7th Aug 2015 07:31
LONDON (Alliance News) - Getech Group PLC said Friday in its trading update that it expects financial year pretax profit to double on the back of surging revenue.
The geoscience services business said it estimates its pretax profit for the year to the end of July will be GBP2 million, compared to GBP1 million it posted a year earlier. It expects its revenue to rise to GBP8.5 million from GBP6.6 million.
Getech said its performance in the year has been strong against a backdrop of volatility in the oil and gas industry, where capital spending has been slashed following the fall in the oil price.
The company, which specialises in the provision of data, studies and services to the oil, gas and mining exploration sectors notes that although three contracts with NOCs were announced during the year to July 2015, only the Sonangol contract, which was announced in September 2014, generated income during the year. Getech said it anticipates that all three clients will generate significant income in the coming year.
In May 2015 the company completed the acquisition of ERCL, the Henley-based consultancy. The group said the business has been integrated and is performing well, though it has not been immune to the problems in the oil and gas industry.
"In market conditions as difficult as these, we are delighted with the performance for the year and the resilience that this demonstrates to market volatility. I am particularly pleased that we have achieved this while two of the three new NOC contracts we announced during the year are still to start generating income. The market is expected to remain tight, with uncertainty about the timing of recovery of the oil price," said Getech Non-Executive Chairman Stuart Paton.
Shares in Getech were up 9.7% to 51.00 pence early Friday.
By Preten Patel; [email protected]
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