5th Jun 2009 16:21
GETECH Group plc
("GETECH" or the "Company")
Trading update
GETECH, a leading oil services business specialising in the provision of data, studies and interpretation services to the oil and mining exploration sectors, announces a trading update.
Despite the recovery of the oil price to in excess of $60 per barrel, the Company is experiencing delays in orders for its data and studies. While clients, largely very substantial companies, remain demonstrably interested in the Company's products, they are indicating that current restraints on their exploration budgets mean that they do not have funds available to make the purchases at this time. The Directors believe that this position will not now be reversed before the end of its financial year, and that its year-end result will therefore be substantially below market expectations.
The Directors are comfortable with the strength of the Company's balance sheet, which has no current borrowings and includes unencumbered ownership of its freehold property in Leeds. It is nevertheless taking a number of courses of action to reduce the impact of the budget restraints over the period until the recovery occurs.
Raymond Wolfson, Chief Executive commented "Despite a number of positive signs in the market, the oil and gas companies are still operating on a constrained basis and the budget freezes and cuts that I referred to on 28 April 2009 have continued. We have therefore experienced the frustration of simultaneous interest from clients and their inability to find funds to buy products and services from us. The continuing level of interest in our products and services does, however, give us confidence for the future."
For further information, please contact:
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GETECH Group plc |
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Derek Fairhead, Executive Chairman Raymond Wolfson, Chief Executive |
0113 322 2200 |
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WH Ireland Limited |
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Katy Mitchell |
0161 832 2174 |
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Gary Marshall |
0113 394 6610 |
Related Shares:
Getech Grp