Getech revenues slide following cutbacks to geoscience services unit
AIM-listed group Getech expects interim revenues to slide following the downsizing of its geoscience services unit.
Getech told investors on Thursday that its first-half revenues looked set to fall to £2.5m, down from the £2.9m recorded a year earlier.
The company cited a near-term reduction in the size of its geoscience services team, something the group decided to do in the fourth quarter of its previous trading year as part of an effort to address the wing's loss-making position.
However, Getech said a "significant portion" of its forward sales was anticipated to unwind to revenue during the second half of its trading year.
Forward sales rose from £1.4m to £1.6m over the six months ended 30 June, helping grow Getech's order book by £1m.
Getech, which was also exploring a range of organic and acquisitional opportunities to further enhance and extend its product and service offering, said that despite the revenue decline, it continued to trade in line with current market expectations.
Chief executive Jonathan Copus said: "We have reshaped Getech around a suite of high-value products and skills. This is changing the mix and timing of our sales and revenues.
"As a result, although H1 2019 revenue was lower than in H1 2018, new sales have strengthened Getech's forward earnings path."
As of 1005 BST, Getech shares had slipped 2.31% to 25.40p.