GETECH Group (LSE:GTC) — Final Results for the 12 months ended 31 December 2024

0:01 Good morning, and welcome to the GETECH GROUP PLC Full Year Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time using the q and a tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses, which is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like to hand you

0:32 over to CEO, Chris Jeps. Good morning to you. Thanks, Alex. Morning, everyone. Thanks for joining us today for the, GETECH financial year twenty twenty four annual results and business outlook presentation. So with that, I will get started. K. So joining me today on the call are my colleagues Max and Simon. We're a new team here, leading GETECH. And as you'd expect, we have something of a of a new direction. So, myself, I'm CEO. I was previously the COO, since 2018 and and a board member since then. Max has been with the company since 2021. He's our chief business development officer, and Simon has been with the company since 2018, and he's now our finance director.

1:23 And as a new team, you know, we bring, a real sense of continuity. We understand the business very well. We understand the wider GETECH team. We all have extensive industry experience and somewhat successful careers behind us. And what we've done, and I'll describe this in more detail as I continue through the presentation, is we've embarked upon a new, what we're calling, sustainable business strategy for GETECH. And, hopefully, you'll see that we've, swiftly executed the first phase of this plan, at the start of this year. And really, there are two elements to this plan. The first is very much to rebalance the fundamentals of the business, and the second is to sort of refocus the business where we make our money, I e, on our core, markets and our core expertise.

2:13 So with that, I'm just gonna do a quick review of our 2024, trading. So last year, we grew our revenues by 16% year on year compared to 2023, up to 4,700,000. And this was largely driven by strong contract renewals for things like Globe and our our software products and our long term services revenue. And we also saw an increased level of service service project revenue as well, especially in the second half of the year. Our revenues are always underpinned by our annual recurring revenue from our subscription products. These are usually multiyear, large or mixture of multiyear large contracts and, sort of three to five years and also a number of single year, annual subscription renewals.

3:02 And last year, that grew to 2,900,000. Our EBITDA, we did make a loss last year, but this loss was, much reduced from the previous year, so that came down significantly. And at the end of the year, our cash at bank was, 900,000. And in 2024, we, you know, set about really strengthening the financial base of the company. Through the year, we completed, a £2,000,000,000 annualized cost reduction, which had begun, in the previous year and that completed through the year in in 2024. We ran a placing in August and raised further 1,700,000, for working capital and to invest in our sales team, and various other use of funds.

3:52 We also completed the sale of our, part of our property, which had been on the market for quite some time, in January 2024. Post period, we completed the sale and leaseback of Nicholson House, which was the remainder of our, head office building in Leeds, for £725,000. That enabled us to pay off the, bridging loan that we had against the property, leaving the group now debt free. And, also, in this year, 2025, starting in January when the new team take were implemented and and and put in place, we we, embarked upon and complete broadly completed a a further, £1,000,000 of annualized cost, savings.

4:41 So I'm just gonna look back at some of the, things we, things we were up to last year across our, technical portfolio, if you like. As we'll see later, one of our key products is our GLOBE exploration platform. And last year, GLOBE delivered really robust level of contract renewal. We were able to expand its search capabilities to look for new commodities, new metals, for example. We And also enhanced its analytic, functionality with new tools, and the addition of new, technology such as AI and machine learning. And Globe is, you know, a large expensive product. It's used by large organizations, and we have a real a great cohort of super major oil and gas companies, and we've had some mining companies as well, that that make up the, customer base of this of this platform.

5:37 And there's a few examples low example logos shown on the slide there. And I'll come back to our our customer base later. Unconventionals Analyst is a is a sort of part of the GLOBE platform that's, delivers particular workflows around running US, or running onshore oil and gas, onshore shale oil and gas projects, typically that you see in the in The US and Canada. And last year, we saw a growing demand for this software, and we significantly grew our customer base of software subscriptions, in the twin markets that this product serves. And it's kind of unique in in GETECH in that it has this sort of twin side to its, sort of customer base.

