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GETECH Group plc (GTC)

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Thursday 30 April, 2020

GETECH Group plc

Financial Results Timetable and Update on Covid-19

RNS Number : 3943L
GETECH Group plc
30 April 2020
 

Getech Group plc

("Getech" or the "Company" and with its subsidiaries the "Getech Group")

Change to financial results timetable and update on Covid-19 actions

In line with general FRC guidance and reflecting practical delays that result from the exceptional circumstances of the Covid-19 pandemic, Getech (AIM; GTC) now expects to issue its audited financial results for the 12 months to 31 December 2019 in May 2020.

Getech is managing its Covid-19 business exposure through actions that preserve capital but that also maintain the Group's capacity to deliver our orderbook and maximise the impact of our sales conversations. This provides flexibility to rapidly adjust to any deterioration, or improvement, in our core markets, whilst also accelerating our actions to reposition and diversify our growth path.

Balance sheet strength and capital preservation

Getech has a strong balance sheet. Cash totalled £3.6 million at 31 December 2019. Our debt levels are low (£0.8 million) with a back-end-loaded repayment profile and an October 2023 maturity. Kitson House remains a significant non-core property asset with an 'in use' carrying value of £2.4 million.

We do not however know how long Covid-19 disruption and oil price weakness will last and so we have taken steps that deliver a c26% reduction in monthly Group costs.

This has been achieved through overhead cost management, a loan capital repayment holiday, 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. Whilst revenue uncertainty exists, Getech retains additional cost flexibility, and the benefits of the actions already taken combine with our strong balance sheet and orderbook to provide significant financial capacity. This will underpin Getech throughout 2020 and 2021.

Operational measures

The move to home working has been smooth and projects remain on schedule - both in terms of time and cost. In 2019 Getech grew its orderbook by 48%. This growth supports 2020 revenue and our c ost management steps are positioned to maintain our capacity to deliver this contracted work.

We expect 2020 to be a very challenging year. To date however we have not had any negative revisions to our orderbook; and Q1 2020 revenue, forward sales and profitability were all ahead of Q1 2019.

As well as a strong orderbook, Q1 2020 sales benefited from the signing of a new Globe customer, data purchases (including our new MultiSat 2020 product) and the renewal of a GIS service contract. April has been quieter in terms of sales closed, but in this month an important global license for our Exploration Analyst software product was renewed.

Covid-19 has impacted travel to many of our customers since the start of 2020. This meant we established solid remote communication practices early, and we have also expanded our ability to deliver online trials of our products. Uptake in product training from home working customers has been strong, and, having expanded our programme of digital marketing, webinar attendance has increased significantly. Together, this creates a unique opportunity to reach deeper into our customers' organisations and we have reshaped our sales and marketing activities to capture the benefit of this.

New business activities have also been accelerated - these focus on the value that our transferable skills and technologies can deliver in new energy and infrastructure settings, and with new customers.

Jonathan Copus, Getech CEO, commented:

" We are not complacent about the significant challenges ahead and we are taking actions to help us manage the risks and uncertainties that we face. We are however also confident that our financial strength and the transferable nature of our skills and technologies give us the toolkit to successfully navigate what are unprecedented commercial conditions. Our sales pipeline remains diverse and continues to benefit from 2019 campaigns in new regions, with new potential customers. We also see an opportunity to accelerate our diversification and growth plans - through both organic steps and acquisition."

 

 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

 

Getech Group plc   Tel:  0113 322 2200

Jonathan Copus, Chief Executive

 

WH Ireland Limited   Tel:  0161 832 2174

Katy Mitchell

 

Notes to editors:

Getech (AIM; GTC) provides geoscience and geospatial products and services to companies and governments who use them to de-risk exploration programmes and improve their management of natural resources. The Group's activities focus on a suite of data, knowledge and analytical products, the value of which are enhanced through services that leverage Getech's products and technical skills.


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