Getech upbeat despite pre-tax loss
GETECH, the company which specialises in mapping areas targeted for oil exploration, has blamed pre-tax losses on volatile oil prices and the recession but is confident trading will improve.
The Leeds-based university spin-out, which is listed on the Alternative Investment Market (AIM), reported a pre-tax loss for the year ended July 31 of £627,901 compared to a profit of £900,000 the year before. Revenue dropped from £4.1m to £3.3m.
It said that the first half of the year was very successful with the completion of five geological studies, which had sold well.
However, the end of 2008 saw low and volatile oil prices combining with the global economic crisis.
The oil price fell from a peak of $147 per barrel in July 2008 to the mid $30s in December before recovering to its present levels in excess of $70.
Getech said that major international oil companies – its main clients – reacted by cutting and/or freezing their budgets leading to a weak second half.
Revenue in the second half year fell to £900,000 compared with £2.4m in the first half year.
The US domestic market, which is dependent on gas exploration, has also been badly affected and hit by further factors including surplus supply and dumping of liquid natural gas (LNG).
But Getech said it was confident of a recovery in the market and that it had started to work with a number of new international and US clients. Advanced orders for a number of geological studies are also under development.
Peter Stephens, Getech’s chairman, said: “In the course of the year we have also developed a suite of strategies for growth.
“These are built around our current strengths and will be implemented progressively over the coming years. Elements of these strategies are already beginning to produce results and we look forward to reporting positive developments in the future.”
Getech was established in 1986 with the compilation of gravity data for Africa, which was sponsored by oil and mining firms.
A decade later it oopened an office in Houston and in 2000 spun-out of Leeds University.
Following the acquisition of the assets of Lisle Gravity in Denver, Colorado, it now employs more than 50 staff.
In September it announced it had secured a £1m loan facility with NatWest Bank.
