Final Results

06 May 2025

Getech Group plc

("Getech" or the "Company")

Final Results

Getech (AIM: GTC), a world-leading locator of subsurface resources, is pleased to announce its Final Results for the 12 months ended 31 December 2024.

Financial highlights

· Revenue up 16% to £4.7 million (2023: £4.0 million)

· Annually Recurring Revenue increased to £2.9 million (2023: £2.8 million)

· EBITDA loss decreased significantly to -£0.56 million (2023: -£2.7 million)

· Cash at bank increased to £0.9 million (2023: £0.4 million)

· Sale of Kitson House in January 2024 for £0.65 million

· Raised gross proceeds of £1.7 million in August 2024 from new and existing shareholders to enhance working capital position and invest in our sales team.

Operational highlights

· Invested in advancing the Group's services and solutions, including extending the capabilities of the Globe exploration platform, enhancing key software products (Exploration Analyst, Unconventionals Analyst and Data Assistant) and evolving AI capabilities to maintain our leadership in machine learning-enabled subsurface resource exploration.

· Revenues from Petroleum sector grew by 16% while revenues from all other sectors grew by 14%, when compared to 2023.

· Strategic Natural Hydrogen agreements with Sound Energy plc ("Sound Energy") to pursue natural hydrogen accumulations in Morocco and Kingfisher in North America.

· Established new business partnerships with Natural Hydrogen Ventures, RED Engineering and Expro. 

· New Mining sector contract wins with Sandfire Resources Ltd ("Sandfire") and East Star Resources plc ("East Star"), supporting copper exploration.

· Won new and repeat Expert Services projects across multiple geoenergy sectors.

FY 2025 current trading

· Appointment of Chris Jepps as CEO (previously COO) in January 2025.

· Sale and leaseback of Nicholson House in February 2025 for £0.725 million which, when coupled with the previous sale of Kitson House, enabled the repayment of all debt and leave the Group debt free.

· The leadership team has initiated a new sustainable business strategy, successfully completing in Q1 2025 a project to reduce the Group's annual cost base by c. £1 million.

· Unaudited revenues in the first 3 months of 2025 are 8% ahead of the same period 2024, driven by an expanded sales team and new management.

Michael Covington, Chairman of Getech, said, "In 2024, we made solid progress in advancing our services and solutions, achieving a 16% increase in sales. In 2025, the appointment of Chris Jepps as CEO has already had a positive impact. Within the first three months of the year, we've reduced our annual cost base by a further £1 million, without compromising our ability to deliver for clients, and in doing so have set a clear path to being EBITDA positive by the end of 2025. In parallel, the new executive management team has introduced a new, sustainable, business strategy, which re-focuses the Group on its traditional core Oil & Gas and Mining client base, while continuing to pursue high-quality, selective, opportunities in Natural Hydrogen. It is still early days, but the new team's momentum is encouraging."

Investor Meet Company presentation

Chris Jepps (Chief Executive Officer), Max Brouwers (Chief Business Development Officer) and Simon Brown (Finance Director) will provide a live presentation relating to the Full Year Results via Investor Meet Company on 09 May 2025, 11:30am.

Questions can be submitted pre-event via your Investor Meet Company dashboard up until 08 May 2025, 09:00 BST, or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet GETECH GROUP PLC via:

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Notes to Editors:

About Getech

Getech is a leading locator of subsurface resources essential for the world's energy security and sustainable transition. The Company combines unique geoscience expertise, AI-driven analytics, and extensive geospatial insight to identify new energy and mineral resources and streamline exploration processes. Serving clients across corporates, government and regulators in a wide range of industries, Getech is committed to enabling energy and mineral security while supporting a shift towards low carbon sources.

Chairman's Statement

2024 was an active but challenging year and a tougher trading environment than we expected at the outset of the year. Nevertheless, against that backdrop, we made good progress in several important strategic areas.

Through 2024 we completed a cost-reduction programme first initiated in FY23 to take c. £2m of annualised costs out of the Group. Whilst this programme took longer than anticipated to deliver, such that the total savings in 2024 were £1.5m, the monthly run rate at the end of FY24 was equivalent to the £2m annualised savings expected. The majority of the savings related to the closure of our green hydrogen activities.

