storage and dispensing.
There is also potential to significantly expand the hub's scale via
the import of green ammonia. Shoreham Port is a testbed example of
a back-to-base hydrogen hub, with over 830 heavy goods vehicle
(HGV) movements in and out per day supported by large on-site
fleets of large diesel-powered forklift trucks. Assessing the
opportunity using geospatial economics, we have been able to
optimise the facility design for optimum return on investment
(ROI).
Following successful engineering and commercial outcomes in H1
2022, Getech agreed an extended exclusivity with the Port of
Shoreham through to Q3 2027. Importantly, this now secures
hydrogen, renewable energy and ammonia development rights for
Getech through to first production.
Inverness Hydrogen Hub
The Inverness Hydrogen Hub will be the cornerstone of our
Highlands Hydrogen Network of production, storage, and dispensing
facilities. Our bold, unique vision of a network attracted the
support of The Highland Council, resulting in a Memorandum of
Understanding with the council to accelerate the regional
deployment.
As a large, rural, and mountainous region, with a relatively
cold climate, the Highlands is proving less suitable to battery
electrification for transport and more likely to adopt hydrogen
electric in a wholesale fashion. This has encouraged us to upgrade
our view on market potential to include a greater percentage of
Light Goods Vehicles (LGVs) and passenger vehicles in our offtake
assumptions.
Under continued exclusivity, Getech and The Highland Council are
working toward concluding terms of a Joint Venture Agreement. This
will define how the parties collaborate to deliver a regional
hydrogen network and a conclusion to discussions is targeted in Q4
2022.
Robust feasibility successfully completed at both hubs
Both Shoreham and Inverness will be developed in multiple phases
of expansion that will be scaled in alignment with demand growth.
In H1 2022, both projects advanced through a robust feasibility
process, passing critical commercial and operational milestones
that have built tangibility, scope and scale. Details of these
steps are given below.
-- Engineering - feasibility studies have been completed at both
locations. These integrate a broad range of hydrogen production,
storage and supply configurations with various on-site grid, wind
and solar energy supply systems. Following a rigorous assessment
process and applying an industry standard 50% contingency to all
'feasibility' capital cost estimates, this work confirmed
operational and commercial viability, with hydrogen priced at or
near diesel parity.
-- Renewables - At Shoreham, Getech holds exclusivity for wind
and solar developments at the port. H1 2022 engineering has
confirmed the site's capacity to support 13.8 MW of onshore wind
and 1.6 MW of rooftop solar. We also confirmed grid connectivity
for import and future export of renewable power. These
confirmations deliver significant value as renewable power will
protect the development from electricity price volatility and it
simplifies access to high value Renewable Transport Fuel Credits.
Shoreham benefits from the best wind speeds and hours of sunshine
in the UK, and existing wind and solar assets onsite provide
demonstrable generational data to predict future generational
capacity.
Having built a wealth of renewables knowledge at Shoreham, we
now intend to explore the development of wind assets at Inverness,
where wind speeds mean renewable energy potential is strong. If
executed this will expand the land requirement at Inverness, but
this will also allow development of the SGN site to be optimised
for high-volume rail customers. At this location, SGN expects to
soon conclude the removal of a redundant gas holder, readying the
site for development.
-- Demand development expands Phase 1 scale - We have received
strong indicators of green hydrogen demand from potential customers
at both Shoreham and Inverness. Pledges, Letters of Intent,
Expressions of Interest and Memorandums of Understanding have been
collected over both locations totalling 3 tonnes of hydrogen
equivalent per day in 2025 growing to 5.5 tonnes per day in 2030. A
further 2 tonnes of qualified near-term demand potential has been
identified across Shoreham and Inverness. The sum of Pledges,
Letters of Intent, Expressions of Interest and Memorandums of
Understanding and qualified demand across the two hubs already
exceeds the Phase 1 design capacity, three years ahead of project
start-up.
Whilst we do not expect all identified volumes to convert to
offtake contracts, the strong market pull received at this
early-stage drives confidence in demand exceeding production
capacity in the early stages of the project life. The focus now
lies on ensuring the project phasing can scale quickly enough to
capitalise on early market growth. This has led to expansion of
Phase 1 design capacity from 800 kg/day to 2.5 tonnes per day (c. 6
MW of electrolyser capacity), with three subsequent phases to
deliver a peak production capacity of 10 tonnes/day (25 MW). At
these scales, both projects also qualify for UK Government Net Zero
Hydrogen Fund capital expenditure support.
