29th Mar 2007 07:01
GETECH Group plc29 March 2007 For immediate release 29 March 2007 GETECH Group plc INTERIM RESULTS For the six months to 31 January 2007 The Board of GETECH Group plc is pleased to announce the Interim Results for thesix month period ended 31 January 2007. For further information, please contact: GETECH Group Plc www.getech.comDerek Fairhead, Managing Director 0113 322 2200Colin Glass, Finance Director 07831 258494 Teather & Greenwood 020 7426 9000Rob Naylor Buchanan Communications 01943 883990Eric Burns/Alastair Watson, Chairman's Statement I report the results of GETECH Group plc ("GETECH" or "the Company"), the oilservices business specialising in the provision and interpretation ofexploration data and petroleum systems evaluations, for the six months ended 31January 2007. Results Whilst your Board has strong confidence in the longer term performance of theCompany, the half year results were nevertheless disappointing. The Companyreported a loss before tax of £21,214 (six months ended 31 January 2006: profit£430,843) after interest receivable of £91,940 (six months ended 31 January2006: £59,121) on a turnover of £825,811 (six months ended 31 January 2006:£1,636,082). The post tax loss was £36,214 (six months ended 31 January 2006:profit £301,843) giving a loss per share of 0.13p (six months ended 31 January2006: profit per share of 1.09p). The figures include the adoption of Financial Reporting Standard 20 'Share BasedPayment' in respect of the amortised cost of share option schemes. This hasreduced the profit of the six months previously reported to 31 January 2006 by£17,000 and the year ended 31 July 2006 by £38,000. Dividend Your Board is confident of the medium and long-term future for the Company andintends to pay a dividend of 0.4p per share, costing £110,769, on 8 May 2007 toshareholders registered on 10 April 2007. Business Review As previously reported on 24 January 2007, the agreement permitting GETECH tocommence exclusive marketing of the Russian Arctic Shelf aeromagnetic data wassigned in December 2006 and the first order for this data set (£840,000) wassigned in January 2007. The revenue from this sale will be taken into theaccounts in the second half of the financial year once the deliverable producthas been generated. This order resulted from one of several discussions withoil majors and we are reasonably optimistic that at least one more sale of thesedata will be made in the second half of the current financial year. Generally, the demand for the Company's data and services remains strong butyour Board is fully aware of the dependence on winning a small number of largecontracts to achieve its revenue targets. This situation should ease as thePetroleum Systems Evaluation Group ("PSEG") continues to increase the number ofoff-the-shelf products available for sale. Currently, three studies have beencompleted, whilst a further three are in progress of which one should becompleted before the financial year end. These studies are in addition to threeproprietary projects, commissioned by oil companies, already completed by PSEG. We believe that sales of existing data, the continuous acquisition of new dataand the growth of PSEG will continue to underpin the profitability of theCompany. By building upon our inherent strengths and with a medium to long-termstrategy of synergistic acquisitions, we intend to ensure a sound platform forthe growth of GETECH. Premises The Company has now successfully relocated to larger and more appropriatepremises, with minimal disruption, and we are already noticing the benefits ofsuperior working conditions on the morale and efficiency of our team, whilstproviding an environment which is more attractive to potential new staff. Outlook We continue to have a first class reputation as a supplier and interpreter ofgravity and magnetic data to oil, gas and mineral companies worldwide and ourreputation for petroleum systems studies is growing such that your Board isoptimistic for the future of the Company. Peter Stephens Chairman 29 March 2007 FULL RESULTS BELOW CONSOLIDATED PROFIT AND LOSS ACCOUNT for the six months ended 31 January 2007 Six months Six months Year ended ended ended 31 January 31 January 31 July 2007 2006 2006 Unaudited Unaudited Audited (restated ) (restated) £'000 £'000 £'000Turnover 826 1,636 3,229Cost of sales (124) (454) (784)Gross profit 702 1,182 2,445Operating expenses (795) (793) (1,575)Operating (loss)/profit before share option amortisation (93) 389 870Amortised cost of share option schemes (20) (17) (38)Operating (loss)/profit (113) 372 832Interest receivable 92 59 140(Loss)/profit on ordinary activities before taxation (21) 431 972Taxation (15) (129) (276)(Loss)/profit retained and transferred to reserves (36) 302 696 Basic earnings per share (0.13)p 1.19p 2.62pDiluted earnings per share (0.13)p 1.19p 2.62p CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES for the six months ended 31 January 2007 Six months