6:24 On the E and P side, you'll see familiar names such as ConocoPhillips, Devon, ADNOC. You know, these are large oil and gas companies, the kind of companies that are traditionally GETECH's customer base. But also we have a large cohort of financial companies and institutions, people like Barclays Investment Bank, Quantum, Galley, Guggenheim, ERV Capital. These are all companies that, work in deal making in oil and gas or they look to fund oil and gas projects, and they've also merged as a very large customer, segment for our unconventionals toolkit. Through the year, we signed a number of new partnership in agreements. Few examples here. Natural Hydrogen Ventures, is the world's first natural hydrogen investment fund, and they provide early stage funding for natural hydrogen exploration companies and projects.

7:19 Through the partnership, we'll we'll work in partnership with NH Ventures, to screen, any prospective projects they may be looking at. They're we're able to introduce them as a key investor to any projects. And, also, we we work with them, which gives us access to some more of the sort of natural hydrogen ecosystem through their their their client database. Red Engineering is part of the NG group. They're a company that, provides through our partnership, provides us through the partnership access to their, geothermal, technical expertise where we have gaps. Similarly, EXPRO are focused on more on the drilling end of things, and they have a real track record in things like well evaluation and integrity, which isn't the sort of thing that, GETECH normally offers customers, but where we have a project where we need to bring in partners, this enables us to do that, particularly in, newer energy spaces such as geothermal, natural hydrogen, and carbon capture.

8:24 As I mentioned earlier on in the trading update, last year, our services teams had one of their busiest, h two certainly for at least five years, and this was largely driven by a real uptick in activity in the oil and gas sector and also by the emergence of new projects in the natural hydrogen space. So we're really starting to see natural hydrogen move, and often the first thing you see when a new sector gets, some momentum behind it is is people calling on our services for us to help them with projects. We signed a number of, strategic exploration agreements, through the year. We've we've talked about East Star publicly. This is to search for copper in, the Kazakhstan area.

9:14 Sound Energy is an aim listed company, we're working, on a joint exploration project with them, to look for natural hydrogen in Morocco. We also signed a strategic agreement with Kingfisher, around hydrogen natural hydrogen in North America. And we have a a a fourth natural hydrogen project with an undisclosed partner, and that's also progressing well at this time. And we're hopeful we can announce more news on all of these as as we go forward. We'll have a bit of a deep dive into our natural hydrogen, strategy later on in this presentation, and we'll come into more detail on those later. And, of course, through the year, we also continued to innovate and enhance and add to our IP. And, you know, GETECH's IP has been built up over a really long time, over thirty years, and it's continues to be enhanced.

10:06 Key areas of our IP are obviously our GLOBE platform and our Earth system model, which is our model of climate back through geologic time. We also have our huge, probably the world's largest commercially available database of gravity and magnetic data, and we continue to add to that and enhance that where we can. I've already mentioned our unconventionals tools. These have come along particularly in leaps and bounds through, 2024. And, also, we've, further evolved our natural hydrogen location workflows, and that's emerging as a a key part of our IP. So that's a a look back to last year. Just looking forward, as we've joined as a a new team in, in in January, What we've been implementing is a kind of a new strategic positioning.

11:01 This is really just the start of us resetting the business, and there are three main strands to this. We're looking to really redouble our focus on our core markets, and these are the markets where we make our money. Primarily, this is oil and gas, and we have a number of secondary markets such as mining and geothermal. So we wanna really focus our attention where we make money so that we can really drive our revenues. That said, we also you know, we see value in some of these longer term exploration projects. We've the company's made statements before about having a sort of portfolio approach to doing this. We'd like to keep that potential upside within the business, but we're really only interested in selecting, you know, the very highest quality opportunities and only having a portfolio size that we feel we can manage.

11:51 So we're we're currently sort of looking at having two to three projects, which as you've seen from the previous slide is is pretty much where we're at right now. So, we're maintaining work on those projects, and as we'll see later, we feel there's real strategic potential strategic value, to be gained from those. And, again, maintaining the development of our IP, we've seen over the years a lot of interest in our in our data and our content, from a number of, external organizations, explorers, but also tech companies, and that's something we're we're mindful has real, strategic value for the business.