-- Tangibility and funding - By building Shoreham and
Inverness's tangibility, the pace of engagement with strategic and
investment counterparties has accelerated. In parallel, we have
also entered several grant funding rounds. The Shoreham Port Green
Energy Hub has achieved early success, with the Port securing
GBP100k from the Regional Projects Business Case Development Fund -
Coast to Capital to help fund third party costs.
Next development steps
Both projects are now moving into Front End Engineering and
Design (FEED) to mature the engineering design to support Final
Investment Decision (FID). In support of this, Getech will soon
appoint specialist third parties to further advance our
engineering, commercial and planning workstreams.
With FID expected to be made in H2 2023/H1 2024, first gas is
anticipated in 2025. When in production, Getech will assume the
role of asset operator in return for a management fee. In
preparation for this role, we embarked on extending our ISO
certifications to H2 Green in H1 2022. This underscores our
commitment to robust quality, safety and environmental
practices.
Financial review
Revenue and sales
H1 2022 revenue totalled GBP2.7 million (H1 2021: GBP2.4
million), representing a 11% increase.
Significant new contract wins in multiple sectors during H1 2022
resulted in a record orderbook value of GBP4.8 million (December
2021: GBP3.3 million), representing a 45% increase over six months
and an 118% increase over 12 months. Encompassing products
subscriptions and specialist services, our diverse orderbook
comprises customers across transitional petroleum, critical
minerals, geothermal and carbon storage markets. GBP1.5 million is
expected to convert to revenue before year end, with a further
GBP1.6 million due in FY 2023.
Annualised Recurring Revenue from subscriptions and service
contracts continues to be healthy at GBP2.1m (31 December 2021:
GBP2.1m). In July this increased to GBP2.4m through new contract
wins.
By delivering product innovations around key energy transition
themes, Getech is meeting increasing and broadening market demand,
demonstrated for example by our work with the NSTA to define
optimal carbon storage areas.
The strong USD in H1 has been favourable for the sale of
products and services in US markets, which represented a
significant portion of our H1 revenue.
Cost management
In April 2021, Getech completed an equity raise to fund the
diversification of the business. Since then, Getech has used the
proceeds of this fundraise, and free cash flow from our
transitional petroleum operations, to invest in our products,
services, business development, marketing, communications and sales
teams to maintain innovation and accelerate our growth profile.
The Group has developed new products and services, with enhanced
applicability to decarbonisation, as well as acquiring H2 Green in
2021. In 2022, a wealth of project management and engineering
experience has been added to the hydrogen team to drive development
in this sector.
The cost of these activities is included in administrative
expenses.
12 months
6 months 6 months ended 31
ended 30 ended 30 December
June 2022 June 2021 2021
(unaudited) (unaudited) (audited)
Variance
from
prior
6 months GBP'000 GBP'000 GBP'000
------------------------------- ---------- -------------- -------------- ------------
Cost of sales 1,006 992 2,315
Development costs capitalised 459 417 847
Administrative expenses 2,895 2,032 5,033
Payment of lease liabilities - 6 -
Depreciation and amortisation
charges (580) (583) (1,525)
Movement in provisions - - (88)
RDEC adjustments - (46) (127)
Exchange adjustments (31) (89) -
Cost base 37% 3,749 2,729 6,455
------------------------------- ---------- -------------- -------------- ------------
Profitability
Getech's H1 2022 gross profit margin is 63% (H1 2021: 59%). This
is due to increased revenues against a largely fixed cost base and
a change in sales mix, with lower royalty payments in H1 2022
compared to H1 2021.
As a result of increased administrative expenses, detailed
above, Getech reports a post-tax loss of GBP0.9 million (H1 2021:
GBP0.5 million).
Operating cash flow
Net cash outflow from operations totalled GBP0.96 million (H1
2021: GBP0.6 million). This includes net working capital outflows
of GBP0.7 million (H1 2021: GBP0.4 million outflow), which relates
to the timing of invoicing and trading activities during the
Period.
Operating cash flows also include c.GBP1.1 million of costs
relating to Getech's hydrogen and geothermal asset development
activities. Excluding these asset-related costs, the operating cash
inflow from Getech's foundation business was GBP0.9m, before
working capital adjustments. After funding development costs
capitalised (GBP0.5m) and property, plant and equipment (PPE)
purchases (GBP0.1m), the foundation business generated GBP0.3m of
free cash flow.
