Leeds-based Getech sees jump in revenue as cost cutting efforts continue
Subsurface resources locator Getech has announced that it saw a jump in revenue in 2024, as the company continued its bid to reduce costs.
The Leeds-based firm said that it expects to report a 17 per cent increase in revenue to £4.7m, up from £4m in 2023.
The firm said the rise in sales came from its retained client base and new services incoming from the company’s work supporting sub-surface exploration for materials connected to the Energy Transition, including natural or white hydrogen, battery materials and geothermal energy sources.
Last year also saw the firm continue in its cost-reduction efforts.
A statement from the company said: “Cost reduction activity was a key focus in 2024. Approximately £2m of annualised costs have been taken out of the business alongside the closure of the H2 Green projects.
“Having sold part of the Company's HQ in January 2024, the final building, Nicholson House, is currently under offer. Once sold, this will release £300k of net proceeds back to the business after repayment of the secured working capital facility.”
The company 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 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.
Speaking on the company’s outlook for 2025, a statement from the firm added: “As part of our drive to increase revenues, the team was expanded with two sales hires in recent months, both focused on increasing recurring revenue from the Globe family of geoscience products and services.
“We see demand for data-led exploration increasing, particularly from organisations seeking to locate natural resources essential for the Energy Transition and expect to benefit from the investments we have made.
“We are expanding the drive to reduce costs and so better align the business with our revenue base. The Board is confident of a continued improvement in trading and in the outlook for the business.
“The Company continues its diversification beyond the Group's core oil and gas sector clients into the Energy Transition. Utilising its market leading globally comprehensive magnetic, gravity and geoscience data, Getech is applying advanced AI and ML to search for new mineral and energy assets to accelerate the Energy Transition.”