Getech shares jump following great expectations for year

The Leeds-based group, which sells complex geological and geophysi cal data to help multinational firms drill for oil, said: “On the basis of the generally strong performance of all parts of the business, Getech now expects that its results for the year to 31 July 2012 will exceed current expectations.”

Shares closed up 4.5p at 28.75p.

Eric Burns, analyst house broker WH Ireland, said Getech’s third positive statement in two weeks demonstrates “exceptional momentum” across the business.

The brokerage upped its target price to 35p per share from 32p and raised its pre-tax profit forecast to £1.1m from £0.9m for this year. Chief executive Raymond Wolfson said: “We are extremely pleased with the strong contributions from all parts of the business in the current year. The successful launch of the multi-year global programmes and the continuing strong performance with data sales have combined to generate a result that will exceed the current expectations for the year.

“I am also pleased to be able to confirm that at the year-end we will report improved forward visibility of income and stronger cash balances. I believe that these, combined with the strong client interest in our products and capabilities, will provide the foundations for continued success.”

Mr Burns said: “Whilst we leave our dividend expectation unchanged for both years for the time being, Getech’s strong balance sheet and cash generation suggests to us there is scope for a significant uplift in the payout.”