Getech warns results will be significantly below expectations

10th Jun 2014 08:56

AIM-listed Getech has warned that as a result of slow purchasing levels by clients, it now anticipates that its results for the 12 months ended July 31st will be "significantly below market expectations". The group explained that the low purchasing levels experienced were in common with the wider upstream oil and gas service industry and said it was still confident in both its short and medium term prospects, with what it described as strong levels of demand for its consultancy work and a "very strong" sales pipeline."We are therefore confident that a number of significant contracts, including several Globe renewals, will be signed in the very near future," Getech said. Looking further ahead, it described the visibility of income as "still improving", but for now sees increasing signs that clients are disposed to start spending again and that the market is returning to normal. Chief Executive Raymond Wolfson said: "We continue to believe that the present position is the result of an industry-wide slowdown, and are disappointed that this has lasted longer than we expected. However, since mid-May we have signed more than $1.2m worth of new contracts, including our first contractual commitment to the second phase of Globe. "There are clear signs that the inertia in the market is lifting and, given the favourable reception we are receiving from our clients, we believe normal trading conditions have resumed."Shares had fallen 14.95% to 41.25p by 09:09.NR