Six months Year ended ended ended 31 January 31 January 31 July 2007 2006 2006 Unaudited Unaudited Audited (restated) (restated) £'000 £'000 £'000(Loss)/profit for the financial period (36) 302 696Total recognised gains and losses for the financial period (36) 302 696Prior year adjustment (see note 2) (38) - -Total gains and losses recognised since the last financial (74) 302 696statements CONSOLIDATED BALANCE SHEET as at 31 January 2007 31 January 31 January 31 July 2007 2006 2006 Unaudited Unaudited Audited (restated) (restated) £'000 £'000 £'000Fixed assetsIntangible assets 1 1 1Tangible assets 46 61 38 47 62 39Current assetsStocks 300 - 166Debtors 1,930 927 808Investments 24 - 24Cash at bank and in hand 3,806 4,208 4,318 6,060 5,135 5,316 Creditors - amounts falling due within one year (2,291) (1,503) (1,357)Net current assets 3,769 3,632 3,959Net assets 3,816 3,694 3,998 Capital and reservesCalled up share capital 69 69 69Share premium account 2,461 2,461 2,461Share option reserve 58 17 38Profit and loss account 1,228 1,147 1,430Equity shareholders' funds 3,816 3,694 3,998 CONSOLIDATED CASH FLOW STATEMENT For the six months ended 31 January 2007 Six months Six months Year ended ended ended 31 January 31 January 31 July 2007 2006 2006 Unaudited Unaudited Audited (restated) (restated) £'000 £'000 £'000Net cash (outflow)/inflow from operating activities (418) 297 653Returns on investments and servicing of financeInterest received 92 51 140Net cash inflow from returns on investments and servicing of finance 92 51 140Taxation - corporation tax paid - - (222)Capital expenditurePayments to acquire tangible fixed assets (20) (44) (46)Net cash outflow from capital expenditure (20) (44) (46)Equity dividends paid (166) - (111)Net cash (outflow)/inflow before financing (512) 304 414FinancingIssue of share capital - 3,000 3,000Costs of share issue - (520) (520)Net cash inflow from financing - 2,480 2,480(Decrease)/increase in cash (512) 2,784 2,894Reconciliation of operating (loss)/profit to net cash (outflow)/inflow from operating activitiesOperating (loss)/profit (113) 372 832Depreciation 12 18 43Amortisation of share option schemes 20 17 38(Increase) in stocks (134) - (167)(Increase) in debtors (1,122) (274) (163)(Increase) in investments - - (24)Increase in creditors 919 164 94Net cash (outflow)/inflow from operating activities (418) 297 653 NOTES TO THE INTERIM REPORT For the six months ended 31 January 2007 1 The figures for the six months ended 31 January 2007 and 31January 2006 are unaudited. The financial information shown in the publicationdoes not constitute statutory accounts as defined in section 240 of theCompanies Act 1985. 2 The interim financial statements have been prepared on the samebasis and using the same accounting policies as used in the full financialstatements for the year ended 31 July 2006, except for the adoption of FRS 20 'Share Based Payment'. Prior period figures have been restated as appropriate.The interim financial statements, which have been neither audited nor reviewedby the Company's auditors, have been approved by the Board. 3 Taxation has been provided at the estimated effective rate of 30%for the year as a whole (2006: 30.5%). 4 Basic earnings per share is calculated on the basis of the profitfor the period after tax, divided by the weighted average of ordinary shares inissue in the period (six months ended 31 January 2007: 27,692,307, year ended 31July 2006: 26,575,666 and six months ended 31 January 2006: 25,477,232). 5 Diluted earnings per share is calculated on the basis of theprofit for the year after tax, divided by the weighted average number of sharesin issue plus the weighted average number of shares which would be issued if alloptions granted were exercised. The addition to the weighted average number ofordinary shares used in the calculation of diluted earnings per share for thesix months ended 31 January 2007 is Nil (year ended 31 July 2006: Nil, and sixmonths ended 31 January 2006: Nil). 6 Adjusted earnings per share is calculated as if all 27,692,307shares in issue at 31 January 2007 had been in issue for the whole of the period(six months ended 31 January 2007: (0.13)p, year ended 31 July 2006: 2.51p, andsix months ended 31 January 2006: 1.09p). 7 Earnings per share have been restated as a result of the adoptionof FRS 20 'Share Based Payment', see Note 2 above. The figures previouslyreported were: year ended 31 July 2006: basic 2.76p, diluted 2.76p, adjusted2.65p and six months ended 31 January 2006: basic 1.25p, diluted 1.25p, adjusted1.15p. 8 A dividend of 0.4p per share (2006: 0.4p) has been recommendedand is payable on 8 May 2007 to members on the register at 10 April 2007. 9 This statement is being sent to the shareholders of the Companyand will be available at the Company's registered office at Convention House,St. Mary's Street, Leeds LS9 7DP. ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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