Getech secures eight new contracts in geoscience sector
Getech, a global leader in subsurface resource location, has announced a significant boost to its business with eight new contract wins, collectively valued at £1.8 million. These contracts, encompassing subscriptions to Getech’s Globe platform, geoscience data, and expert consulting services, mark a substantial achievement for the company. This development is expected to contribute £0.6 million in revenue for the financial year ending December 31, 2023 (“FY23”), with unaudited revenue projections for FY23 approximately £4.0 million. The remaining £1.2 million from these contracts will augment Getech’s order book, which presently stands at £4.6 million, an increase from £4.4 million as of June 30, 2023.
Strategic Growth and Financial Outlook
– Enhanced Order Book and Revenue Projections: The addition of these contracts to Getech’s portfolio not only boosts its order book but also plays a crucial role in the company’s revenue strategy for FY23 and beyond.
– Strong Pipeline for 2024: Despite a cautious approach from clients leading to some project delays in FY23, Getech is entering 2024 with a strong pipeline, reflecting its resilience and adaptability in a transitioning market.
Getech Secures Contracts in Geoscience, Enhancing its Market Position
Expansion of Subscription Model and Annual Recurring Revenue
– Subscription Model Adoption: In a strategic move, Getech is transitioning new and existing customers to its subscription model, typically involving a minimum three-year commitment. This shift has led to an increase in annual recurring revenue (“ARR”) to £2.8 million, up from £2.4 million in FY22.
– Focus on Long-term Customer Relationships: The company’s objective is to migrate all customers to this subscription model upon contract renewal, emphasizing long-term relationships and stable revenue streams.
Innovative Products and Services
– Globe Platform Contract: Notably, the contracts include a three-year renewal for Getech’s Globe platform from an Asian multinational energy company. Globe is an innovative digital platform that integrates geoscience and geophysical data, utilizing computational modeling and AI-led machine learning to identify promising exploration opportunities.
– Data Assistant Software Subscription: Also included is the first global license subscription for Getech’s Data Assistant software by a US-based multinational energy company. This software facilitates efficient geoscience data integration into existing project workflows, enhancing geospatial decision-making.
Leadership’s Vision for the Future
Richard Bennett, acting CEO of Getech, expressed optimism about the company’s direction: “Entering 2024 with our substantially reduced cost base, increased order book, and growing ARR means the business is undoubtedly better placed following a year of transition in 2023. We are also expanding our exploration capabilities, targeting resources essential for the energy transition. Following COP28, we anticipate further opportunities to assist customers in locating critical minerals and geothermal projects vital to this transition.”