Getech, a world-leading locator of subsurface resources, today announced eight new contract wins that represent in aggregate a total value £1.8m. The contract wins comprise of subscriptions to the Company's Globe platform, geoscience data and the purchase of expert consulting services.

The Company expects to recognise £0.6m of revenue from these contracts in the year to 31 December 2023 ("FY23") and expects unaudited revenue for FY23 to be approximately £4.0m. The balance of £1.2m will be added to the Company's order book, which currently totals £4.6m (30 June 2023: £4.4m). As previously highlighted in our trading statement in December 2023, due to a growing level of caution amongst the Company's client base a number of projects expected to close in FY23 will now occur in this financial year, and so Getech enters 2024 with a strong pipeline.

Alongside new business activity, the Company is now signing up all new customers to its subscription model, as well as migrating existing customers to longer term contracts - which typically have a minimum commitment period of three years. As a consequence, the Company is pleased to report annual recurring revenue ("ARR") has increased to £2.8m (FY22 £2.4m). Our objective is to migrate all customers to a subscription model as contracts come up for renewal.

Included in the new contracts announced today is a three year renewal contract for Getech's Globe platform from an Asian multinational energy company. Globe is Getech's proprietary digital platform of earth science data that facilitates the exploration and location of subsurface resources that are vital for the energy transition, including carbon storage, geothermal, natural hydrogen and critical mineral assets.  Globe is an innovative product that collects geoscience and geophysical data, and through proprietary computational modelling and AI-led machine learning techniques, identifies favourable exploration opportunities for its customers.

Also included in the contracts is a first global license subscription for Getech's Data Assistant software. The contract was signed with a US-based multinational energy company. Data Assistant is an easy-to-use extension to ArcGIS Pro that enables customers to easily transfer geoscience data into their existing project workflows leading not only to efficiency cost-savings but also to better geospatial decision making. A video overview of the product can be found here:

Richard Bennett, acting CEO said:
"Entering 2024 with our substantially reduced costbase, increased order book and growing ARR means the business is undoubtedly better placed following a year of transition in 2023.

We have also invested in expanding our exploration capabilities, targeting resources associated with the energy transition. The recent COP28 demonstrated again the world's commitment to phasing down fossil fuels and in 2024 we expect to benefit from this by helping our customers locate the subsurface future facing resources such as critical minerals and geothermal projects that are so vital to the energy transition."

KeyFacts Energy Industry Directory: GETECH   l   KeyFacts Energy news: Contract Awards