12:30 And with this sort of slight refocusing, you know, what we're trying to do is focus on what we do best. And this means, using our combination of geoscience, geophysics, our cloud products, our other products, our geospatial knowledge, our our machine learning expertise, to locate energy resources within those key markets. And as you can see, hopefully, doing so across fewer market sectors, being more streamlined, and and having a more focused team. However, you know, we realized that right at the start, we really had to stabilize our our our financial position. And this was the key thing we we we set out to do. So the the exec team as we have it, myself, Max, and Simon, we've really set about to rebalance the company's finances.

13:17 So as I said before, in 2024, we completed the 2,000,000 annualized cost reduction. This was largely related to closing down our green hydrogen activities by the h two green company. But we could see that, you know, to really get to our goal of being EBITDA positive and cash generative, further work was needed. And there are two sides to this coin. Right? So we've got costs, first of all, of course. So within weeks of starting together as a team, we started a further cost reduction program. Our goal was to maintain our ability to deliver on our core capabilities and products, but we did feel our our cost base was too high. So we had a, you know, a line by line review of everything in the business, and we were really trying to focus on overhead, which had maybe grown a bit too much, and, you know, taking out overhead doesn't impact on our ability to deliver on our core solutions that earn us money, but also any any inefficiencies in the business.

14:20 Did we have suppliers that were, we could replace for slightly cheaper ones? Were we spending marketing on, marketing dollar on on events that didn't have a good ROI, for example? We also had to look at our staff, unfortunately, looking for where folk maybe were underutilized or where we had some slight duplication of roles. And the outcome was over a fairly painful couple of months. We introduced a voluntary redundancy and then a compulsory redundancy, unfortunately, process, to help further reduce our cost base by another million pounds of of annualized cost. And just to give some idea of the scale of that, that was around 20% of our cost base and just under 20% of our of our workforce. So as I say, cost for one side of the coin.

15:08 We're also mindful that we really wanna push revenue. So in tandem and as part of the the use of our use of funds from our fundraise last year, we set about introducing a plan to really drive revenue growth. And what we've done there is introduce some new staff, but expand the team, but also introduce new ways, that we're managing and incentivizing the team. So right at the back end of last year, we, expanded our, sales team out of our Houston office, to help push our onshore technology further in that in that key market. And towards the back end of last year, we engaged with, Paul Carey, who is a a GETECH alumni from a few years back and a former sales director and board member, on a contractual basis, and I'm pleased to say that we've been able to bring him in full time this year.

15:59 And Paul is deeply experienced in GLOBE and our gravity and magnetic data. He was instrumental in, selling GLOBE to the original cohort of, customers who who funded the initial build phases. Very well connected in our industry sectors, and he's joined us, I'm pleased to say, as our as our sales director, very recently full time. And, you know, we feel with those changes to our sales management and also our sales team, this will really help us drive our revenue growth and and help us meet our numbers. So for those of you that might be new to GETECH, just a little overview on what we do and how we do it and where we do it.

16:45 So, essentially, we help people, locate subsurface resources that are vital for energy systems or energy projects. We see in the news that demand for energy continues to increase. Last year was no, exception. Demand for energy, greatly increased through 2024, and that demand was largely met by natural gas or the large percentage of it percentages of it were met by natural gas and, renewables. So we've, talked in the past about the the markets we work in, oil and gas, mining, critical minerals, natural hydrogen, geothermal, carbon, and energy storage. These are all areas that we're still active in. I'd like to highlight kind of our focus going forward is gonna be on the ones in green here largely.

17:34 Oil and gas is gonna be key to meeting the global energy demand for at least the next few decades according to most studies as the transition eventually sort of ramps up. Obviously, it is a transition, not a switchover. So there's a long term transition from oil and gas over to cleaner energies. You know, five years ago, it was looking that like, that transition might be a bit faster, and, of course, global politics have, changed since then, and we've seen, you know, an increased focus on security of supply, and that's given, oil and gas areas a bit of a shot in the arm. And as I said last year, we saw a growth in our services from oil and gas, largely driven through growth in oil and gas project activity.

