Half Yearly Report

RNS Number : 2950A
GETECH Group plc
29 March 2012
 



 

Getech Group plc

("GETECH" or the "Company")

Interim results for the six months ended 31 January 2012

 

GETECH (AIM:GTC), a leading geosciences business specialising in the provision of data, studies and interpretation services to the oil, gas and mining exploration sectors, announces interim results for the six months ended 31 January 2012.

Highlights

 

Revenue for the six months of £3,193,000 (six months ended 31 January 2011: £2,653,000) representing growth of 20%;

Profit before tax of £358,000 (six months ended 31 January 2011: £294,000) representing growth of 22%;

Interim dividend proposed 0.2p per share (2011: no interim dividend);

Strong oil price continues to underpin exploration commitments;

Cash levels recovering with gross cash of £1,871,000.

 

 

Stuart Paton, Non-Executive Chairman of GETECH Group plc, said:

"With the strong demand for our data along with the benefits from the investment in our Global Programmes interpretative data project, we remain positive about our medium and long-term prospects. We continue to devote significant effort to research projects and looking at new areas of business that we are confident will lead to revenue growth in the future."

 

 

For further information, please contact:

GETECH Group plc

Raymond Wolfson, Chief Executive

 

Tel:  0113 322 2200

WH Ireland Limited

Katy Mitchell

 

Tel:  0161 832 2174

 

Walbrook PR

Helen Westaway

 

Tel:  020 7933 8790

 

 

 

 

 

 

 

 

 

 

 

 

Chairman's statement

 

I report on the interim accounts of GETECH and its subsidiary company (collectively "GETECH"), the geoscience business specialising in theprovision of data, studies and services to the petroleum and mining exploration sectors, for the six month period ended 31 January 2012.

 

Results

GETECH is pleased to report a Group profit before tax of £358,000 (six months ended 31 January 2011: £294,000) after interest receivable of £3,000 (six months ended 31 January 2011: £3,000) on revenue of £3,193,000 (six months ended 31 January 2011: £2,653,000). The post-tax profit was £292,000 (six months ended 31 January 2011: £216,000).

 

The accounts have been prepared under IFRS as adopted by the EU.

 

Dividend

Your Board recommends an interim dividend of 0.2p per share to be paid on 8 May 2012 to shareholders on the register at the close of business on 10 April 2012.

 

Business review

We believe the strong oil price has resulted in E&P companies continuing to increase expenditure on exploration which has led to strengthening demand for our products. This has resulted in a further half year-on-half year increase in revenue performance. This increase in revenue has been primarily due to the continuing strength of demand for our data. In August we announced a further sale of the Iraq data-set with gross revenue in excess of $500,000 and in October we announced a major sale of Russian data with gross revenue of $550,000.

 

During the half year under review, we have also begun to see the benefits from the investment in our Global Programmes interpretative data project. This new project, which will take three years to complete, comprises the essential tectonic and palaeogeographic context for understanding basin geodynamics and source-to-sink relationships (essentially how the geology and a geography of a basin have changed over time). The first sponsorship agreement for the programme was signed in December 2011 and the second in early February 2012. These sponsorship agreements provide consistent income from the sponsors who are committed to a three year package, and hence provide improved forward visibility on revenue. GETECH has invested substantially in the work to develop the first year deliverables and these are now available to all sponsors on signature. Work has commenced on the second year deliverables and we continue to seek further sponsors.

 

We have continued to repay the principal amounts on the loan that we negotiated in 2009 and the cash balance has recovered towards levels which are more normal for us. At 31 January 2012 the gross cash stood at £1,871,000.

 

Outlook

Looking forward to the second half of this financial year, we anticipate several further new sponsors for our Global Programmes. As we are now able to ship the first year deliverables, a substantial proportion of each new commitment falls immediately to profit. We remain confident that data sales will continue to be strong and are very pleased that the level of proprietary work is also growing. In addition to substantial projects, we are also seeing increased demand for consultancy services, driven in part by the increasing awareness of the Global Programmes and the ongoing presence at major international conferences. Further, we are devoting significant effort to research projects and looking at new areas of business that we are confident will lead to revenue growth in the future.

 

The oil price has remained strong, typically above $100 per barrel, which is encouraging for exploration in general and for our part of the market in particular.

