Accelerating
the energy
transition
Annual Report and Accounts 2021
We are Getech Group plc
A geoenergy and
green hydrogen company
At a glance
Getech applies world-leading
geoscience data and unique
geospatial software to accelerate
the energy transition by locating,
developing and operating geoenergy
and green hydrogen projects.
Read more on pages 02 to 03
Our business model
and strategy
Our business model is positioned to
maximise the value of our products,
technologies, and skills; and to
deliver transformational growth
in shareholder value.
Read more on pages 09
Sustainability
In recognition of the commercial and
societal importance of sustainability
and ESG, Getech’s focus is to both
help our customers deliver their ESG
commitments and to define and live
by our own ESG principles.
Read more on pages 14 to 15
Getech Group plcAnnual Report and Accounts 2021Strategic Report Getech Group plc
Strategic Report
Governance
Inside this report
Strategic Report
At a Glance
Why Getech?
Letter from our Chairman and CEO
Highlights of the Year
Business Model and Strategy
Operational Review
Sustainability
Financial Review
Risk Management
Section 172 Statement
Governance
Board of Directors
Corporate Governance Statement
Directors’ Report
Financial Statements
Independent Auditor’s Report
Group Statement of Comprehensive Income
Group Statement of Financial Position
Group Statement of Changes in Equity
Group Statement of Cash Flows
Note to the Statement of Cash Flows
Notes to the Consolidated Financial Statements
Company Statement of Financial Position
Company Statement of Changes in Equity
Notes to the Company Financial Statements
Advisors
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Annual Report and Accounts 2021
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report At a Glance
Trusted partner for
the energy transition
Getech applies world-leading
geoscience data and unique
geospatial software to accelerate
the energy transition by locating,
developing and operating geoenergy
and green hydrogen projects.
Climate change is an urgent global problem
that will be solved by local integrated low
carbon solutions. In line with moving to
diversified and localised energy, Getech
transformed into a geoenergy and green
hydrogen company.
Geoenergy unites geoscience and related
technologies to improve subsurface energy
extraction, energy storage, and critical minerals
recovery. Coupled with complementary
distributed energy solutions, such as green
hydrogen, geoenergy is essential to a
secure and sustainable energy transition.
2
6
1
4
7
Item key
1 Critical minerals
2 Wind & solar
3 Offshore
transportation
(H2 & NH3)
4 Hydrogen (processed
by electrolyser)
5 Hydrogen
transportation
6 Geothermal
7 Oil & gas
8 Storage (carbon
capture and H2 &
water storage)
Hydrogen (H2)
Electricity
CO2
Cold water
Hot water
HC2
Surface
Water
Oil
Sandstone
Deltiacs
Mudstone
Turbitides
Cap rock
02
Item key1 Critical minerals2 Wind & solar3 transportation (H2 & NH3)4 Hydrogen (processed by electrolyser)5 Hydrogen transportation6 Geothermal7 Oil & gas8 Storage (carbon capture and H2 & water storage) Hydrogen (H2) Electricity CO2 Cold water Hot water HC2 Surface Water Oil Sandstone Deltaics Mudstone Turbidites Cap rockGetech Group plcAnnual Report and Accounts 2021Strategic Report 3
5
8
Getech’s focus sectors are:
Green hydrogen
Developing own network of green
hydrogen and ammonia hubs.
Read more on pages 12
and 13
Critical minerals
Analysing location and
economic concentration
of critical minerals.
Read more on pages 10
and 11
Geothermal
Identifying and developing
geothermal projects using
geoscience and geospatial
capabilities.
Read more on pages 11
and 13
Transitional petroleum and
carbon capture & storage
Identifying highest value
hydrocarbons with lowest
carbon footprint and developing
integrated CCS solutions.
Read more on pages 10
and 11
03
Item key1 Critical minerals2 Wind & solar3 transportation (H2 & NH3)4 Hydrogen (processed by electrolyser)5 Hydrogen transportation6 Geothermal7 Oil & gas8 Storage (carbon capture and H2 & water storage) Hydrogen (H2) Electricity CO2 Cold water Hot water HC2 Surface Water Oil Sandstone Deltaics Mudstone Turbidites Cap rockAnnual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Why Getech?
Differentiated
investment proposition
Getech’s world-class geoscience data,
geospatial software and skills uniquely
position us as a partner of choice to
companies and governments working to
accelerate the energy transition whilst also
securing our future energy supply.
Our products and services enable us to establish
revenue-generative relationships with both natural
resource asset owners and energy consumers, which
Getech can then expand into strategic partnerships
with the intention of building our own portfolio of low
carbon assets. Our focus is on scalable, repeatable
projects that can deliver a meaningful impact.
A geoenergy and green
hydrogen company
• Existing products developed into essential
tools for enabling the energy transition;
• Trusted partner – successful track record
as energy experts working with multinational
companies; and
• Strong business performance.
Our focus is on
scalable repeatable
projects that can
deliver a meaningful
impact.
04
Getech Group plcAnnual Report and Accounts 2021Strategic Report Developing own portfolio
of assets
• Green hydrogen development projects
underway;
• Strategic relationships – provide
participation opportunities in
decarbonisation projects;
• Repeatable, scalable, transformative; and
• Ambition to establish at least 500MW
of new geoenergy and green hydrogen
assets by 2030.
Experienced team with
sector-leading expertise
• Leadership team with diverse experience;
• Track record in clean technologies,
zero-carbon investment, ESG and
business scale up; and
• High corporate governance standards.
05
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Letter from our Chairman and CEO
Getech is an established,
cash-generative, and
diversified growth-
focused business that
is well-funded to deliver
on its strategy.
06
Getech - a geoenergy and green
hydrogen company
FY2021 was a year of strategic advancement
and robust delivery for Getech. With a
diversification plan focused on green
hydrogen, geothermal, critical minerals and
energy/carbon storage, our shareholders
supported us in a £6.25 million capital raise
to position Getech at the vanguard of the
energy transition.
Through this investment, we are repurposing
our world-leading geoscience data and
unique geospatial software products, and
successfully extending their application to
geoenergy sectors beyond petroleum, and
green hydrogen. During the year, we have
added new content, modules and workflows
to our platforms, solutions and software and
have grown our customer base in the energy
transition sectors. Our mission is now firmly
set on delivering an accelerated, secure
and sustainable path to decarbonisation
through the application of our products,
technologies, and skills.
As we strengthen our status as a trusted
partner in the energy transition, this in
turn enables us to establish new revenue-
generative relationships that we can expand
into strategic partnerships and build our
own portfolio of scalable repeatable low
carbon projects. Our locate-develop-
operate business model has been designed
to maximise the value of our unique offering
and to deliver transformational growth in
shareholder value.
In FY2021, we purchased H2 Green, a
company developing green hydrogen
networks of production, storage, and
distribution facilities. Since this acquisition,
we have secured exclusive development
rights on two green hydrogen hubs –
at Shoreham Port and in Inverness.
We have also invested in new talent:
adding senior executives with significant
engineering, economics, project delivery
and business development experience;
and Board skills in business scale up, ESG
and low carbon asset management. We
have also enhanced our marketing and
communication resources.
Through the recruitment of Max Brouwers
- who joined Getech as Chief Business
Development Officer, having previously
led the Energy Transition at Shell Global
Exploration - we have established a physical
presence in Europe, which we are growing
further in 2022.
Getech Group plcAnnual Report and Accounts 2021Strategic Report Getech’s mission is firmly
set on supporting the
accelerated delivery of a
secure and sustainable path
to decarbonisation, through
the application of our world-
leading geoscience data and
geospatial software products.
The tangible progress we are making in the
decarbonisation of commercial transport
places us firmly on the hydrogen map. This is
widening our engagement to include larger
volume off-takers - such as industrial players
seeking clean hydrogen to decarbonise their
operations and organisations outside of
the UK looking to import green hydrogen.
In the coming months, we will progress
these discussions as we work to expand
our hydrogen portfolio.
We are also evaluating asset participation
opportunities in geothermal energy and
energy co-location projects in the critical
minerals sector. As further projects are
secured, we will continue to report on our
progress towards the 500MW ambition.
On behalf of the Board, we would like to
thank our shareholders for their support
and our employees for their continued
commitment during this exciting and
transformative period for the Group.
Being at the heart of the high-growth
geoenergy and green hydrogen sectors,
we have moved into 2022 with confidence
and believe we are ideally positioned to
deliver substantial growth and value to
our shareholders in the coming years.
Richard Bennett Jonathan Copus
Chairman
CEO
Our progress during the year and into
2022 is notable, as evidenced by growth
in revenue, an expanding order book, and
new asset agreements. We anticipate
further upward momentum as the pace
to net zero accelerates.
Business environment
The need to substantially increase energy
investment on a global scale has never
been clearer or more urgent. Governments
across the world are responding with new
strategy statements, to deliver affordable,
secure, and sustainable low carbon energy.
War in Ukraine has heightened this, and in
2022 energy investment could total as much
as 13% of global GDP - the highest level on
record.
This action is underlain by governments’
broader commitments to address climate
change. The EU has pledged to be climate-
neutral by 2050, with each member state
required to develop a national long-term
strategy on how they plan to achieve this.
Similar trends can be mapped around
the world, with decision-makers defining
the budgets, incentives and regulatory
structures that are needed to enable the
required investments to proceed within the
aspired timetables to deliver on their energy
security and decarbonisation goals. The
energy transition presents governments,
regional authorities, cities, and companies
with a complex web of decision making,
which Getech can help unlock using its
data, knowledge and analytics.
There is a growing momentum behind the
view that low-carbon hydrogen will play a
significant role in the decarbonisation of
the energy system, and as a result, global
projections for growth in hydrogen capacity
have been revised upwards in each of the
last three years.
This momentum is backed by governments’
policies, incentives and funding support.
REPowerEU has quadrupled the EU’s green
hydrogen supply target to 75GW by 2030
- half of which will be supplied by imported
hydrogen. The EU Commission has also
pledged to fast-track market reforms to
promote development of hydrogen projects
and infrastructure such as storage.
In the UK, the government has announced
various funding programmes and incentives
for low-carbon hydrogen, including the £240
million Net Zero Hydrogen Fund, a £26 million
Industrial Hydrogen Accelerator innovation
programme, and the launch of the world’s
first national subsidy for clean hydrogen
production. This is aimed at advancing the
UK government’s ambition to have up to
2GW of low-carbon hydrogen production
capacity by 2025 and up to 10GW installed
by 2030 - at least half of which is to be from
green hydrogen.
By using our geospatial and economic
analytics to identify optimal sites, Getech
is ideally positioned to accelerate the
adoption of green hydrogen, both in UK
and internationally.
Our ambition is to establish at least 500MW
of new geoenergy and green hydrogen
assets by 2030.
Moving from pledge to action on our
sustainability objectives
In 2021, Getech joined the United Nations’
Race to Zero campaign, pledging to become
carbon neutral by 2030. To support the
delivery of this, we established an ESG
committee and appointed an ESG expert
to our Non-Executive Directors’ team.
As we build an ESG-centric business, we are
establishing metrics and KPIs that set a clear
and auditable roadmap to assess Getech’s
2030 net zero delivery. We look forward to
implementing this enhanced sustainability
framework during FY2022 and reporting
on progress in the next Annual Report.
Outlook
Getech is an established, cash-generative,
and diversified growth-focused business,
and with a strong balance sheet, we are
well positioned to deliver on our strategy. In
2022, we plan to continue growing our share
of the global energy transition market.
In our foundation products and services
business, this means expanding the low
carbon application of our geoscience data
and geospatial software products, through
new content, new geoenergy capabilities
and delivering innovations around other key
energy transition themes such as CCS.
In asset development, we are progressing
our projects in Shoreham Port and across
the Scottish Highlands. Together these
projects represent c. 50MW of full capacity –
equivalent to 10% of our 500MW ambition.
07
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Highlights of the Year
A transformational year,
investing for future growth
Financial Highlights
REVENUE
£4.3m
2021
2020
+20%
ORDER BOOK
£3.3m
2021
£4.3m
+25%
£3.3m
£3.6m
2020
£2.7m
ANNUALISED RECURRING REVENUE1
stable
EQUITY FUNDED COST BASE
+20%
£2.1m
2021
2020
£6.5m
2021
£2.1m
£2.1m
2020
£5.2m
£6.5m
LOSS FOR THE YEAR2
(adjusted for exceptional items)
REPORTED LOSS FOR THE YEAR
£1.6m
2021
2020
NET CASH3
£5.1m
2021
2020
£1.4m
£1.9m
2021
£1.6m
£1.5m
2020
£1.9m
£1.6m
1 Annualised Recurring Revenue is the annualised value of Getech’s recurring contracts,
+00%
typically this is Globe contracts, Software and Product subscriptions, and recurring support
services.
2 Adjusted for exceptional items, see note 4 for more details.
3 Net cash is the balance of cash and cash equivalents after deducting borrowings.
£5.1m
Key corporate and operational highlights
• Repositioned strategy with new ‘locate-develop-operate’ business model designed
to accelerate a secure and sustainable path to decarbonisation;
• Expanded the application of geoscience data and software products into essential tools
enabling the energy transition and enhancing security of energy supply;
• Acquired a green hydrogen developer, and secured the first two development projects;
• Developed key strategic partnerships with Shoreham Port, SGN Commercial Services
(SGN), Eversholt Rail and the Highland Council; and
• Continued to invest in new talent and skills.
08
Getech Group plcAnnual Report and Accounts 2021Strategic Report Business Model and Strategy
Locate, Develop,
Operate
Building a business for the future
Our business model is positioned to maximise the value of our products,
technologies, and skills; and to deliver transformational growth in shareholder value.
Locate
Develop
Operate
• Energy and natural
resources assets
• Energy needs
• Unique geospatial
software products
• Building strategic
partnerships
• Portfolio approach
• Repeatable and scalable
globally
• Management fee
• Minority interests
Trusted partners
Transformative value
Recurring Revenue
Strong outlook
• Focused on accelerating the global energy transition and ensuring a secure
supply of energy; all whilst delivering transformative shareholder value through:
• expanding our robust pipeline of products and services for the energy transition;
• ambition to establish at least 500MW of new geoenergy and green hydrogen
assets by 2030 by:
• replicating and scaling up our green hydrogen asset development model,
both in UK and internationally;
• building strategic partnerships to secure and develop geothermal energy projects; and
• pursuing energy co-location opportunities within the critical minerals sector.
