Shares in GETECH Group have declined as the company revealed an increase in costs and a decline in revenue, resulting in a widened pretax loss for the first half of the year. The decrease in sales volumes within the oil and gas sector contributed to this decline. However, the company remains optimistic about its second half, citing a strong order pipeline, despite delays in spending decisions.
At 0802 GMT, shares were down 22% at 7.25 pence, reflecting investor concerns.
GETECH Group, a London-based provider of data and software to the energy industry, recorded a pretax loss of £2.9 million ($3.5 million) in the first half of this year, compared to a pretax loss of £1.2 million in the same period last year. Revenue also dropped from £2.7 million to £1.9 million.
To counteract these challenges, the company has implemented a cost-reduction program that will result in around £2 million in savings by 2024. As part of these measures, board and management overheads have been removed from the H2 Green division. GETECH Group continues to prioritize reducing office costs and selling Kitson House.
Despite the current setbacks, GETECH Group remains confident about its future prospects within the evolving energy and climate tech landscape and its ability to support industry decarbonization. The company has plans to focus on expanding and diversifying its revenue streams in the upcoming year.