3rd Nov 2015 08:33
LONDON (Alliance News) - GETECH Group PLC Tuesday reported a rise in profit in its last financial year as it benefited from its acquisition of ERCL, but warned that uncertainty remains in a tough market which will cause trading "substantially below" current market expectations in the new year.
The oil services business said its pretax profit in the year ended July 31 doubled to GBP2 million from GBP1 million the year before, as revenue grew to GBP8.6 million from GBP6.6 million.
It said that while the industry suffered a difficult year due to declining oil prices, GETECH managed to perform well boosted by its acquisition of consultancy business ERCL in April.
GETECH will pay a total dividend of 2.2 pence for the year, which is flat on the year before.
"In the short term there remains considerable uncertainty about the state of the market and its impact on our trading and accordingly we believe the year ahead will be trading substantially below current market expectations. In this context we will seek to mitigate the immediate effects of the lower oil price while at the same time pursuing attractive opportunities as and when they are available to grow our business in the medium to long term," Chairman Stuart Paton said in a statement.
"While there remains significant uncertainty about the short term and we cannot predict how the market will develop during 2016, we remain convinced that our products and staff are well regarded and satisfy a clear industry need. As such, whilst we anticipate a slow start to 2016, we remain confident about the long-term prospects for the extended GETECH Group," Chief Executive Raymond Wolfson said.
Shares in GETECH were trading down 8.1% at 40.00 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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