10th Jun 2016 07:24
LONDON (Alliance News) - Getech Group PLC on Friday warned that it is trading below current market expectations, although it nevertheless expects to generate a pretax profit in its financial year to end-July.
Shares in Getech were down 6.6% at 24.99 pence Friday morning.
The geoscience services business reported a pretax loss of GBP704,000 in its first half, but saw an "extremely successful" third quarter. However, it warned that the market has continued to remain very depressed, and a number of potential sales for its fourth quarter have now been either deferred or cancelled.
"We were pleased to have made such an exceptional start to the second half of the financial year, but the market has remained very depressed and clients in general continue to delay expenditure. However, interest in our products remains strong, and this is reflected in the heavy schedule of planned client meetings over the next few months," said Non-Executive Chairman Stuart Paton in a statement.
"The oil price has shown signs of strengthening but this is unlikely to have an immediate impact on purchasing behaviour. However, if it shows signs that the price rises are sustainable, we anticipate that the demand for our products will convert from a wish to buy to actual purchases when budgets are available," Paton added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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