 

GETECH's results for the year are, as usual, dependent on finalising a number of deals and the pattern of demand in the remaining few months of the year. However, we already have a significant level of committed income for the next two years and believe this will be reflected in our financial performance.

 

We remain confident about our medium and long-term prospects.

 

 

Dr Stuart Paton

Non-executive Chairman

29 March 2012

 

 

 

Consolidated statement of comprehensive income

For the six months ended 31 January 2012

 

Six months

ended

31 January

2012

Unaudited

£'000

Six months

ended

31 January

2011

Unaudited

£'000

Year

ended

31 July

2011

Audited

£'000

Revenue

3,193

2,653

5,327

Cost of sales

(1,658)

(1,469)

 (2,678)

Gross profit

1,535

1,184

2,649

Administrative costs

(1,173)

(883)

 (1,966)

Operating profit

362

301

683

Finance income

3

3

5

Finance costs

(7)

(10)

(18)

Profit before tax

358

294

670

Income tax (expense)

(66)

(78)

(95)

Profit for the period attributable to owners of the parent

292

216

575

Other comprehensive income

Currency translation differences on translation of foreign operations

32

(32)

(44)

Total comprehensive income for the year attributable to owners of the parent

324

184

531

Earnings per share

Basic earnings per share

1.00p

0.74p

1.97p

Diluted earnings per share

0.93p

0.73p

1.84p

 

 

Consolidated statement of financial position

As at 31 January 2012

 

31 January

2012

Unaudited

£'000

31 January

2011

Unaudited

£'000

31 July

2011

Audited

£'000

Assets

Non-current assets

Property, plant and equipment

2,641

2,681

2,656

Intangible assets

807

917

837

Deferred tax assets

82

67

100

3,530

3,665

3,593

Current assets

Inventories

344

471

473

Trade and other receivables

1,445

1,838

1,600

Other current assets

18

19

32

Cash and cash equivalents

1,871

1,026

1,345

3,678

3,354

3,450

Total assets

7,208

7,019

7,043

Liabilities

Current liabilities

Borrowings

286

286

286

Trade and other payables

1,579

1,736

1,557

Current tax liabilities

79

80

53

1,944

2,102

1,896

Non-current liabilities

Borrowings

262

547

405

Trade and other payables

32

73

59

Deferred tax liabilities

43

6

35

337

626

499

Total liabilities

2,281

2,728

2,395

Net assets

4,927

4,291

4,648

Equity

Equity attributable to owners of the parent

Share capital

73

73

73

Share premium account

2,841

2,841

2,841

Share option reserve

190

167

177

Currency translation reserve

24

4

(8)

Retained earnings

1,799

1,206

1,565

Total equity

4,927

4,291

4,648

 

 

Consolidated statement of cash flows

For the six months ended 31 January 2012

 

 

Six months

ended

31 January

2012

Unaudited

£'000

Six months

ended

31 January

2011

Unaudited

£'000

Year

ended

31 July

2011

Audited

£'000

Cash flows from operating activities

Profit before tax

358

294

670

Share-based payment charges

13

9

20

Depreciation and amortisation charges

101

105

207

Finance income

(3)

(3)

(5)

Finance costs

7

10

18

Exchange adjustments

(6)

12

12

Decrease in inventories

129

39

37

Decease/(increase) in trade and other receivables

155

(688)

(450)

Increase/(decrease) in trade and other payables

(9)

526

340

Cash generated from operations

745

304

849

Income taxes refunded

-

69

7

Net cash generated from operating activities

745

373

856

Cash flows from investing activities

Purchase of property, plant and equipment

(18)

(33)

(46)

Interest received

3

3

5

Net cash used in investing activities

(15)

(30)

(41)

Cash flows from financing activities

Repayment of long-term borrowings

(143)

(143)

(286)

Dividends paid

(58)

-

-

Interest paid

(7)

(10)

(18)

Net cash used in financing activities

(208)

(153)

(304)

Net increase in cash and cash equivalents

522

190

511

Cash and cash equivalents at beginning of period

1,345

847

847

Exchange adjustments to cash and cash equivalents at beginning of period

4

(11)

(13)

