Getech upbeat on outlook after solid 2021

6th Apr 2022 11:40

(Sharecast News) - Green hydrogen company Getech updated the market on its trading on Wednesday, reporting that 2021 revenue from geoenergy products and services rose 20% to £4.3m, in line with market expectations.

The AIM-traded firm said its order book grew 25% to £3.3m as at 31 December.

It said it was focussed on "responsible" capital management in the year, with a "strong" net cash position of £5.1m at year-end.

Getech said growth in revenues and sales continued into 2022, with a "robust" first quarter performance facilitating a "strong" outlook ahead.

Increased global demand for sustainable and secure energy provides a solid platform for Looking ahead, the company said its first two green hydrogen hubs in Inverness and Shoreham were progressing towards development.

In Shoreham, the firm was finalising a detailed development schedule, which it expected to review and agree with the port authority in the second quarter.

Development planning was also underway at Inverness, with an agreement with the Highland Council "opening the potential" for the "anchor project" to be scaled into a regional green hydrogen network.

Across the rest of 2022, Getech said its focus would be on the delivery of its growth strategy - expanding its pipeline of products and services, replicating and scaling up its green hydrogen asset development model, building strategic partnerships, and pursuing energy co-location opportunities within the critical minerals sector.

"It is clear the world needs to substantially increase energy investment to meet the goals of energy security and transition to a low carbon future," said chief executive officer Jonathan Copus.

"In 2022, fuelled by growth in company and government spend, energy investment could total as much as 13% of global GDP, the highest level on record.

"Getech is ideally positioned to support this 'waterfront' expansion in energy capital spending."

Dr Copus said that drove revenue and order book growth by 20% and 25%, respectively, in 2021, and resulted in a "significant broadening" in the company's sales and business development pipelines, with the positive trend continuing into 2022.

"By investing in our unique geoscience data and software products, we are extending their application to high-growth geoenergy sectors beyond petroleum - targeting geothermal, critical minerals, hydrogen and carbon storage.

"The rapid expansion of our green hydrogen development activities also demonstrates how we are leveraging our foundation products and expertise to build strategic relationships that open opportunities for Getech to participate in high-value decarbonisation projects."

The company had positioned its locate-develop-operate business model to maximise the value of its products, technologies, and skills, Dr Copus said, and to deliver "transformational growth" in shareholder value.

"We have moved into 2022 with confidence and look forward to increasing our share of a primary energy market that is undergoing unprecedented change and growth."

Getech said it would publish its full-year results for the year ended 31 December in May.

At 1110 BST, shares in Getech were up 3.23% at 32p.