The geoenergy and green hydrogen company, Getech Group (GTC ), said strong trading for the year to 31 December 2021 has continued into FY22, thereby facilitating a strong outlook ahead.
In a trading update for FY21, Getech said revenue from its geoenergy products and services increased by around 20% to £4.3m, up from £3.6m in FY20 and in line with its expectations.
The Company’s order book increased by 25% to £3.3m at 31 December 2021, up from £2.7m in the year to 31 December 2020. Meanwhile, an increased focus on responsible capital management resulted in Getech recording a strong net cash position of £5.1m for FY21.
Getech highlighted to investors that the growth in revenues and sales seen in the FY21 period has continued into FY22 with robust 1Q22 performance facilitating a strong outlook ahead.
After raising £6.25 million in April 2021, Getech has been able to reposition its business model and strategy to support an accelerated delivery of a focused path to decarbonisation.
The Company expanded the application of its geoscience and data products into essential tools for developing new geothermal, critical minerals, carbon/energy storage and green hydrogen projects and established a low carbon ‘locate-develop-operate’ business model.
Getech also made several senior management hires over the year, including senior executives in engineering, economics, project delivery and business development.
Meanwhile, the Company purchased its first direct asset investment in green hydrogen in FY21 by purchasing H2 Green, a company developing green hydrogen networks of production, storage, and distribution facilities to decarbonise commercial transport.
As a result of this work, the Company signed strategic alliances with several industry partners, securing exclusivity across a wide portfolio of hub locations. It is now working to develop its first green hydrogen hubs, having secured two separate projects in Shoreham and Inverness.
Getech acknowledged that the global increase in demand for sustainable and secure energy has provided a solid platform by which the Group can deliver further growth and expansion.
“Aligned with growing revenue, a strong balance sheet and a robust business development pipeline, Getech’s Board is confident in the Company’s outlook,” it told investors this morning.
It said the growth in sales and revenue achieved during FY21 that has continued into 1Q22, demonstrates the strong demand for the company’s products and services in locating and de-risking a wide range of energy and mineral resources, across different geographies.
Shares in Getech Group were trading 5.65% higher at 32.75p during late morning trading.
Commenting, Getech’s Chief Executive, Dr Jonathan Copus, said: “It is clear the world needs to substantially increase energy investment to meet the goals of energy security and transition to a low carbon future. In 2022, fuelled by growth in company and government spend, energy investment could total as much as 13% of global GDP, the highest level on record.”
He said Getech is “ideally positioned” to support this ‘waterfront’ expansion in energy capital spending which has driven revenue and order book growth by 20% and 25%, respectively.
The expansion has also resulted in a significant broadening across the company’s sales and business development pipelines, with the positive trend continuing into FY22, he added.
The Company anticipates this growth momentum to continue as the pace of progress to net zero accelerates. At the same time, the Company is focusing on progressing its first two green hydrogen hubs, which are located in Inverness and Shoreham, towards development.
In Shoreham, the Company is finalising a detailed development schedule, which it expects to review and agree with the port authority in 2Q22. Meanwhile, development planning is also underway at the Inverness site, with an agreement with the Highland Council opening the potential for this anchor project to be scaled into a regional green hydrogen network.
“The rapid expansion of our green hydrogen development activities demonstrates how we are leveraging our foundation products and expertise to build strategic relationships that open opportunities for Getech to participate in high-value decarbonisation projects,” said Copus.
He added: “We have positioned our locate-develop-operate business model to maximise the value of our products, technologies, and skills, and to deliver transformational growth in shareholder value. We have moved into 2022 with confidence and look forward to increasing our share of a primary energy market that is undergoing unprecedented change and growth.”
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