18:21 And we expect that trend to continue, while there are still some concerns around security of supply for oil and gas and energy, generation. Critical minerals continues to be important. Obviously, as we push, more widely for electrification, that's gonna require a lot of metals such as copper for cabling and cobalt, lithium, and nickel for for batteries. And we see that the mining sector will continue to be important for us, given that they're, you know, they're chasing lots of things that are stored underground, and we have good ways to to help companies find that. Natural hydrogen has the potential to be absolutely transformational for global energy. We're at a very early stage in this in this industry, as we sort of start to see that market move, we feel there's a real really good market, opportunity there for GETECH. And given the kind of data we have and the expertise we have, we're very well suited to help, companies find the geologic systems that produce these hydrogen reservoirs naturally.

19:35 Geothermal, can be used to generate heat and power. Geothermal's a ubiquitous resort. We have resource. We have done a lot of work, on various geothermal projects. It's a sector that's, you know, kind of unproven in a way commercially. We we were hoping that it would get a bit more government support in terms of funding than it has done. And then carbon energy and storage, looking for long term geologic storage for carbon dioxide, for example, something a lot of the super majors are looking at. That tends to be a more site specific, more localized problem, and we we feel that, that's probably something best left to other organizations.

20:20 So our key focus is gonna be on the green ones. We're gonna turn down the dimmer switch a little bit on our, sort of marketing and positioning to our customers from, certainly from the on the storage side. But, obviously, we'll continue to do work

20:34 across the energy sector as it comes in. But focusing more on key markets allows us to, you know, prioritize our effort and maximize our outcomes from from the from the resources that we have. We do these projects through, our digital exploration platform, which, many many of you will know as, as GLOBE. GLOBE is a digital twin of earth's history. It goes back about 400,000,000 years. That's the crucial window for finding oil and gas and and many minerals, and indeed natural hydrogen. And, you know, this this system has sort of 40 odd thousand layers of geoscience data and a whole, suite of, analytic and, sort of data access tools that comes with it to help users leverage that that fantastic database.

21:32 And the product's underpinned by GETECH's huge commercial database of gravity and magnetics data, which again can be key to these projects, and obviously complemented by other of our modules, such as our standalone software, like Unpreventures Analyst that I mentioned earlier, and also our huge team of geoscience and geophysical and GIS experts, to help deliver additional value from this dataset. And, obviously, we're constantly innovating and advancing our platform. We find you know, we we really believe that building up the IP of Globe gives us a key, leverage to strategic value. And some of the areas that we've been advancing GLOBE are shown on the screen here, rerunning our paleoclimate model, so our past climate, models. We're doing that in conjunction with, university.

22:26 We're taking GLOBE back further through geologic time to look for older older rocks and older resources, which is, helpful for certain types of, resource such as old older oil and gas source rocks or older, minerals. The addition of new technologies such as AI and machine learning, We're always tweaking our our plate tectonics models. This is the models of how the plates move around through time. And on our gravity and magnetic side, something we've we've constantly added to over the years is is our gravity data, and where we can enhance that is by using data, that becomes available from, new satellites that are launched and and measuring the the sea surface, the height of the sea surface, and that really helps us, improve our gravity data.

23:17 So that's what we do. Who do we do it for? You know, we've got a fantastic client list of sort of household name, oil and gas companies, so Exxon, Chevron, Conoco, BP, E and I. E and I are one of the most successful oil exploration companies and have been for some time, and, they've been a a GETECH customer all all through that period. We also have a long tail of, midsize and small sized oil and gas clients that many folks wouldn't have heard of. And, you know, we list a lot of good mining companies in our customer base as well, such as BHP and some smaller ones like Teck, East Star, South thirty two. So, you know, we really help Big Energy to re re reduce their exploration risk and uncertainty and and help accelerate their subsurface projects.

24:09 You know, putting boots on the ground or putting drill bits in the ground or diggers in the ground, that's expensive stuff. But we kind of have this expression, which I'll credit to my colleague Bill Hines. Thinking is cheap. And what these clients want to do is they wanna do more thinking so that they can better plan where they're gonna make their activities. And ultimately, they're trying to get to the point where they're making better decisions, you know, before they start doing the expensive stuff, and that means reducing their risk and uncertainty. And that all those things together is what what GETECH, helps deliver. And there's a little, workflow along the bottom there. This is a very simplified way to think about what we do, but, you know, we essentially take a whole bunch of raw data, including our own gravity and magnetics, you know, seismic and wells and satellite imagery where we can get our hands on it and process that up with, large amounts of computing.