In addition, our working capital was improved during the period; firstly, in January 2024 with the sale of our Kitson House office for gross proceeds of £650,000 and, secondly, in August 2024 when we raised gross proceeds in a combined placing and retail offer of £1.7m from new and existing shareholders. The new funds raised enhanced our working capital position and facilitated investment in expanding our sales team.

Post the year end, in February 2025, we also announced the completion of the sale and partial leaseback of our Nicholson House office for gross proceeds of £725,000. The sale of our office properties has enabled the Group to repay all loans and become debt-free - an appropriate position for the current size of the business.

I welcomed Chris Jepps as the Group's new CEO in January 2025 following the departure of Richard Bennett from the role. I was also pleased to announce that Max Brouwers would be joining the Board as an Executive Director once all arrangements were in place. Both Chris and Max are internal appointments and therefore their talents and skillsets are already well known to the Group. They have hit the ground running and share a positive strategic vision for the Group's future.

I would like to take this opportunity to thank Richard Bennett for all his efforts and dedication during his tenure as CEO and, on behalf of the Board and the entire team, I wish him the very best in his future.

In his CEO's statement, Chris provides further details on how he intends to take the business forward, a key plank of which is to first re-balance the business in terms of anticipated revenues against the current cost-base. To this end, in Q1 2025, the management team has already implemented a programme of cost cutting to remove approximately an additional £1million of costs on an annualised basis.

From a trading perspective, we are seeing an improving outlook for Oil & Gas in the current financial year. In particular, there has been an increase in sales enquiries for Globe from super-major and national oil companies, perhaps reflecting some "green shoots" of market improvement for exploration and new ventures projects.

We remain excited about the potential of Natural Hydrogen. Indeed, a recent study by the U.S. Geological Survey estimates that there could be millions of mega-tonnes of Natural Hydrogen in accumulations in the Earth's crust. They state that "even only a small fraction of the estimated amount of subsurface hydrogen could potentially meet all global projected demand for hundreds of years". Our data is ideal for locating potential hydrogen source rocks and this has helped the Group build a strong presence in this nascent market and secure several contracts and partnerships.

Finally on behalf of the Board, I would like to thank everyone in the business for their dedication and hard work. We are entering a new period, under a new team, and I am optimistic the business will be better for it.

Michael Covington

Chairman

CEO's Statement

I am pleased to be reporting this year's Final Results for the first time as CEO of Getech. Having worked as COO of the Group since 2018, I have a deep understanding of our operations and value propositions, and I am confident that this is an exciting time to be heading the business as a leading locator of the subsurface resources that are essential for the world's energy security and a sustainable energy transition.

Trading

2024 was an improved, but still challenging, year for Getech, and our revenues grew by 16% to £4.7m (2023: £4.0m). This growth was driven by strong contract renewals, increased service project revenues, and was underpinned by our annual recurring revenue (ARR), reaching £2.9m (2023: £2.8m) from our product subscription models. The Group orderbook at 31 December 2024 was £4.1m (2023: £4.5m), with the slight reduction due to the successful unwinding of the contracted orderbook to revenue during the year.

We continued to leverage our extensive geoscience and geospatial expertise for clients across corporates, governments and regulators. Our Globe platform delivered robust contract renewals, with the platform's search capabilities being expanded with new commodities and the support of AI and Machine Learning techniques. Elsewhere within our product stack, we significantly grew our Unconventionals customer base, reflecting a growing demand for our onshore oil and gas technology. We were also pleased to see our services divisions experience their busiest Q3 and Q4 for at least 6 years.

As part of rebalancing the business, we completed the sale of Kitson House and Nicholson House, unlocking valuable capital to eliminate our debt and provide a stronger foundation for operations. Additionally, the final closure of our Green Hydrogen business, H2 Green, marked a further step in streamlining our focus. Through 2024 we identified and initiated two Natural Hydrogen projects with select partners, a sector that we see as a potential high-growth low carbon opportunity more aligned to our core capabilities of subsurface data and expertise.

