Business
Trading Update: 6 months to 30 June 2019
Trading Update: 6 months to 30 June 2019.
About this update from Getech Group Plc
[{"type":"text","content":"\n \nRNS Number : 8449J GETECH Group plc 22 August 2019 \n\nGetech Group plc\n(\"Getech\" or the \"Company\" and with its subsidiaries the \"Getech Group\")\nTrading Update: 6 months to 30 June 2019\n \nGetech (AIM; GTC) provides geoscience and geospatial products and services to companies and governments who use them to de-risk exploration programmes and improve their management of natural resources. The Group's activities focus on a suite of data, knowledge and analytical products, the value of which are enhanced through services that leverage Getech's products and technical skills.\nThe Company produces this trading update ahead of the publication of its interim results on or around 30 September 2019. \n \n \nOperational update\nDevelopment of Globe remains on time and to cost - Globe 2019 was released to customers at end-July. In H1 2019 Getech completed the upgrade of its software products to ArcGIS Pro, added to its data holdings and began feasibility work on the potential to enhance MultiSat.\nGravity & Magnetic and Geospatial Service teams continued to be fully utilised and work to reposition Geoscience Services was rewarded with further governmental engagement and new contracts from customers expanding their investment in exploration.\nGetech is exploring a range of organic and acquisitional opportunities to further enhance and extend its product and service offering.\nH1 2019 - revenue, sales, costs and cash\nRevenue in H1 2019 is expected to total £2.5 million (H1 2018: £2.9 million). In addition, in H1 2019 Getech closed £1.6 million of new forward sales (H1 2018: £1.4 million). A significant portion will unwind to revenue in H2 2019.\n· Lower H1 revenue in large part reflects a near-term reduction in the size of the Geoscience Services team, a step taken in Q4 2018 to address the team's lossmaking position.\n· Higher new forward sales of products and services grew Getech's order book by £1 million (30 June 2019: £3.0 million; 30 June 2018: £2.0 million) and increased the level of annualised recurring revenue by £0.8 million (30 June 2019: £2.3 million; 30 June 2018: £1.5 million).\n· The total value and diversity of data sales in H1 2019 rose year-on-year.\nCost savings that resulted from the restructuring and relocation of Geoscience Ser...