25:04 We're able to compile it into products like GLOBE, and then we can use our AI and other analytics such as geospatial analytics, machine learning analytics, to create useful outputs that then our team of, teams of experts, for example, geoscientists or our geos guys can use maps to to deliver that to our end customers for them to make their decisions on.

25:34 One thing I'm really excited about in GETECH is the strategic value in the company. You know, GLOBE is a fantastic product. Gravity and magnetic data, is a fantastic database. But how do we leverage that, and really drive value for shareholders? Just gonna highlight a few things here that I think really represent untapped potential, in GETECH, and these are sort of areas potentially that we're, actively looking to work on or potentially thinking about working on. So first of all, growth of our ARR. As we saw early from the trading update, our ARR last year crept up a bit to 2.9, and that's driven through increasing, numbers of subscriptions, obviously putting up pricing a bit where we can, adding new logos, and upselling to existing customers.

26:25 But, our ambition for our ARR is to get our ARR up to where our cost base is. And, obviously, we've got a bit of, we've got a bit of a way to go to do that, But, you know, we feel we can really do that by adding new GLOBE, customers, both from sort of super major, clients, but also from national oil companies, which we feel are a bit underrepresented, underrepresented in our, client base.

26:51 Secondly, I'd like to highlight there's a there's a different type of sector, the tech sector. It's not tied to a particular vertical like oil and gas or mining. But, you know, personally, I believe the GIS sector, which is a very separate sector within tech, potentially represents a great revenue opportunity. And as we've focused sort of relentlessly in recent years on on our sort of geoscience side of things, maybe we've neglected this a little bit. This is a multibillion dollar market that grows at more than 15% or sort of 10 to 20% per year depending on which study you look at. Within the company, we have a really strong and internationally recognized GIS brand. And, you know, once we get through some of the fixing the fundamentals, I think there's a real potential here to refocus on this market and see what we can squeeze out of it, and potentially grow our GIST brand, back to the size that it that it had been back in the day.

27:43 So I've mentioned before, we have really unique IP within the company. This has been built through over thirty years of of, collating data, harmonizing data, interpreting data. This is very difficult stuff to recreate from scratch. If you wanted to, I'll probably go as far as to say it's nigh impossible. You know, the work done in the early years by the people that built GETECH was absolutely incredible, the way they went around the world gathering up data from dusty drawers and, digitizing it, putting it onto big tapes and carrying it around the world and bringing it all together and harmonizing it. Absolutely incredible work that would be very hard to do now, even with the Internet. So, you know, that's a key part of our IP. We add to that with our, next generation products such as our multisack gravity.

28:31 And, of course, we keep working our GLOBE product and our GLOBE platform, so that, we make sure that the road map meets the needs of, you know, the various sectors we work in such as the oil and gas guys and the mining guys. And then finally and perhaps most excitingly, we talked about this in the past, but our our, push for sort of, joint venture exploration agreements around natural hydrogen is, is something we see as a potentially huge strategic value driver for GETECH. So this is a real nascent market. It's just starting to get moving. We feel that has huge upside potential for the company.

29:10 And we've talked in the past about having a portfolio of projects. You know, previously, maybe the target was sort of five to 10. I think the current team feels like two to three is probably about the right area, and that's the that's the level we're at now. And I'd like to hand over to my colleague, Max now, to provide a bit more detail on this natural hydrogen product origination business model and some of the activities that GETECH is is doing in this space. So, Matt, if you're ready, over to you. Great. Thanks, Chris. As you say, natural hygiene is really an exciting, emerging, and clean subsurface energy source. And we're actually seeing that it is drawing the attention of major petroleum and mining companies. Big players like Rio Tinto, Fortescue, and BP and Breakthrough Energy Ventures from Bill Gates are all investing heavily in natural hydrogen exploration.

