GETECH Group Wins New Contracts, Boosting Revenue

GETECH Group, a London-listed provider of data and software to the energy industry, has announced that it has secured eight new contracts totaling £1.8 million ($2.3 million). This news has led to a surge in the company's shares, which rose by as much as 43%.

The contracts are expected to contribute significantly to GETECH's revenue for the year 2023, with one-third of the total amount to be booked as revenue for that year. The company estimates its total revenue for the year ended December 31 to be £4.0 million, including £600,000 from these new contracts.

GETECH Group's order book has also received a boost, currently standing at £4.6 million. Although certain contracts that were initially anticipated to be booked in the previous year have been pushed into this year, the company remains optimistic about its future prospects and starts 2024 with a strong pipeline.

An important contributor to GETECH's growth in annual recurring revenue (ARR) has been its successful implementation of a subscription model. By transitioning existing customers and onboarding new ones onto this model, ARR has increased from £2.4 million in 2022 to £2.8 million presently.

GETECH's acting Chief Executive, Richard Bennett, expressed confidence in the company's outlook for 2024, highlighting the benefits of a reduced cost base, an expanded order book, and growing ARR. These factors position the business favorably following a year of transition in 2023.