Getech reports revenue growth, cost base reduction
Source - SMW
The Getech Group said revenue in 2017 totalled £10.9 million, up 55% from 2016 while its underlying like-for-like cost base fell by 32%.
Products remained a key engine of growth, accounting for 69% of Group revenue in 2017. This comes despite headwinds in its services division amid challenging geoscience services market conditions.
The company said it expects that the work completed in 2017 has laid the foundation for a number of important 2018 sales opportunities with the recently launched Fourth Sierra Leone Licensing Round highlighted as an important opportunity.
Getech delivered net operating cash inflow before product investment and restructuring costs of £2.1 million in 2017, which compares to a £0.3 million net cash out-flow for the 12-months of 2016.
Restructuring costs in 2017 totalled £0.5 million, and all outstanding M&A cash payments were settled, and a further £0.3 million of debt was repaid.
Cash balances totalled £2.4 million in 2017, which was flat on the figure reported in September 2017 and compared to an opening cash balance of £2.8 million.
Jonathan Copus, Getech CEO, said: 'In 2017 we undertook a programme of commercial, operational and cultural change that has significantly strengthened the Getech Group.'
'These steps align our products and services more firmly with the practical commercial needs of our customers, and we have entered 2018 with a full and diverse pipeline of opportunities - to which our cash profitability is strongly leveraged.'
At 10:03am: (LON:GTC) GETECH Group PLC share price was +1p at 27p