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(Sharecast News) - Getech announced eight new contracts on Wednesday, valued at a cumulative total of £1.8m.
The AIM-traded firm said the contracts encompassed subscriptions to its Globe platform, geoscience data services, and the acquisition of expert consulting services.
It said the revenue expected to be generated from the contracts in the 2023 financial year was estimated to be £0.6m.
As a result, Getech anticipated unaudited revenue for the year ended 31 December to reach £4m.
The remaining £1.2m would be added to the company's existing order book, which stood at £4.6 million on 30 June last year, compared to £4.4m on the same date in 2022.
In a trading statement in December, Getech highlighted a shift in project timelines, with several projects initially slated for 2023 now expected to close in the current financial year.
As a result, the company entered 2024 with a robust project pipeline.
At the same time, Getech said it was transitioning all new customers to its subscription model and was migrating existing clients to longer-term contracts, typically featuring a minimum commitment of three years.
The move increased annual recurring revenue (ARR) to £2.8m, compared to £2.4m in the 2022 financial year.
Getech's ultimate goal was to migrate all customers to the subscription model as contracts were renewed.
Among the notable contracts recently secured was a three-year renewal agreement for Getech's proprietary Globe platform, obtained from an Asian multinational energy firm.
Getech described Globe as a digital platform that leverages earth science data to facilitate the exploration and identification of subsurface resources critical for the energy transition.
That included assets related to carbon storage, geothermal energy, natural hydrogen, and critical minerals.
Globe uses computational modelling and AI-driven machine-learning techniques to pinpoint promising client exploration opportunities.
Additionally, the contracts featured a significant milestone - a global licence subscription for Getech's Data Assistant software, awarded by a multinational energy company based in the US.
The company said Data Assistant is an extension to ArcGIS Pro, streamlining the transfer of geoscience data into existing project workflows to enhance efficiency and cost-savings and improve geospatial decision-making capabilities.
"Entering 2024 with our substantially reduced cost base, increased order book and growing ARR means the business is undoubtedly better placed following a year of transition in 2023," said acting chief executive officer Richard Bennett.
"We have also invested in expanding our exploration capabilities, targeting resources associated with the energy transition.
"The recent COP28 demonstrated again the world's commitment to phasing down fossil fuels, and in 2024, we expect to benefit from this by helping our customers locate the subsurface future facing resources such as critical minerals and geothermal projects that are so vital to the energy transition."
At 1136 GMT, shares in Getech Group were up 32.38% at 6.95p.
Reporting by Josh White for Sharecast.com.
