Last checked at 9 Apr 2013 07:00
Getech Group plc
("Getech" or the "Group" or the "Company")
Interim Report for the six months ended 31 January 2013
Getech, the petroleum and minerals consultancy specializing in the provision of data and interpretation solutions to exploration teams around the world, announces its interim results for the six months ended 31 January 2013.
Highlights
• | Revenue for the six months of £3,967,000 (six months ended 31 January 2012: £3,193,000) representing growth of 24% |
• | Profit before tax of £1,398,000 (six months ended 31 January 2012: £358,000) representing growth of 290% |
• | Interim dividend proposed 0.4p per share (2012: 0.2p per share) |
• | Cash levels strong with gross cash of £5,578,000 |
• | Significant levels of forward committed income |
• | Strong oil price continues to underpin exploration commitments
|
Stuart Paton, Non-Executive Chairman of GETECH Group plc, said:
"The first half year has been particularly successful and we look forward to demonstrating continued strong growth on an annual basis. Getech's results for the full year to July 2013 will, as usual, depend on finalising a number of deals and the precise demand in the remaining months of the year. However, the securing of ten Globe sponsors provides a significant level of committed income for the period to mid 2014. This gives us, for the first time, a greater degree of certainty on our forward-looking financial performance. We hence remain confident about our medium and long-term prospects."
Enquiries
GETECH Group plc Raymond Wolfson, Chief Executive
| Tel: 0113 322 2200 |
WH Ireland Limited Katy Mitchell | Tel: 0161 832 2174
|
Walbrook PR Helen Westaway | Tel: 020 7933 8790 Mob: 07841 917 679 helen.westaway@walbrookpr.com |
Chairman's Statement
Results
Getech is pleased to report a Group profit before tax of £1,398,000 (six months ended 31 January 2012: £358,000) after interest receivable of £6,000 (six months ended 31 January 2012: £3,000) on revenue of £3,967,000 (six months ended 31 January 2012: £3,193,000). The post-tax profit was £1,060,000 (six months ended 31 January 2012: £292,000).
The accounts have been prepared under IFRS in issue as adopted by the European Union.
Dividend
Your Board recommends an interim dividend of 0.4p per share.
Business review
Highlights:
• | five new Globe sponsors - immediate income from delivery of year one products plus committed income for years two and three; |
• | major sales of global gravity and magnetic data-sets; |
• | evidence of Globe leveraging further sales of both geological studies and data; |
• | first Globe sponsors' meetings a great success; and |
• | demand for our services strong. |
The continued strong performance during this half year has been based on securing further Globe sponsors and major sales of our global gravity and magnetic data-sets, underpinned by the strong oil price. The strong oil price results in E&P companies continuing to increase expenditure on exploration which leads to strengthening demand for our products.
In the last six months, we have secured a further five Globe core sponsors, bringing the total to ten companies. Our Globe sponsors now represent a broad range of E&P companies, based in a number of countries and pursuing different exploration strategies. These new sponsors join the initial three years of our core Globe programme. The first year deliverables are available immediately after signature and the year one income is recognised on delivery of the year one products, leaving committed income for years two and three of the core programme. In the autumn of 2012 we held our first Globe sponsors' meetings in Houston and Leeds. These were very well attended and received by our clients. We believe these forums are an invaluable way of providing face-to-face contact, updating the sponsors on progress and understanding their needs in more detail. As expected, we are also finding that we are securing further sales of geological studies and data through the Globe sponsorship.
In January, we announced two significant sales of our global gravity and magnetic data-sets worth in aggregate $2m. These sales demonstrate the continued need for E&P companies to access global data-sets, and also the value of the interactions with clients through the Globe work.
We have continued to repay the principal amounts on the loan that we negotiated in 2009 and the combination of profitable trading and advance payments from clients has generated a very strong cash position. At 31 January 2013 the gross cash stood at £5,578,000.
Outlook
We believe that the forecast continuing strong oil prices will underpin future demand for our products. We also anticipate that the strong support for our core Globe programme will lead to sales of ancillary products to these sponsors and provide a catalyst for further companies to commit to this initial period of Globe.
The first half year has been particularly successful and we look forward to demonstrating continued strong growth on an annual basis. Getech's results for the full year to July 2013 will, as usual, depend on finalising a number of deals and the precise demand in the remaining months of the year. However, the securing of ten Globe sponsors provides a significant level of committed income for the period to mid 2014. This gives us, for the first time, a greater degree of certainty on our forward-looking financial performance. We hence remain confident about our medium and long-term prospects.