09
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Operational Review
During the year, we
began a programme of
investment to reshape
our unique products into
essential tools for the
energy transition.
10
During 2021, our operational activities
have been focused on accelerating the
energy transition by locating, developing
and operating geoenergy and green
hydrogen projects.
To achieve this, we began a programme of
investment to reshape our unique petroleum
products into essential tools for the energy
transition, expanding their application to high-
growth geoenergy sectors beyond petroleum –
targeting geothermal, critical minerals, hydrogen
and carbon storage. We have broadened our
operations through a ‘locate, develop, operate’
business model, which has enabled us to
strengthen our market share in the energy
transition as demonstrated by growth in revenue,
expansion of the order book and securing of
new asset agreements.
In 2021, sales of geophysical data and
services to both deep and shallow geothermal
operators, as well as new contract wins with
leading mining companies, demonstrated the
versatility and applicability of our products and
solutions to locating and de-risking a diverse
range of geoenergy resources across a global
spread of geographies.
In turn, this helped with building strategic
relationships, through which we can evaluate
unique participation opportunities in
decarbonisation projects. In the year, this
led to our first low carbon development
investment – the acquisition of H2 Green,
a green hydrogen network developer.
With a number of new senior executive
appointments completed in the UK, Europe
and the US, we have strengthened Getech’s
geographical presence and extended our talent
in engineering, economics, project delivery and
business development to ensure success.
Locate
Transitioning with our clients
We apply our world-leading geoscience data
and unique geospatial software to help locate,
de-risk and optimise geoenergy and green
hydrogen projects to deliver an accelerated
energy transition.
Our product model is built on Getech’s
world-leading global geoscience data – the
value of which we have enhanced through the
development of intuitive geospatial delivery
platforms and analytic software. The products
are shaped around our customers’ most
pressing commercial needs, and new content
and functionality is delivered through robust
project management.
Getech Group plcAnnual Report and Accounts 2021Strategic Report Our products and services
enable us to establish
relationships which we can
then expand into strategic
alliances to build our own
portfolio of low carbon
assets.
We deliver and manage energy and natural
resources projects through the following
proprietary platforms, software products
and solutions:
Our platforms – Globe and Maptium:
Globe is Getech’s flagship earth modelling
platform. It provides customers with a
powerful analytic application through which
they can access valuable global geoscience
data and knowledge.
Demand and sales for Globe are growing
amongst customers in the critical minerals,
geothermal and Carbon Capture and Storage
(CCS) sectors. These customers use Globe to
help them understand the physical conditions
and processes that control subsurface energy
extraction, energy and carbon storage, and
critical minerals recovery. This resulted in
significant new contract wins during 2021.
Globe’s 2021 release was delivered on time
and to cost, and further work on expanding the
product’s content and functionality is currently
underway. Globe’s 2022 release is scheduled
for July 2022, and this will mark another a
key stepping-stone in ensuring the platform
remains in step with the changing landscape
of the energy transition.
MaptiumTM is a new Getech platform that
leverages cutting-edge geospatial technology
to provide cost-effective modular access
to essential targeted data, workflows and
analytics that previously were only available
through our global petroleum solutions.
Via a secure web-based gateway, users of
Maptium can better visualise and analyse
energy and mineral resources information,
which maximises their understanding and
the value of their projects and operations.
The platform’s first modules were released
in 2021. These modules target data access
and critical minerals workflows - with
specific applications to sedimentary copper
exploration, a metal that is key to almost every
aspect of the energy transition. Maptium’s
content is now being expanded to enhance
exploration for new critical minerals, and
applications to the geothermal sector and
carbon capture and storage.
Our software:
Getech’s geospatial software empowers
customers’ to streamline common workflows
across a variety of geoenergy projects
– improving customers’ decision making
while increasing project efficiency and
understanding of technical risk. The three
software products are:
Exploration Analyst is a favourability
mapping tool that helps companies
quantitatively rank information essential to
day-to-day business decisions. Applications
include resource prospectivity assessment,
license evaluation, and company/peer
benchmarking. In 2021, we incorporated
Exploration Analyst’s analytics into our critical
minerals, geothermal and carbon storage
activities. This demonstrates the product’s
versatility across the energy transition, which
has widened Exploration Analyst’s target
markets and user base.
Unconventionals Analyst is a production
operations optimisation tool used in
unconventional resource projects, including
shale gas and shale oil. Customers use
the product to reduce capital spending
by delivering more efficient well inventory
planning and reserve evaluation.
Data Assistant enables easy data transfer
between Esri’s market-leading geographic
information system technology and commonly
used subsurface interpretation systems used
in geoenergy operations, including CCS,
petroleum and geothermal. It helps users to
eliminate human error from data integration
workflows, and enhances operational data
integration and analysis.
Solution delivery – leveraging our
capabilities into the energy transition:
In 2021, we released Heat SeekerTM, which
unifies our data, platforms, software and
analytics to provide a proprietary geothermal
project location solution. Heat Seeker’s
value lies in our ability to identify potential
geothermal resource sites that are within
commercial reach of readily available
customer markets for heat or power.
Heat SeekerTM achieves this by integrating
advanced geospatial analysis and machine
learning with geophysical, geological,
commercial and social data, to create
favourability maps of geothermal suitability.
By helping users rapidly identify and evaluate
development locations, this saves them
operational time/costs, increases profit
margins and reduces pay-back times for
geothermal projects.
Annual Report and Accounts 2021
11
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Operational Review cont.
Develop and Operate
Our products and services enable us to
establish revenue-generative relationships
with both natural resource asset owners
and energy consumers, which we can then
expand into strategic alliances to build our
own portfolio of low carbon assets.
Green Hydrogen
During 2021, we completed our first direct
asset investment - purchasing H2 Green,
a company working to develop green
hydrogen networks of production, storage,
and distribution facilities to decarbonise
commercial transport.
Since the acquisition, we have strengthened
and advanced H2 Green’s activities by
leveraging Getech’s core geospatial
analytical capabilities, and building streams
of excellence in facility design, project
management, economic modelling, and
business development. Drawing on our
collective experience in developing energy
assets, we have deployed a rigorous project
maturation process to identify the optimum
investment opportunities with maximum
capital efficiency and impact.
These steps resulted in us signing milestone
strategic alliances with several industry
and government partners - including SGN,
Eversholt Rail, Shoreham Port and the
Highland Council - and securing exclusivity
across a wide portfolio of hub locations.
We now hold a compelling position in the
emergent green hydrogen project pipeline.
Regional green hydrogen network
in the Highlands
Under the agreement with the Highland
Council, we are working to establish a world-
class regional green hydrogen network in the
Scottish Highlands. At the core of this network
is a hydrogen hub with SGN in Inverness, the
capital of the Scottish Highlands.
The Inverness site will supply green hydrogen
to large-volume commercial transport
customers, such as trains, buses, trucks and
heavy goods vehicles. In line with these goals,
we secured agreements with Eversholt Rail to
facilitate the wide-scale deployment of their
hydrogen-powered trains on the Far North
and West Highland Lines of Scotland.
Our activities, combined with the Highland
Council decarbonisation initiatives, are set to
establish the Scottish Highlands as a leading
UK centre for decarbonisation and innovation
– supporting job creation, energy security and
providing a sustainable path for the region’s
net zero transition.
12
Getech Group plcAnnual Report and Accounts 2021Strategic Report Groundworks began at the Inverness site
in April 2022, with our strategic partner SGN
undertaking demolition of the former gas
holder, expected to be completed during
H2 2022.
Concurrently, we have continued to progress
with finalising the Joint Venture Agreement
with the Highland Council, ahead of the
commencement of Front-End Engineering
Design (FEED) for the Inverness hub later in
2022. During 2023-2024, we expect to apply
for planning and regulatory approvals, make
Final Investment Decision (FID), procure the
equipment, and commence construction and
installation of the production facilities. The first
hydrogen production at the Inverness hub is
currently anticipated in H1 2025.
Shoreham Port - Green Energy Hub
At the other end of the country, we have
entered the port and maritime energy sector
– securing exclusive development rights for
hydrogen, renewable energy, and ammonia
importation at Shoreham Port in West Sussex
to create a Green Energy Hub.
We have been working with our strategic
partner Shoreham Port on the phase 1
development plan for on-site hydrogen
production, solar roof development and
installation of six onshore wind turbines,
and we expect to complete this by the end
of June 2022. The phase 1 development
is projected to supply green hydrogen to
a significant proportion of over 800 heavy
goods vehicles and over 50 forklift trucks
that operate within the port daily.
In parallel, we have been working towards a
final commercial structure with Shoreham
Port with the intention of completing it in
H2 2022, followed by the commencement
of FEED and application for planning and
regulatory approvals later in the year. During
2023-2024, we expect to make FID, procure
the equipment, and commence construction
and installation of the hydrogen production
facilities and rooftop solar. The first hydrogen
production, together with installation of
onshore wind is currently anticipated in
H1 2025.
We continue to identify further opportunities
in the green hydrogen space including early
production systems. Each opportunity is
assessed for economic potential, so the
optimum assets can be selected to progress to
development. The resulting asset funnel passes
through a rigorous project maturation process
to quantify the highest value green hydrogen
asset opportunities for our investment.
Geothermal
Combining subsurface understanding
with an in-depth overview of above-ground
commercial and operational factors allows
us to identify the most prospective
geothermal opportunities.
Since the launch of Heat Seeker, we have been
successful in engaging with governments and
private companies and have built a portfolio
of business opportunities around the world
comprised of services and equity entry. We are
currently involved in geothermal projects for
clients across numerous continents, ranging
from shallow ground source heat pumps to
closed-loop systems in hot-dry rocks.
Operational focus for FY2022
In 2022, we look forward to advancing our
work and alliances across each of our focus
sectors by:
• Expanding product offering for the
energy transition:
• releasing new modules on Maptium;
• adding new geoenergy capabilities
to Globe;
•
increasing adoption of Heat Seeker; and
• delivering innovations around other key
energy transition themes such as CCS.
• Replicating, scaling up and diversifying our
green hydrogen portfolio, both in the UK
and internationally;
• Building strategic partnerships to secure and
develop geothermal energy projects; and
• Pursuing energy co-location opportunities
within the critical minerals sector.
Chris Jepps
Chief Operating Office
Annual Report and Accounts 2021
13
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Getech aims to provide a caring, thriving
and diverse work environment for its staff
Health, safety and wellbeing
Getech provides support for health, safety
and wellbeing to its people and a thriving
work environment through:
• Employee Assistance Programmes
to help staff deal with personal and
professional problems that could be
affecting their life;
• Comprehensive private medical
insurance and an extensive medical
cash plan;
• 24/7 bereavement support; and
• Discounts on gym memberships.
We also support a range of extracurricular
activities including a workplace cricket
league and a sports and social club, which
provide team building opportunities for
all staff.
Sustainability
Focused on building
an ESG-centric business
In recognition of the commercial and societal importance
of sustainability and ESG, Getech’s focus is to both help our
customers deliver their ESG commitments and to define
and live by our own ESG principles.
These principles are key to promoting value and resilience
for Getech. Our goal is to grow responsibly – delivering a
company that cares about our people, communities,
customers, and the environment.
Moving from pledge to action –
FY2022 objectives
During 2021, Getech established an ESG
Committee. The committee is chaired by
Emma Parker, who was appointed to the Board
as Non-Executive Independent Director during
the year. Emma brings more than 18 years’
experience as an ESG and mining operations
specialist, with a focus on leading innovative
approaches to sustainability-led value
creation, responsible sourcing, and ethical
value chains.
The purpose of the ESG Committee is to
assist the Board of Directors in ensuring
the business delivers on the commitments
and responsibilities related to material ESG
matters relevant to the activities of the Group.
This may include climate change impacts,
emissions, environmental and supply chain
sustainability, human rights and diversity
and inclusion objectives.
During FY2022, we plan to reshape our
business to be ESG-centric through the
following actions:
• Establishing a unified view of ESG;
• Development and continuous appraisal
of ESG strategy;
• Establishing ESG metrics and KPIs;
• Overseeing ESG; and
• Defining a clear and auditable
roadmap to deliver on Getech’s
2030 net zero commitment.
Getech’s support to create
a cleaner, greener and
sustainable future
The world requires a secure and sustainable
path to decarbonisation to create a cleaner
and greener future. In 2021, Getech joined
the United Nations’ Race to Zero campaign -
pledging to become carbon neutral by 2030.
In line with this commitment, we have a
number of initiatives to reduce scope
1 and 2 emissions:
• Reducing transportation footprint. We offer
electric car and cycle to work schemes for
employees, which provide a tax efficient path
for staff to reduce their carbon footprint. We
also encourage use of videoconferencing in
place of travel, where practical.
• Reducing energy consumption. Low energy
LED lighting is used in our workspace, and
waste is recycled.
• Reducing emissions and carbon footprint.
We switched to renewable electricity and
green gas suppliers.
• Developing our own portfolio of net zero
assets. During the year, we made targeted
direct investments in carbon neutral energy
projects to accelerate decarbonision of our
own operations.
We also support customers in reducing their
emissions by applying our data, technologies
and skills to:
• Optimise existing, and deliver new
energy assets in the transitioning
primary energy sector;
• Expand the range of low carbon energy
sources: to produce heat and power
through geothermal energy; to decarbonise
transport and heat through the development
of green hydrogen hubs;
• Future proof energy systems through
subsurface energy and carbon storage;
and locate new deposits of metals critical
to the energy transition; and
•
Innovate technologies and reshape
our unique foundation products for
the energy transition.
14
Getech Group plcAnnual Report and Accounts 2021Strategic Report Investing in people’s professional
development and training
The Company encourages and supports
the career development of our staff.
We do this through training, to enhance
the delivery of day-to-day employment,
as well as to prepare for new roles and
activities. Performance appraisals are
conducted annually and a Personal
Development Plan is generated for
each member of staff, which includes
objectives for additional training, and
career development.
Equality, inclusion and diversity
Equality, inclusion and diversity is vital
to Getech to create a safe and inclusive
workplace. The Group’s Equality,
Inclusion and Diversity Policy sets out the
expectations of all employees and Board
to create this environment. We actively
support diversity and inclusion and
ensure that all employees are valued
with dignity and respect.
The employment practices and
procedures as part of quality
management system demonstrate
fairness and transparency in all areas
of the employment lifecycle, including
recruitment. Internal equal pay audits
are conducted where possible across
teams and skill sets.