Liquidity
During H1 2021 there was overall net cash outflow of GBP1.6
million (H1 2021: GBP4.6 million inflow, inclusive of GBP6.25
million fundraise). Getech's cash balance at 30 June 2022 was
GBP4.3m (GBP5.9 million at 31 December 2021).
Getech's sales invoicing cycle is weighted to H2, and a large
proportion of the Group's subscription-based customers have July
renewals. This has a significant impact on half-year working
capital movements. In July and August, Getech issued c.GBP2.4
million in invoices, in addition to base monthly invoicing, with
cash inflow expected during H2 2022.
Dividends
The Board, as part of the recent equity fundraise, has set a
clear investment path that is focused on growth through energy
transition diversification. Getech's Board has therefore decided
that it is not appropriate to pay a dividend at this time.
Group Statement of Comprehensive Income
for the six months ended 30 June 2022
6 months 12 months
ended 6 months ended 31
30 June ended 30 December
2022 June 2021 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
---------------------------------- ------------ ------------ ----------
Revenue 2,697 2,421 4,280
Cost of sales (1,006) (992) (2,315)
----------------------------------- ------------ ------------ ----------
Gross profit 1,691 1,429 1,965
Other operating income - - 176
Administrative expenses (2,895) (2,032) (4,733)
Operating loss before exceptional
items (1,204) (603) (2,592)
Exceptional items - - (300)
----------------------------------- ------------ ------------ ----------
Operating loss (1,204) (603) (2,892)
Finance income 1 3 -
Finance costs (23) (34) (55)
Other gains and losses - - 60
----------------------------------- ------------ ------------ ----------
Loss before tax (1,226) (634) (2,887)
Income tax 253 102 938
----------------------------------- ------------ ------------ ----------
Loss for the period (973) (532) (1,949)
Other comprehensive income
Currency translation differences 66 88 24
----------------------------------- ------------ ------------ ----------
Total comprehensive loss for the
period (907) (444) (1,925)
----------------------------------- ------------ ------------ ----------
Earnings per ordinary share
Basic (pence/share) (1.45) (1.01) (3.27)
Diluted (pence/share) (1.45) (1.01) (3.27)
----------------------------------- ------------ ------------ ----------
Group Statement of Financial Position
as at 30 June 2022
30 June 30 June 31 December
2022 2021 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------ --- ------------- ------------- ------------
Non-current assets
Goodwill 631 1,293 631
Intangible assets 3,409 3,557 3,431
Property, plant and equipment 2,368 2,483 2,355
Investment property 122 - 174
Deferred tax assets 218 404 214
----------------------------------- ------------- ------------- ------------
6,748 7,737 6,805
---------------------------------- ------------- ------------- ------------
Current assets
Trade and other receivables 2,104 2,264 1,591
Current tax recoverable 716 448 793
Cash and cash equivalents 4,262 6,769 5,864
----------------------------------- ------------- ------------- ------------
7,082 9,481 8,248
---------------------------------- ------------- ------------- ------------
Total assets 13,830 17,218 15,053
----------------------------------- ------------- ------------- ------------
Current liabilities
Trade and other payables 1,913 1,949 2,127
Borrowings 113 113 110
2,026 2,062 2,237
---------------------------------- ------------- ------------- ------------
Net current assets 5,056 7,419 6,011
----------------------------------- ------------- ------------- ------------
Non-current liabilities
Borrowings 611 699 659
Trade and other payables 15 747 102
Deferred tax liabilities - 200 -
Long-term provisions 25 - 25
----------------------------------- ------------- ------------- ------------
651 1,646 786
---------------------------------- ------------- ------------- ------------
Net assets 11,153 13,510 12,030
----------------------------------- ------------- ------------- ------------
Equity
Called up share capital 167 167 167
Share premium account 8,685 8,685 8,685
Merger reserve 2,601 2,601 2,601
Share based payment reserve 206 257 258
Currency translation reserve 64 62 (2)
Retained earnings (570) 1,738 321
----------------------------------- ------------- ------------- ------------
Total equity 11,153 13,510 12,030
----------------------------------- ------------- ------------- ------------
Group Statement of Changes in Equity
for the six months ended 30 June 2022
Currency
Share Share Merger SBP translation Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- -------- -------- -------- -------- ------------ --------- --------
1 January 2022 167 8,685 2,601 258 (2) 321 12,030
Loss for the year - - - - - (973) (973)
Other comprehensive
income - - - - 66 - 66
------------------------- -------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income - - - - 66 (973) (907)
Transactions with owners
of the company
Share-based payment
charge - - - 30 - - 30
