11th Jun 2014 07:25
LONDON (Alliance News) - Getech Group PLC Wednesday said it had won a USD2 million contract with an existing client, one of the several significant contracts it had flagged that it was working on in a trading update Tuesday.
The company, which provides data, studies and services to the oil, gas and mining exploration sectors, had said Tuesday that it expected to sign several significant contracts before the end of its current financial year at the end of July, but said predicting the exact timing the deals would be signed was difficult.
It had also warned in its trading update that full-year pretax profit would be "significantly" below market expectations after client purchasing slowed in comparison to the previous year.
Getech's profit warning Tuesday weighed heavily on its shares, but the stock recovered some of the losses early Wednesday on the back of the contract win. The shares were up 7.8% at 46.35 pence early Wednesday, one of the biggest gains on AIM.
In its statement Wednesday, the company said the new deal included a renewal of the Globe subscription the client had, for a further three years to July 2017. It also includes a long-term licence for regional high resolution gravity and magnetic data, and a subscription to Getech's global depth to basement project which started in April 2014 and is planned to complete in the fourth quarter of 2015.
Getech's Globe product is a geographic information system based on its gravity and magnetic data.
"This order is from an existing Globe client and although the income had been substantially factored into our expectations, we are extremely pleased that the contract is now signed," Getech Chief Executive Raymond Wolfson said in a statement. "We remain confident that further significant contracts will also be signed in the near future."
The company said most of the revenue from the contract will be realised in future financial years.
"This brings the value of new contracts signed in the period since mid-May 2014 to over USD3 million and, given that much of the income will be recognised after this year, contributes to providing a sound base for the future," Wolfson said.
By Steve McGrath; [email protected]; @SteveMcGrath1
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