We encourage openness and engagement
and provide staff with a fair voice through
various face to face and digital channels
such as the intranet, regular meetings,
workshops and performance appraisals.
Keeping staff motivated and properly
remunerated is key to the success of
Getech’s business.
Trusted corporate partner
Getech has a Charity Committee and
participates in various fundraising events
throughout the year - in support of the
wider community. During 2021, financial
support was provided to Freedom4Girls,
a charity fighting against period poverty.
The fundraiser helped to provide safe
period products and menstrual health
education to thousands of women and
girls across Leeds, Kenya and Uganda
– enabling them to attend school and
work without the stigma and gender
inequalities associated with period
poverty. Getech also provided support
to Save the Children and Red Nose Day.
In light of the current conflict in Ukraine,
which has had devastating life-changing
consequences for civilians, we provided
financial assistance to the Disasters
Emergency Committee’s Ukraine
humanitarian appeal. The aim of the
appeal is to provide food, water, shelter,
healthcare and protection to families
affected by the conflict.
Since 2016, our staff have also
volunteered for MapAction – providing
assistance with mapping, data and
training. The charity is currently involved
with supporting humanitarian efforts in
relation to the Ukraine conflict, providing
life-saving geospatial data, visualisation,
and mapping. We are seeking ways to
increase our role in supporting MapAction
charity, including donations and training.
Annual Report and Accounts 2021
15
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Financial Review
Our robust revenue
generation and strong
balance sheet provide
a solid platform to
deliver on our set plans
and future growth and
expansion.
16
A transformational year,
with positive growth
Getech is focused on growing and diversifying
its product and service offering to both
foundation petroleum customers, and new
customer markets in the low carbon economy
- where we target the geothermal energy, green
hydrogen, storage, and critical minerals sectors.
Supporting the delivery of this diversification
and growth programme, Getech raised £6.25
million of equity finance in April 2021, which is
being used to build new products and content.
Getech has also invested in sales, marketing
and business development capabilities.
Following success from these steps, and
progress from our programme of investment,
the Board is pleased to report positive revenue
growth by 20% to £4.3 million, together with
25% growth in the order book to £3.3 million.
46 new customers were added during the year,
taking the total to 94 - this includes customers
across geothermal, critical minerals, carbon
capture and storage and energy sectors.
The Group’s robust revenue generation and
our strong balance sheet, with net cash of
£5.1 million, provide a solid platform to deliver on
our set plans and future growth and expansion.
Operating results
Revenue
2021 revenue totalled £4.3 million, an increase
of 20% from £3.6 million in 2020. This growth
was largely driven by increased product sales,
which in 2021 accounted for 82% of the
revenue mix.
Toward the end of 2021, we also saw a
significant increase in services sales activity
and multi-year product licence renewals.
Whilst this had little impact on 2021 revenue,
it drove a 25% expansion in our sales order
book – from £2.7 million at the end of 2020 to
£3.3 million by 31 December 2021. We expect
a significant proportion of this order book to
unwind to revenue during 2022.
In the period, we continued to work closely
with our customers through a broad
programme of engagement, and this was
rewarded by a high renewal rate on our
subscription revenues. Annualised recurring
revenue totalled £2.1 million at 31 December
2021 (31 December 2020: £2.1 million).
Getech Group plcAnnual Report and Accounts 2021Strategic Report Table 1 – Financial Summary
Revenue
Cost base (see table 2)
Gross margin
Loss after tax
Earnings per share
Net cash outflow from
operating activities
Development costs
Net (decrease)/increase in cash
Cash and cash equivalents
Net cash
Order book
Annualised recurring revenue
Reported
)
(audited
£’000
(1)
2021
Adjusted
(unaudited
£’000
Reported
(audited)
£’000
2021
(1)
Adjusted
(unaudited)
£’000
3,563
5,154
53%
(1,529)
(4.07p)
(185)
(902)
(1,311)
4,280
6,455
46%
(1,649)
(2.77p)
(799)
(845)
3,665
4,280
6,455
46%
(1,949)
(3.27p)
(799)
(845)
3,665
5,864
5,095
3,333
2,094
3,563
5,154
53%
(1,644)
(4.38p)
(185)
(902)
(1,311)
2,192
1,357
2,665
2,082
1 Exceptional items
During the year, Getech incurred a one-off amortisation charge related to the acquisition of H2 Green Limited. In 2020, Getech
incurred costs in relation to restructuring the business.
These exceptional items totalled £300,000 (2020: £115,000) and are detailed in note 4.
Table 2 – Cost base reconciliation
% Variation
Cost of sales
Development costs capitalised
Administrative costs (excluding exceptional items)
Payment of lease liabilities2
Depreciation and amortisation charges
(exluding exceptional items)
Movement in provisions
RDEC adjustments2
Exchange adjustments
2021
£’000
2,315
847
4,733
–
2020
£’000
1,681
902
3,551
136
(1,225)
(1,174 )
(88)
(127)
–
–
52
6
Cost base, excluding exceptional items
25%
6,455
5,154
Cost base is measured as: cost of sales, administrative costs, development costs capitalised and payment of lease liabilities,
less depreciation and amortisation, and adjusted for movement in work in progress, non-cash foreign exchange adjustments.
2 Lease liabilities have been excluded from the 2021 cost base reconciliation due to the London office now being sub-let.
RDEC adjustments have been excluded from the cost base to help give a better like for like comparison of in-year costs.
Gross margin
In 2021, Getech embarked upon multiple
diversification projects and rapidly expanded
our hydrogen technical team through the
acquisition of H2 Green. As a result, cost of
sales increased by 37% from £1.7 million in
2020 to £2.3 million in 2021. This reduced
Group gross profit margins from 53% in 2020,
to 46% in 2021.
Administrative costs
Administrative expenses include £1.5
million (2020: £1.2 million) of depreciation
and amortisation charges. Excluding these
charges and exceptional items, administrative
expenses totalled £3.5 million, (2020:
£2.4 million). The additional expenditure
reflects progress across a broad front of
equity-funded growth investment. We have
absorbed additional expenditure relating to
the acquisition of H2 Green – the costs of
which in 2021 we fully expensed, as well as
expanding our Business Development team,
and strengthening our marketing capabilities.
In H2 2021, staff returned to full pay, having
previously agreed to salary reductions in
May 2020 as part of our Covid cost saving
measures implemented at that time.
Through this period of investment, Getech
has also kept focus on prudent capital
management; in February 2021 Getech
sub-let the London office and has made
rates savings on the Leeds office throughout
the year.
Cost base analysis
Getech’s cost base has increased to £6.5
million from £5.2 million, this includes research
and development costs totalling £1.6 million
(2020: £0.5 million). The table left reconciles
our cost base to the financial statements
(see table 2).
Income tax
To help our customers understand and
resolve their geoenergy and green hydrogen
exploration and operational challenges
requires Getech to undertake pioneering
research and development. Against the cost
of this work, we obtained corporation tax relief,
and subsequently realised a tax credit relating
to the 2021 tax year of £873,000 (2020:
£241,000 credit).
Getech reported an adjusted loss after tax
of £1.6 million (2020: £1.5 million loss).
Annual Report and Accounts 2021
17
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report
Financial Review cont.
Operating cash flows
Due to Getech’s investment in its diversification
strategy, and the acquisition of H2 Green,
before working capital adjustments Getech’s
cash outflow from operations increased to £0.8
million (2020: £0.2 million outflow).
Financing
In April 2020, to protect the Group from the
uncertainties arising from Covid and a low
oil price, Getech took a 12-month capital
repayment holiday on the loan secured
against Kitson House. Getech recommenced
capital repayments in April 2021. Repayments
against this loan facility amounted to £66,000
(2020: £20,000).
Payment of lease liabilities totalled £199,000
(2020: £136,000) and relate to the London
and Houston office leases. In February 2021,
Getech sub-leased the London office as part
of the continued capital efficiency measures,
rental payments received are included in other
operating income.
In April 2021, Getech successfully completed
an equity raise, with net proceeds, totalling
£5.7 million.
Business combinations
In March, Getech purchased 100% of
the ordinary share capital of H2 Green,
a company developing green hydrogen
networks of production, storage, and
distribution facilities. This acquisition
has been accounted for as a business
combination in the 2021 financial year, this
includes a £335,000 addition to Goodwill.
Liquidity and Going Concern
At the end of 2021, Getech held £5.9 million in
cash and cash equivalents (2020: £2.2 million).
Net of debt, Getech’s cash balance was
£5.1 million (2020: £1.4 million).
Getech’s business activities and the factors
likely to affect our future development,
performance and position are set out in the
Chairman’s and Chief Executive’s Review. The
financial position of the Group, our cash flows
and liquidity position are described in the
financial statements. In addition, notes 22, 24
and 26 include details of Getech’s key financial
risks and the Group’s policies and procedures
for capital management.
In making the going concern assessment,
the Board of Directors has considered Group
budgets and detailed cash flow forecasts to
30 June 2023. The Board has considered the
sensitivity of these forecasts with regards to
different assumptions about future income
and costs (see note 1.4 for more detail).
These cash flow projections, when considered
in conjunction with Getech’s existing cash
balances, and continued careful cash
management, demonstrate that the Group has
sufficient working capital for the foreseeable
future. Consequently, the Directors are fully
satisfied that Getech is a going concern.
Andrew Darbyshire
Chief Financial Officer
18
Getech Group plcAnnual Report and Accounts 2021Strategic Report Risk Management
Rigorous process to ensure risks
are monitored and mitigated
The Group constantly monitors its risk
exposures and reports to the Audit Committee
and the Board on a regular basis.
Risk matrix
Each risk on the risk register is rated for its likelihood of occurring and on the risk’s
potential impact on the Group. Ratings are from 1 to 5, where 1 is least likely/lowest
impact and 5 is most likely/highest impact.
The key risks are summarised on the risk matrix below:
7
1
6
8
3
4
5
2
9
How we manage risk
The Audit Committee receives and reviews
these reports and focuses on ensuring that
the effective systems of internal financial
and non-financial controls including the
management of risk are maintained. The
results of this work are reported to the Board
which in turn performs its own review and
assessment on an annual basis.
Key risk areas
Strategic risk
Making sure we apply the appropriate
strategies in certain situations and ensuring
we deliver on strategic objectives.
Operational risk
Successfully developing products and providing
services that meet our customers’ needs.
Financial risk
Prudent financial management seeks to
mitigate the impact of market fluctuations.
Risk management framework
The Board
The Board is responsible for setting the
Group’s risk appetite and acceptable risk
tolerance and putting in place a framework
for risk management.
The Audit Committee
The Audit Committee oversees the framework
for risk management and ensures it is
operating effectively.
Senior management and risk owners
The risks are separated into strategic,
operational, and financial categories. Senior
management are assigned responsibility for
the identified risks within the three categories.
t
c
a
p
m
I
Risk management process
The risk management process utilises a risk
register held by senior management. Key
risks in these registers have assigned owners
and are reviewed during senior management
meetings. The risk owners ensure that the
risks are monitored, mitigated and appropriate
controls are implemented. The Audit
Committee has delegated authority to the
senior management to manage the risks.
Likelihood
Strategic
1. Energy transition and
climate change
2. Oil price
3. Hydrogen market
development
4. Electricity price
5. Stakeholder
engagement
Operational
6. People
7. Data security
Financial
8. Visibility of revenues
9. Liquidity and cash
flow risk
19
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Risk Management cont.
Risk
Strategic
1. Energy transition and climate change
With society increasingly opposed to a fossil fuel-based
economy, petroleum exploration is globally, on average,
in decline. At the same time, the financial returns of low
carbon energy sources are uncertain. If the commercial
returns from our low carbon activities are lower, and we
can’t grow the scale of our operations to offset this, then
this may erode Getech’s value.
2. Oil price
Downward oil/gas price volatility may cause our
petroleum customers reduce their capital budgets
for our foundation products.
3. Hydrogen market development
The hydrogen market may develop at a slower pace than
our investment in facilities. This may degrade the project
economics of hydrogen assets.
4. Electricity price
Getech’s exposure to energy prices is broader than just
petroleum. This can provide a revenue hedge across
the Group, but our exposure also now extends to input
costs. If electricity prices remain high, then hydrogen
economics will be impacted negatively.
5. Stakeholder engagement
If Getech does not engage with stakeholders, they will
not understand the Group’s commercial, strategic and
corporate value.
Operational
6. People
Finding and retaining specialist staff is essential to the
success of the business in our path to diversification.
7. Data security
If there is loss or theft of data then our data could be
devalued, and we may lose the ability to sell the data.
Financial
8. Visibility of revenues
If we are not able to accurately forecast revenue then
we will not be able to plan or guide properly, resulting
in sub-optimal decision making.
9. Liquidity and cash flow risk
The Group may be unable to meet short-term financial
demands as a result of a volatile working capital cycle.
20
Risk change key
Increase
No change
Decrease
Owner Mitigation
Change
CEO
CEO
CEO
CEO
CEO
CEO
CFO
CEO
CFO
CFO
Getech is diversifying into focused low carbon markets –
adapting our existing products/services to provide local
solutions to urgent global climate problems. Getech is
also maximising our share of the value created in these
markets by taking equity positions in low carbon assets.
In addition, Getech will continue to seek to sustainably
maximise value from the petroleum products.
Pursue contract structures that are robust with regards
to oil price fluctuations; maintain flexibility in Getech’s
cost base; diversify into other energy markets.
Getech has a rigorous project review process in place
specific for capital investments. There are well defined
commercial hurdles in terms of offtake tangibility vs
facility design capacity. Investments will be scaled to
align with market development, and risk will be spread
through a portfolio approach.
To mitigate input power price risk, we seek to co-locate
our hydrogen supply hubs with low-cost sources of
power (e.g. wind/solar). In addition, we target hydrogen
sales agreements that operate on a margin basis.
Expanded investment in communication to provide
clear, transparent, and consistent information to
all stakeholders. Ensure delivery against the Group
strategic plan. Regular meetings with shareholders
and potential shareholders. Getech also retains PR
and IR firms to further strengthen our programme of
stakeholder engagement.
Messaging around our net zero ambition and Getech’s
vision. Offering attractive packages and benefits. Culture
and momentum of Getech is attractive to people.
Periodic audit of disaster recovery processes and
controls. Ensuring appropriate data licence agreements
are in place with our customers. Investment in IT security
and periodic IT security audit.
