Unstable global politics impacts revenues at energy resource locator

Getech, a geoenergy and resource company and owner of hydrogen developer, H2 Green, has warned its revenue levels are expected to be below market expectations for 2023.

Releasing a trading update for the financial year ending on 31 December 2023, the Leeds-headquartered business says that over the last two to three months, there has been a growing level of caution amongst its client base, of which about 85% are based outside the UK.

This is due to the more challenging economic and unstable political environment around the world.

The result has been that a number of Getech’s projects which had been expected to start in this financial year are now expected to occur in 2024 instead.

Annual sales for the current financial year are expected to be in the order of £4m to £4.4m.

The firm adds that demand for its services and data into 2024 and beyond is increasing. Its orderbook currently stands at £3.7m (30 June 2023 £4.4m). Of this, around half is expected to convert into revenues recognised in 2024.

As confirmed in September with the half-year results, the company has re-focused its strategy onto the core business of locating sub-surface resources and, in doing so, expects to cut annual running costs by £2m of which £1.3m will benefit the current year.

Getech says its Globe platform will continue to offer further opportunities in areas such as natural hydrogen, carbon storage, critical minerals, battery metals and geothermal.

Richard Bennett, acting CEO, said: “While understandable, it is disappointing that projects that we had anticipated monetising during H2 2023 are now moving into 2024.

“The upgrading of the Globe platform to support the location of future facing commodities such as copper, lithium and natural hydrogen, continues apace.

“These resources are the growth drivers for Getech and while a small part of the revenue base today, we expect them to grow significantly.”