The market

Market conditions in 2024 were mixed but, importantly, the market for Oil & Gas continued to strengthen on the back of global energy security concerns. This has been further evidenced by high profile moves of BP and Shell moving away from Renewables and pivoting back towards Oil & Gas. At the same time, the US onshore oil and gas sector is expected to grow further, following the Trump administration's push to alleviate regulation on natural gas and oil production.

Against this backdrop, we have seen Exxon and Chevron announce plans to restructure and reduce staff, underlining that Oil & Gas players are still pushing to be as efficient as possible. Meanwhile, over the last month or so, further uncertainty has been introduced into global economics with the tariff-led changes to global trade, the medium to long-term effects of which are yet unknown. 

The Mining sector has also had a mixed year, with some major players downsizing and margins remaining narrow. Meanwhile, growth in Energy Transition and Decarbonisation sectors, such as Green Hydrogen and Geothermal, has been slower than anticipated due to changing global energy market dynamics and again, some regulatory uncertainty with governments seemingly slow to follow through on previously anticipated decarbonisation policies.

A sustainable business strategy

For many years, servicing the Oil & Gas sector has been the foundation of our business and revenues. In recent years we have perhaps slightly lost focus on this in our desire to diversify and follow a broad range of opportunities in emerging low carbon energy sectors. I believe that a sustainable strategic positioning for the business is to re-double our focus on our core markets such as Oil & Gas and Mining, whilst maintaining interest in low carbon sectors by selecting only the highest quality opportunities.

However, we must first stabilise our financial position. Rebalancing the Group's finances is our key priority by ensuring that we operate within our means.

In 2024, we delivered cost savings of c. £1.5 million as we pivoted away from Green Hydrogen, but to achieve our goal to be EBITDA positive by the end of FY 2025, further work has been needed.

To this end, in Q1 2025, we began a new cost reduction programme with the aim of reducing the Group's annualised cost base by a further c.£1 million, while protecting our ability to deliver our core capabilities and products. In tandem, we have restructured our Sales team to drive revenue growth from existing and new customers, introducing new sales management processes and expanding the team. We have been successful in attracting back former Sales Director, Paul Carey, a senior and experienced sales leader and someone with a detailed understanding of our Globe exploration platform and the commercial power of our gravity and magnetic data holdings.

The basis of our sustainable business strategy is to focus on what we do best and our key differentiators - i.e. our combination of geoscience, geophysics, Globe, geospatial and AI/machine learning - and doing so across fewer market sectors with a more streamlined and focused team.

Globe and our gravity and magnetic data holdings remain key assets for the Group and represent unique and highly valuable intellectual property (IP) that can be applied across a range of natural resource sectors. Developing this IP through continued innovation remains a central plank in our strategy to ensure our technology can be applied to new sectors, while remaining relevant and essential to our existing client-base.

The Geospatial sector represents an excellent opportunity for Getech with the global Geographic Information System (GIS) market valued at c. $10 billion and predicted to grow year-on-year by c. 15%. We are well placed to leverage this market by growing revenues via Exprodat - our Group company that specialises in GIS. Exprodat is a well-established brand and long-standing 'Gold Partner' with market-leading GIS technology provider Esri. In 2024, Exprodat contributed approximately one third of Group revenues.

Our interest in the best quality low carbon opportunities continues as we believe they provide significant potential future upside for the business. I look forward to advancing these by working closely with Max Brouwers, our Chief Business Development Officer. Max's geoscience background and 25 years of leadership experience in international energy will be crucial in progressing our portfolio of high potential growth Natural Hydrogen projects.

Outlook

As part of a strategic refresh following my appointment in January we reviewed the future financial outlook for the business. The business is sound, but we believe that, particularly in relation to low-carbon projects, past trading assumptions were overly optimistic and led to unachievable long-term revenue projections. Instead, over the next year with a further reduced cost base, we are targeting mid-to-high single digit organic revenue growth which should ensure that the Group is EBITDA positive from its core business - that is, excluding any upside from our portfolio of low carbon equity projects.

