Getech cost reduction programme taking 'longer to implement' than initially estimated

(Sharecast News) - Subsurface resources locator Getech said on Monday that it had made "good progress" in 2024 and that it was well positioned for an "improved" 2025.

However, Getech also said its cost reduction programme has taken longer to implement than initially estimated, impacting EBITDA margins in FY24, and said underlying losses were expected to be in the region of £500,000.

Getech said revenues were up 17% at £4.7m, driven by its retained client base and new services income from a growing portfolio of work supporting sub-surface exploration for materials connected to the Energy Transition. Annual recurring revenues were up by just £100,000 at £2.9m.

The AIM-listed firm also stated its order book as at 31 December was £4.1m, down slightly from £4.5m at the same time a year earlier.

"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," said Getech.

As of 1045 GMT, Getech shares had slipped 9.50% to 1.81p.

Reporting by Iain Gilbert at Sharecast.com

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