Dr Stuart Paton
Non-executive Chairman
9 April 2013
Consolidated statement of comprehensive income
For the six months ended 31 January 2013
Note | Six months | Six months | Year | |
ended | ended | ended | ||
31 January | 31 January | 31 July | ||
2013 | 2012 | 2012 | ||
Unaudited | Unaudited | Audited | ||
£'000 | £'000 | £'000 | ||
Revenue | 3,967 | 3,193 | 6,441 | |
Cost of sales | (870) | (1,658) | (2,692) | |
Gross profit | 3,097 | 1,535 | 3,749 | |
Administrative costs | (1,701) | (1,173) | (2,495) | |
Operating profit | 1,396 | 362 | 1,254 | |
Finance income | 6 | 3 | 6 | |
Finance costs | (4) | (7) | (13) | |
Profit before tax | 1,398 | 358 | 1,247 | |
Income tax expense | (338) | (66) | (317) | |
Profit for the period attributable to owners of the parent | 1,060 | 292 | 930 | |
Other comprehensive income | ||||
Currency translation differences on translation of foreign operations | (30) | 32 | 11 | |
Total comprehensive income for the year attributable to owners of the parent | 1,030 | 324 | 941 | |
Earnings per share | 5 | |||
Basic earnings per share | 3.62p | 1.00p | 3.18p | |
Diluted earnings per share | 3.28p | 0.93p | 2.97p | |
Consolidated statement of financial position
As at 31 January 2013
Company registration number 2891368
31 January | 31 January | 31 July | |
2013 | 2012 | 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Assets | |||
Non-current assets | |||
Property, plant and equipment | 2,626 | 2,641 | 2,640 |
Intangible assets | 651 | 807 | 738 |
Deferred tax assets | 299 | 82 | 249 |
3,576 | 3,530 | 3,627 | |
Current assets | |||
Inventories | 402 | 344 | 60 |
Trade and other receivables | 1,180 | 1,445 | 2,963 |
Other current assets | 40 | 18 | 19 |
Cash and cash equivalents | 5,578 | 1,871 | 3,011 |
7,200 | 3,678 | 6,053 | |
Total assets | 10,776 | 7,208 | 9,680 |
Liabilities | |||
Current liabilities | |||
Borrowings | 262 | 286 | 286 |
Trade and other payables | 3,668 | 1,579 | 3,300 |
Current tax liabilities | 487 | 79 | 410 |
4,417 | 1,944 | 3,996 | |
Non-current liabilities | |||
Borrowings | - | 262 | 119 |
Trade and other payables | 15 | 32 | 32 |
Deferred tax liabilities | 57 | 43 | 49 |
72 | 337 | 200 | |
Total liabilities | 4,489 | 2,281 | 4,196 |
Net assets | 6,287 | 4,927 | 5,484 |
Equity | |||
Equity attributable to owners of the parent | |||
Share capital | 73 | 73 | 73 |
Share premium account | 2,848 | 2,841 | 2,841 |
Share option reserve | 189 | 190 | 189 |
Currency translation reserve | (27) | 24 | 3 |
Retained earnings | 3,204 | 1,799 | 2,378 |
Total equity | 6,287 | 4,927 | 5,484 |
Consolidated statement of cash flows
For the six months ended 31 January 2013
Six months | Six months | Year | |
ended | ended | ended | |
31 January | 31 January | 31 July | |
2013 | 2012 | 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Cash flows from operating activities | |||
Profit before tax | 1,398 | 358 | 1,247 |
Share-based payment charges | - | 13 | 11 |
Depreciation and amortisation charges | 104 | 101 | 203 |
Finance income | (6) | (3) | (6) |
Finance costs | 4 | 7 | 13 |
Exchange adjustments | (5) | (6) | (35) |
(Increase)/decrease in inventories | (342) | 129 | 413 |
Decrease/(increase) in trade and other receivables | 1,782 | 155 | (1,363) |
Increase/(decrease) in trade and other payables | 352 | (9) | 1,716 |
Cash generated from operations | 3,287 | 745 | 2,199 |
Income taxes refunded | (324) | - | (83) |
Net cash generated from operating activities | 2,963 | 745 | 2,116 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (24) | (18) | (51) |
Interest received | 6 | 3 | 6 |
Net cash used in investing activities | (18) | (15) | (45) |
Cash flows from financing activities | |||
Proceeds from issue of share capital | 7 | - | - |
Repayment of long-term borrowings | (143) | (143) | (286) |
Dividends paid | (234) | (58) | (117) |
Interest paid | (4) | (7) | (13) |
Net cash used in financing activities | (374) | (208) | (416) |
Net increase in cash and cash equivalents | 2,571 | 522 | 1,655 |
Cash and cash equivalents at beginning of period | 3,011 | 1,345 | 1,345 |
Exchange adjustments to cash and cash equivalents at beginning of period | (4) | 4 | 11 |
Cash and cash equivalents at end of period | 5,578 | 1,871 | 3,011 |
Consolidated statement of changes in equity
For the six months ended 31 January 2013
Share | Share | Currency | Retained | Total | ||
Share | premium | option | translation | |||
capital | account | reserve | reserve | earnings | equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
At 1 August 2012 - audited | 73 | 2,841 | 189 | 3 | 2,378 | 5,484 |
New share capital subscribed | - | 7 | - | - | - | 7 |
Dividends paid | - | - | - | - | (234) | (234) |
Transactions with owners | - | 7 | - | - | (234) | (227) |
Profit for the period | - | - | - | - | 1,060 | 1,060 |
Other comprehensive income | ||||||
Currency translation differences | - | - | - | (30) | - | (30) |
Total comprehensive income for the period | - | - | - | (30) | 1,060 | 1,030 |
At 31 January 2013 - unaudited | 73 | 2,848 | 189 | (27) | 3,204 | 6,287 |
Notes to the interim report
For the six months ended 31 January 2013
1 Nature of operations
The principal activity of Getech Group plc ("the Company") and its subsidiary company, Geophysical Exploration Technology Inc. (collectively "Getech" or "the Group") is the provision of gravity and magnetic data, services and geological studies to the petroleum and mining industries to assist in their exploration activities.