With this modest and achievable forecasting there remains, however, excellent potential for significant out-performance. Firstly, we have several large opportunities in the pipeline for our core technology asset, Globe, which could transform our revenues and materially add to our ARR. Secondly, our project initiation activities in Natural Hydrogen are progressing well and could also lead to high value growth in the mid-term.

However, the priority for now is on rebalancing the business, and I am excited at the prospect of leading a more streamlined business with greater focus, to position Getech for long-term success.

I would like to thank all our staff for their hard work and support for the business and look forward to us all working together on the next stage of our success.

Chris Jepps

Chief Executive Officer

Operational Review

Introduction

The last year saw good progress towards an evolved strategy. Our sales and business development teams delivered an increase in revenues compared to 2023, while the Group maintained high oil and gas customer retention rates, including of our Globe exploration platform, and added new software customers. In addition, we increased Annually Recurring Revenue (ARR) and continued to repurpose our offerings for the energy transition, including making significant progress in enhancing our mineral exploration capabilities with artificial intelligence and machine learning.

As the global energy transition continues to gradually unfold, we expanded our operational reach in 2024 by providing solutions to clients in emerging energy supply sectors such as natural hydrogen and geothermal, at the same time continuing to support customers in the core business areas of petroleum and critical minerals.

At the same time, we expanded our business partnerships, to help reach more prospective clients and provide a more comprehensive offering.

Globe exploration platform

Getech delivered material updates to its Globe exploration platform and associated software products to increase the value-add these solutions have for its customers. This suite of Getech products supports organisations in conducting their own exploration for subsurface resources.

Globe is Getech's flagship product, a platform designed to enhance resource exploration by providing a 'digital twin' of Earth history. Developed over the last c. 15 years, Globe uniquely models Earth's evolution over the past 400 million years, combining extensive data with a user-friendly software interface. Its integrated geological, climatic and oceanographic data offer valuable insights for locating natural resources in the subsurface, including petroleum, carbon storage, geothermal, natural hydrogen and critical mineral assets. Globe is an innovative product that collects geoscience and earth observation data, and through proprietary computational modelling and AI-led machine learning techniques, identifies favourable exploration opportunities for our customers

The latest release, called Globe 2024, further solidifies Globe as the go-to solution for petroleum, mineral, hydrogen and geothermal explorers. This release offers even more value to its customers through, Enhanced Dynamic Plate Models, Expanded Paleogeographies and Paleo-surface Geology, Improved Crustal Architecture Mapping, Advanced Thermal Mapping Powered by AI and data specific for Natural Hydrogen exploration.

Globe is now also used as the basis for compiling country-wide data packages for use in specific exploration projects. These information packages offered to petroleum, geothermal and mining sectors provide explorers with a comprehensive and integrated insight to accelerate their exploration efforts. They are, in particular, useful for exploration bid-rounds when clients need to very quickly hone-in on the areas they want to apply for. Starting with the first information set for Zambia in 2024, Getech has built on this with dedicated packages for Brazil and the USA Lower 48 in early 2025.

Exploration Analyst is used by energy and mining companies to help identify new locations of petroleum, minerals, carbon storage and geothermal resources. The 2024 update retains the key capabilities to customise exploration maps on the fly and easily re-run analyses at the click of a button when new data becomes available. Additional capabilities include the ability to incorporate raster (grid) based analyses, as well as making search and filter tools available across the toolset.

Unconventionals Analyst is used by petroleum operators and financial institutions to manage onshore shale oil and gas projects and investments. The 2024 update builds on its already powerful functionality with a host of new capabilities designed to increase the productivity of its user-base of geoscientists, reservoir engineers and GIS professionals. The new release includes enhanced Gun Barrel capabilities, a new Realize Wells tool, an enhanced Create Well Sticks tool and a new standalone Trim Wells tool.

Data Assistant is used by energy resource organisations to integrate geoscience data with Esri's market-leading GIS technology. The 2024 update includes the ability to import a seismic 3D survey into voxels, to seamless display seismic data as a cube within ArcGIS Pro. Alongside this, the new version contains new capabilities for importing 2D cross-sections into 3D space and for batch importing well deviation surveys.

Getech continues to enhance these products to be aligned with customer needs, in order to deliver ever increasing value to subscribers and further build the Group's annually recurring revenue (ARR). 