Strategically grow recurring revenues through the
positioning of our core products and services, reducing
the Group’s reliance on one-off lumpy transactions.
Deliver diversified revenue growth. Careful budgeting,
regular forecasting, and review of performance against
targets.
Cash flow forecasts and future income levels are
carefully monitored on a regular basis to pre-empt
liquidity issues before they occur. Careful budgeting
and close control over expenditure mitigate risk.
The £6.25 million equity raise during the year has
strengthened the group balance sheet substantially.
Getech Group plcAnnual Report and Accounts 2021Strategic Report Section 172 Statement
The Directors set out their statement of
compliance with s172 (1) of the Companies
Act 2006 (s172), which should be read in
conjunction with the rest of the annual report
and the Corporate Governance section of
the Getech website.
The Directors are aware of these duties under
Section 172 of the Companies Act 2006 to
act in the way which they consider, in good
faith, would be most likely to promote the
success of the Company for the benefit of its
members as a whole and, in doing so, to have
regard (amongst other matters) to:
a) The likely consequences of any
decision in the long term
The Directors understand Getech’s business
and the evolving environment in which it
operates, including the challenges of a
highly competitive marketplace, regulatory
intervention and climate change. The
Company has established a clear strategy and
new ‘locate-develop-operate’ business model
positioned to maximise the value of its unique
offering to deliver transformational growth in
shareholder value, and to accelerate a secure
and sustainable path to decarbonisation.
As a Board, it is our intention to behave
responsibly toward our shareholders and treat
them fairly and equally, so that they all benefit
from the success of the Group. Further details
on how we engage with our shareholders can
be found on page 27 of this report.
The Directors have taken decisions during
FY2021 that they believe best promote
Getech’s long-term success for the benefit
of its shareholders as a whole.
b) The interests of the Company’s
employees
The Directors recognise that employees
are fundamental to the future growth and
success of the Group. That success depends
on attracting, retaining and motivating
employees. More information can be found
on pages 14 to 15 of the Annual Report.
c) The need to foster the
Company’s business
relationships with suppliers,
customers and others
In addition to shareholders, the Board
recognises that the long-term success of
Getech requires positive interaction with its
stakeholders, including customers, suppliers,
governmental and regulatory authorities.
The directors seek to actively identify and
positively engage with key stakeholders
in an open and constructive manner. The
Board believes that this strategy enables
its stakeholders to better understand the
activities, needs and challenges of the
business and enables the Board to better
understand and address relevant stakeholder
views which will assist the Board in its decision
making and to discharge its duties under
Section 172 of the Companies Act 2006.
Feedback is an essential part of all control
mechanisms. Systems need to be in place
to solicit, consider and act on feedback from
all stakeholder groups. Key relationships
with customers, suppliers, contractors,
and regulators are closely managed by
the Executive Directors and the Executive
Committee.
d) The impact of the Company’s
operations on the community
and the environment
The Directors recognise that collaboration
with charities, and wider communities helps
to create stronger communities and provide
insights that enable the Board to understand
Getech’s impact on the community and
environment, and the consequences of
its decisions in the long term. Further
information on how the Company engages
with communities and supports to create a
cleaner and greener future can be found on
pages 14 to 15 of the Annual Report.
e) The desirability of the Company
maintaining a reputation for
high standards of business
conduct
The Board has overall responsibility for
ensuring high standards of governance, and
to determine the Group’s purpose, values, and
strategy. The primary aim of the Board is to
promote the long-term sustainable success of
Getech, generating value for shareholders and
contributing to wider society. More detail of our
interactions with our employees, customers,
suppliers, community and environment can
be found on page 14 of the Sustainability
section and page 24 of the Corporate
Governance report.
f) The need to act fairly between
members of the Company
The Board aims to understand the views of
its shareholders and always to act in their
best interests. The Board stays informed
of shareholders’ views via regular meetings
and other communications they may have
with shareholders. The Annual General
Meeting (‘AGM’) provides an opportunity for
shareholders to meet and discuss the Group’s
business with the Directors. The Executive
team also makes use of a range of investor
platforms as part of regular engagement
with shareholders.
More information can be found on page 27
of this report.
Approval of the Strategic Report
The Strategic Report on pages 4 to 21 was
approved by the Board on 18 May 2022.
Richard Bennett
Chairman
21
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Board of Directors
Leadership team with diverse
experience and track record
Richard Bennett
Non-Executive Chairman
Dr Stuart Paton
Non-Executive Director
Michael Covington
Non-Executive Director
Emma Parker
Non-Executive Director
Joined:
2021
Joined:
2011
Joined:
2021
Joined:
2021
Committees: A N R E
I
Committees:
A N R
Committees:
A
I
R
Committees:
N E
I
Richard Bennett has extensive
business and listed company
experience over a career
spanning 30 years. During that
time, he has worked for General
Electric in Asia and the US
and co-founded and listed on
NASDAQ J2Global, an internet
telecoms business currently
valued at US$4.5 billion. He has
worked in executive, chairman and
non-executive roles with a series
of highly successful growth-
focused technology and clean
energy companies, including the
AIM-quoted wireless technology
company, MTI Wireless Edge.
Stuart holds several advisory
roles, including with GLG and
Reform Scotland and is chair
of the Machan Trust. He has
previously been an advisor
for Lime Rock Partners and
Berwick’s Consulting. Stuart was
the Technical and Commercial
Director and CEO of Dana
Petroleum, delivering several
acquisitions for them. Before
joining Dana, he held a number
of roles at Shell. Stuart has a
BA in Earth Sciences and a PhD
in Geology from Cambridge
University.
Emma has more than 18 years’
experience as an Environmental,
Social and Governance (ESG)
and mining operations specialist.
Emma is currently Principal in
charge of Sustainable Business
Opportunities at Anglo American
PLC, a multi-national, multi-
commodity mining company.
At Anglo American, Emma is
responsible for identifying and
delivering commercial value,
leveraging Anglo American’s
sustainability practices across
areas of business development,
marketing, and finance. In
particular, her role focuses on
leading innovative approaches to
sustainability-led value creation,
responsible sourcing and ethical
value chains.
Michael has over 25 years’
experience in corporate
advisory and broking with
international investment banks
and financial and strategic
consulting. In the last 16 years,
his activities have included co-
founding Solar Securities, one
of the UK’s first solar project
developers, advising energy
transition sector participants,
and holding non-executive
board positions including with
Enertechnos Holdings Ltd., a
power transmission technology
player. He has also been an
active investor at all stages of
the value chain in European
CleanTech & Renewables with
Sustainable Investments Capital,
Alpha Real Capital and is currently
Investment Director at Bluefield
Partners LLP, investment adviser
to Bluefield Solar Income Fund
plc. He qualified as a Chartered
Accountant in 1994 with PwC.
Michael has a BA in Chemistry
from Oxford University.
22
Getech Group plcAnnual Report and Accounts 2021Governance
Committee Membership
A Audit Committee
N Nomination Committee
R Remuneration Committee
E ESG Committee
I
Independent
Dr Jonathan Copus
Chief Executive Officer
Andrew Darbyshire
Chief Financial Officer
Chris Jepps
Chief Operating Officer
Joined:
2016
Joined:
2018
Joined:
Committees:
None
Committees:
E
Committees:
2018
None
Jonathan brings to his role
extensive industry, corporate
finance and capital markets
experience. Having worked as a
deep-water exploration geologist
at Shell he moved into the City,
where as an energy sector equity
analyst he was consistently
rated number 1 by the investing
institutions. In 2011 he was
appointed CFO at Salamander
Energy plc, a Southeast Asian-
focused oil and gas production
company which the management
team sold to Ophir plc in 2015.
Jonathan has a PhD from the
University of Cambridge and a
First-Class BSc in Geology from
the University of Durham.
Andrew started his accounting
and finance career at Garbutt
& Elliott and went on to work
in audit for Grant Thornton.
Andrew joined Getech in 2014, to
establish their new finance team
and was appointed to the Board
in February 2018. Andrew has a
master’s degree in Mathematics
from the University of York and
is a member of the Institute
of Chartered Accountants in
England and Wales, he is also
the treasurer for the charity,
Live Music Now – Northeast.
Chris has extensive petroleum
industry, GIS and entrepreneurial
experience, having worked within
integrated exploration teams at
Shell, as a professional services
consultant at Landmark Graphics
and as Technical Director at
Exprodat where Chris established
the company's technical strategy
and led its software design
and development. Following
Exprodat's acquisition by Getech
Group plc in 2016, Chris joined
as Products Director, becoming
Getech Group plc COO in
February 2018. Chris has a BSc
in Geology from Imperial College,
London, and is an alumnus of
Esri’s Partner Advisory Council.
23
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Corporate Governance Statement
Director
Richard Bennett
Dr Jonathan Copus
Michael Covington
Andrew Darbyshire
Dr Alison Fielding
Chris Flavell
Chris Jepps
Emma Parker
Dr Stuart Paton
Peter Stephens
Board
Audit
Committee
Remuneration
Committee
Nomination
Committee
8/8
8/8
5/5
8/8
5/5
5/5
8/8
3/3
7/8
1/1
2/2
—
1/1
—
1/1
—
—
—
2/2
—
1/1
—
1/1
—
1/1
1/1
—
—
2/2
—
2/2
—
1/1
—
2/2
2/2
—
—
3/3
1/1
In May 2021, Michael Covington joined the
Board as a Non-Executive Director and Audit
Chair designate. After a period of knowledge
transfer Michael assumed the position of Audit
Chair from 1 July 2021, at which time Alison
Fielding retired from the Board.
In July 2021, Emma Parker joined the Board as
a Non-Executive Director, at which time Chris
Flavell retired from the Board.
The newly appointed Non-Executive Board
members bring together a balance of
knowledge and skills aligned with the direction
of the Group and directly relevant to its
strategy:
• Richard Bennett brings extensive City
experience, and a strong track record in
growing technology, renewable fuel and
agricultural companies.
• Emma Parker adds over 17 years’
experience as an Environmental, Social and
Governance (ESG) specialist and has vast
mining industry experience.
• Michael Covington is an experienced
renewable energy and cleantech investment
Director, with extensive knowledge of
commercial and investment agreements,
funding, audit and M&A.
A Directors’ Responsibilities statement in
respect of the financial statements is set out
in this Annual Report on pages 28 and 29.
The Board is responsible for approving overall
strategic, financial and operational matters
and for the identification of risks faced by the
Group. Board approval is required for certain
matters, the most significant of which are:
1. Final approval of the Annual Report
and Accounts
2. The budget and major capital expenditure
3. The dividend policy
4. Acquisitions and alliances policies.
The Board delegates certain matters regarding
audit, remuneration and nomination to its
principal committees, each of which has
written terms of reference.
Attendance by each Director at full meetings
of the Board and Board committees of which
they were a formal member during the year
is summarised above.
The effectiveness of the Board is reviewed
on an annual basis, and progress against
the review recommendations is monitored
on a regular basis. Directors who have been
appointed to the Company have been chosen
because of the skills and experience they offer.
The Company undertakes regular monitoring
of personal and corporate performance using
agreed Key Performance Indicators and
detailed financial reports. Responsibility for
assessing and monitoring the performance of
the Executive Directors lies with the Chairman
and the Non-Executive Directors.
Getech is committed to high standards of
corporate governance. As such, the Board
has chosen to adopt the principles of the
Quoted Companies Alliance ('QCA') Corporate
Governance Code for Small and Mid-Size
Quoted Companies 2018 (the 'Code'). Details
of how Getech complies with the Code, and
the reasons for any non-compliance, are set
out in this Corporate Governance statement.
The board consider Getech to be in
compliance with the ten principles of the
QCA code, with the exception of including
separate Audit Committee and Remuneration
Committee reports. Due to the size of the
business, the required disclosures relating
to the Audit and Remuneration Committees
have been made in this corporate governance
report and the notes to the financial
statements, see pages 25 and 26 for details
of the work undertaken by these committees.
This will be reassessed periodically.
The board consider Getech to be in
compliance with the ten principles of the
QCA code, with the exception of including
separate Audit Committee and Remuneration
Committee reports. Due to the size of the
business, the required disclosures relating
to the Audit and Remuneration Committees
have been made in this corporate governance
report and the notes to the financial
statements, see pages 25 and 26 for details
of the work undertaken by these committees.
This will be reassessed periodically.
The Board
The Board comprises four Non-Executive
Directors and three Executive Directors. The
roles of the Chairman, who is non-executive
and elected by the Board, and the Chief
Executive, are separated. All Directors are
subject to retirement by rotation, and re-
election is a matter for the shareholders. The
Non-Executive Directors ensure a balance to
the Board by constructively challenging the
Executive Directors. Non-Executive Directors
are committed to providing their services to
the Group for a minimum of 12 days per year.
In January 2021, Richard Bennett joined
the board as Chairman-designate, and at the
same time Peter Stephens retired from the
Board. In April 2021 Richard assumed the
position of Chairman, whilst Stuart
Paton remained on the board as a
Non-Executive Director.
24
Getech Group plcAnnual Report and Accounts 2021Governance Committee structure diagram
The Board
The Board comprises four Non-Executive Directors and three Executive Directors.
The roles of the Chairman, who is non-executive and elected by the Board, and the
Chief Executive, are separated. All Directors are subject to retirement by rotation, and
re-election is a matter for the shareholders. The Non-Executive Directors ensure a
balance to the Board by constructively challenging the Executive Directors.
Audit Committee
The Audit
Committee
consists of three
non-executive
members of the
board and meets
at least twice a
year.
Remuneration
Committee
The Remuneration
Committee
consists of three
non-executive
members of the
Board and meets
at least once a
year.
Nomination
Committee
The Nomination
Committee
consists of three
non-executive
members of the
board and meet at
least once a year.
Environmental,
Social, and
Governance
(ESG) Committee
During 2021,
Getech
established
ESG committee.
The Committee
consists of three
members of the
Board.
Company Secretary
The Company Secretary is responsible for
ensuring that the Board procedures are
followed, that the Company complies with
Company Law and the AIM rules, and that the
Board receives the information it needs to fulfil
its duties.
All Directors have access to the Company
Secretary and their appointment (or
termination of appointment) is a matter for
decision by the full Board.