2 General information
Getech Group plc is the Group's ultimate Parent Company. It is incorporated in England and Wales and domiciled in England (CRN: 2891368). The address of its registered office is Convention House, St Mary's Street, Leeds LS9 7DP. Its principal place of business is Kitson House, Elmete Hall, Elmete Lane, Leeds LS8 2LJ. The Company's shares are admitted to trading on the London Stock Exchange's AIM.
The financial information for the six months ended 31 January 2013 and 31 January 2012 has not been audited and does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006. These consolidated interim financial statements ("the interim financial statements") have been approved by the Board.
The financial information relating to the year ended 31 July 2012 is based on the Group's statutory accounts for that period. The statutory accounts were prepared in accordance with International Financial Reporting Standards (IFRS) in issue as adopted by the European Union. IFRS include interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC). The statutory accounts received an unqualified audit report, did not contain statements under Sections 498(2) or (3) of the Companies Act 2006 and have been filed with the Registrar of Companies.
3 Basis of preparation
The interim financial statements are for the six months ended 31 January 2013. They have been prepared using the recognition and measurement principles of IFRS. The interim financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the financial statements of the Group for the year ended 31 July 2012.
The interim financial statements have been prepared under the historical cost convention except in relation to financial instruments held at face value through profit or loss. They have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 July 2012.
The accounting policies have been applied consistently throughout the Group for the purpose of preparation of the interim financial statements.
4 Dividends
Six months | Six months | Year | |
ended | ended | ended | |
31 January | 31 January | 31 July | |
2013 | 2012 | 2012 | |
Unaudited | Unaudited | Audited | |
£'000 | £'000 | £'000 | |
Paid during the period | |||
At: 0.8p per share (2012: 0.2p per share, year ended 31 July 2012: 0.4p per share) | 235 | 58 | 116 |
Proposed after the period end (not recognised as a liability) | |||
At: 0.4p per share (2012: 0.2p per share, year ended 31 July 2012: 0.8p per share) | 117 | 58 | 234 |
The proposed dividend is payable on 17 May 2013 to members on the register at 19 April 2013.
5 Earnings per share
Basic earnings per share is calculated on the basis of the profit for the period after tax, divided by the weighted average number of Ordinary Shares in issue in the period of 29,266,455 (six months ended 31 January 2012: 29,237,151; year ended 31 July 2012: 29,237,151).
Diluted earnings per share is calculated on the basis of the profit for the year after tax, divided by the weighted average number of Ordinary Shares in issue plus the weighted average number of Ordinary Shares which would be issued if all options granted were exercised. The addition to the weighted average number of Ordinary Shares used in the calculation of diluted earnings per share for the six months ended 31 January 2013 is 3,099,028 (six months ended 31 January 2012: 2,088,414; year ended 31 July 2012: 2,040,924). At 31 January 2013 no options in issue were anti-dilutive (31 January 2012: minority of options in issue; 31 July 2012: minority of options in issue).
6 Interim Report
This Interim Report is being sent to the shareholders of Getech and will be available at its registered office, Convention House, St Mary's Street, Leeds LS9 7DP, UK, and from its website, www.getech.com.
Directors, secretary and advisors
Directors
Dr Stuart Paton
Non-executive Chairman
Raymond Wolfson
Chief Executive Officer
Professor Derek Fairhead
President and Founder
Professor Paul Carey
Marketing and Sales Director
Dr Paul Markwick
Technical Director
Peter Stephens
Non-executive Director
Colin Glass
Non-executive Finance Director
Dr Alison Fielding
Non-executive Director
Company Secretary
Colin Glass
Registered office
Convention HouseSt Mary's StreetLeeds LS9 7DP
Company registration number
2891368
Nominated advisor and broker
WH Ireland Limited
Third FloorRoyal House28 Sovereign StreetLeeds LS1 4BJ
Auditor
Grant Thornton UK LLP
No. 1 Whitehall RiversideWhitehall RoadLeeds LS1 4BN
Solicitors
Walker Morris
Kings Court12 King StreetLeeds LS1 2HL
Principal bankers
National Westminster Bank Plc
PO Box 1838 Park RowLeeds LS1 1QT
Registrars
Capita Registrars
Northern HouseWoodsome ParkFenay BridgeHuddersfield HD8 0LA