Getech Group provides an update on current trading and development of the Group’s AI and ML led technology, including hydrogen.
Getech (AIM: GTC), a world-leading locator of subsurface resources, is pleased to provide an update
on current trading and development of the Group’s AI and ML led technology.
Trading Highlights
Getech has made a strong start to 2024, with revenues for the first two months c. 40% ahead of the same period in 2023.
In 2024 to date, Getech has secured contract wins totalling £0.9m, including three new annual software subscription customers as well as the renewal of eight annual licenses for the Globe geoscience platform and software products. As a result, annual recurring revenue has increased to
£2.9m (31 December 2022: £2.4m; 31 December 2023: £2.8m) and, with the addition of new contracts, Getech’s order book value has been maintained at £4.5m (31 December 2023: £4.6m; 31 December 2022: £4.6m).
The sale of the Kitson House part of Getech’s office completed for £0.65m, as announced in January 2024. The Company has retained freehold ownership of Nicholson House, which was independently valued in December 2023 at £0.86m. Both buildings are located at the same site in Roundhay, Leeds.
Getech has previously identified the opportunity to reduce annual costs by £2m, as announced in 2023. The full benefit of these cost reductions is expected in 2024, assisting Getech in realising positive EBITDA and cashflow. The Company’s focus on cost reduction continues, with further savings identified and expected to be realised through 2024.
AI- and ML-led Technology
Getech has evolved its subscription model for Globe by offering additional capabilities for further human and Machine Learning-based analysis of its data. This model is well suited to large exploration companies, while for junior exploration companies the Company introduced a hybrid equity participation model, as demonstrated by the recently announced partnership with East Star Resources.
Artificial Intelligence (AI) and Machine Learning (ML) is accelerating the value of the Company’s core asset and skills, namely its Globe geoscience platform and expert services. Getech has amassed a vast collection of global magnetic, gravity and other geoscience data that was universally deployed by the oil and gas industry over the last 3 decades and it is now applying advanced AI and ML to make this data useful to other subsurface industries including mining, geothermal and unconventional gas including natural hydrogen.
By leaning on the collective knowledge base of its geological team, Getech is leveraging AI and ML to source details of known occurrences of mineral deposits and create a digital-genome to search through our global data sets. The objective is to model the “genetic systems” of known deposits, and using Getech’s global datasets, search for these same geological conditions to identify new targets. Currently, the Company is verifying this approach with a small number of ‘beta’ clients with the expectation of making it more widely available to the market.
Getech’s approach is particularly applicable to the search for natural hydrogen, also known as “white” or “geologic” hydrogen. Natural hydrogen is believed to be an abundant resource and a potential game-changer for the energy transition. Getech is well placed to not only identify likely source locations but also, using its oil and gas expertise, identify conditions where natural hydrogen is likely to become trapped in reservoirs with economic potential. Getech is already commercially engaged to screen for natural hydrogen and expects to launch an enhanced AI-driven natural hydrogen search capability in the coming months.
Richard Bennett, CEO, comments:
Getech has had a good start to 2024 and I am pleased by the improved financial position of the Company. Importantly, prospects for the business continue to build as we retain our long-term clients, as well as attract new brands to our growing subscription base.
“Alongside this, the capabilities of our Globe geoscience platform are being significantly enhanced with the application of AI and ML. So much so, that it is arguably a different system from that of 12 months ago – our job now is to demonstrate this to our markets.”
READ the latest news shaping the hydrogen market at Hydrogen Central
Getech Group provides an update on current trading and development of the Group’s AI and ML led technology, including hydrogen.
