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Getech Group

First-half revenues slip at Getech due to ‘frustrating’ delay with a key contract

A £0.7mln data sale negotiated in the first half was not officially signed until after the June 30, which meant revenue fell in the opening six months of the year

onshore oil drilling rigs
Revenue would have been 16% higher year-on-year had the contract been signed a couple of weeks earlier

Shares in Getech Group PLC (LON:GTC) slipped on Friday as the geoscience services firm reported a drop in first-half revenue after failing to close a key contract in time.

The AIM-quoted firm, which carries out surveys for oil and mining companies, reported a slight dip in revenue to £2.9mln in the six months to the end of June, down from £3.2mln a year earlier.

It blamed the fall on a delayed £0.7mln (US$0.9mln) contract win, which “frustratingly” was not completed until after the June 30 cut-off.  Had that deal fallen before that deadline, first-half revenue would actually have risen 16%.

Total sales – the value of contracts signed in the half but which may not be delivered until further down the line – rose by a third to £4.3mln (H1 17: £3.1mln).

Uncertainty

“We continue to work in a volatile investment environment, targeting customer budgets set 12 months or more previous,” said chief executive Jonathan Copus.

“It is, therefore, encouraging to have expanded H1 sales, particularly since this has been driven by a significant and growing number of our customers signing-up to multi-year sales agreements.

“These commitments speak to the practical value that our customers find in our product and service offering, which in turn strengthens Getech's pipeline of recurring revenue.”

Shares fell 2.6% to 37p on Friday afternoon.

Quick facts: Getech Group

Price: 26.5 GBX

Market: AIM
Market Cap: £9.95 m
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