Gravity and magnetic data

Getech has the world's largest commercially available database of potential fields (gravity and magnetics) data, assembled over c. 30 years. This data has been Getech's longest standing revenue source which it monetises through a combination of spot-sales and data subscriptions.

Annual revenues from gravity and magnetic data sales have been in decline for some time and in 2024 were disappointing. However, as many international oil and gas companies begin pivoting back to petroleum activities with the increase in focus on energy & mineral supply security, we anticipate the outlook for data-sales will improve.

Expert services

Getech offers expert services that support customers in locating subsurface resources and applying geospatial technology. This proposition builds fully on the data, products and staff expertise the Group has. In 2024, Getech secured a significant increase in services projects in energy transition sectors such as natural hydrogen, geothermal and critical minerals. Repeat purchases by several customers of these services provide confidence on the competitiveness of the Group's offering.

Getech has a number of long-standing service contracts with energy companies across the globe, whereby the Group provides its GIS expertise as a fully embedded solution. This ensures the client benefits from a geospatial service that is fully tailored to their processes and workflow. These services give Getech strong future revenue visibility.

As well as long-term service agreements, Getech undertakes short-term project-based engagements with some customers. These projects are important to Getech - not only as they help build relationships, but also as they enable Getech to address and solve new business challenges with innovative approaches. Some examples of short-term expert services projects are highlighted below:

Natural Hydrogen: Getech secured multiple separate contracts related to the exploration of natural hydrogen (also known as 'geologic' or 'white' hydrogen) with companies ranging from well-established international petroleum companies to pure-play natural hydrogen start-ups. These contract awards to help locate natural hydrogen resources for commercial development demonstrate that the Group is at the forefront of this exciting new subsurface energy transition opportunity.

A global Fast Moving Consumer Goods (FMCG) company wanted to evaluate the possibility of sourcing cooling water for its own operations in one of its industrial complexes, to reducing reliance on external water supplies and to reduce operational costs. Getech delivered a comprehensive study, providing the FMCG company with critical insights into the feasibility of self-producing cooling water.

Sandfire contracted Getech to identify favourable sites for sedimentary-hosted copper deposits in Australia. This analysis led to Sandfire applying for c. 7,000 sq. km of copper exploration permits.

East Star awarded Getech a project to locate porphyry copper deposits in Kazakhstan. The project, backed by the BHP Xplor 2024 accelerator programme, was the first time Getech's Globe geoscience platform had been used to locate porphyry copper.

It is expected that Getech will see continued success with expert services, with the ongoing global pursuit of both Petroleum and Energy Transition projects.

Partnerships

Getech established partnerships with various companies that provide strong synergistic value to the Group. These partnerships have the potential to generate stronger, more comprehensive market offerings and can also ensure access to a broader pool of revenue opportunities.

Natural Hydrogen Ventures (NHV), the world's first natural hydrogen investment fund. NHV provides early-stage funding to natural hydrogen exploration companies. Through this partnership Getech will: (i) screen NHV's prospective natural hydrogen projects thereby helping them to de-risk their portfolio; (ii) enhance its position with its own natural hydrogen exploration clients through the ability to introduce NHV as a potential key investor; and (iii) expand its contact and the potential for revenue generation within the sector through direct contact with NHV's client base.

NHV launched also the Natural Hydrogen Index (NHV NatH2 Index), the first index tracking the 10 most relevant publicly traded companies in the natural hydrogen sector. Getech is among these companies. The equal-weighted index includes those with the highest exposure to natural hydrogen, based on the estimated percentage of their activities dedicated to this emerging resource. The index is measured in USD, providing investors with a clear view of the sector's top players.

RED Engineering, a Tractebel company and part of the ENGIE Group, formed a strategic partnership with Getech. This collaboration focuses on advancing the decarbonisation of energy sources through innovative geothermal solutions. By leveraging the complementary strengths of both companies, this partnership merges Getech's expertise in locating subsurface resources with RED's proficiency in engineering solutions. Together, they offer comprehensive capabilities to enable organizations to significantly reduce their carbon footprints through the implementation of cost-effective low carbon geothermal energy solutions. 

