Getech narrows losses despite costs of major restructuring

Exploration business Getech has narrowed losses but remained in the red after a bill of just over £450,000 in redundancy costs.

The Leeds-based minerals and oil and gas exploration group reported a loss before tax of £382,000 for the half year to January 2017, narrowed from a loss of £704,000 in the same period last year.

Despite this, Getech ended the full year in 2016 with profits of £671,000.

This half year’s pre-tax losses included redundancy costs of £451,000, as the company cut its staff numbers by 18% in a major restructuring.

The company said that its service staff bore the brunt of job losses and as part of the cost cutting measures it was reducing the numbers of contractors used.

Revenue for the half year to January 2017 was up 23% to £4.1m, following the acquisition of Exprodat Consulting in June 2016.

Leeds-based Getech said that it had faced “challenging service conditions” which were offset by GIS growth. It said it was focusing on diversifying out of its core oil and gas sectors, into wider natural resources exploration which would insulate it from the turbulence in the sector, which had led to “depressed” exploration spend.

Mitigating actions including the redundancies, with the group now predicting that underlying group costs would be lowered by 33%.

Under the leadership of a new CEO, Dr Jonathan Copus, the senior management team has been “reshaped and strengthened” as part of the restructure, said the firm.

Dr Stuart Watson, non-executive chairman at Getech, said: “As we move through this exciting period of corporate change, I would like to thank Getech’s staff and my fellow directors for their professionalism, hard work and dedication.”

No dividend was recommended.