Oil exploration data services provider GETECH Group reported full year results that were ahead of house broker WH Irelandís recently upgraded figures.
The broker had upgraded its forecast profit to £500,000 but the outcome for the year to July 2011 was a profit of £670,000, on revenues that increased from £3.25m to £5.33m. Sales of Iraqi and Russian data increaased revenues in the year. GETECH lost money in the previous year. The renegotiation of a revenue sharing agreement helped with this improvement and it will continue to benefit future periods.
GETECH had net debt at the end of the previous financial year but this was turned into net cash of £585,000 at the end of July 2011. GETECH has recommenced paying dividends and the final dividend is 0.2p a share.
WH Ireland forecasts a profit of £730,000 in 2011-12. The shares are trading on 10 times prospective 2011-12.
The company’s strategy is to try to smooth revenues by getting longer-term commitments to global studies from its customers. A larger sales force will also mean that there should be more regular sales of reports. A European magnetic data compilation is being launched.
GETECH is looking for acquisitions with synergy with existing business in terms of skills and data.
At 20.5p a share, GETECH is valued at £6m.
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