New management team’s changes ‘enhance profits’
Geological services company Getech is mining the benefits of major changes inside the business as it reports “significantly enhanced” cash profitability.
The Leeds-based business 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.
Its new management team led a programme of cost control, customer engagement and a repositioning of how it invests. Getech stopped so-called “nice to have” activities so it could focus on its core offer.
Jonathan Copus, who joined Getech as chief executive in August 2016, said: “In 2017 we undertook a programme of commercial, operational and cultural change that has significantly strengthened the Getech Group.
“These steps align our products and services more firmly with the practical commercial needs of our customers, and we have entered 2018 with a full and diverse pipeline of opportunities – to which our cash profitability is strongly leveraged.”
Getech says the result is it has significantly enhanced both the group’s cash profitability and the commercial positioning of its products and services.
It will publish its audited financial figures for the 17 months to December 2017 at the end of February. The extended accounting period is to bring its own reporting cycle in line with its customers’ budget cycle.
Revenue for the 17-month period totalled £10.9m, and Getech is optimistic that “work completed in AP 2017 has laid the foundation for a number of important 2018 sales opportunities”, highlighting the recently-launched Fourth Sierra Leone Licensing Round as a significant opportunity.
It has reduced its cost base by around one-third in the first 12 months of the period, then kept costs stable. One-off costs were incurred or settled, including £0.5m on restructuring, £0.5m paid on outstanding M&A cash payments, while a further £0.3 million of debt was repaid.
It has also written down inventories on its balance sheet totalling £0.5m.
