Getech ends year with $5m worth of contracts

Getech, an oil exploration firm, is ending the financial year on a high note. The Leeds University spin-out is expecting to report pre-tax earnings of £1m ($1.67m), down from the original expectation of £2.4m ($4m).

While it is ending the year with £3m ($5m) worth of contracts in its pockets, the revised lower earnings are the result of a lower overall spending in the oil and gas exploration industry. Getech’s revenue in the past 12 months reached £6.6m ($11m).

The company has however seen an increase in demand for its consultancy services approaching the end of the past financial year, and is expecting this trend to continue into 2015. It is also sitting on £3.4m ($5.67m) in cash reserves. And on top of forthcoming, committed income for its mapping project, called Globe, the company anticipates retrospective tax credits for the previous two financial years.

Getech has been trading on the London Stock Exchange under the symbol Gtc since September 2005 and has a market cap of $26.7m (£16m). It received a “buy” rating mid-August by WH Ireland, which expects the company’s shares to rise by as much as 33.27%.

Raymond Wolfson, chief executive at Getech, said: “The tight exploration market during the period since early 2013 made trading for many exploration service companies very difficult. While we were similarly affected, we have seen a significant upturn in recent weeks and consider that, under the challenging business environment, we have delivered a strong set of results.”