Expro (NYSE: XPRO), a leading provider of energy services, has strategically partnered with Getech to propel low carbon geoenergy projects, including geothermal energy, natural hydrogen and carbon capture and storage (CCS). This collaboration brings together Expro's excellence in well evaluation and integrity with Getech's expertise in locating valuable subsurface resources, leveraging proprietary data, geoscience acumen and cutting-edge machine learning technologies.

Sound Energy (AIM: SOU) is a prominent UK-based gas producer with extensive operations in Morocco. Through the deal with Getech, both companies will combine their expertise to explore for natural hydrogen and helium resources across onshore Morocco. 

Kingfisher Energy Corporation (Kingfisher), the private international exploration company, and Getech signed a strategic collaboration agreement to facilitate extending its working relationship beyond Q1 2025. Getech will continue to support Kingfisher with its data, software and consultancy to locate natural hydrogen and helium accumulations in Canada.

ThinkOnward - As part of enhancing Getech's Artificial Intelligence capabilities, the Group partnered with ThinkOnward, a Shell spin-off company dedicated to solving challenges in subsurface exploration, to jointly leverage the global community of data scientists to solve challenges in critical mineral exploration.

Outlook

Energy security, affordability and limiting climate change will remain fundamental global themes in the coming years. Getech is uniquely positioned to help organisations locate the subsurface natural resources the world needs as it grapples with this energy trilemma.

The Group's data, software and expertise have proven its value to the petroleum, mining and energy transition sectors in 2024 and Getech's continued investment to enhance its offering will ensure it continues to provide material value to its clients in the future.

Max Brouwers

Chief Business Development Officer

Financial Review

2024 proved to be another year of transition for Getech, refocussing the business on core activities and advancing the use of our Globe geoscience platform, our extensive geophysical data and new Machine Learning techniques to assist in the identification of areas with the optimal geologic conditions for natural hydrogen production and other materials vital to sustainable power. However, as trading conditions were not as favourable as expected it became clear that additional working capital was required to both support ongoing operations and investment in Sales team to help grow revenues. Therefore, a combined placing and retail offer of £1.7m was successfully concluded in August 2024, putting the business on a more secure financial footing.

Revenue

In 2024, Group revenue rose from £4.0 million to £4.7 million, an increase of 16%. The growth in revenue was largely driven by an increase in sales from the Oil and Gas sector, including increased subscription revenues from Globe, Unconventionals Analyst and across our expert services.

Gravity and magnetic data spot sales decreased 42.5%, from £1.1m in 2023 to £0.6m in 2024. This was offset by a significant increase in expert services projects across all sectors, resulting in expert services revenues increasing to £1.2m in 2024, from £0.5m in 2023.

On an annualised basis, recurring revenues (ARR) increased from £2.8 million at 31 December 2023 to £2.9 million at 31 December 2024.

Orderbook and pipeline

Group orderbook is the amount of secured revenue which has not yet been recognised. It comprises the value of legally binding contracts in place that are yet to unwind to recognised revenue. The period covered by orderbook is usually within the range 1 to 5 years, with the highest proportion of orderbook assigned to year 1, and the lowest proportion to year 5.

Orderbook has a strong seasonality component and can vary both upwards - as new contracts are secured 'won' from the sales pipeline - and downwards - as contracts commence and orderbook is converted to revenue. As such, a downwards variation in orderbook is not necessarily a negative indicator.

The sales pipeline consists of potential commercial deals at various stages of the sales process, representing opportunities rather than confirmed revenue. It includes leads and prospects in different pipeline stages, such as analysis, proposal and negotiation. We use pipeline metrics to help forecast our likely future sales based on percentage risking (likelihood of success) and average conversion rates. Unlike the orderbook, which tracks secured contracts, the pipeline reflects potential revenue that has yet to be closed.

Our regular pipeline reviews allow us to measure sales team performance, track conversion rates and assess whether strategic targets are being met. In parallel, we are working hard to improve our management of the sales pipeline, introducing new best practice to help ensure consistency of approach across our sales team. These changes will enable us to better predict future revenues and increase the likelihood of converting opportunities into secured contracts. 