30:06 And I must say the early results from these activities are promising and showed its huge potential. Soil sampling and all the new data showed that natural hydrogen widely distributed across the globe. And the US Geological Survey has also estimated the millions of megatons of natural hydrogen in accumulations across the world. And even if we could harness only a small percentage of that, we could supply, all, global projected energy needs for hundreds of years to come. So natural hygiene is not only not only abundant and it's clean, even more so, it has the potential to be produced at a very low cost estimated to be less than $1 per per kilo. And the great thing is that GETECH is really well positioned to explore for natural hydrogen for three reasons. First of all, it's already highlighted our database of gravity and magnetics is unrivaled in in industry, and and gravity and magnetics is really well suited to identify the potential sources for natural hydrogen.

31:12 In addition, our GROUP knowledge platform, which already has been used for, for decades to find reservoirs and seals in oil and gas, is exactly the same, type of information which you can use for exploring for reservoir and seals for natural hydrogen traps. And thirdly, we're building up a very strong track record. We've been helping a variety of companies across multiple continents to build up a pretty successful workflow in order to locate the most favorable kind of locations for natural hydrogen accumulations. So we provide this as a service to to our customers, but also given that we have that very strong combination of data technology and and and our our workflow, We use it very selectively to also originate our own exploration opportunities.

32:01 And we are working for these opportunities as after we've identified them with local partners. Those local partners bring a combination of, in country expertise. They know how to open the doors. They have they have the right kind of connections, if you like, with also their, operators. So they would know if we were to move to to next stages of executing activities, how to under undertake that. Our plan is with these that AlphaAcretes is secured together with our partner that we then try to see how we can monetize it. Again, a a broad set of options possible there, but what we try to do is to to monetize it without requiring significant capital from from GETECH.

32:47 Currently, we're active in three areas. Morocco is is a place where we're seeing attractive potential, and we're working there together with Sound Energy. We're exploring together with a partner in North America as well as in The Middle East. And you may want to think this is an emerging industry. How confident are you that you actually can monetize those positions? Let's move in the thank you to the to the next slide. Would like to share at a high level two examples with you. First of all, is a company called Serpentine. They secured some, 100 leases in in The US. And fairly quickly, after securing those leases, they were able to sell their position to top, and energy for around 7 to 8,000,000.

33:36 And Serpentine used its geological scaling capabilities to highlight the potential here and without drilling, so without any capital investment, we're able to to flip their position and, again, generate significant value. The other example worth looking at is a company, Hytera, also a natural hygiene starter, and they recently saw that Fortiscue coming in. So for around 40% of its equity position, Fortescue paid 14,000,000. And again, the Hytera build up position of equity for natural hydrogen positions without any wells drilled at that time, just the indication that there is strong potential and, again, generated significant value for its shareholders.

34:25 These are two, examples which validate the strategy which we're pursuing for our natural hydrogen equity positions. With that, Chris, back to you. Brilliant. Thanks, Max. So, yeah, we feel these couple of examples give us a, you know, a real kind of north star and and kind of validate our, business model, in this in this natural hydrogen JV area. Okay. So looking ahead, you know, I feel there's, you know, we're we're feeling pretty confident, that there's a good business outlook for GETECH. Know, we're in the first year of our new sustainable business strategy. We've got a new leadership team. We've moved very swiftly to remove further costs from the business.

35:12 You know, we're people have heard this before, but, you know, there's a real path to EBITDA positive and cash generation, by the end of this year. We've dialed down the forecasts a bit. Really, the reason for doing that is we wanna make sure that our forecasts are achievable. So we're looking at mid to high single digit organic revenue growth for this year, and our unaudited revenues to the end of q one this year, were 8% ahead of 2024, so very much in line with that

35:45 mid to high single digit revenue growth figure. We're we're confident that we can get out and sell more. We've expanded our sales team on the back of our use of funds, and we've also got new leadership in our sales team, new incentivization for the team, and, new ways of managing that team and driving, the team forward. So, you know, that's a little bit of a back to basics strategy if you like. Perhaps not that exciting, but I also think essential and fundamental that we do that. On the other side, there is still, you know, great and exciting potential for high value growth within within GETECH. Inside our sales pipeline, there are several large multiyear globe platform opportunities that we're working on. Now these aren't included in our mid to high single digit organic growth forecasts because they're they're very large, but they're very binary, and we're we're working with customers that, you know, are in far flung parts of the world, where perhaps it's a little hard to do business. However, we are, working in areas where we've done business with, these people before, So we have some confidence that they'll come in, but we didn't wanna base our forecast around these coming in. But if they did come in, some of these multiyear deals could materially transform our revenues this year and materially add to our ARR.

