Leeds oil mapping firm Getech announces agreement for its products

Oil mapping firm Getech.
Oil mapping firm Getech.
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Oil mapping firm Getech has announced the completion of a licence agreement for an integrated suite of geology, gravity and magnetic data and knowledge products.

The Leeds-based firm said the agreement will generate revenue of $1m, all of which will be recognised in the financial year ending December 31, 2019.

The delivery of the contract is in line with its financial expectations for the current financial year.

Jonathan Copus, CEO of Getech, said: “Having delivered significant first half growth in both our order book and our foundation of recurring revenue, our second half sales and marketing campaigns are positioned to build on this momentum by aligning our high-value data products with our customers’ operational priorities.

“Today’s announcement is therefore a positive and material step along this path.”

Eric Burns, analyst at WHIreland, said: “Some excellent news from Getech this morning that it has secured the sale of a major licence agreement for a suite of data and knowledge products. This is worth revenue of $1m all of which is expected be recognised in the current financial year. Whilst no further details are disclosed we anticipate this would be a high margin deal.

“Today’s sale is supportive of rather than accretive to full year forecasts which remain unchanged at revenue of £8.4m, WHI PBT of £1m and EPS on the same basis of 3.1p.”

Getech, which provides geoscience and geospatial products and services to companies and governments who use them to de-risk exploration programmes and improve their management of natural resources, is exploring a range of acquisition opportunities and organic growth to boost its products and services.

In its interim results for the six months ending June 30, 2019, the business said revenue was down £400,000 to £2.5m from the same period in 2018.

Getech attributed this to a reduction in the size of its Geoscience Services team, a decision taken in the fourth quarter of 2018 to address the team’s loss-making position.

The firm said it is growing revenue by broadening its customer base and expanding its geographic reach.

With global macroeconomic uncertainty driving crude price volatility, Getech said its oil and gas customers continue to carefully manage the release of their investment budgets.

Mr Copus said: “We have reshaped Getech around a suite of high-value products and skills.

“This is changing the mix and timing of our sales and revenues.”