Transfer of reserves - - - (82) - 82 -
------------------------- -------- -------- -------- -------- ------------ --------- --------
30 June 2022 (unaudited) 167 8,685 2,601 206 64 (570) 11,153
------------------------- -------- -------- -------- -------- ------------ --------- --------
For the six months ended 30 June 2021
Currency
Share Share Merger SBP translation Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- -------- -------- -------- -------- ------------ --------- --------
1 January 2021 94 3,053 2,407 251 (26) 2,270 8,049
Loss for the year - - - - - (532) (532)
Other comprehensive
income - - - - 88 - 88
------------------------- -------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income - - - - 88 (532) (444)
Transactions with owners
of the Company
Share-based payment
charge - - - 6 - - 6
Issue of share capital 73 5,632 194 - - - 5,899
------------------------- -------- -------- -------- -------- ------------ --------- --------
30 June 2021 (unaudited) 167 8,685 2,601 257 62 1,738 13,510
------------------------- -------- -------- -------- -------- ------------ --------- --------
For the year ended 31 December 2021
Currency
Share Share Merger SBP translation Retained Total
capital premium reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- -------- -------- -------- ------------ --------- --------
1 January 2021 94 3,053 2,407 251 (26) 2,270 8,049
Loss for the year - - - - - (1,949) (1,949)
Other comprehensive
income - - - - 24 - 24
----------------------- -------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income - - - - 24 (1,949) (1,925)
Transactions with owners
of the Company
Issue of share capital 73 6,179 194 - - - 6,446
Share-based payment
charge - - - 7 - - 7
Costs of share issue
deducted from share
premium - (547) - - - - (547)
----------------------- -------- -------- -------- -------- ------------ --------- --------
31 December 2021
(audited) 167 8,685 2,601 258 (2) 321 12,030
----------------------- -------- -------- -------- -------- ------------ --------- --------
Consolidated Statement of Cash Flows
for the six months ended 30 June 2022
12 months ended 31 December
6 months ended 30 June 2022 6 months ended 30 June 2021 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
----------------------------- --------------------------- --------------------------- -----------------------------
Operating activities
Loss before tax (1,226) (634) (2,887)
Adjust for non-cash items:
Fair value gains and losses - (86) (60)
Depreciation charge 101 82 299
Amortisation of intangible
assets 479 501 1,226
Expected credit loss
provisions - (70) -
Share-based payment charge 30 6 7
Finance income (1) (3) -
Finance costs 23 34 55
RDEC adjustments within
administrative expenses - (46) (127)
Foreign exchange adjustments 31 89 -
----------------------------- --------------------------- --------------------------- -----------------------------
(563) (127) (1,487)
(Increase)/decrease in trade
and other receivables (513) (880) (245)
Increase/(decrease) in trade
and other payables (208) 455 710
----------------------------- --------------------------- --------------------------- -----------------------------
Cash generated from
operations (1,284) (552) (1,022)
Income tax refunded 327 (37) 223
----------------------------- --------------------------- --------------------------- -----------------------------
Net cash outflow from
operations (957) (589) (799)
Investing activities
Business combinations (net of
cash received) - (54) (54)
Development costs capitalised (459) (417) (847)
Purchase of property, plant
and equipment (115) (4) (29)
Interest received 1 3 -
----------------------------- --------------------------- --------------------------- -----------------------------
Net cash used in investing
activities (573) (472) (930)
----------------------------- --------------------------- --------------------------- -----------------------------
Financing activities
Proceeds from issue of shares - 6,250 6,250
Share issue costs - (546) (547)
Repayment of bank loans (44) (23) (66)
Payment of lease liabilities (41) (6) (199)
Interest paid (23) (34) (44)
----------------------------- --------------------------- --------------------------- -----------------------------
Net cash generated from/(used
in) financing activities (108) 5,641 5,394
----------------------------- --------------------------- --------------------------- -----------------------------
Net increase/(decrease) in
cash and cash equivalents (1,638) 4,580 3,665
Cash and cash equivalents at
the beginning of the period 5,863 2,192 2,192
Effect of foreign exchange
rates 37 (3) 7
----------------------------- --------------------------- --------------------------- -----------------------------
Cash and cash equivalents at
the end of the period 4,262 6,769 5,864
----------------------------- --------------------------- --------------------------- -----------------------------
Notes to the Interim Report
for the six months ended 30 June 2022
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 Lane, Leeds LS8 2LJ.