The Group orderbook at 31 December 2024 was £4.1m (2023: £4.5m), with the slight reduction due to the successful unwinding of the contracts to revenue during the year. Revenue of £2.6m will unwind from orderbook in 2025.

Cost base

During 2024, the Group's cost base was reduced to £5.9 million from £7.6 million in 2023. Cost base reconciliation below shows how our cost base aligns with the financial statements. The full year 2024 saving is lower than the previously reported annualised saving target of £2m as the savings took longer to implement than planned. However, the monthly run rate at the end of FY24 compared to the run rate prior to the cost saving initiative represented an annualised saving of £2m.

Cost base is measured as, cost of sales, administrative costs and development costs, less depreciation, amortisation and movement in provisions.

EBITDA

As a result of the significant cost reduction programme referred to elsewhere in this report the Group saw the EBITDA loss reduced to £0.67 million (2023: £2.7m loss). It is considered vital that our core business can be self-supporting and therefore further cost saving measures have been enacted in Q1 2025. It is therefore expected that we will reach positive levels of EBITDA in the 2nd half of 2025.

Operating cash flows

Getech's cash outflow from operations, before working capital adjustments, reduced significantly by £2.7m, at £0.5m million (2023: £3.2 million outflow). FY23 included c. £0.9 million of impairment adjustments relating to Goodwill (£0.3m) and the Freehold property being held for resale (£0.6m). After adjusting for these, the reduction in cash outflows is £1.7m, resulting from the cost reduction measures taken.

This cost reduction programme, expected to deliver c £2.0 million in annualised savings, took longer to implement than initially estimated. Further cost saving initiatives, amounting to an additional £1m of annualised savings, have been implemented in Q1 FY25 and Getech expects to be cash flow break-even from operations by end Q4 2025.

Liquidity and going concern

At the end of 2024, Getech held £0.9 million in cash and cash equivalents (2023: £0.4 million).

Getech's business activities and the factors likely to affect our future development, performance and position are set out in the Operational Review. The financial position of the Group, our cash flows and liquidity position are described in the financial statements.

After reviewing the Groups forecasts and projections, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements. The group therefore continues to adopt the going concern basis in preparing its financial statements. Information used to make this decision is detailed below.

In making the going concern assessment, the Board of Directors has considered Group budgets and detailed cash flow forecasts to 30 April 2026. The detailed forecasting models are built from Board approved budgets. From these budgets, revenue forecasting is regularly updated to take into consideration new contractually committed revenues, market sentiment, our current sales pipeline and any other influencing factors. Included in these forecasts is the sale of the freehold property, Nicholson House successfully concluded in February 2025 delivering net proceeds of £0.3m.

The Directors then further apply sensitivity testing to the revenue profiles based on the achievement of various levels of revenue from noncontractually committed sources. Alongside managements base case forecast which incorporates the positive impact of the cost saving measures implemented in Q1 of 2025, management prepared an extreme downside scenario where, outside of committed revenue and an historically validated rate of renewal for existing contracts, reduced revenue across recurring and services of £600k was modelled. Under this less probable and very negative scenario the Group has considered the potential actions available to management to mitigate the impact of these sensitivities.

Financial performance in 2025 is not expected to be materially impacted from 2024 levels due to the long-range revenue visibility through its recurring revenue business model alongside strong demand for services from its existing client base and historical performance that supports its projections. Based on current trading, the extreme downside scenario is considered very unlikely.

The Group continues to monitor the collection of monies from clients with no material delays in payments being cited and a significant proportion of its recurring revenue fees are billed annually in advance.

Simon Brown

Finance Director

Group Statement of Comprehensive Income

for the year ended 31 December 2024

Loss for the financial year is all attributable to the owners of the parent company.

* EBITDA refers to Earnings Before Interest, Tax, Amortisation, and Depreciation. The notes provided herein form part of these group financial statements.

