Getech Grp Regulatory News (GTC)

30 Mar 2006 07:00

GETECH Group plc30 March 2006 GETECH Group PLC INTERIM RESULTS Six month period to 31 January 2006 HIGHLIGHTS • Turnover (for six months) £1,636,082 • Profit before tax £447,843 • Maiden dividend payment as a public company of 0.4 pence per share • Continued expansion of the PSEG • Sound profitability across the Group • Significant number and size of sales to mining companies and smaller oil companies For further information, please contact: Derek Fairhead, Managing Director, GETECH Group Plc 0113 343 5240 Colin Glass, Finance Director, GETECH Group Plc 07831 258494 Mark Dickenson, Rob Naylor, Teather & Greenwood 020 7426 9000 Kelly-Ann French, Buchanan Communications 07958 972164 www.getech.com CHAIRMAN'S STATEMENT I am pleased to report the inaugural results of GETECH Group PLC ("GETECH" or "the Company"), the oil services business specialising in the provision andinterpretation of exploration data and petroleum systems evaluations, for thesix month period to 31 January 2006. RESULTS The Company reported a profit before tax of £447,843 (2005: £450,489) afterinterest receivable of £59,121 (2005: £12,597) on a turnover of £1.636m (2005:£1.993m). The post tax profit was £318,843 (2005: £360,489) giving earnings pershare of 1.25p (2005: 1.30p adjusted). In the full year to 31 July 2005, prior to flotation, profit before tax was£730,460 after interest receivable of £33,126 on a turnover of £3.482m. Thepost tax profit was £534,140. DIVIDEND The company remains strongly capitalised and continues to generate cash from itstrading activities. I am delighted to report that your Board intends to pay aninterim dividend of 0.4 pence per share to shareholders registered on 7 April2006, costing £110,769. The dividend will be paid on 5 May 2006. BUSINESS REVIEW A substantial part of the Company turnover is made up of a number of largecontracts whose nature and timing cannot always be accurately predicted. Theresults for the half year were achieved despite one major predicted data salenot having taken place. During the six-month period significant contracts were completed with US andEuropean based oil majors together with small to medium sized explorationcompanies. This same period and the early part of the second half have alsoseen above normal revenue from mining company contracts. This demand for ourdata and services reflects high commodity prices and a greater willingness ofmining companies to spend on future projects/studies at such times. GROUP ACTIVITIES The Company's principal activities are:- • Global Gravity and Magnetic Data Licensing • Integrated Basin Interpretation Studies and Services • Evaluating the Petroleum Systems within sedimentary basins In providing our data licensing service over many years GETECH has compiled oneof the world's most extensive commercial libraries of gravity and magnetic data. The first two activities contributed the majority of the Company's revenue inthe previous financial year. The third activity relates to the relatively newand growing Petroleum System Evaluation Group ("PSEG") formed in 2004 and headedby two of the top geoscientists in this field, Dr John Jacques and Dr PaulMarkwick. The PSEG provides oil companies with detailed insights into the keysource, reservoir and seal issues relating to hydrocarbon basins. I am pleased to report that we have expanded the PSEG by recruiting anadditional four international geoscientists which we believe is quite anachievement, given the scarcity of this resource. There is increasing interestin PSEG services and our new employees will enable us to enhance the scope andquantity of the work we can undertake. We expect the financial contribution fromthe PSEG to increase in the next half. During the period under review we announced that we had signed an exclusivemarketing agreement with the Geological Survey of China to market theirGeographical Information Systems ("GIS") based geological and geochemical data. We have also made good progress with organisations in a number of countries withregard to developing agreements that allow GETECH to acquire the right to markettheir archived geophysical datasets in highly prospective frontier oilexploration regions. We hope to be in a position to announce further progressin this area later in the calendar year. I can confirm that two significant interpretation research and developmentstudies have been commissioned. One study, with a duration of twelve months, isalready fully operational and the other, with a duration of two years, isplanned to commence in April with a workshop involving an invited panel ofinternational experts. We expect the global state of the oil and mineral exploration industry to remainbuoyant for the foreseeable future on the back of the high prices of oil, gasand minerals, and record profits of the major oil companies. There is anapparent increasing interest from large and small oil and minerals explorationcompanies for data and services from all around the world. OUTLOOK The Company's income remains largely dependent on a relatively modest number ofsignificant contracts. Current contracts and high levels of enquires, reflectingincreased exploration budgets within mining and petroleum companies, cause theBoard to be confident about the second half and thereafter. Finally, on behalf of the Board, I would like to thank our employees for theirconsiderable