Leeds-based Getech gains new customers despite disruption caused by pandemic

Getech provides geoscience and geospatial products and services to companies and governments who use them to locate and improve their management of energy and natural resources.

The group's activities focus on providing a suite of data, knowledge and analytical products.

The company has released an update ahead of the publication of its interim results for the six months to June 30 2020, which are expected on or around September 30 2020.

The statement added: "The Covid-19 pandemic has had a deep impact on energy prices and the group's oil and gas customers have cut their 2020 budgets by c35%.

"In line with guidance, Getech staff began home working early in March. Since then, projects have continued to be delivered on time and to cost - including the release of Globe 2020; new versions of the Group's Exploration Analyst and Data Assistant software products; and an interim release of the innovative MultiSat 2020 product.

"With the duration of the Covid pandemic unknown, Getech took steps in April to reduce costs. Monthly costs were lowered by c26% with effect from 1 May, but Getech has been careful to maintain the group's capacity to deliver its orderbook and to progress a full programme of new business activities.

"These activities are focused on strengthening Getech's core business, whilst also using its skills, technologies and network to pivot Getech's offering into new portions of the energy value chain. To this end, the gtroup is currently exploring a number of exciting energy transition opportunities."

Getech said it began 2020 with a strong order book which grew by 48 per cent across 2019. In the first half of 2020 this has continued to unwind to revenue, with no negative revisions to date, Getech added.

The statement added: "This has provided some downside protection to Getech and, in challenging markets, H1 2020 revenue is expected to total c£2.1 million (H1 2019: £2.5 million). In addition, new forward sales totalled £1.4 million (H1 2019: £1.6 million)."

"These new forward sales almost completely replenish Getech's orderbook which, net of revenue delivered in H1 2020, still totalled £2.9 million at 30 June 2020."

Jonathan Copus, Getech's CEO, commented: "In H1 2020 the world faced business challenges of an unprecedented scale. The disruption that resulted has continued into H2 2020 and the timeline to its resolution is unclear.

"Faced with this, Getech has acted decisively: lowering costs, protecting capital, delivering our orderbook and exploring new business opportunities.

"Through these steps we expect to have delivered an EBITDA profit, replenished our orderbook and maintained our balance sheet strength. In addition, we have added new customers and advanced a range of conversations that have the potential to drive both growth and diversification. We consider these to be significant achievements.

"Our focus remains to ensure that the group exits the Covid environment stronger and more diverse than when it entered."