Interim Results
GETECH Group plc
29 March 2007
For immediate release 29 March 2007
GETECH Group plc
INTERIM RESULTS
For the six months to 31 January 2007
The Board of GETECH Group plc is pleased to announce the Interim Results for the
six month period ended 31 January 2007.
For further information, please contact:
GETECH Group Plc www.getech.com
Derek Fairhead, Managing Director 0113 322 2200
Colin Glass, Finance Director 07831 258494
Teather & Greenwood 020 7426 9000
Rob Naylor
Buchanan Communications 01943 883990
Eric Burns/Alastair Watson,
Chairman's Statement
I report the results of GETECH Group plc ('GETECH' or 'the Company'), the oil
services business specialising in the provision and interpretation of
exploration data and petroleum systems evaluations, for the six months ended 31
January 2007.
Results
Whilst your Board has strong confidence in the longer term performance of the
Company, the half year results were nevertheless disappointing. The Company
reported a loss before tax of £21,214 (six months ended 31 January 2006: profit
£430,843) after interest receivable of £91,940 (six months ended 31 January
2006: £59,121) on a turnover of £825,811 (six months ended 31 January 2006:
£1,636,082). The post tax loss was £36,214 (six months ended 31 January 2006:
profit £301,843) giving a loss per share of 0.13p (six months ended 31 January
2006: profit per share of 1.09p).
The figures include the adoption of Financial Reporting Standard 20 'Share Based
Payment' in respect of the amortised cost of share option schemes. This has
reduced the profit of the six months previously reported to 31 January 2006 by
£17,000 and the year ended 31 July 2006 by £38,000.
Dividend
Your Board is confident of the medium and long-term future for the Company and
intends to pay a dividend of 0.4p per share, costing £110,769, on 8 May 2007 to
shareholders registered on 10 April 2007.
Business Review
As previously reported on 24 January 2007, the agreement permitting GETECH to
commence exclusive marketing of the Russian Arctic Shelf aeromagnetic data was
signed in December 2006 and the first order for this data set (£840,000) was
signed in January 2007. The revenue from this sale will be taken into the
accounts in the second half of the financial year once the deliverable product
has been generated. This order resulted from one of several discussions with
oil majors and we are reasonably optimistic that at least one more sale of these
data will be made in the second half of the current financial year.
Generally, the demand for the Company's data and services remains strong but
your Board is fully aware of the dependence on winning a small number of large
contracts to achieve its revenue targets. This situation should ease as the
Petroleum Systems Evaluation Group ('PSEG') continues to increase the number of
off-the-shelf products available for sale. Currently, three studies have been
completed, whilst a further three are in progress of which one should be
completed before the financial year end. These studies are in addition to three
proprietary projects, commissioned by oil companies, already completed by PSEG.
We believe that sales of existing data, the continuous acquisition of new data
and the growth of PSEG will continue to underpin the profitability of the
Company. By building upon our inherent strengths and with a medium to long-term
strategy of synergistic acquisitions, we intend to ensure a sound platform for
the growth of GETECH.
Premises
The Company has now successfully relocated to larger and more appropriate
premises, with minimal disruption, and we are already noticing the benefits of
superior working conditions on the morale and efficiency of our team, whilst
providing an environment which is more attractive to potential new staff.
Outlook
We continue to have a first class reputation as a supplier and interpreter of
gravity and magnetic data to oil, gas and mineral companies worldwide and our
reputation for petroleum systems studies is growing such that your Board is
optimistic for the future of the Company.
