Getech considers acquisitions after delivering rise in full year revenues

Oil mapping firm Getech Group is considering acquisitions after reporting a rise in full year revenues.

Getech has published its full year results in the City. Photo : Jonathan Brady/PA Wire

During 2018, Leeds-based Getech achieved revenue of £8.0m, which is an 11 per cent increase on the previous year.

The company recorded an EBITDA of £1.3m, which is 32 per cent higher than the previous year, before restructuring costs and write-downs.

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The company said its operational strategy remains to grow investment while maintaining capital discipline.

In a statement, Getech added: “With the sales cycle remaining long we continue to work closely with our customers to address their key needs and consider Getech well positioned to deliver diversified organic growth.

“We also look to leverage our sector knowledge and transferable skills through acquisitions.”

The statement added: “We have entered 2019 with a busy schedule of sales campaigns and we consider Getech to be well positioned to deliver diversified organic growth. With industry costs at a cyclical low, our customers’ attitude to capital spending is balanced between spot oil prices, which have rallied since the start of 2019, and longer-dated crude prices, which continue to trade above $60 per barrel range.

“As such, and against a backcloth of falling reserve replacement, we consider the conditions and need for upstream investment to have strengthened. Balancing this, and as indicated in our trading update of 27 March, the lengthening of the sales cycle that emerged in Q4 2018 has persisted into 2019; the directors believe that customers remain cautious over the early release of their exploration and new business budgets. Getech’s 2019 sales campaigns and programme of investment are positioned to unlock these conversations.

“The board and senior management are focused on ensuring that Getech’s assets and capital work hard for all shareholders.

“We believe volatile macroeconomic conditions have delayed the sale of our Leeds office and we have assumed that this will not happen before the next balance sheet date, however we remain committed to its disposal. We intend to build Getech through a mix of organic and acquisitional growth, and as the markets into which we sell stabilise, we also see potential to reinstate dividend payments.”