Restructured energy resources location firm looks to rebuild its working capital
Energy resources locator, Getech, which has issued its final results for the 12 months ended 31 December 2023, says its cash resources have been “depleted” as it has worked to significantly restructure its operations.
The Leeds-headquartered business reports revenues of £4m (2022: £5.1m), made a pre-tax loss of £5.1m (2022: £3.1m loss) and had an order book worth £4.6m (2022: £4.6m).
Getech explains that it has refocused on its core competence of data-led sub-surface exploration and is continuing to target diversification of its customer base beyond the oil and gas industries.
Michael Covington, chairman, said: “Getech is a different business now compared to the start of 2023. We have taken important decisions to lighten the cost base and refocus the business on its strengths which are to help our clients locate sub-surface energy and mineral resources.
“Whether it is more sustainable sources of hydrocarbons, critical minerals for the energy transition such as copper or lithium, geothermal resources or extractable geologic sources deposits of hydrogen, we are already supporting our clients.
“We are particularly excited about using new AI tools and resources that have the potential to accelerate key aspects of our unique geo data driven approach.”
Getech acquired H2 Green, a developer of green hydrogen transportation hubs, in 2021.
It notes that this early-stage company has required significant investment to progress whilst being affected by significant delays in key Government incentive policies.
It adds: “Operating both the core business and H2 Green was overstretching our resources and so we took the decision either to seek operational partners to help us develop or exit the H2 Green projects, while at the same time significantly reducing the H2 Green headcount and cost-base.
“This contributed to reducing the ongoing costs of the business by 25%, a reduction of c. £2m per annum.”
Getech says it is currently keeping a tight rein on discretionary expenditures and budgets generally and is pursuing a sale of its existing base – Nicholson House.
The company says working capital remains lower than in the past and its Board views rebuilding this as a priority in 2024.
Alongside the sale of Nicolson House, the Board is exploring other options to enhance the business’s working capital.
Getech points out that there are signs in 2024 that customers are returning to investing in exploration activities.
Its unaudited revenues in the first four months of 2024 were ahead of the same period last year, and the business says it continues to see “good upside potential” in its principal markets.