Audit Committee
The Audit Committee consists of three non-
executive members of the board and meets
at least twice a year. The principal duties
and responsibilities of the Audit Committee
include:
• Monitor the Group’s internal financial
controls and assess their adequacy
• Review key estimates, judgements and
assumptions applied by management in
preparing published financial statements
• Review and update the Group’s risk register
• Assess annually the auditor’s independence
and objectivity
• Make recommendations in relation to the
appointment, reappointment and removal
of the Company’s external auditor
• Review and consider for approval, significant
new contracts
25
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Corporate Governance Statement cont.
The ten principles of the QCA code
Number Principles
Disclosed in the 2021
Annual Report
Establish a strategy and business model that
promotes long-term value for shareholders.
Pages 02 to 09
Seek to understand and meet shareholders'
needs and expectations.
Take into account wider stakeholder and social
responsibilities and their implications for long-
term success.
Page 27
Page 27
Embed effective risk management, considering
both opportunities and threats throughout the
organisation.
Pages 19 and 20
Maintain the Board as a well-functioning,
balanced team led by the Chair.
Ensure that between them the Directors have
the necessary and up-to-date experience, skills
and capabilities.
Evaluate Board performance based on clear
and relevant objectives, seeking continuous
improvement.
Pages 24 to 26
Pages 22 to 26
Pages 24 to 26
Promote a corporate culture that is based on
ethical values and behaviours.
Page 14 and 15
Maintain governance structures and processes
that are fit for purpose and support good
decision-making by the Board.
Pages 24 to 29
Remuneration Committee
The Remuneration Committee consists
of three non-executive members of the
Board and meets at least once a year. The
principal duties and responsibilities of the
Remuneration Committee include:
• Setting the remuneration policy for all
Executive Directors and the Chairman
• Recommending and monitoring the
level and structure of remuneration for
senior management
• Approving the design of, and determining
targets for, performance-related pay
schemes operated by the Company and
approve the total annual payments made
under such schemes
• Reviewing the design of all share incentive
plans for approval by the Board and
shareholders
None of the Committee members have any
personal financial interest (other than as
shareholders), conflicts of interest arising
from cross-directorships or day-to-day
involvement in the running of the business.
No Director plays a part in any final decision
about his or her own remuneration.
Nomination Committee
The Nomination Committee consists of
four non-executive members of the Board
and meet at least once a year. The principal
duties and responsibilities of the Nomination
Committee include:
• Regularly reviewing the structure, size and
Communicate how the Company is governed
and is performing by maintaining a dialogue
with shareholders and other relevant
stakeholders.
Page 27
composition of the Board
• Giving consideration to succession planning
for Directors and other senior Executives
•
Identifying and nominating for the approval
of the Board, candidates to fill Board
vacancies as and when they arise
• Deciding membership of the Audit
and Remuneration Committees
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
26
Getech Group plcAnnual Report and Accounts 2021Governance Communications with
shareholders
The Directors attach great importance
to maintaining good relationships with
shareholders. Throughout the year, the Board
maintains a regular dialogue with shareholders,
providing them with such information on the
Company’s progress as is permitted within
the guidelines of the AIM rules, Market Abuse
Regulation (MAR) and requirements of the
relevant legislation.
The Annual General Meeting ('AGM') provides
an opportunity for shareholders to meet
and discuss the Group’s business with the
Directors. Shareholders are encouraged to
attend AGMs in person and/or virtually and
vote on any proposed resolutions. There is
an open question and answer session during
which shareholders may ask questions both
about the resolutions being proposed and the
business in general. The Directors are also
available after the meeting for an informal
discussion with shareholders.
The Board believes that the Annual Report
and Accounts, and the Interim Report
published at the half-year, play an important
part in presenting all shareholders with an
assessment of the Group’s position and
prospects. All reports and press releases
are published in the Investor section of
the Group’s website.
The Board produces a series of updates
throughout the year relating to Company
performance, these are distributed via
RNS and RNS Reach. Copies of all RNS
announcements and the resolutions passed
following the most recent AGM can be found
on the Getech website www.getech.com.
The Executive team also makes use of a range
of investor platforms, which in 2021 included
Proactive/Cenkos Growth and Innovation
Forums, Investor Meet Company, Vox Markets,
BRR media and others.
The Board stays informed of shareholders’
views via regular meetings and other
communications they may have with
shareholders.
27
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Directors’ Report
The Directors present their report and financial
statements for the year ended 31 December
2021.
Principal activities
The principal activity of the Group is to
accelerate the energy transition by locating
geoenergy and green hydrogen projects. This
is achieved through application of the Group’s
world-leading geoscience data and unique
geospatial software products.
Getech conducts extensive Geoenergy
research and development projects in
Geothermal, Critical Minerals, Carbon Capture
and Storage, Petroleum and Hydrogen energy
sectors. In 2021, the Group’s R&D expenditure
totalled £1,578,000.
Future developments
The future developments of the Group
are included in the Outlook section of the
Chairman and Chief Executive’s Review.
Directors
The Directors of the Parent Company who
served during the year were:
Richard Bennett (appointed 28 January 2021)
Dr Jonathan Copus
Michael Covington (appointed 13 May 2021)
Andrew Darbyshire
Dr Alison Fielding (resigned 30 June 2021)
Chris Flavell (resigned 21 July 2021)
Chris Jepps
Emma Parker (appointed 22 July 2021)
Dr Stuart Paton
Peter Stephens (resigned 28 January 2021)
Substantial Shareholders
Amati Global Investors
Premier Miton Investors
BGF Investors
Hargreaves Lansdown Asset Management
Mr Stuart Hawthorne
Eiffel Investment Group
Rathbone Investment Management
Interactive Investor
Walker Crips Stockbrokers
Barclays Wealth
28
Results and Dividends
The results for the year are set out on page 39.
The Directors do not recommend a dividend
(2020: no dividend).
Directors’ Indemnity
The Group maintains Directors’ and Officers’
liability insurance, which gives cover against
legal action that may be taken against them.
Qualifying third-party indemnity provisions (as
defined in Section 234 of the Companies Act
2006) are in force for the benefit of Directors.
Risks
The principal risks of the Group including
around financial risk management are included
in the Strategic Report (see pages 19 and 20).
Substantial Shareholders
The Parent Company was notified on 31
December 2021 of the following interests
in excess of 3% of its issued Ordinary Share
capital. Please see the table below.
Statement of Directors’
responsibilities in respect
of the financial information
The Directors are responsible for preparing the
Annual Report and the financial statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare
financial statements for each financial year.
Under that law, the Directors have prepared
the consolidated financial statements in
accordance with International Accounting
Standards in conformity with the requirements
of the Companies Act 2006. Under company
law, the Directors must not approve the
financial statements unless they are satisfied
that they give a true and fair view of the state
of affairs of the Company and Group and of
the profit or loss of the Company and Group
for that year. In preparing these financial
statements, the Directors are required to:
• Select suitable accounting policies
and then apply them consistently
• Make judgements and estimates that
are reasonable and prudent
• State whether applicable International
Accounting Standards in conformity
with the requirements of the Companies
Act 2006 have been followed in the
consolidated financial statements and
the Parent Company’s financial statements,
subject to any material departures
disclosed and explained in the financial
statements
• Prepare the financial statements on a going
concern basis, unless it is inappropriate to
presume that the Company or Group will
continue in business.
Number of
Ordinary Shares
% of issued
share capital
7,727,000
5,591,287
4,555,350
4,450,153
4,250,000
3,869,442
3,748,222
3,710,251
3,406,313
2,560,002
11.6
8.4
6.8
6.7
6.4
5.8
5.6
5.6
5.1
3.8
Getech Group plcAnnual Report and Accounts 2021Governance Post balance sheet events
On 8 February 2022, the Group granted
2,250,000 share options, of which 1,650,000
were granted to Directors of the Group. The
options were granted with an exercise price
of 27.5p per ordinary share, being the mid-
market closing price on 7 February 2022. The
options have a seven-year term and vest one
third on each of the next three anniversaries
of the grant date, subject to satisfying certain
performance condition.
The Directors have determined that the
options carry a provisional fair value of
£158,000 across all three tranches of share
options. Of this, £116,000 relates to the
options held by Directors, which is anticipated
to be recognised as remuneration over the
next three years.
Auditor
Grant Thornton UK LLP has expressed its
willingness to continue in office as external
auditor. A resolution to reappoint Grant
Thornton UK LLP will be proposed at the
forthcoming Annual General Meeting.
By order of the Board
Richard Bennett
Chairman
18 May 2022
The Directors are responsible for keeping
adequate accounting records that are
sufficient to show and explain the Company’s
transactions and disclose with reasonable
accuracy at any time the financial position of
the Company and the Group and enable them
to ensure that the financial statements comply
with the Companies Act 2006. They are also
responsible for safeguarding the assets of
the Company and the Group, and hence for
taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The Directors confirm that:
• So far as each Director is aware, there is
no relevant audit information of which the
Company’s external auditor is unaware
• The Directors have taken all steps that they
ought to have taken to make themselves
aware of any relevant audit information
and to establish that the external auditor
is aware of that information.
The Directors are responsible for the
maintenance and integrity of the corporate
and financial information included on the
Company’s website. Legislation in the United
Kingdom governing the preparation and
dissemination of financial statements may
differ from legislation in other jurisdictions.
Going Concern
In making the going concern assessment,
the Board of Directors has considered Group
budgets and detailed cash flow forecasts to
30 June 2023. The Board has considered
sensitivity of these forecasts with regards to
different assumptions about future income
and costs (see note 1.4 for more detail).
The detailed forecasting models are built
from Board approved budgets. From these
budgets, revenue forecasting is regularly
updated to take into consideration new
contractually committed revenues, market
sentiment, the Group’s current sales
pipeline, and any other influencing factors.
The Directors then further apply sensitivity
testing to the revenue profiles based on the
achievement of various levels of revenue
from non-contractually committed sources.
29
Annual Report and Accounts 2021Getech Group plcFinancial StatementsGovernanceStrategic Report Independent Auditor’s Report
to the members of Getech Group plc
Opinion
Our opinion on the financial statements is unmodified
We have audited the financial statements of Getech Group plc (the ‘parent company’) and its subsidiaries (the ‘Group’) for the year ended 31
December 2021, which comprise the Group Statement of Comprehensive Income, the Group Statement of Financial Position, the Group
Statement of Changes in Equity, the Group Statement of Cash Flows, the Note to the Group Statement of Cash Flows, the Company Statement
of Financial Position, the Company Statement of Changes in Equity, and the notes to the Group and Company Financial Statements, including
a summary of significant accounting policies. The financial reporting framework that has been applied in the preparation of the Group financial
statements is applicable law and UK-adopted international accounting standards. The financial reporting framework that has been applied in
the preparation of the parent company financial statements is applicable law and United Kingdom Accounting Standards, including Financial
Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the parent company’s affairs as at 31 December 2021
and of the Group’s loss for the year ended;
• the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards;
• the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are
independent of the Group and the parent company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the
parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions
are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the Group or the parent
company to cease to continue as a going concern.
A description of our evaluation of management’s assessment of the ability to continue to adopt the going concern basis of accounting, and the
key observations arising with respect to that evaluation is included in the Key Audit Matters section of our report.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group’s and the parent company’s ability to continue as a going concern for a period of at least
twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the
financial statements is appropriate.
The responsibilities of the directors with respect to going concern are described in the ‘Responsibilities of directors for the financial statements’
section of this report.
30
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 Our approach to the audit
Materiality
Overall materiality:
Overview of our audit approach
Group: £171,000, which represents approximately 7.5% of the Group’s loss before taxation at the planning
stage of the audit.
Parent company: £128,000, which is 7.5% of the parent company’s loss before taxation, restricted to its
component materiality.
Key audit matters
Key audit matters were identified as;
• Revenue recognition (same as last year);
• Carrying value of goodwill and other intangible assets (same as last year);
• Acquisition of H2 Green Ltd (new); and
• Going concern (same as last year).
Scoping
We have performed the following audit procedures:
Our auditor’s report for the year ended 31 December 2020 included no key audit matters that have not been
reported as key audit matters in our current year’s report.
• Full-scope audit procedures on the financial information of each of Getech Group plc (parent company),
Exprodat Consulting Limited and Geophysical Exploration Technology Inc.;
• An audit of one or more account balances, classes of transactions or disclosures (specified audit
procedures) on the financial information of one further component – ERCL Limited; and
• Analytical procedures at Group level for the remaining component in the Group during the year –
H2 Green Ltd.
Key audit matters
Key audit matters are those matters that, in our professional judgement,
were of most significance in our audit of the financial statements of the
current period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified. These matters
included those that had the greatest effect on: the overall audit strategy; the
allocation of resources in the audit; and directing the efforts of the engagement
team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Description
Audit response
KAM
Disclosures
Our results
31
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021
Independent Auditor’s Report cont.
to the members of Getech Group plc
In the graph below, we have presented the key audit matters, significant risks and other risks relevant to the audit.
High
t
c
a
p
m
i
t
n
e
m
e
t
a
t
s
l
i
a
c
n
a
n
fi
l
a
i
t
n
e
t
o
P
Low
Going
concern
Revenue
recognition
Carrying value of goodwill
and other intangibles
Acquisition of
H2 Green Ltd
Management override
of controls
Capitalisation of
intangible assets
Low
Extend of management judgement
High
Key audit matter
Significant risk
Other risk
Key Audit Matter – Group and Parent
Revenue Recognition
How our scope addressed the matter –
Group and Parent
We identified revenue recognition as one of the most significant
assessed risks of material misstatement due to fraud.
In responding to the key audit matter, we performed the following
audit procedures:
Revenue for the year totalled £4.2m. We identified that the risk
is heightened for the point in time revenue streams that were
uncollected at year end and for over time revenue streams where the
service is ongoing at 31 December 2021, which collectively account
for a significant majority of the recorded revenue. For both of these
categories there is a risk that revenue is recognised before the risks
and rewards of ownership have transferred to the customer, and
before the performance obligations have been met.
As there are contractual arrangements with customers, there is a risk
that revenue is misstated as each contract’s outcome and stage of
completion requires professional judgement.
Relevant disclosures in the Annual Report and Accounts 2021
• Financial statements: Note 1.5, Revenue accounting policy and
Note 3, Revenue and segmental reporting.
• Evaluating the Group’s revenue recognition policies for
appropriateness with International Financial Reporting Standard
(‘IFRS’) 15 ‘Revenue from Contracts with Customers’;
• Testing a sample of revenue transactions in respect of sale of
products and provision of services and assessed them against
supporting documentation relating to the underlying contract and
proof of delivery as appropriate, to determine whether income has
been appropriately recognised in accordance with IFRS 15 and the
Group’s accounting policy;
• Testing of transactions around the year end to determine whether
transactions were recorded in the correct accounting period and
whether revenue was appropriately deferred; and
• Comparison of current year revenue with that from the prior period
and obtaining and corroborating the explanations for significant
and unusual variances.
