Revenues fall at listed exploration company
Minerals and oil and gas exploration group Getech has reported revenues of £6.1m (2018: £8.0 million) in its final results for the 12 months ended 31 December 2019.
The Leeds-based company also saw its order book increase by 48% to £3.1m at 31 December 2019 (31 December 2018: £2.1m), with annualised recurring revenue of £2.3m at 31 December 2019, (31 December 2018: £2.3m).
Getech closed 2019 with a cash balance of £3.6m (31 December 2018: £1.4m).
It warns that oil prices have touched 20-year lows, and although production cuts are growing and demand is now recovering, “significant uncertainty” remains.
The company’s results update this morning explains: “2020 will undoubtedly be a very challenging and uncertain year but the combination of a strong balance sheet, a significantly enhanced order book and sustained recurring revenues will help Getech navigate this.
“Like all businesses however, we do not know how long Covid-19 disruption and oil price weakness will last, and so to preserve capital we implemented a range of actions that have lowered Group monthly costs by c26%.
“Although it remains too early to estimate how deep or long the downturn in our core markets will be, our orderbook is larger and our sales pipeline remains diverse and continues to benefit from 2019 campaigns in new regions, with new potential customers.
“Navigating this extreme operational environment will require an unwavering focus on customer needs, continued operational delivery, and creativity in our thinking.”