In This Article:
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Revenue: GBP2.2 million for H1 2024, up 16% from the same period last year.
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Cost of Business: GBP2.8 million, down nearly 30% due to restructuring.
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EBITDA Loss: Reduced to GBP0.3 million.
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Contractor Order Book: GBP4.7 million in contracted revenue.
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Cash Position: GBP200,000 at the end of the period, increased to around GBP2 million post-placing.
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Annual Recurring Revenue (ARR): Up nearly 10% to GBP2.9 million.
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Sales Pipeline: GBP9.6 million across various platforms and services.
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Fundraising: GBP1.7 million raised through placing and retail offer.
Release Date: September 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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GETECH Group PLC (LSE:GTC) reported a 16% increase in revenue for the first half of 2024 compared to the same period last year, indicating positive growth momentum.
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The company has successfully diversified its revenue streams, with over 30% of revenues now coming from non-oil and gas customers, aligning with the energy transition.
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GETECH Group PLC has a strong sales pipeline valued at GBP9.6 million, which is expected to support future revenue growth.
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The company has reduced its cost base by nearly 30%, primarily due to the closure of the H2 green business, which has helped improve financial stability.
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GETECH Group PLC has made significant progress in developing AI and machine learning techniques to enhance data analysis for new industries such as natural hydrogen and helium exploration.
Negative Points
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Despite the revenue growth, GETECH Group PLC reported a loss of GBP0.3 million on an EBITDA level for the first half of 2024.
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The company's cash position was weak at the end of the period, with only GBP200,000, necessitating a GBP1.7 million fundraising to improve liquidity.
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The closure of the H2 green business and restructuring efforts in 2023 were challenging, resulting in a significant reduction in headcount.
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GETECH Group PLC faces competition from well-funded companies in the data-led exploration market, which could impact its market position.
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The company's progress in geothermal and carbon storage sectors is slower compared to battery metals and natural hydrogen, potentially affecting diversification efforts.
Q & A Highlights
Q: What percentage of the opportunity pipeline are you realistically expecting to win? A: Richard Bennett, CEO, stated that while he wouldn't answer directly, the company is confident with the market numbers provided by Cavendish. They recognize the need for more salespeople and plan to recruit three to four new sales and business development personnel by the end of the year to convert as much of the pipeline as possible.