Our results
Based on the audit work performed, we have not identified any
material misstatement in relation to revenue recognition for the
point in time revenue streams that were uncollected at year end
or the over time revenue streams where the service is ongoing
at 31 December 2021.
32
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021
Key Audit Matter – Group and Parent
Carrying value of goodwill and other intangible assets
How our scope addressed the matter –
Group and Parent
We identified carrying value of goodwill and other intangible assets
as a significant risk of material misstatement due to fraud and error.
In responding to the key audit matter, we performed the following
audit procedures:
Within the Group Statement of Financial Position there are significant
balances for goodwill and other intangible assets arising from
both previous acquisition activity and ongoing development work.
The carrying value for these balances amounted to £4.1m at 31
December 2021.
Within the Parent Company Statement of Financial Position there
are significant balances for intangible assets arising from ongoing
development work. The carrying value of these balances amounted
to £2.8m at 31 December 2021.
These balances represent a significant proportion of the total assets
figure within the financial statements and, if the underlying entities are
not performing in line with forecast, or the capitalised development
work is not delivering against its objectives, they are at risk of being
materially misstated due to unrecorded impairment. Furthermore,
the forecasts include a degree of estimation as to future projects
to be delivered and the results to be derived therefrom. Given
the management judgement involved and the complexity of the
impairment review calculation, there is a significant risk of material
misstatement due to fraud and error.
• Computation of an expectation of the amortisation charge
for the year and comparison to the amount recorded in the
financial statements;
• Challenging management’s identification of cash-generating units
and their assessment of whether any impairment indicators are
present in any of the cash generating units;
• Assessing and challenging management’s reviews of the carrying
value of goodwill and intangible assets. Our challenge focussed
on the assumptions regarding each of revenues and cash flows
from the underlying-cash generating units relative to historic
performance, prospects of future commercial projects, and
assessment of the growth rates and discount rates applied;
• Testing the accuracy of management’s forecasting by a
comparison of budget to actual data;
• Obtaining and assessing management’s allocation of assets
and cash flows to each cash-generating unit in their forecasts;
• Performing sensitivity analysis to understand the impact of any
reasonably possible changes in assumptions and evaluating the
headroom available from different outcomes to assess whether
goodwill and other intangible assets could be impaired; and
• Assessing whether the Group’s disclosures with respect to the
carrying value of goodwill and other intangible assets are adequate
and whether the key assumptions are disclosed.
Relevant disclosures in the Annual Report and Accounts 2021
• Financial statements: Note 1.11, Impairment of tangible and
intangible assets accounting policy and Note 17, Intangible assets.
Our results
Based on our audit work, we have not identified any material
misstatements in the carrying value of goodwill and intangible
assets in the financial statements.
33
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Independent Auditor’s Report cont.
to the members of Getech Group plc
Key Audit Matter – Group and Parent
Acquisition of H2 Green Ltd
How our scope addressed the matter –
Group and Parent
We identified the acquisition of H2 Green Ltd as one of the most
significant assessed risks of material misstatement due to error.
In responding to the key audit matter, we performed the following
audit procedures:
The Group acquired H2 Green Ltd during the year ended 31
December 2021. IFRS 3 ‘Business Combinations’ requires acquired
assets, liabilities and consideration to be recorded at fair value. There
is significant management judgement involved in determining these
fair values, specifically with judgement involved in the valuation of
intangible assets, and any value assigned to contingent consideration.
There is therefore a significant risk arising from the level of complexity
associated with the determination of the fair value amounts.
Relevant disclosures in the Annual Report and Accounts 2021
• Financial statements: Note 1.2, Business combinations and
Note 36, Acquisition of a business.
Going concern
• Obtaining an understanding of the business combination from
discussion with management and from assessing their business
combination accounting paper;
• Understanding the systems and controls in place over the
accounting for the acquisition in the period;
• Documenting our assessment of the competence of
management’s expert who have assisted management with
determining the fair value of the intangible assets and contingent
consideration;
• Obtaining and assessing the legal documentation outlining the
terms and conditions of the acquisition to challenge whether
management’s acquisition accounting was appropriate;
• Engaging our own internal valuation specialists to evaluate the
fair values of the option the intangible assets acquired; and
• Performing testing on the acquisition balance sheet, including
testing the fair values attributed to the identifiable assets and
liabilities acquired with assistance from our internal valuations team.
Our results
Based on our audit work perfomed, we are satisfied that the
acquisition of H2 Green Ltd has been accounted for in accordance
with IFRS 3 ‘Business combinations’.
We identified going concern as one of the most significant assessed
risks of material misstatement due to fraud and error.
In responding to the key audit matter, we performed the following
audit procedures:
This is as a result of the judgement required to conclude whether
there is a material uncertainty related to going concern present.
Covid-19 continues to have an impact in the UK and internationally.
The pandemic (alongside wider economic concerns) has adversely
affected the key markets in which the Group operated during
2021, and this could continue to adversely impact the demand
for the Group’s products and services and therefore future trading
performance of the Group and the parent company.
As such, this increases the extent of judgement and estimation
uncertainty associated with management’s decision to adopt the
going concern basis of accounting in the preparation of the financial
statements.
In undertaking their assessment of going concern for the Group, the
Directors considered the impact of Covid-19 related events in their
forecast future performance of the Group and anticipated cash flows.
Relevant disclosures in the Annual Report and Accounts 2021
• Financial statements: Note 1.4 Going concern accounting policy.
• Obtaining management’s assessment of going concern which
included forecasts and budgets for at least 12 months from
the expected date of approval of the financial statements (to
the period 30 June 2023). We challenged and corroborated the
significant assumptions adopted by management. The significant
assumptions were revenue growth, cost increases and savings,
and the conversion of receivables into cash;
• Obtaining and evaluating management’s sensitivity analysis,
which included three different scenarios;
• Assessing post-year end management accounts for indication of
any post balance sheet events which could impact going concern;
• Comparing actual amounts to amounts previously forecast to
assess reliability of management’s forecasts; and
• Challenging the disclosures made in the financial statements in
respect of going concern to determine whether they are adequate
and appropriately describe the basis of preparation.
Our results
Based on the audit procedures performed, we have nothing to
add to that stated in the ‘Conclusions relating to going concern’
section of our report.
34
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 Our application of materiality
We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of identified misstatements on the audit
and of uncorrected misstatements, if any, on the financial statements and in forming the opinion in the auditor’s report.
Materiality was determined as follows:
Materiality measure Group
Parent company
Materiality for financial
statements as a whole
We define materiality as the magnitude of misstatement in the financial statements that, individually or in the
aggregate, could reasonably be expected to influence the economic decisions of the users of these financial
statements. We use materiality in determining the nature, timing and extent of our audit work.
Materiality threshold
£171,000, which is approximately 7.5% of the Group’s
loss before taxation at the planning stage of the audit.
£128,000, which is 7.5% of the parent company’s loss
before taxation, restricted to the parent company’s
component materiality.
Significant judgements
made by auditor in
determining the materiality
In determining materiality, we made the following
significant judgements:
In determining materiality, we made the following
significant judgements:
• Loss before taxation is a key performance metric
for users of the financial statements due to the
continued losses made by the Group.
Materiality for the current year is higher than the level
that we determined for the year ended 31 December
2020 to reflect the increase in the loss before taxation
for the year and the increase in the measurement
percentage applied, from 5% last year to 7.5% this year.
• Loss before taxation is a key performance metric for
users of the financial statements.
• The parent company is the largest trading company
in, and contributes the largest loss to, the Group’s
loss before taxation. Therefore, we have determined
the parent company’s materiality as a percentage
of the parent company loss before taxation but
restricted this to the parent company’s component
materiality.
Materiality for the current year is higher than the level
that we determined for the year ended 31 December
2020 to reflect the increase in materiality for the
Group, on which the parent company’s materiality
is based.
Performance materiality
used to drive the extent
of our testing
We set performance materiality at an amount less than materiality for the financial statements as a whole
to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality for the financial statements as a whole.
Performance materiality
threshold
Significant judgements
made by auditor
in determining the
performance materiality
£119,700, which is 70% of financial statement
materiality. We have used a lower performance
materiality threshold than the prior year (75%),
following our reassessment of the tolerance for
potential uncorrected misstatements.
£89,600, which is 70% of financial statement
materiality. We have used a lower performance
materiality threshold than the prior year (75%),
following our reassessment of the tolerance for
potential uncorrected misstatements.
In determining performance materiality, we made
the following significant judgements:
In determining performance materiality, we made
the following significant judgements:
• consideration of the quantity and value of errors
and control deficiencies identified in prior years;
• consideration of the quantity and value of errors
and control deficiencies identified in prior years;
• whether there were any significant adjustments
made to the Group financial statements in prior
years; and
• whether there were any significant adjustments
made to the parent company’s financial statements
in prior years; and
• assessment for any significant changes in business
• assessment for any significant changes in business
objectives and strategy of the Group.
objectives and strategy of the parent company.
Specific materiality
We determine specific materiality for one or more particular classes of transactions, account balances or
disclosures for which misstatements of lesser amounts than materiality for the financial statements as a
whole could reasonably be expected to influence the economic decisions of users taken on the basis of
the financial statements.
Specific materiality
We determined a lower level of specific materiality
for the following areas:
We determined a lower level of specific materiality
for the following areas:
• related party transactions; and
• related party transactions; and
• directors’ remuneration.
• directors’ remuneration
35
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Independent Auditor’s Report cont.
to the members of Getech Group plc
Materiality measure Group
Parent company
Communication of
misstatements to the
Audit Committee
We determine a threshold for reporting unadjusted differences to the Audit Committee.
Threshold for
communication
£8,500 and misstatements below that threshold that,
in our view, warrant reporting on qualitative grounds.
£6,400 and misstatements below that threshold that,
in our view, warrant reporting on qualitative grounds.
The graph below illustrates how performance materiality interacts with our overall materiality and the tolerance for potential uncorrected
misstatements.
Overall materiality – Group
Overall materiality – Parent company
Loss before tax
Loss before tax
£2,283,000
£2,283,000
FSM £171,000
7.5%
FSM £171,000
7.5%
PM £119,700
70%
PM £119,700
70%
Loss before tax
Loss before tax
£1,970,000
£1,970,000
FSM £128,000
FSM £128,000
PM £89,600
PM £89,600
70%
70%
TFPUM £51,300
30%
TFPUM £51,300
30%
TFPUM £38,400
30%
TFPUM £38,400
30%
FSM: Financial statements materiality, PM: Performance materiality, TFPUM: Tolerance for potential uncorrected misstatements
An overview of the scope of our audit
We performed a risk-based audit that requires an understanding of the Group’s and the parent company’s business and in particular matters
related to:
Understanding the Group, its components, and their environments, including Group-wide controls
• The engagement team obtained an understanding of the Group, its environment and risk profile, including Group-wide controls, and assessed
the risks of material misstatement at the Group level. We considered the structure of the Group, its processes and controls and the industries
in which the components operate.
• We obtained an understanding of the relevant processes and controls in place for the significant risks identified above.
Identifying significant components
•
In order to address the risks identified, the engagement team performed an evaluation of identified components to assess the significant
components and to determine the planned audit response based on a measure of materiality, calculated by considering the component’s
significance as a percentage of the Group’s total assets, revenue and profit or loss before taxation.
Type of work to be performed on financial information of parent and other components
(including how it addressed the key audit matters)
• Of the Group’s five components, we identified three which, in our view, required an audit of their financial information (full-scope audit
procedures), either due to size or risk characteristics. As a result of this, we performed an audit of the financial information of Getech Group plc
(parent company), Exprodat Consulting Limited and Geophysical Exploration Technology Inc.;
• We performed specified audit procedures over certain balances and transactions of one component to give appropriate coverage of balances,
utilising a component materiality with reference to the component’s overall weighting to the Group. Together, the components subject to full-
scope audit and specified audit procedures were responsible for 99% of the Group’s revenue, and 99% of the Group’s total assets;
• We performed analytical procedures at Group level in relation to the remaining component (H2 Green Ltd). All audit work was undertaken
by the Group engagement team;
• We identified improper recognition of revenue, the carrying value of goodwill and other intangible assets and going concern as key audit matters,
and the audit procedures performed in respect of these have been included in the key audit matters section of our report.
Changes in approach from previous period
• There was no change to the audit approach of the existing components of the Group in the current year. The only alteration to our audit
approach was the consideration of H2 Green Ltd, as a newly acquired subsidiary, for which we have performed analytical procedures for
Group purposes. The location and the finance team for H2 Green Ltd is consistent with the other Group entities. The business combination
accounting in relation to H2 Green Ltd has been identified as a key audit matter.
36
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report and
accounts 2021, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the
other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is
a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Our opinion on other matters prescribed by the Companies Act 2006 is unmodified
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is
consistent with the financial statements; and
• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit,
we have not identified material misstatements in the strategic report or the directors’ report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if,
in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received
from branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of directors for the financial statements
As explained more fully in the Statement of Directors’ responsibilities in respect of the financial information, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the parent company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is
not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
37
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Independent Auditor’s Report cont.
to the members of Getech Group plc
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is
an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and
performed in accordance with ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
• We obtained an understanding of the legal and regulatory frameworks applicable to the parent company and the Group and the industry in
which they operate. This was achieved through enquiries with management and a review of board minutes and papers provided to the Audit
Committee. We determined that the following laws and regulations were most significant: UK-adopted international accounting standards (for
the Group), Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (for the parent company), the Companies Act 2006, the Quoted
Companies Alliance (QCA) Corporate Governance Code and the relevant tax compliance regulations in the jurisdiction in which the parent
company and the Group operate, being in the UK and in the US;
• We understood how the parent company and the Group is complying with those legal and regulatory frameworks by making inquiries to the
management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of board minutes
and papers provided to the Audit Committee;
• We enquired of management whether there were any instances of non-compliance with laws and regulations or whether they had any
knowledge of actual, suspected fraud. We corroborated the results of our enquiries to supporting documentation such as board minute reviews
and papers provided to the Audit Committee.
