31st Aug 2018 11:37
LONDON (Alliance News) - GETECH Group PLC on Friday said it anticipates its revenue to fall in the first half of 2018 despite a significant rise in product sales.
The geoscience company said the total value of sales in the six months to the end of June was GBP4.3 million, up 39% compared to GBP3.1 million reported a year earlier.
However, revenue booked declined year-on-year to GBP2.9 million from GBP3.1 million, as GBP1.4 million of product sales and services will be delivered in "future periods", the company said. The majority of these forward sales will be delivered in the second half of 2018 and in 2019.
The company also noted that during the recent half-year it focused on balancing capital discipline with a continued programme of product investment.
GETECH cost base, which includes cost of sales, administrative expenses and development costs, were reduced by 5.4% in the first half to GBP3.5 million from GBP3.7 million a year before.
The company said it upgraded its geospatial software products to include a range of new customer-focused functionality.This helped GETECH to secure new contracts in the environmental, utilities and maritime sectors.
"We continue to work in a volatile investment environment," said Chief Executive Jonathan Copus.
"It is therefore encouraging to have expanded first-half sales, particularly since this has been driven by a significant and growing number of our customers signing-up to multi-year sales agreements," added Copus.
Shares in GETECH were trading 2.6% lower on Friday at 37.00 pence each.
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