News blog

GETECH Group

• BY: Andrew Hore |
• POSTED: 02/01/2013 |

Geological information and services provider GETECH Group has won $2m worth of additional orders from international oil and gas companies and the data was delivered by the end of December.

The two deals were for information and data from the company’s global gravity and magnetic datasets, and they were worth $1.5m and $500,000 respectively.

Prior to these latest deals, the rebranded Globe part of the business had secured nine sponsors on multi-year contracts, five of which were signed up by July.

This provides more visibility to revenues and reduces the dependence on one-off deals. Globe is effectively the core knowledge base of the business, which is being constantly updated, and sponsors can choose to different aspects of the knowledge.

The figures for the year to July 2012 show a profit of £1.25m on revenues of £6.44m. House broker WH Ireland forecasts a 2012-13 profit of £1.37m, rising to £1.49m next year.

Net cash was £2.61m at the end of July 2012. A final dividend of 0.8p a share took the total for the year to 1p a share, up from 0.2p the previous year, which was much higher than expected. The dividend is covered 3.2 times. GETECH has gone a long way to restoring its dividend to its previous levels and the company is financially strong enough for the dividend to surpass the 1.3p a share paid out for the year to July 2008.

At 50.5p a share, up 6p, GETECH is valued at £14.8m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2012_39.pdf