Resource locator announces £2m half-year loss
Getech, a geoenergy and resource company and owner of hydrogen developer, H2 Green, revealed pretax losses of £2.2m in the first half, excluding exceptional costs of £700,000.
First half revenues dropped to £1.9m from £2.7m in 2022 due to lower sales in oil and gas – though 2022’s figures also included a one-off transfer payment of £700,000.
Annual recurring revenue rose to £2.4m from £2.2m last year, reflecting new customers.
The firm has completed a strategic review announced earlier this year, resulting in new objectives, including:
- It will refocus on its core activities of locating subsurface resources
- It will extend the capabilities of its Globe product to identify a wider range of assets such as zinc, lithium and phosphates
- Reducing costs by £2m, asnd develop H2 Green’s assets in partnership
- Increasing marketing and dales in the energy transition sector
Interim executive chair Richard Bennett, appointed in February 2023, will become acting chief executive officer of the group. with non-executive director Michael Covington, becoming chairman designate. Both appointments are expected to be confirmed as permanent in due course.
Bennett said, “Completing the strategic review of the business has enabled us to set out our plans for the company’s future. It was clear that the group was likely to become financially and operationally over-extended. Accordingly, we have decided to focus on our core expertise of locating subsurface assets, transforming our predictive capabilities with the latest artificial intelligence techniques, and to significantly reduce our cost base, thereby creating a financially lighter and more focused business with which to target future growth.
“The results for H1 show a reduction in sales over the comparative period in the prior year, when performance was boosted by a large one-off payment. However, our order book is stable and we are generating a good pipeline of future projects, the majority of which come from outside of the oil and gas market. There is no doubt that Getech’s expertise is required to locate the resources needed to power the substantial Energy Transition market – clean energy and critical minerals – and we are positioning the business to do exactly that.”