Getech's annual pre-tax profits drop

4th Nov 2014 15:53

Getech, the oil services business specialising in the provision of exploration data and petroleum systems evaluations, on Tuesday reported a drop in annual pre-tax profit as revenue fell. Profit before tax fell to £1m from 2013's £2.2m, as revenue declined to £6.5m from £8m the prior year. Earnings per share stood at 5.21p, compared to the 5.57p a year earlier, while cash levels dipped to £3.4m from £4.3m.However, the proposed final dividend of 1.76p marked an increase of 10% on the final dividend for the year ending July 2013 of 1.60p, resulting in a full year dividend of 2.20p, up from last year's 2.0p.Stuart Paton, non-executive chairman of GETECH Group, said: "Following challenging business conditions through much of 2013, the company had a strong final quarter and delivered a solid set of results for the full year."A number of key wells in new plays proved unsuccessful, leading some companies to reconsider their exploration expenditure. There is also increasing concern about China impeding growth prospects of a global economy, which continues to soften oil prices as seen in the last few months.However, optimistic about the large contracts already secured, Paton added that "[...] forward committed income, increasing interest from national oil companies and the strength of our data sales in the US, where exploration spend remains high, give us confidence in the performance of the business going forward."Getech's Globe Network has already secured five sponsors and is set to be upgraded in terms of resolution and deliverability. Key strategy includes engaging a wider range of clients globally, as well as longer term propriety contracts.