Revenue, earnings down at Getech as oil challenges continue

8th Nov 2016 12:07

(ShareCast News) - Oil services business Getech postes its preliminary results for the year to 31 July on Tuesday, with revenue of £7.03m, a significant reduction from the £8.64m reported last year.The AIM-traded firm's profit before tax was £0.67m for the year, less than half the £1.99m reported in 2015.Earnings per share were 3.25p, down from 5.77p."With oil prices remaining low and volatile throughout the financial year ended 31 July, the market backdrop to my sixth report as chairman remained challenging for a group largely focussed on the provision of products and services to the natural resources industries," said chairman Dr Stuart M Paton."In the first half of the financial year, Getech acted decisively to strengthen its operations through innovation around its core products and by implementing significant cost control measures."Paton said those steps resulted in a considerable improvement in Getech's trading performance in the second half of the year, when compared to the first half of the year."Building on this momentum, the group acquired Exprodat Consulting, largely by issue of new shares."We believe this counter-cyclical acquisition redefines our skill base within geographic information systems, which is already transforming the value proposition around the group's core activities and opening new opportunities to markets outside of oil and gas."Beyond 2016, Paton said that having built an "unparalleled suite" of global geological and geophysical data, analysis and products, Getech is now focussed on enhancing its offering through providing better access to its data sets and refocusing its offering to more practically address the commercial challenges faced by its customers."I am excited by the value potential that this looks to unlock."