Resource locator firm hit by “very depressed” markets

GEOSCIENCE and resource location business Getech has been hit by “very depressed” oil, gas and mining exploration markets. The company says it is trading below current market expectations, with a number of potential sales for the fourth quarter now deferred or cancelled.

The company had already made a £704,000 loss in the first half of the year, but despite a promising third quarter to April 2016, has been unable to turn it around.

Stuart Paton, non-executive chairman of Getech Group plc, said “We were pleased to have made such an exceptional start to the second half of the financial year, but the market has remained very depressed and clients in general continue to delay expenditure. However, interest in our products remains strong, and this is reflected in the heavy schedule of planned client meetings over the next few months.

“The oil price has shown signs of strengthening but this is unlikely to have an immediate impact on purchasing behaviour. However, if it shows signs that the price rises are sustainable, we anticipate that the demand for our products will convert from a wish to buy to actual purchases when budgets are available.”