• We assessed the susceptibility of the parent company’s and the Group’s financial statements to material misstatement, including how fraud
might occur. Audit procedures performed by the engagement team included:
– Identifying and assessing the design and implementation of controls management has in place to prevent and detect fraud;
– Challenging assumptions and judgements made by management in its significant accounting estimates, in particular around accounting
for revenue and the carrying value of non-current assets;
– Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations;
– Identifying and testing related party transactions.
• These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not
detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result
from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or
intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the
financial statements, the less likely we would become aware of it.
• The engagement partner has assessed the appropriateness of the collective competence and capabilities of the engagement team, including
consideration of the engagement team’s knowledge and understanding of the industry in which the client operates in, and its practical
experience through training and participation with audit engagements of a similar nature. All team members are considered to have sufficient
knowledge and experience of companies of a similar size and complexity, appropriate to their role within the team.
• Team communications in respect of potential non-compliance with laws and regulations and fraud included the potential for fraud in revenue
recognition and application of the going concern assumption. These are also reported as a key audit matters in the key audit matter section
of our report where the matters are explained in more detail and the specific procedures we performed in response to the key audit matters
are described in more detail.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit
work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and
the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Richard Woodward
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Leeds
18 May 2022
38
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 Group Statement of Comprehensive Income
for the year ended 31 December 2021
Revenue
Cost of sales
Gross profit
Other operating income
Administrative expenses
Operating loss before exceptional items
Exceptional items
Operating loss
Finance income
Finance costs
Other gains and losses
Loss before taxation
Income tax
Loss for the year
Other comprehensive income:
Items that may be reclassified to profit or loss
Currency translation differences
Total items that may be reclassified to profit or loss
Total other comprehensive income for the year
Total comprehensive loss for the year
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive loss for the year is all attributable to the owners of the parent company.
Earnings per ordinary share
Basic (pence/share)
Diluted (pence/share)
All activities relate to continuing operations.
Notes
3
4
6
10
11
12
13
15
2021
£’000
4,280
(2,315)
1,965
176
(4,733)
(2,592)
(300)
(2,892)
—
(55)
60
(2,887)
938
(1,949)
24
24
24
2020
£’000
3,563
(1,681)
1,882
—
(3,551)
(1,669)
(115)
(1,784)
1
(45)
10
(1,818)
174
(1,644)
(57)
(57)
(57)
(1,925)
(1,701)
(3.27)
(3.27)
(4.38)
(4.38)
39
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Group Statement of Financial Position
as at 31 December 2021
Non-current assets
Goodwill
Intangible assets
Property, plant and equipment
Investment property
Deferred tax asset
Current assets
Trade and other receivables
Current tax recoverable
Cash and cash equivalents
Total assets
Current liabilities
Trade and other payables
Borrowings
Net current assets
Non-current liabilities
Borrowings
Trade and other payables
Deferred tax liabilities
Long-term provisions
Net assets
Equity
Called up share capital
Share premium account
Merger reserve
Share based payment reserve
Currency translation reserve
Retained earnings
Total equity
Notes
17
17
18
19
29
23
21
27
25
25
27
29
30
34
35
2021
£’000
631
3,431
2,355
174
214
6,805
1,591
793
5,864
8,248
2020
£’000
296
3,509
2,716
—
364
6,885
1,353
278
2,192
3,823
15,053
10,708
2,127
110
2,237
6,011
659
102
—
25
786
12,030
167
8,685
2,601
258
(2)
321
12,030
1,336
85
1,451
2,372
750
282
176
—
1,208
8,049
94
3,053
2,407
251
(26)
2,270
8,049
The financial statements were approved by the Board of Directors and authorised for issue on 18 May 2022 and are signed on its behalf by:
Mr A L Darbyshire
Director
40
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 Group Statement of Changes in Equity
for the year ended 31 December 2021
Share
capital
£’000
Share
premium
account
£’000
Share-based
payment
reserve
£’000
Merger
reserve
£’000
Currency
translation
reserve
£’000
Notes
Balance at 1 January 2020
94
3,053
2,407
242
Year ended 31 December 2020:
Loss for the year
Other comprehensive income:
Currency translation differences
Total comprehensive income for the year
Transactions with owners of the Company:
Share-based payment charge
Forfeit of share options
Balance at 31 December 2020
Loss for the year
Currency translation differences
Total comprehensive income for the year
Transactions with owners of the Company:
Issue of share capital
Share-based payment charge
Costs of share issue deducted
from share premium
33
33
34
33
35
—
—
—
—
—
94
—
—
—
73
—
—
—
—
—
—
—
—
—
—
—
—
3,053
2,407
—
—
—
6,179
—
(547)
—
—
—
194
—
—
—
—
31
(22)
251
—
—
—
—
7
—
Balance at 31 December 2021
167
8,685
2,601
258
31
—
(57)
(57)
—
—
(26)
—
24
24
—
—
—
(2)
Retained
earnings
£’000
3,892
Total
£’000
9,719
(1,644)
(1,644)
—
(57)
(1,644)
(1,701)
—
22
2,270
(1,949)
—
31
—
8,049
(1,949)
24
(1,949)
(1,925)
—
—
—
6,446
7
(547)
321
12,030
41
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021
Group Statement of Cash Flows
for the year ended 31 December 2021
Notes
£’000
Operating activities
Loss before tax
Adjusted for non-cash items:
Fair value gains and losses
Depreciation charge
Amortisation of intangible assets
Expected credit loss provisions on loans and loan commitments
Share-based payment expense
Finance income
Finance charges
RDEC adjustments within administrative expenses
Foreign exchange adjustments
Increase/(decrease) in trade and other receivables
Increase/(decrease) in trade and other payables
Cash generated from operations
Income tax refunded
Net cash outflow from operating activities
Investing activities
Business combinations (net of cash received)
Development costs capitalised
Purchase of property, plant and equipment
Interest received
Net cash used in activities
Financing activities
Proceeds from issue of shares
Share issue costs
Repayment of bank loans
Payment of lease liabilities
Interest paid
Net cash generated from/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of foreign exchange rates
Cash and cash equivalents at end of year
12
6
6
33
10
11
23
27
36
17
18
25
28
(54)
(847)
(29)
—
6,250
(547)
(66)
(199)
(44)
2021
£’000
(2,887)
(60)
299
1,226
—
7
—
55
(127)
—
(1,487)
(245)
710
(1,022)
223
(799)
(930)
5,394
3,665
2,192
7
5,864
£’000
—
(902)
(24)
1
—
—
(20)
(136)
(45)
2020
£’000
(1,818)
(10)
214
960
70
31
(1)
45
—
(6)
(515)
600
(353)
(268)
83
(185)
(925)
(201)
(1,311)
3,554
(51)
2,192
42
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 Note to the Statement of Cash Flows
for the year ended 31 December 2021
Changes in liabilities arising from financing activities
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities
arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s Consolidated Statement
of Cash Flows as cash flows from financing activities.
Cash
Bank loans
Leases
Contingent consideration
Cash
Bank loans
Leases
At
1 January
2021
£’000
Financing
cash flows
£’000
2,192
(835)
(405)
—
952
(265)
66
199
—
—
Other
cash flows
£’000
3,911
—
—
—
3,911
On inception
£’000
Other
movements
*
£’000
Foreign
*
exchange
£’000
At
31 December
2021
£’000
—
—
(83)
234
151
—
—
—
11
11
26
—
—
—
26
At 1 January
2020
£’000
Financing
cash flows
£’000
Other
cash flows
£’000
Convertible
element
£’000
Accrued
interest
£’000
Foreign
exchange
£’000
3,554
(855)
(541)
2,158
(156)
20
136
—
(1,155)
—
—
(1,155)
—
—
—
—
—
—
—
—
(51)
—
—
(51)
5,864
(769)
(289)
245
5,051
At 31
December
2020
£’000
2,192
(835)
(405)
952
* Other movements represent the unwinding of the discounted element for the deferred consideration arising on the acquisition of H2 Green Limited. The inception value of
£234,000 represents the amounts recognised at the point of acquisition of H2 Green Limited.
43
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
1 Accounting policies
Company information
Getech Group plc is a public company limited by shares incorporated in England and Wales and listed on the Alternative Investment Market (“AIM”).
The registered office is Kitson House, Elmete Hall, Elmete Lane, Leeds, West Yorkshire, LS8 2LJ. The Company’s principal activities and nature of its
operations are disclosed in the Directors’ Report.
The Group consists of Getech Group plc and all of its subsidiaries (as set out in note 20).
1.1 Accounting convention
On 31 December 2020, International Financial Reporting Standards (IFRS) as adopted by the European Union at that date was brought into UK
law and became UK-adopted International Accounting Standards, with future changes being subject to endorsement by the UK Endorsement
Board. Getech Group plc transitioned to UK-adopted International Accounting Standards in its consolidated financial statements on 1 January
2021. This change constitutes a change in accounting framework. However, there is no impact on recognition, measurement or disclosure in
the period reported as a result of the change in framework.
The consolidated financial statements of Getech Group plc have been prepared in accordance with UK-adopted International Accounting
Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.
The financial statements are prepared in sterling, which is the functional currency of the Group. Monetary amounts in these financial statements
are rounded to the nearest £’000.
The financial statements have been prepared under the historical cost convention, except for the revaluation of financial instruments.
The principal accounting policies adopted are set out below.
1.2 Business combinations
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred
or assumed. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities
acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration, which is measured as fair value.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined
in the 12 months following the acquisition date.
1.3 Basis of consolidation
The consolidated Group financial statements consist of the financial statements of the parent company Getech Group plc together with all entities
controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2021. Where necessary, adjustments are made to the financial statements of subsidiaries
to bring the accounting policies used into line with those used by other members of the Group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the Group’s financial statements from the date that control commences until the date that control ceases.
1.4 Going concern
In making the going concern assessment, the Board of Directors has considered Group budgets and detailed cash flow forecasts to 30 June 2023.
The Board has considered the sensitivity of these forecasts with regards to different assumptions about future income and costs.
The detailed forecasting models are built from Board approved budgets. From these budgets, revenue forecasting is regularly updated to take into
consideration new contractually committed revenues, market sentiment, our current sales pipeline, and any other influencing factors. The Directors
then further apply sensitivity testing to the revenue profiles based on the achievement of various levels of revenue from non-contractually
committed sources.
These cash flow projections and sensitivities, when considered in conjunction with Getech’s existing cash balances, the net proceeds of the equity
raise totalling £5.7 million and resulting year end cash balance of £5.9 million, demonstrate that the Group has sufficient working capital for the
foreseeable future. Consequently, the Directors are fully satisfied that Getech is a going concern.
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Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 1 Accounting policies cont.
1.5 Revenue
Revenue is measured by reference to the fair value of consideration received or receivable by the Group for products and services provided,
excluding VAT and comparable overseas taxes. Typical invoice payment terms are 30 days for all categories of revenue.
Revenue from products and services falls into the four categories below:
Consultancy services
The Group provides various consulting services to its customers. Revenue from these services is recognised on a time-and-materials basis
plus a margin as the services are provided at a rate agreed in the customer contract. Customers are invoiced monthly as work progresses.
The Group also provides outsourcing services for a fixed fee for an agreed period, as agreed in the customer contract. As the amount of work
required to perform these services does not vary significantly from month-to-month, revenue is recognised on a straight-line basis over the term
of the contract.
This revenue accounting policy is applicable for revenues from Government Advisory Services, Geoscience Services and Geospatial Solutions.
Multiclient products
For sales of data and completed products, revenue is recognised when performance obligations have been satisfied, which is on dispatch unless
otherwise agreed. The transaction price is fixed and agreed in the customer contract.
This revenue accounting policy is applicable for revenues from Geophysical Data and Regional Reports.
Licence revenue
Customers subscribe to Getech’s software and data product licences, usually over a 12-month term. The customer has the rights to all of the
benefits provided by the product over the term of the licence, as such, revenue is recognised over the term of the licence at the fixed fee agreed
in the customer contract. The balance of the revenue invoiced is deferred.
This revenue accounting policy is applicable for revenues from Geospatial Solutions Software and Globe licences.
Multiple element contracts
Where contracts for multiple element products with staged deliverables involve delivery of several different elements which are not fully delivered or
performed by the year end, revenue is recognised based on the proportion of the fair value of the elements delivered to the fair value of the respective
overall contracts, with each performance obligation determined on a point in time or an over time basis. Where the outcome of contracts that are
long term in nature and contracts for ongoing deliverables cannot be estimated reliably, revenue is recognised only to the extent of the expenses
recognised that are recoverable.
Revenue from multiple element contracts is recognised, after separating the contract income on a standalone selling price basis by reference
to performance obligations, as follows:
• Completed project elements and specific reports that are immediately deliverable – revenue is recognised when the performance obligations
have been satisfied, which is on dispatch unless otherwise agreed
• Service elements of the contract – revenue is recognised in line with the accounting treatment for consultancy services
• Project elements that are to be delivered from development work that is yet to be completed – revenue is recognised when the performance
obligations have been satisfied, which is on dispatch unless otherwise agreed.
Multiple element contracts for Getech typically include a package of multiple products or a product delivery with an additional service element
and are therefore easily identifiable. Transaction prices are typically allocated to each element by apportioning by list price (or standard hourly
rate in the case of services) and discount being evenly apportioned.
1.6 Goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of net assets acquired. It is initially recognised as an asset at cost
and is subsequently measured at cost less impairment losses.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating
units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may
be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to
reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount
of each asset in the unit. An impairment loss recognised for goodwill is not subsequently reversed.
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1.7 Intangible assets other than goodwill
Expenditure on development activities is capitalised if the product or process meets the recognition criteria for development expenditure as set
out in IAS 38 ‘Intangible Assets’. The expenditure capitalised includes all directly attributable costs, from the date that the intangible asset meets
the recognition criteria.
Development expenditure is identified as being capital in nature if the costs can be measured reliably, the product is technically and commercially
feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell
the asset. Other development expenditure not meeting these criteria is recognised in profit or loss as incurred. Once the asset is ready for use, the
capitalised development expenditure is stated at cost less accumulated amortisation (see below) and impairment losses. Intangible assets not yet
ready for use are tested for impairment annually.
Research expenditure, or expenditure which does not meet the criteria set out above, is charged to profit or loss in the period in which it is incurred.
Other intangible assets include acquired data holdings that qualify for recognition as intangible assets in a business combination. As these assets
have finite useful economic lives, they are accounted for using the cost model whereby capitalised costs are amortised on a straight-line basis
over their estimated useful lives.