Peter Stephens
Chairman
29 March 2007
FULL RESULTS BELOW
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 31 January 2007
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2007 2006 2006
Unaudited Unaudited Audited
(restated ) (restated)
£'000 £'000 £'000
Turnover 826 1,636 3,229
Cost of sales (124) (454) (784)
Gross profit 702 1,182 2,445
Operating expenses (795) (793) (1,575)
Operating (loss)/profit before share option amortisation (93) 389 870
Amortised cost of share option schemes (20) (17) (38)
Operating (loss)/profit (113) 372 832
Interest receivable 92 59 140
(Loss)/profit on ordinary activities before taxation (21) 431 972
Taxation (15) (129) (276)
(Loss)/profit retained and transferred to reserves (36) 302 696
Basic earnings per share (0.13)p 1.19p 2.62p
Diluted earnings per share (0.13)p 1.19p 2.62p
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 31 January 2007
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2007 2006 2006
Unaudited Unaudited Audited
(restated) (restated)
£'000 £'000 £'000
(Loss)/profit for the financial period (36) 302 696
Total recognised gains and losses for the financial period (36) 302 696
Prior year adjustment (see note 2) (38) - -
Total gains and losses recognised since the last financial (74) 302 696
statements
CONSOLIDATED BALANCE SHEET
as at 31 January 2007
31 January 31 January 31 July
2007 2006 2006
Unaudited Unaudited Audited
(restated) (restated)
£'000 £'000 £'000
Fixed assets
Intangible assets 1 1 1
Tangible assets 46 61 38
47 62 39
Current assets
Stocks 300 - 166
Debtors 1,930 927 808
Investments 24 - 24
Cash at bank and in hand 3,806 4,208 4,318
6,060 5,135 5,316
Creditors - amounts falling due within one year (2,291) (1,503) (1,357)
Net current assets 3,769 3,632 3,959
Net assets 3,816 3,694 3,998
Capital and reserves
Called up share capital 69 69 69
Share premium account 2,461 2,461 2,461
Share option reserve 58 17 38
Profit and loss account 1,228 1,147 1,430
Equity shareholders' funds 3,816 3,694 3,998
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 January 2007
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2007 2006 2006
Unaudited Unaudited Audited
(restated) (restated)
£'000 £'000 £'000
Net cash (outflow)/inflow from operating activities (418) 297 653
Returns on investments and servicing of finance
Interest received 92 51 140
Net cash inflow from returns on investments and servicing of finance 92 51 140
Taxation - corporation tax paid - - (222)
Capital expenditure
Payments to acquire tangible fixed assets (20) (44) (46)
Net cash outflow from capital expenditure (20) (44) (46)
Equity dividends paid (166) - (111)
Net cash (outflow)/inflow before financing (512) 304 414
Financing
Issue of share capital - 3,000 3,000
Costs of share issue - (520) (520)
Net cash inflow from financing - 2,480 2,480
(Decrease)/increase in cash (512) 2,784 2,894
Reconciliation of operating (loss)/profit to net cash (outflow)/
inflow from operating activities
Operating (loss)/profit (113) 372 832
Depreciation 12 18 43
Amortisation of share option schemes 20 17 38
(Increase) in stocks (134) - (167)
(Increase) in debtors (1,122) (274) (163)
(Increase) in investments - - (24)
Increase in creditors 919 164 94
Net cash (outflow)/inflow from operating activities (418) 297 653
NOTES TO THE INTERIM REPORT
For the six months ended 31 January 2007
1 The figures for the six months ended 31 January 2007 and 31
January 2006 are unaudited. The financial information shown in the publication
does not constitute statutory accounts as defined in section 240 of the
Companies Act 1985.
2 The interim financial statements have been prepared on the same
basis and using the same accounting policies as used in the full financial
statements for the year ended 31 July 2006, except for the adoption of FRS 20 '
Share Based Payment'. Prior period figures have been restated as appropriate.
The interim financial statements, which have been neither audited nor reviewed
by the Company's auditors, have been approved by the Board.
3 Taxation has been provided at the estimated effective rate of 30%
for the year as a whole (2006: 30.5%).
4 Basic earnings per share is calculated on the basis of the profit
for the period after tax, divided by the weighted average of ordinary shares in
issue in the period (six months ended 31 January 2007: 27,692,307, year ended 31
July 2006: 26,575,666 and six months ended 31 January 2006: 25,477,232).
5 Diluted earnings per share is calculated on the basis of the
profit for the year after tax, divided by the weighted average number of shares
in issue plus the weighted average number of 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 2007 is Nil (year ended 31 July 2006: Nil, and six
months ended 31 January 2006: Nil).
6 Adjusted earnings per share is calculated as if all 27,692,307
shares in issue at 31 January 2007 had been in issue for the whole of the period
(six months ended 31 January 2007: (0.13)p, year ended 31 July 2006: 2.51p, and
six months ended 31 January 2006: 1.09p).
7 Earnings per share have been restated as a result of the adoption
of FRS 20 'Share Based Payment', see Note 2 above. The figures previously
reported were: year ended 31 July 2006: basic 2.76p, diluted 2.76p, adjusted
2.65p and six months ended 31 January 2006: basic 1.25p, diluted 1.25p, adjusted
1.15p.
8 A dividend of 0.4p per share (2006: 0.4p) has been recommended
and is payable on 8 May 2007 to members on the register at 10 April 2007.
9 This statement is being sent to the shareholders of the Company
and will be available at the Company's registered office at Convention House,
St. Mary's Street, Leeds LS9 7DP.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 2 minutes ago Tritax Eurobox (EUR)
- 47 minutes ago Videndum
- 47 minutes ago Legal & General Group
- 50 minutes ago Diageo
- 1 hour ago Irish Continental Group Units (Comp) (CDI)