The principal activity of the Group is to provide data,
knowledge, software and analytical products and services to help
governments and investors locate and manage new energy and mineral
resources and to optimise their development.
Basis of preparation
The interim results are for the six months ended 30 June 2022.
They have been prepared using the recognition and measurement
principals of international accounting standards in conformity with
the requirements of the Companies Act 2006. As permitted, this
interim report has been prepared in accordance with the AIM rules
and not in accordance with IAS 34 'interim financial reporting' and
therefore the interim information is not in full compliance with
international accounting standards.
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 27 September 2022.
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 year ended 31 December
2021. A copy of the audited financial statements for the period
ended 31 December 2021 has been delivered to the Registrar of
Companies. The Auditor's 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 has considered
the Group budgets and detailed cash flow forecasts for at least the
next 12 months. The Board has considered the sensitivity of these
forecasts with regards to different assumptions about future income
and costs. These cash flow projections, when considered in
conjunction with the Group's existing cash balances demonstrate
that the Group has sufficient working capital for the foreseeable
future. Consequently, the Directors are fully satisfied that the
Group is a going concern.
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.
12 months
6 months 6 months ended 31
ended 30 ended 30 December
June 2022 June 2021 2021
(unaudited) (unaudited) (audited)
----------------------------------------- ------------- ------------- -----------
Loss attributable to the equity holders
of the Group (GBP'000) (973) (532) (1,949)
Weighted average number of Ordinary
Shares in issue 67,208,417 52,400,161 59,612,590
Basic and diluted earnings (pence/share) (1.45)p (1.01)p (3.27)p
----------------------------------------- ------------- ------------- -----------
Basic EPS is calculated by dividing the profit attributable to
equity holders of the parent by the weighted average number of
ordinary shares outstanding during the period.
Diluted EPS is calculated by dividing the profit attributable to
equity holders of the parent by the weighted average number of
ordinary shares outstanding plus the weighted average number of
shares that would be issued on conversion of all the dilutive share
options into ordinary shares. In the current and comparative
period, the Group has incurred losses and as such has not presented
any dilution of earnings per share in accordance with IAS 33
'Earnings per share'. However, these dilutive shares would dilute
the earnings per share should the Group become profitable.
About us
Getech (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.
Directors, officers and advisors
Directors and officers
Richard Bennett Non-executive Chairman
Dr Jonathan Copus Chief Executive Officer
Michael Covington Non-executive Director
Andrew Darbyshire Chief Financial Officer
Chris Jepps Chief Operating Officer
Emma Parker Non-executive Director
Dr Stuart Paton Non-executive Director
Company number
Registered in England and Wales, company number 02891368
Registered office
Kitson House
Elmete Lane
Leeds LS8 2LJ
Nominated advisor and broker
Cenkos Securities plc
6 7 8 Tokenhouse Yard
London EC2R 7AS
Financial PR and IR
Capital Market Communications Ltd
3rd Floor, Cannongate House
62-64 Cannon Street
London EC4N 6AE
Auditor
Grant Thornton UK LLP
No 1 Whitehall Riverside
Leeds LS1 4BN
Solicitors
Womble Bond Dickinson LLP
No 1 Whitehall Riverside
Leeds LS1 4BN
Principal bankers
National Westminster Bank plc
PO box 183, 8 Park Row
Leeds LS1 5HD
Registrars
Link Group Ltd
Northern House
Woodsome Park
Fenay Bridge
Huddersfield HD8 0GA
[1] Source: IEA, 22 June 2022
[2] The European Commission's programme to rapidly reduce
dependence on Russian fossil fuels and fast forward the green
transition well before 2030 -
https://ec.europa.eu/commission/presscorner/detail/en/IP_22_3131.
[3]
https://www.gov.uk/government/news/government-unveils-investment-for-energy-technologies-of-the-future
[4]
https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/689332/EPRS_BRI(2021)689332_EN.pdf
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END
IR UBUWRUWUKUAR
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September 28, 2022 02:02 ET (06:02 GMT)
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