Cash and cash equivalents at end of period

1,871

1,026

1,345

 

 

Consolidated statement of changes in equity

For the six months ended 31 January 2012

 

                                                                                                           Unaudited

Share

capital

£'000

Share

premium

account

£'000

Share

option

reserve

 £'000

 Currency

translation

reserve

 £'000

Retained

earnings

£'000

Total

equity

 £'000

At 1 August 2011

73

2,841

177

(8)

1,565

4,648

Share-based payment charges

-

-

13

-

-

13

Dividends paid

-

-

-

-

(58)

(58)

Transactions with owners

-

-

13

-

(58)

(45)

Profit for the period

-

-

-

-

292

292

Other comprehensive income

 

 

 

 

 

 

Currency translation differences

-

-

-

32

-

32

Total comprehensive income for the period

-

-

13

32

234

279

At 31 January 2012

73

2,841

190

24

1,799

4,927

 

 

Notes to the interim report

For the six months ended 31 January 2012

 

1 Nature of operations

The principal activity of GETECH Group plc ("the Company") and its subsidiary company Geophysical Exploration Technology Inc. (collectively "GETECH" or "the Group") is the provision of gravity and magnetic data, services and geological studies to the petroleum and mining industries to assist in their exploration activities.

 

2 General information

GETECH Group plc is the Group's ultimate Parent Company. It is incorporated in England and Wales and domiciled in England (CRN: 2891368). The address of its registered office is Convention House, St Mary's Street, Leeds LS9 7DP. Its principal place of business is Kitson House, Elmete Hall, Elmete Lane, Leeds LS8 2LJ. The Company's shares are admitted to trading on the London Stock Exchange's AIM.

 

The financial information for the six months ended 31 January 2012 and 31 January 2011 has not been audited and does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006. These consolidated interim financial statements ("the interim financial statements") have been approved by the Board.

 

The financial information relating to the year ended 31 July 2011 does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006. This information is based on the Group's statutory accounts for that period. The statutory accounts were prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS) and received an unqualified audit report and did not contain statements under Sections 498(2) or (3) of the Companies Act 2006. Those financial statements have been filed with the Registrar of Companies.

 

3 Basis of preparation

The interim financial statements are for the six months ended 31 January 2012. They have been prepared using the recognition and measurement principles of IFRS. IFRS include interpretations issued by the International Financial Reporting Interpretation Committee (IFRIC). The interim financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the financial statements of the Group for the year ended 31 July 2011.

 

The interim financial statements have been prepared under the historical cost convention except in relation to financial instruments held at face value through profit or loss. They have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 July 2011.

 

The accounting policies have been applied consistently throughout the Group for the purpose of preparation of the interim financial statements.

 

4 Dividends

Six months

ended

31 January

2012

Unaudited

£'000

Six months

ended

31 January

2011

Unaudited

£'000

Year

ended

31 July

2011

Audited

£'000

Paid during the period

Final (2011: 0.2p per share)

58

-

-

Proposed after the period end (not recognised as a liability)

Final (2011: 0.2p per share)

-

-

58

Interim (2012: 0.2p per share)

58

-

-

The proposed dividend is payable on 8 May 2012 to members on the register at 10 April 2012.

 

5 Earnings per share

Basic earnings per share is calculated on the basis of the profit for the period after tax, divided by the weighted average number of Ordinary Shares in issue in the period of 29,237,151 (six months ended 31 January 2011: 29,237,151; year ended 31 July 2011: 29,237,151).

 

Diluted earnings per share is calculated on the basis of the profit for the year after tax, divided by the weighted average number of Ordinary Shares in issue plus the weighted average number of Ordinary Shares which would be issued if all options granted were exercised. The addition to the weighted average number of Ordinary Shares used in the calculation of diluted earnings per share for the six months ended 31 January 2012 is 2,088,414 (six months ended 31 January 2011: 399,725; year ended 31 July 2011: 2,088,414). A minority of options in issue at 31 January 2012 were anti-dilutive (31 January 2011: minority; 31 July 2011: minority).

 

6 Interim Report

This Interim Report is being sent to the shareholders of GETECH and will be available at its registered office, Convention House, St Mary's Street, Leeds LS9 7DP, UK, and from its website www.getech.com.

 


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