Getech sells off Leeds headquarters as firm continues bid to cut costs
Subsurface resources locator Getech has announced that it has sold its Leeds headquarters building as the firm looks to “rebalance” its business and eliminate its debts.
The company said it had exchanged contracts on the sale of its Nicholson House site for £725,000, with completion of the sale set to go through later this month.
The move comes amid a wider cost-cutting effort from the firm.
A spokesperson for Getech confirmed that the sale would not include any staffing changes, adding that the company had been working on the sale of the building for a “number of years.”
The firm said that around £420,000 from the transaction would be used to repay the outstanding balance on its bridge loan facility, as well as other fees, eliminating its borrowings and “significantly improving” the company’s financial position.
As part of the contractual agreement, Getech will continue to occupy one floor of Nicholson House under a partial leaseback.
Chris Jepps, Interim CEO of Getech, said: "The sale and partial leaseback agreement has several tangible benefits: firstly, unlocking the value of our real estate asset enables us to eliminate our debt and provide a stronger foundation for operations and growth.
“Secondly, by securing a good-value rent, we maintain operational stability for our head office and minimise any disruption.
"Overall, the transaction is a key component in rebalancing the Getech business and improving its operational efficiency."
The news comes after the firm also sold Kitson House, an adjacent building which also formed part of its headquarters, in January 2024.
Last month, Getech announced that it had seen a jump in revenue in 2024.
The company said that it expects to report a 17 per cent increase in revenue to £4.7m, up from £4m in 2023.
The firm noted, however, that its cost reduction plan had taken longer to implement than initially estimated, impacting its earnings before interest, taxes, depreciation, and amortisation margin in the financial year.
Due to this, the firm said it expected the margin to be in the region of a £0.5m loss. The figure marks an improvement from last year’s £2.7m loss.
The company’s orderbook as at December 31 2024 was £4.1m, down from £4.5m in 2023.
The firm said the slight reduction was due to the successful unwinding of its contracted orderbook to revenue during the year.
Annual recurring revenue in FY24 was £2.9m, up slightly from £2.8m in 2023.
Getech said last month that cost reduction activity had been a “key focus” in 2024, and that approximately £2m of annualised costs had been taken out of the business.