Trading Update & Change of Accounting Date

Getech Group plc

 

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

 

2017 trading update

Change of Accounting Reference Date

 

The Getech Group (AIM; GTC) provides geoscience and geospatial products and services to a wide variety of companies and governments, which they use to de-risk their exploration programmes and improve their management of natural resources. The following trading update is for the Group's 2017 financial year (FY 2017), ending 31 July 2017.

 

Against what remains a volatile market, Getech has worked to enhance its cash profitability through cost management and has strengthened the commercial positioning of its products and services. The net impact of these steps is partially obscured by exceptional costs and a year-end cash timing issue.

 

2017 revenue and 2018 pre-sales

During FY 2017, Getech closed sales with a total value of £8.5 million, of which £7.7 million will be recognised as revenue in the 2017 financial year (FY 2016: £7.0 million). The balance of £0.8 million relates to FY-18 deliverables.

 

Cash costs

A significant programme of cost saving measures implemented during FY 2017 resulted in underlying costs on a like-for-like basis being 32% below that in FY 2016. However, restructuring costs (£0.5 million), M&A payments (£0.5 million) and debt repayments (£0.1 million) resulted in an additional £1.1 million cash outflow.

 

Cash balances

Cash balances at 31 July 2017 totalled £1.7 million. This compares to an opening cash balance for the year of £2.8 million. The reduction in cash was temporary, reflecting the timing impact of several unforeseen and exceptional payment delays, which at the year-end totalled £1.0 million. These late payments have now been received and at 18 September 2017 Group cash balances totalled £2.4 million, which is reflective of more normal working capital conditions.

 

Adjusting FY 2017 for £1.0 million of delayed customer payments and a combined £1.1 million of redundancy, M&A and debt costs, Getech's operations delivered an underlying year-on-year net cash inflow of £1.0 million.

 

Change to year-end reporting date

Getech's 31 July year-end places the Group's reporting cycle out of phase with our customers' budget cycle. This also means that we are looking to close year-end sales (or resolve exceptional payment delays) at the peak of the holiday season. The Board has therefore decided to move the Getech Group's year-end and reporting Accounting Reference Date to 31 December.

 

As a result of this change, the Company's reporting calendar will be as follows:

·     Unaudited interim results for the period ending 31 July 2017 will be published by 31 October 2017

·     Audited final results for the 17 months ended 31 December 2017 will be published by 28 February 2018

·     Thereafter unaudited interim results will be published within 3 months of 30 June and audited final results within 6 months of 31 December.

 

 

Jonathan Copus, Getech CEO, commented:

 

"Having been distorted by year-end cash timing issues that lay outside of the Group's control, and after one off restructuring and M&A payments, our current cash balance of £2.4 million highlights how the 2017 programme of cost reductions and operational enhancements have strengthened Getech's underlying financial position. When combined with a healthy inventory of revenue to pre-fund FY 2018 product development the Group is well positioned to target a variety of fresh operational opportunities."

 

 

Notes to Editors:

The Getech Group is a leading AIM-listed supplier of products and services to companies and governments working with natural resources. We provide knowledge, expertise and insight that allows our growing customer base in the oil and gas, mining, nuclear and water industries to make better decisions. ​

For more information, please visit our website at www.getech.com.