Getech Group (AIM:GTC) - reassuring update and worth a look at current lowly levels?
The AIM quoted geoscience services business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, offered a reassuring update, at least in the context of oil services. With the shares trading at around 8x forecast earnings estimates for 2016 and forecast earnings growth of over 20%, this business is surely worth a glance at current levels.
Trading figures for the year to 31 July 2015 are expected to show “a very significant year on year improvement”. The current estimate, which is subject to review and audit, is profit before tax of £2.0m (2014: £1.0m) on income of £8.5m (2014: £6.6m), representing a 100% increase in profit before tax and a 29% increase in income. Broker expectations were previously for pre-tax profit of £2.30 on revenue of £9.5m, so that’s a very commendable performance in the circumstances. Three major National Oil Company (‘NOC’) contracts were announced during the year and longer term contracts include the commitments to…