02 December 2019
By Maynard Paton
Results summary for Getech (GTC):
- Revenue fell 15% to its lowest first-half level since 2010. At least the H1 operating loss did not increase from H1 2018.
- GTC continues to be dependent on oil and gas operators purchasing its “market leading” data — the income from which remains “lumpy”.
- The level of recurring revenue implies a lot of work is needed before GTC can sustain positive earnings.
- The accounts are still rather fragile, with cash flow shored up by tax credits and capitalised development costs becoming more significant.
- Delays to both a Sierra Leone project and a property sale have not helped support the £9m market cap. I have sold out entirely.