5th Jun 2020 11:14
(Alliance News) - Getech Group PLC on Friday swung to a loss for 2019 as it forecast a downturn in its core markets.
Shares in the geoscience and geospatial products firm were trading 7.3% lower at 16.69 pence each in London.
For 2019, Getech posted revenue of GBP6.1 million, down 24% from GBP8.0 million a year ago. The fall was as a result of "several substantial transactions" which did not close as expected at the end of the year.
Pretax loss was GBP3.1 million versus GBP225,000 profit in 2018. Administrative expenses were GBP3.8 million, rising from GBP3.3 million the year prior..
Looking ahead, the Leeds-based company said that while the cornoavirus pandemic presents challenges, new sales and profitability for the first quarter of 2020 remain ahead year-on-year and there have been no negative order book revisions. However, it warned on an uncertain outlook.
"Oil prices have touched 20-year lows, and although production cuts are growing and evidence builds that demand is now recovering, significant uncertainty remains. In response, petroleum companies have cut around USD178 billion from their budgets, including a 35% reduction in 2020 capital expenditure. We expect May's sharp rebound in oil prices, which has continued into June, to take time to filter through to our customer conversations," said Chair Stuart Paton and Chief Executive Jonathan Copus.
"2020 will undoubtedly be a very challenging and uncertain year but the combination of a strong balance sheet, a significantly enhanced order book and sustained recurring revenues will help Getech navigate this," Paton and Copus added.
As at the end of December, Getech held GBP2.7 million in cash. Order book amounted to GBP3.1 million.
By Ife Taiwo; [email protected]
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