Group Statement of Financial Position

as at 31 December 2024

The financial statements were approved by the board of directors and authorised for issue on 2nd May 2025 and are signed on its behalf by:

Chris Jepps Chief Executive Officer

Group Statement of Changes in Equity

for the year ended 31 December 2024

Group Statement of Cash Flows

for the year ended 31 December 2024

Notes to the Group Financial Statements

for the year ended 31 December 2024

Basis of preparation

Whilst the financial information included in this preliminary results announcement has been prepared in accordance with the recognition and measurement requirements of UK-adopted International Accounting Standards this announcement does not itself contain sufficient information to comply with UK-adopted International Accounting Standards and does not constitute statutory accounts for the purposes of section 434 of the Companies Act 2006.

The principal accounting policies used in preparing this preliminary results announcement are those that the Company has adopted for its statutory accounts for the year ended 31 December 2024 and are unchanged from those previously disclosed in the Group's Annual Report and Accounts for the year ended 31 December 2023.

Statutory accounts for 2023 have been delivered to the Registrar of Companies and those for 2024 will be delivered in due course. The Company's auditors have reported on the 2024 accounts; their report was unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain statements under s498 (2) or (3) Companies Act 2006. The 2023 audit report was unqualified, but did draw attention to a material uncertainty related to going concern without qualifying their report and did not contain statements under s498 (2) or (3) Companies Act 2006.

The statutory accounts for the year ended 31 December 2024 were approved by the board on 2 May 2025.  

Going concern

After reviewing the Groups forecasts and projections, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements. The group therefore continues to adopt the going concern basis in preparing its financial statements. Information used to make this decision is detailed below.

In making the going concern assessment, the Board of Directors has considered Group budgets and detailed cash flow forecasts to 30 April 2026. The detailed forecasting models are built from Board approved budgets. From these budgets, revenue forecasting is regularly updated to take into consideration new contractually committed revenues, market sentiment, our current sales pipeline and any other influencing factors. Included in these forecasts is the sale of the freehold property, Nicholson House successfully concluded in February 2025 delivering net proceeds of £0.3m.

The Directors then further apply sensitivity testing to the revenue profiles based on the achievement of various levels of revenue from noncontractually committed sources. Alongside managements base case forecast which incorporates the positive impact of the cost saving measures implemented in Q1 of 2025, management prepared an extreme downside scenario where, outside of committed revenue and an historically validated rate of renewal for existing contracts, reduced revenue across recurring and services of £600k was modelled. Under this less probable and very negative scenario the Group has considered the potential actions available to management to mitigate the impact of these sensitivities.

Financial performance in 2025 is not expected to be materially impacted from 2024 levels due to the long-range revenue visibility through its recurring revenue business model alongside strong demand for services from its existing client base and historical performance that supports its projections. Based on current trading, the extreme downside scenario is considered very unlikely.

The Group continues to monitor the collection of monies from clients with no material delays in payments being cited and a significant proportion of its recurring revenue fees are billed annually in advance.

Earnings per share

Basic EPS is calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted EPS is calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding plus the weighted average number of shares that would be issued on conversion of all the dilutive share options into ordinary shares. In the current and comparative year, the Group has incurred losses and as such has not presented any dilution of earnings per share in accordance with IAS 33 'Earnings per Share'. However, these dilutive shares would dilute the earnings per share should the Group become profitable.

Adjusted earnings per share

The Directors use 'Adjusted Earnings' and 'Adjusted Earnings per share' as a Key Performance Measure, which is defined as earnings before exceptional items. The calculated Adjusted Earnings for the year is as follows:

Events after the reporting date

In February 2025 the asset held for sale (Nicholson House) was sold for £725,000 less costs to sell, expected to be £38,000.

Related party transactions

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

The Company has taken advantage of the exemption available in FRS 101 whereby it has not disclosed transactions with the ultimate Parent Company or any wholly owned subsidiary undertaking of the Group, which would otherwise be required by IAS 24 'Related Party Disclosures'.

Notice of Annual General Meeting

The notice convening the Annual General Meeting of the Company has been posted to shareholders and the Annual Report and Accounts will be posted to shareholders shortly, with both soon to be available at the Company's website www.getech.com. The Annual General Meeting of Getech Group plc will be held on 29 May 2025 at 10.00 a.m.