Getech shares plummet as swings to first half loss

(Alliance News) - Getech Group PLC on Monday said revenue declined as it swung to a pretax loss due to one-off charges.

Getech shares fell 16% to 7.80 pence each on Monday morning in London.

The Leeds, England-based green hydrogen company reported that revenue declined 30% to GBP1.9 million in the first half of 2023, from GBP2.7 million the year prior. It said the decrease in revenue was due to lower sales of both oil and gas.

The firm said pretax loss widened to GBP2.9 million, from GBP1.2 million a year ago. It noted exceptional costs of GBP700,000, relating to restructuring and goodwill impairment from its acquisition of H2 Green Ltd. H2 Green is a wholly-owned subsidiary that designs and develops green hydrogen hubs in the UK.

Getech did not declare a dividend for the first half, unchanged from 2022.

Looking ahead, the firm said it has a "good pipeline" of orders, which it noted will boost its traditionally stronger second half of the year.

Chair Richard Bennett said: "The results for H1 show a reduction in sales over the comparative period in the prior year, when performance was boosted by a large one-off payment. However, our order book is stable and we are generating a good pipeline of future projects, the majority of which come from outside of the oil and gas market.

"There is no doubt that Getech's expertise is required to locate the resources needed to power the substantial energy transition market - clean energy and critical minerals - and we are positioning the business to do exactly that."

By Harvey Dorset, Alliance News reporter

Comments and questions to [e-mail]

Copyright 2023 Alliance News Ltd. All Rights Reserved.