Getech, a world-leading locator of subsurface resources, announces the following trading update for the six months to 30th June 2025.

The start of 2025 marked a new period for the business. On 22nd January, Chris Jepps, previously Chief Operating Officer, was appointed Interim Chief Executive Officer. The immediate focus has been to re-set the financial balance of the business and move to being EBITDA positive. Within the first three months of the year, the annual cost base was reduced by c. 20%, a c. £1 million reduction (on an annualised basis), achieved primarily through reducing headcount but without comprising the Group's ability to deliver for clients. In parallel, the Company set out a new, sustainable, business strategy, which re-focuses the Group on its traditional markets of Oil and Gas and Mining - where Getech has long-term relationships with many of the largest companies operating in these sectors - while continuing to progress high-quality, selective opportunities in Natural Hydrogen.

In H1, trading conditions remained challenging, nevertheless the Group expects to achieve revenues of £2.09 million (H1 2024: £2.15m) and due to efficiencies achieved, adjusted EBITDA is expected to have improved to a loss of £0.1m (H1 2024: £0.3m loss) despite an impact of £0.1 million in reduced revenues due to factors outside of our control (such as adverse movements in foreign exchange), placing the Company on track to be EBITDA positive for the year.

In tandem with repositioning Company's strategy and re-setting the cost-base to improve profitability, the management team is focused on placing the Group on a path to increasing revenues.  To achieve this objective, the sales team has been expanded in the US and the UK with two new appointments in 2025, including a new Sales Director. This key hire, previously engaged as an external consultant, is now a central part of the Sales team and responsible for implementing a new structure and approach to identifying and securing new business opportunities expedited by his existing knowledge of the Company.

The Group's largest market - the oil and gas sector - has recently benefitted from the change in US administration and the increase in global energy security concerns. However, uncertainty around trade tariffs, risk of global recession and decreasing oil prices have also presented some headwinds. Taken together and entering the traditionally stronger second half of the year, the Group continues to believe it has a sufficient pipeline of expected renewals and new business opportunities to meet the target of delivering mid-to-high single digit organic revenue growth and being EBITDA positive for 2025.

CEO Q&A: Chris Jepps Looks Back on His First Six Months:

What were your first thoughts when you were offered the role of CEO?

I knew things were tough and that it would not be easy to turn the business around in the current economic environment. However, I believed in the strengths that Getech has and could see a few things that might benefit from change as well as some untapped potential to provide growth.

Perhaps most importantly, Getech truly has some fantastic products, and a very supportive, long-term client-base. Plus, our initiatives in natural hydrogen and helium – which I thought then, and still do now, really could bring material upside.

So, yes, it was going to be challenging, as any turnaround is. But, I accepted the challenge and I’m glad that I did.

What changes have you made since taking over?

So, there’s two sides to the changes so far: one is controlling the costs, and the other is to set the business on a path to increasing its revenues.

On the costs front – it was clear, looking at the numbers that we really needed to rebalance the books, and to get on and do that quickly. So, with the help of the rest of the executive management team, Max Brouwers and Simon Brown, and our Senior Leadership Team, we embarked on a process of cost-cutting.

It was a pretty tough start to the year: we took around £1m – or 20% – of our annualised cost base out – mainly by reducing staff numbers, which is obviously always unpleasant. The challenge was to do it without impacting our ability to deliver on our core products and services for our customers, which we have largely achieved.

On the revenue front – we have appointed Paul Carey as our Sales Director, a key hire for us. Alongside selling, Paul is tasked with improving the way our sales team is structured and managed, and ultimately with driving our sales numbers.

Are current market trends favourable or negative for Getech?

On balance, I think they’re more favourable. In the first half of 2025, we’ve had a change of US administration, which very much came in looking like it would be supportive to oil and gas sector, but obviously there’s been quite a bit of uncertainty since then around global trade tariffs, conflict in the Middle East and so on. So, it’s a bit of a mixed picture, but stable oil prices at a good level are favourable to our key customers and are generally helpful to our core business.

We also see a continued push towards Net Zero and electrification. All benefitting our work in mining, geothermal and natural hydrogen. Of course, it remains to be seen how these market trends play out, given we are working through an energy transition, which is going to be a decades long process. In the meantime, I feel we are well placed.

How has the business traded in the first 6 months of 2025?

We added sales staff to our US office at the start of the year, and with a new Sales Director, we are steadily improving the way our sales team performs.  So far this year, we’ve already renewed some important contracts – which is also helpful in replenishing our order book.

So, we’re on track with expectations. We’re roughly flat on revenues with the same period last year, but this is with an improved adjusted EBITDA. Add to that our strong pipeline of opportunities and we are still targeting mid- to high- single-digit growth for 2025.  Historically, Getech has tended to be more H2 and Q4 loaded in terms of sales, so we’re continuing to push hard for those sales through the rest of the year.

Which opportunities are you prioritizing?

Our immediate focus for revenues is on our core geoscience offerings – primarily Globe, our gravity and magnetics data and our Unconventionals software – selling to international oil companies, super majors, mining companies, as well as national energy companies and government regulators: a large number of which we already have relationships with. Leveraging our products through our AI capabilities and expert services work continues to be well received and there’s a lot of contract opportunities in play.

We also have a number of longer-term strategic value projects such as our helium and natural hydrogen initiatives – sectors where we are emerging as the market-leader due to our incredible data and unique modelling expertise. We have two or three of these on our books, and we’re working those through by building joint ventures with key partners that provide local expertise and capability.

Personally, I also believe there’s untapped potential in the geospatial market – a sector I am close to having been Technical Director of Exprodat which Getech acquired in 2017. Our Exprodat brand is still recognised as a leading GIS expert for the natural resources and energy sectors. So, watch this space on that one.

What is your main message to shareholders?

My message is simple – our priority for this year is to rebalance the business and, frankly, to start making money again. We’re on the back of many years of underperformance, and while we’re disappointed with our share price, we understand why it’s at this level.

I know from our post-results roadshow feedback that some investors would like to hear more from us, but they also understand that it’s a question of getting the balance right. When you trade and close contracts almost every week – as Getech does – you obviously don’t announce every single contract win that you bring in. Instead, we focus on announcing the larger ones if they are strategic or a key part of our annually recurring revenue.

So, we are addressing our immediate challenges, and we have already made a good start. We are on track to achieve our targets and I believe that if we meet them, then the share price will begin to recover and we can move to the next stage which is to really grow the business.

KeyFacts Energy Industry Directory: GETECH