Business
Trading Update
Trading Update.
About this update from Getech Group Plc
[{"type":"text","content":"\n\nThis announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a Regulatory Information Service, this information is considered to be in the public domain.\n \nGetech Group plc\n(\"Getech\" or the \"Company\")\nTrading Update\n \nGood progress in 2024, well positioned for an improved 2025\nGetech (AIM: GTC), a world-leading locator of subsurface resources, is pleased to provide the following trading update for the financial year ended 31 December 2024.\nThe Company expects to report a 17% increase in revenues to £4.7m (2023: £4.0m). The rise in sales came from the retained client base and new services income from the growing portfolio of work supporting sub-surface exploration for materials connected to the Energy Transition such as natural or white hydrogen, battery materials or geothermal sources of energy. The Group orderbook as at 31 December 2024 was £4.1m (2023: £4.5m), with the slight reduction due to the successful unwinding of the contracted orderbook to revenue during the year.\nAnnual recurring revenue (\"ARR\") in FY24 was £2.9m (2023: £2.8m) with the management team continuing to focus on expanding ARR income through a subscription model and aiming to both add new clients and increase the scope of services and value-add provided to existing clients.\nIn August 2024, the Company raised gross proceeds of £1.7m through a Placing and Retail Offer, thereby strengthening the financial position of the Company and providing new capital to invest in the Group's sales and R&D teams. As at 31 December 2024, the Company had net cash of £0.9m (including a £0.1m project security bond).\nCost reduction activity was a key focus in 2024. Approximately £2m of annualised costs have been taken out of the business alongside the closure of the H2 Green projects. However, the cost reduction programme has taken longer to implement than initially estimated, impacting the EBITDA margin in FY24, and EBITDA is expected to be in the region of £0.5m loss (2023: £2.7m loss).\nHaving sold part of the Company's HQ in January 2024, the final building, Nicholson House, is currently under offer. Once sold, this will release £300k of net proc...