37:16 Max has just walked you through the exciting opportunity in our natural hydrogen joint venture, exploration projects. These continue to progress well. We're we're working, two, three projects through, and we're excited to see, you know, recent examples within the industry that have validated this business model as we've just seen. And that, again, has the potential to create significant value. You know, we we feel our IP represents, you know, huge value, strategically. Globe has been being built since, the last fifteen years. Our Gravity and Magnetic data has been built over thirty years. Our software products have been built over, nearly twenty years now. You know, this is a huge amount of IP, which, you know, would would really be very difficult to to replicate from scratch for anyone.

38:09 And, again, we we feel that has significant value, for the company that just isn't reflected in the share price. So, with that, I'd like to say thanks for your attention. Hopefully, that's a useful and, informative update. A bit of a look back on 2024 and a bit of an introduction to the new team, the things we've done already, and the path ahead that we're setting ourselves, for growing GETECH and realizing value for all our shareholders. So with that, I'd like to say thanks. That's great, Chris, Max, Simon. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via our investor dashboard. I'm Chris Simon Max.

39:04 As you can see, we have received a number of questions throughout today's presentation. If I may now hand back to you and kindly ask you to read out the questions where appropriate to do so, and I'll pick up from you at the end. Sure. I'm just gonna go from the top. Where were the additional cost savings found? So hopefully, we answered that through the presentation, but just as a reminder, we had a good look at overhead. We took out some inefficiencies and, some duplication. And, you know, we also did look at our technical team and look at where there was underutilization. And I would say probably roughly the balance was about 60% to overhead and about 40% to, technical, which was, you know, a difficult and unfortunate thing to to go through, but that's that's roughly where we found the figures. And as I said, the the philosophy behind the the cuts was to make sure that we could still continue to deliver on our on our key and important products and services for our customers to to build our revenues.

40:16 K. Next question. The share price is woeful, which, yeah, as a significant shareholder, I completely agree with. Is the plan to position as a data product company valued on a multiple of revenue or remain with oil and gas services valued on a multiple of earnings? So the plan at the moment is to stabilize the the foundation of the business and to work on our strategic value. We've been very busy the last sort of two to three months trying to fix the fundamentals. We've been doing an investor roadshow, this week, and the way I think of it is, you know, we've spent three months doing what needed to be done, and now we look forward to, being able to work on what we'd like to do. So the answer to that, in terms of a strategic, medium term, say, value proposition for investors, we're still working through.

41:15 But, certainly, the plan is to have a successful and revenue earning foundation business and then to progress some of these high value strategic, opportunities, to really maximize shareholder value, in a more transformative way. What percentage of 24 revenue is leveraged to the oil and gas sector? I can't remember the exact percentage. I don't have it in front of me. But generally speaking, mostly, we earn about 60 to 70% of our revenues from oil and gas, and last year was was very similar. Next question. Your prices declined since the tariff drama began.

42:03 Has has this had any impact on your business in the I think it's well, the the simple answer is no. It hasn't. But, you know, one month is a fairly short time window. And we as we were writing the annual report statements, hell was breaking loose on the on the tariffs. So it was a bit of a, you know, movable feast at that time. The I think, you know, we we were looking at what was going on, and I think we came to the conclusion it was a little bit early to say. You know, as we've seen in this last week, sort of feedback reactions to to the various tariff dramas maybe isn't the way to go, and I suspect our customers are sitting back and thinking the same thing. They're just gonna see how it plays out. And as we saw yesterday with the announcement of The US UK trade deal, you know, that on you know, sort of against that initial sort of shock tactic, actually, order can come eventually.

43:02 So gut feel, I think it's too early to say. Oil price was up a bit yesterday. I think before the tariffs begun, the oil prices are Brent oil price was around $70, and I think this morning, it was around 63. It did go below 60. There's been a bit ups and downs, but it's not crashing or anything. Hopefully, it will continue to do so. You know, if if it if it does go down a lot, you know, that will be challenging for some of our customers, but, you know, they already have their spending plans in place. That's probably not something we'd, I don't think, based on past experience, that we'd see washing through maybe until next year. So we're expect most forecasts are expecting an oil price window sort of 55 to 65 the midterm, and, you know, we think that will be a that's what we think we'll change, and we don't have a crystal ball.

