Getech Grp Share News (GTC)

(Alliance News) - GETECH Group PLC on Tuesday posted a broadly flat loss for the first half of 2019 as a decline in the cost of sales offset a reduction in revenue.

Geoscience and geospatial products and services firm GETECH's pretax loss for the six months ended June 30 was GBP598,000, barely moving from a GBP592,000 loss the year before.

While revenue fell 14% to GBP2.5 million from GBP2.9 million due to the restructuring of the firm's Geoscience Services unit, this was offset by a 33% fall in cost of sales to GBP1.2 million from GBP1.8 million - resulting in a gross profit rise to GBP1.3 million from GBP1.1 million.

A 5.9% rise in administrative costs to GBP1.8 million from GBP1.7 million then took GETECH's operating loss to GBP572,000 from GBP583,000.

"Our H2 2019 sales and marketing campaigns for products are well underway, with active trials taking place for Globe and Software in SE Asia, Europe and North America. In the Middle East, we were recently awarded a contract for the delivery of geospatial strategy services and completed on a 3-year commitment to geospatial support services. In data, a number of high-value opportunities are maturing as our customers present the business case to extend their gravity and magnetic data library and also to invest in Getech's new generation of satellite-derived gravity data," the company said.

"Our focus remains on delivering a strong sales performance to 31 December 2019. This means working closely with our customers to ensure that investment in Getech products and services is prioritised above other investment opportunities. To this end, as we work to align our offerings with planned exploration activities, H2 is busy with face-to-face customer meetings in many regions of the world," GETECH added.

Shares in GETECH were flat at 24.00 pence in London on Tuesday.

By Anna Farley; annafarley@alliancenews.com

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