The Getech Group (AIM; GTC) announces its Final Results for the 12 months ended 31 December 2020.
Accelerating progress to global net-zero by supporting customers in the optimisation of existing, and delivery of new, energy assets and strategic mineral resources.
Covid-19 and customer activity update
· In 2020 Getech balanced risk management with business development in zero-carbon energy.
· Covid-19 has created a challenging business environment, 2020 customer budgets reduced by c35%.
· Getech's orderbook, annualised recurring revenue and customer relationships remained robust, but revenue declined as customers cut back project work, which also impacted data sales.
· The move to home working was smooth; projects continue to be delivered on time and to cost.
· Actions implemented from 1 May 2020 reduced monthly Group costs by c26%.
· Getech retains further cost flexibility and has maintained the capacity to deliver its orderbook and the resources needed to maximise the impact of its sales conversations and new business activities.
2020 financial highlights
· Revenue £3.6 million (2019: £6.1 million)
· Gross margin 53%, protected by cost management initiatives (2019: 58%, adjusted)
· Orderbook remained strong £2.7 million at 31 December 2020 (31 December 2019: £3.1 million)
· Annualised Recurring Revenue £2.1 million at 31 December 2020 (31 December 2019: £2.3 million)
· Total cost base 20% below 2019 (2020: £5.1 million; 2019: £6.4 million)
· Adjusted[*] EBITDA £0.5 million loss (2019: £0.9 million profit)
· Net cash at 31 December 2020 £1.4 million (31 December 2019: £2.7 million)
Beyond 2020 - delivering diversified growth
· Getech is using its earth science and geospatial expertise to accelerate progress to global net-zero, by supporting its customers in the optimisation of existing, and delivery of new, energy assets and strategic mineral resources.
· For existing customers this means helping identify the highest value/lowest carbon-impact petroleum assets, whilst also utilising Getech's skills and technologies to support their net-zero asset investment.
· This work connects Getech with a wider group of net zero customers, with whom the Company is beginning to build a more diversified baseline of product and service sales.
· Getech's commitment to this path is underlined by the Company joining the United Nations' Race to Zero campaign - Getech's pledge is to be carbon-neutral by 2030.
· Getech will deliver this through the application of its products and skills, and by direct decarbonisation steps - taking targeted equity exposures in emergent carbon neutral value chains.
· In April 2021 Getech raised £6.25 million through a Placing, Subscription and Open Offer of shares.
· This will be used to grow and diversify Getech's activities across the zero-carbon economy, with particular focus on the green hydrogen, carbon capture, geothermal and strategic minerals sectors.
· Our focus is on activities that are essential, repeatable and strongly scalable.
· We will measure success through our carbon-neutral goal, our profit and the creation of asset value.
· In March 2021 Getech completed its first project investment - acquiring H2 Green, a data-led business that is using Getech's location analytics to establish a national network of green hydrogen hubs.
· Getech is also aligning its Board to these areas of focus - appointing a new Chairman and new NEDs. This brings expertise in clean technologies, zero-carbon investment, ESG and business scale up.
· Getech's Board is excited by the opportunities ahead and values the continued support of the Company's shareholders, customers and business partners.