43:56 Can I elaborate on the large opportunities in the pipeline for GLOBE? With the cost reduction, are you investing in tech to streamline operations? I'm not gonna elaborate too much on the large opportunities in the pipeline for GLOBE because I don't want any of our competitors to listen in. But I would say, in terms of our GLOBE pipeline, we have a number of super major clients that aren't on our list. We're talking some of them, and we're also talking to a number of, national oil companies as well, which is a bit of an untapped customer base for Globe. And, actually, national oil companies, they do they are responsible for looking after about 50% of the world's oil production. So that's a very big marketplace, and we feel there's, potential, potentially lots of opportunity there, and it's certainly being borne through by some of the discussions we've been having.

44:51 With our cost reductions, are we investing in tech to streamline operations? You know, everyone's using AI more and more. There's a limit to what we can do with AI to magically make stuff happen with with geology. Geology is a a complex set of rules, which isn't easy to code up, but, yeah, we're certain that's certainly something we are looking at. Another question. With the new management team in place, is there a new strategy for sales and account management for both new potential customers or existing customers? Yeah. Hopefully, as I covered through the presentation, we have new sales leadership. We have new sales management processes. We're looking at new ways of using our CRMs and all those kind of things, and, also, that includes account management for new customers.

45:44 So, yes, it's the simple answer. Final question. What alternatives are there what alternatives to GETECH are there for oil and gas companies? I guess that's about competition. You know, there are quite a lot of service providers in in the oil and gas space, some of them very large, companies like, Halliburton, Schlumberger, and some of them are much smaller that, know, small con you know, all the way down to small consultancies and one man bands. Some products we have, there's competition out there for them. Other products, less so. You know, our our global gravity and magnetics data is pretty unique.

46:29 GLOBE is pretty unique. There are some similar products out there, but what we find is our customers have you know, it isn't like that they have one or the other, like, Excel and Lotus one two three, if that even still exists. But, you know, they they might have GETECH and, say, the Halliburton, equivalent. So, because they're they're built in different ways and they give us they give us slightly different view from the sort of geologic technical, perspective. Have you decided on a price that you'll accept for the company today if a larger player bid for you? Simple answer to that is no. We're not we're not really focusing on that. And if even if we had, I probably wouldn't be able to tell you. So, it's certainly nowhere near the price we're at now. You know, we we really feel the current share price and market cap is we're we're hugely undervalued. I think most commentators would agree with that. Our market cap is actually lower than our ARR.

47:27 So but, you know, we understand why there's a bit of a lack of confidence in GETECH performance these last few years. But, know, we've got a new management team now, and, we're hoping to build up, that confidence by resetting the business and, achieving what we say we're gonna achieve. And, hopefully, this is just the start of that journey and very much watch this space as we go forward. That's great. Chris, if I may just jump back in there, and thank you for addressing all those questions from investors today. And, course, the company can review all the questions submitted today. We will publish those responses on the investment company platform. But, Chris, before we redirect investors to provide you with their feedback, which I know is particularly important to the company, could I please just ask you for a few closing comments?

48:17 Yeah. Thanks. You know, GETECH's definitely been through a bit of a difficult time in recent years, and, we feel, you know, with the work we've taken to date, we've we've, been very decisive, acted very quickly to try and put the fundamentals in place to go forward. We have some very exciting strategic value opportunities within the business, which we continue to work on as well. The focus has been for now getting the fundamentals right, rebalancing the business. It's been quite a painful process, frankly, both for the management team, not that anyone would feel too sympathetic, but also for the staff as well. So I'd like to thank the staff for sort of bearing with us as well. And, you know, thanks to all the supportive shareholders that we've had out there and that the team has been meeting with this week as well. And and to everyone for joining us today for your interest, really appreciate it.

49:12 Chris, Max, Simon, thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations? This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of GETECH GROUP PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.