Getech made an exciting announcement on Wednesday, revealing that it had secured eight new contracts with a combined value of £1.8 million.
These contracts encompass various services, including subscriptions to their Globe platform, geoscience data services, and the acquisition of expert consulting services.
For the 2023 financial year, Getech anticipates generating approximately £0.6 million in revenue from these contracts.
As a result, the company projects its unaudited revenue for the year ending December 31 to reach £4 million.
The remaining £1.2 million from these contracts will be added to the existing order book, which amounted to £4.6 million as of June 30 last year, compared to £4.4 million on the same date in 2022.
Getech also noted a shift in project timelines in a trading statement from December. Some projects initially scheduled for 2023 are now expected to close in the current financial year, resulting in a robust project pipeline for 2024.
Additionally, the company is making strategic changes in its business model by transitioning new customers to a subscription model and migrating existing clients to longer-term contracts with a minimum commitment of three years.
This shift has boosted annual recurring revenue (ARR) to £2.8 million, up from £2.4 million in the 2022 financial year. Getech’s ultimate goal is to migrate all customers to the subscription model upon contract renewal.
Among the notable contracts secured by Getech is a three-year renewal agreement for its proprietary Globe platform, obtained from a multinational energy firm in Asia.
Globe is a digital platform that utilizes earth science data to facilitate the exploration of subsurface resources crucial for the energy transition, including carbon storage, geothermal energy, natural hydrogen, and critical minerals.
Furthermore, Getech announced a significant milestone in the form of a global license subscription for its Data Assistant software, awarded by a multinational energy company based in the US.
Data Assistant enhances efficiency and cost-savings by streamlining the transfer of geoscience data into existing project workflows and improving geospatial decision-making capabilities when integrated with ArcGIS Pro.
Acting CEO Richard Bennett expressed optimism about the company’s future, highlighting their reduced cost base, increased order book, and growing ARR as positive indicators following a year of transition in 2023.
He emphasized their commitment to helping customers locate subsurface resources essential for the energy transition, such as critical minerals and geothermal projects, in line with global efforts to phase down fossil fuels.
Getech Group’s shares saw a substantial increase, rising by 32.38% to 6.95p at 1136 GMT.