efforts, dedication and commitment and our shareholders for theirsupport during this embryonic phase of our development as a publicly quotedcompany on AIM. PETER STEPHENS Chairman 30 March 2006 FULL RESULTS BELOW GETECH Group PLC PROFIT AND LOSS ACCOUNTfor the six months ended 31 January 2006 Six months Six months Year ended 31 ended 31 ended 31 January 2006 January 2005 July 2005 (unaudited) (unaudited) (unaudited) £'000 £'000 £'000 TURNOVER 1,636 1,993 3,482 Cost of sales ( 454 ) ( 761 ) ( 1,318 ) GROSS PROFIT 1,182 1,232 2,164 Operating expenses ( 793 ) ( 794 ) ( 1,467 ) OPERATING PROFIT 389 438 697 Interest receivable 59 13 33 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 448 451 730 Taxation ( 129 ) ( 90 ) ( 196 ) PROFIT RETAINED AND TRANSFERRED TO RESERVES 319 361 534 Basic earnings per share (p) 1.25 6.79 10.14 Diluted earnings per share (p) 1.25 6.79 10.14 GETECH Group PLC BALANCE SHEET31 January 2006 31 January 31 January 31 July 2006 2005 2005 (unaudited) (unaudited) (unaudited) £'000 £'000 £'000FIXED ASSETSIntangible assets 1 2 2Tangible assets 61 34 34 62 36 36CURRENT ASSETSDebtors 927 777 645Cash at bank and in hand 4,208 1,456 1,424 5,135 2,233 2,069 CREDITORS - amounts falling due within one year ( 1,503 ) ( 1,462 ) ( 1,210 ) NET CURRENT ASSETS 3,632 771 859 TOTAL ASSETS LESS CURRENT LIABILITIES 3,694 807 895 PROVISIONS FOR LIABILITIES - ( 6 ) - NET ASSETS 3,694 801 895 CAPITAL AND RESERVESCalled up share capital 69 - -Share premium account 2,461 - -Profit and loss account 1,164 801 895 SHAREHOLDERS' FUNDS 3,694 801 895 GETECH Group PLC CASH FLOW STATEMENTfor the six months ended 31 January 2006 Six months Six months Year ended 31 ended 31 ended 31 January 2006 January 2005 July 2005 (unaudited) (unaudited) (unaudited) £'000 £'000 £'000 NET CASH INFLOW FROM OPERATING ACTIVITIES 297 704 781 RETURNS ON INVESTMENTS AND SERVICING OFFINANCEInterest received 51 13 33 NET CASH INFLOW FROM RETURNS ON INVESTMENTS 51 13 33AND SERVICING OF FINANCE Taxation - 1 ( 33 ) CAPITAL EXPENDITUREPurchase of tangible fixed assets ( 44 ) ( 11 ) ( 28 ) NET CASH OUTFLOW FROM CAPITAL EXPENDITURE ( 44 ) ( 11 ) ( 28 ) Equity dividends paid - ( 50 ) ( 50 ) NET CASH INFLOW BEFORE FINANCING 304 657 703 FINANCINGIssue of share capital 3,000 - -Costs of share issue ( 520 ) - -Redemption of shares - - ( 79 ) NET CASH INFLOW FROM FINANCING 2,480 - ( 79 ) INCREASE IN CASH 2,784 657 624 RECONCILIATION OF OPERATING PROFIT TO NETCASH INFLOW FROM OPERATING ACTIVITIESOperating profit 389 438 697Depreciation 18 18 34(Increase) in debtors ( 274 ) ( 427 ) ( 295 )Increase in creditors 164 675 345 297 704 781 GETECH Group PLC NOTES 1 The financial information does not constitute statutory accounts as defined insection 240 Companies Act 1985. The figures for the year to 31 July 2005 havebeen extracted from the unaudited financial statements of GETECH Group PLCand its subsidiary, upon which the auditors were not required to report. Statutory financial statements of GETECH Group PLC (formerly GeophysicalExploration Technology Limited) for the year ended 31 July 2005 have beenfiled with the Registrar of Companies. 2 The interim financial statements have been prepared on the same basis and usingthe same accounting policies as used in the full financial statements for theyear ended 31 July 2005, except for the adoption of Financial ReportingStandard 21 Events After the Balance Sheet Date, Financial Reporting Standard 22Earnings Per Share, Financial Reporting Standard 25 Financial Instruments:Disclosure and Presentation and Financial Reporting Standard 28 CorrespondingAmounts. The adoption of these standards does not Impact on the interimfinancial statements as reported. The interim financial statements, which have been neither audited nor reviewed by the Company's auditors, have beenapproved by the Board. 3 Taxation has been provided at the estimated effective rate of 30% for the year as a whole (2005: 30%). 4 Basic earnings per share is calculated on the basis of the profit for the periodafter tax, divided by the weighted average of ordinary shares in issue inthe period (six months ended 31 January 2006: 25,477,232 year ended 31 July2005: 5,268,403, and six months ended 31 January 2005: 5,320,000). 5 Diluted earnings per share is calculated on the basis of the profit for the year after tax, divided by the weighted average number of shares in issueplus the weighted average number of shares which would be issued if alloptions granted were exercised. The addition to the weighted average number ofordinary Shares used in the calculation of diluted earnings per share for thesix months ended 31 January 2006 is Nil, year ended 31 July 2005: Nil, and six months ended 31 January 2005: Nil. 6 Adjusted earnings per share is calculated as if all 27,692,307 shares in issue at 31 January 2006 had been in issue for the whole of 2004 and 2005 todate (six months ended 31 January 2006: 1.15, year ended 31 July 2005:1.93,and six months ended 31 January 2005:1.30) 7 An interim dividend of 0.4p per share (2005: £Nil) has been recommended and is payable on 5th May 2006 to members on the register at 7th April 2006. 8 The statement is being sent to the shareholders of the company and will be available at the company's registered office at Convention House, St.Mary's Street, Leeds, LS9 7DP. This information is provided by RNS The company news service from the London Stock Exchange