Residual values and useful lives are reviewed at each reporting date. In addition, intangible assets are subject to annual impairment reviews
or a review whenever there is an indication of impairment.
The following useful lives are applied:
Customer relationships
Software development
Development costs
Reports
Data holdings
Fifteen years
Five years
Three to ten years
Ten years
Ten years
Amortisation is included within ‘Administrative costs’, except for amortisation of Reports, which is included in ‘Cost of sales’.
1.8 Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any
impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
Right of use assets
Plant and equipment
2% per annum on cost
Over the life of the lease
25% and 33.3% per annum on cost
Material residual value and useful life estimates are updated as required, but at least annually. Freehold land is carried at acquisition cost.
As no finite useful life for land can be determined, related carrying amounts are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset,
and is recognised in the income statement.
1.9 Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost, which represents the net
investment in the sublease. Subsequently it is measured at historic cost less accumulated depreciation, which is calculated over the remaining life
of the sublease.
The property represents a sublease to a third party, where the Group holds the head lease. The lease is held at historic cost on the basis that
the lease represents a short-term lease and as such it is not possible to reliably determine a fair value where this lease is to expire in a short
period of time.
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1.10 Non-current investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are
recognised immediately in profit or loss.
A subsidiary is an entity controlled by the parent company. Control is the power to govern the financial and operating policies of the entity
so as to obtain benefits from its activities.
1.11 Impairment of tangible and intangible assets
At each reporting end date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset,
the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there
is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset
(or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant
asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate
of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised
immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is
treated as a revaluation increase.
1.12 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities
of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13 Financial assets
Financial assets are recognised in the Group’s statement of financial position when the Group becomes party to the contractual provisions
of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are
recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction
costs except for trade receivables which are measured at transaction price if they do not contain a significant financing component.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value
through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are
recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or
loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect
contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision
of goods and services to customers (e.g. trade receivables). They are initially recognised at fair value plus transaction costs directly attributable
to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment
where necessary.
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1.13 Financial assets cont.
Impairment of financial assets
Financial assets, other than those measured at fair value through profit or loss, are adjusted at each reporting period date under IFRS 9’s ‘expected
credit loss (ECL) model’.
The Group considers a broad range of information when assessing credit risk and measuring expected credit losses, including past events,
current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
In applying this forward-looking approach, a distinction is made between:
• financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’); and
• financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’).
‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date.
‘12-month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are recognised for the second
category. Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of
the financial instrument.
Loss allowances for trade receivables and contract assets are measured using IFRS 9 simplified model being an amount equal to lifetime ECL.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset
and substantially all the risks and rewards of ownership to another entity.
1.14 Financial liabilities
The Group recognises financial debt when the Group becomes a party to the contractual provisions of the instruments. Financial liabilities are
classified as either ‘financial liabilities at fair value through profit or loss’ or ‘other financial liabilities’.
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability
is classified as held for trading if:
•
it has been incurred principally for the purpose of selling or repurchasing it in the near term, or
• on initial recognition it is part of a portfolio of identified financial instruments that are managed together and has a recent actual pattern
of short-term profit taking, or
•
it is a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised
in profit or loss.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net
of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the
effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable
on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the Group’s obligations are discharged, cancelled, or they expire.
1.15 Equity instruments
Equity instruments issued by the parent company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity
instruments are recognised as liabilities once they are no longer payable at the discretion of the Company.
Equity comprises the following reserves:
•
•
•
•
•
•
‘Share capital’ represents the nominal value of equity shares
‘Share premium account’ represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses
of the share issue
‘Merger reserve’ represents the premium on shares issued to acquire ERCL Limited, Exprodat Consulting Limited, and H2 Green Limited
‘Share option reserve’ represents the fair value of share options in accordance with IFRS 2 ‘Share-based Payment’
‘Currency translation reserve’ represents the value of exchange differences in translating the assets and liabilities of the foreign subsidiary
‘Retained earnings’ represents cumulative profits and losses, net of dividends and distributions to shareholders.
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1.16 Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value
at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective
as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial
liability. A derivative is presented as a non-current asset or liability if the remaining maturity of the instrument is more than 12 months and it is not
expected to be realised or settled within 12 months. Other derivatives are classified as current.
1.17 Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Where expenditure qualifies for additional R&D tax credits, the Group recognises a tax asset reflecting management’s best estimate of the
recoverable amount, taking into consideration the qualifying criteria for tax credits and the expected use of those credits. Any adjustments to the
recognition value are shown in subsequent years. Where claims result in a reduction in taxable profits, these are accounted for as a credit to the
tax expense; where claims are under the UK Research and Development Expenditure Credit scheme ('RDEC') the gross value of the grant income is
credited to administrative expenses, and the tax charge on this grant income is debited to the tax expense.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent
that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities
are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that
affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected
to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when
it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities
are offset when the Group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate
to taxes levied by the same tax authority.
1.18 Provisions
Provisions are recognised when the Group has a legal or constructive present obligation as a result of a past event and it is probable that the Group
will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date,
taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised
as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
1.19 Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part
of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment
of an employee or to provide termination benefits.
1.20 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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1.21 Share-based payments
Where equity settled share options are granted, a charge is made to profit or loss and a reserve is created to record the fair value of the awards in
accordance with IFRS 2 ‘Share-based Payment’. A charge is recognised in profit or loss in relation to share options granted based on the fair value
(the economic value) of the grant, measured at the grant date. The charge is spread over the vesting period. The valuation methodology takes into
account assumptions and estimates of share price volatility, the future risk-free interest rate and exercise behaviour, and is based on the Black-
Scholes method. When share options are exercised, there is a transfer from the share option reserve to retained earnings.
At the end of each reporting period, the Group revises its estimate of the number of share options that are expected to vest, taking into account
those that have lapsed or been cancelled. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding
adjustment to the share option reserve.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of
the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of
the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the
grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than
the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount
that would have been recognised over the remaining vesting period is recognised immediately.
1.22 Leases
At inception, the Group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is
acquired through a lease, the Group recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets
are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore
the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same
basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for
certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using
the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments included
in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected
to be payable under a residual value guarantee, and the cost of any options that the Group is reasonably certain to exercise, such as the exercise
price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease
payments arising from a change in an index or rate; the Group’s estimate of the amount expected to be payable under a residual value guarantee;
or the Group’s assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way,
a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of
12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit
or loss on a straight-line basis over the lease term.
When the Group acts as a lessor, leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessees, over the major part of the economic life of the asset. All other leases are classified as operating leases. If an
arrangement contains lease and non-lease components, the Group applies IFRS 15 to allocate the consideration in the contract. When the Group
is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately, classifying the sub-lease with reference to the
right-of-use asset arising from the head lease instead of the underlying asset.
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1.23 Grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Amounts receivable under the UK Government’s Coronavirus Job Retention Scheme have been recognised in profit or loss on a systematic
basis net of the expense for which the monies are intended to compensate, once any conditions related to the receipts are met.
1.24 Foreign exchange
The Group’s financial statements are presented in pound sterling, which is also the functional currency of the Parent Company.
Where supplies are obtained, or sales are made on terms denominated in foreign currency, such transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies
are translated at the rate of exchange ruling at the end of the reporting period. Exchange gains or losses arising on the settlement or translation
of monetary items are included in profit or loss from operations.
The assets and liabilities of the Group’s overseas subsidiary undertaking are translated into the presentation currency using exchange rates
prevailing at the end of the reporting period. Translation differences in respect of the assets and liabilities of the foreign subsidiary are accounted
for in the Group’s currency translation reserve within equity. Income and expenses of this undertaking are translated at the average exchange
rates for the period that approximates to the actual rates on transaction dates. Exchange differences arising, if any, are recognised in other
comprehensive income and the Group’s currency translation reserve.
1.25 Exceptional items
Items which are material either because of their size or their nature, and which are non-recurring, are presented within their relevant consolidated
income statement category, but highlighted through separate disclosure. The separate reporting of exceptional items helps provide a better
picture of the Company’s underlying performance. Items which are included within the exceptional category include:
• spend on the integration of significant acquisitions and other major restructuring programmes;
• significant goodwill or other asset impairments relating to specific market events; and
• other particularly significant or unusual items.
1.26 New and amended standards and interpretations
The Group adopted the following new and amended IFRSs for the first time for the period commencing 1 January 2021:
Interest rate benchmark reform – phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
IASB effective date
1 January 2021
There has been no impacted on the Group’s financial statements from the adoption of the above amendment.
1.27 Standards, amendments and interpretations in issue but not yet effective
At the authorisation of these financial statements, the Group has not applied the following new and revised standards that have been issued but
are not effective yet:
IAS 1 ‘Presentation of Financial Statements’: Classification of liabilities as current or non-current
Property, Plant and Equipment: Proceeds before intended use: amendments to IAS 16
Onerous Contracts – Cost of Fulfilling a Contract – amendments to IAS 37
Annual Improvements to IFRS Standards 2018-2020
Reference to the Conceptual Framework (Amendments to IFRS 3)
IFRS 17 ‘Insurance Contracts’ and subsequent withdrawal of IFRS 4 ‘Insurance Contracts’
Amendments to IFRS 17
Amendments to IFRS 10 and IAS 28 Sale of contribution of assets between an investor
and its Associate or Joint Venture
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
Definition of an Accounting Estimate (Amendments to IAS 8)
Deferred Tax related to Assets and Liabilities arising from a single transaction
(Amendments to IAS 12 Income Taxes)
* These standards, amendments and interpretations have not yet been endorsed, and the dates shown are the expected dates.
The adoption of all above standards is not expected to have any material impact on the Group’s financial statements.
Effective date –
period beginning on or after
1 January 2022
1 January 2022
1 January 2022
1 January 2022
1 January 2022
1 January 2023*
1 January 2023*
1 January 2023*
1 January 2023*
1 January 2023*
1 January 2023*
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2 Critical accounting estimates and judgements
In the application of the Company’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the
carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both
current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
outlined below.
Critical judgements
Control over H2 Green Limited ('H2 Green')
In November 2020 the Group entered into an option to acquire the entire ordinary share capital of H2 Green for initial consideration of £250,000
and contingent deferred consideration of up to £750,000, exercisable at the option of the Group. The option ran for a nine-month period.
Concurrently to this the Group also entered into a loan commitment to provide up to £20,000 per month for up to six months (extendable by
three months at mutual agreement), covering all working capital spending of H2 Green for the period. Getech retained the right to terminate both
agreements at any time, for any reason.
Control can take a number of forms and whilst this would usually include legal ownership of the shares, potential voting rights and other rights to
direct operations or finances also form part of this judgement. The two agreements when taken together carry indicators of control for Getech,
however on balance management have taken a view that this control was not so pervasive that control had been obtained in the prior year.
As explained further in note 36, the Group exercised its option and obtained control over H2 Green on 30 March 2021, resulting in H2 Green
becoming a subsidiary of Getech from that date. As such, management determined that control was fully achieved. Further, as at that date H2
Green came with a workforce, supplier contracts, and a business plan, and as such the Directors consider that H2 Green meets the definition
of a business as defined in IFRS 3.
The option exercise triggered the commencement of contingent consideration which relies on certain future milestones being achieved by H2
Green, which are detailed further in note 36. The Directors consider these events to be probable based on due diligence and business planning
undertaken during the option period, however the expected timing of this remains uncertain; the recognition of contingent consideration includes
a determination of the likelihood of this timing.
The Directors have applied judgement in identifying intangible assets acquired under IFRS 3. As H2 Green is a start-up business, it has no current
revenue-generating contracts nor development assets in place, however it has signed an exclusivity contract with a third party for use of its site.
This is therefore the sole asset which has been identified. The exclusivity ended in 2021 and as such the asset has been amortised in full in the
current year’s financial statements.
Recognition of revenue from multiple element contracts
Management uses judgement in determining the fair value of multiple element contracts in order to appropriately recognise the revenue
attributable to each element. The value of revenue recognised in the period is dependent on an assessment of work to completion.
Capitalisation of development costs
The capitalisation of development expenditure is dependent on the costs meeting the recognition criteria in accordance with IAS 38 ‘Intangible
Assets’. In assessing the criteria, management makes judgements on the level of future economic benefits of the asset flowing to the Company.
Management is assisted in making these judgements through the monitoring both of sales forecasts and of the level of future cost benefits arising.
Deferred taxation
Management judgement is required in determining provisions for deferred tax liabilities and assets. The process involves estimating the actual
current tax exposure together with assessing temporary differences resulting from the different valuation of certain assets and liabilities in the
financial statements and the tax returns. Management must assess the probability that the deferred tax assets will be recovered from future
taxable income, except where the assets will unwind against other deferred tax liabilities where the asset is recognised and offset in accordance
with IAS 12 ‘Income Taxes’.
The Group has continued to recognise deferred tax assets in respect of the US, based on the expected flow of profits in that jurisdiction,
and a portion for H2 Green Limited, based on its expectations for future growth as risk adjusted for the expected timing of realising these
profits. All other companies have recognised deferred tax only to the extent that balances will unwind against associated deferred tax liabilities.
52
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 2 Critical accounting estimates and judgements cont.
Key sources of estimation uncertainty
Carrying amount of non-current assets
Where there is an indication of impairment, a review of the carrying values of non-current assets is undertaken as follows:
Intangible non-current assets, including goodwill (2021 - £4,062,000).
These are estimated on the basis of value in use, which is calculated from the present value of future cash flows expected to be derived from the
asset under review. The key elements of estimation are the calculation of future cash flows. For intangible assets, future cash flows are forecast
revenues from the associated cash-generating unit. Further estimation is made in determining an appropriate discount rate that reflects the
specific risks associated with the asset or cash-generating unit. See notes 16 and 17 for further details of assumptions made and sensitivity
testing regarding goodwill and intangible assets.
3 Revenue and segmental reporting
IFRS 8 ‘Operating Segments’ requires operating segments to be identified on the basis of internal reports of the Group that are regularly reviewed
by the Group’s chief operating decision maker. The chief operating decision maker of the Group is considered to be the Board of Directors of
the Group.
The Directors of the Company have chosen to organise the Group around differences in products and services. Operating segments with similar
characteristics, and where segments are similar in respect of the nature of the products and services, the nature of the production processes, the
type of customer and where they have similar methods of distribution, have been aggregated into a single operating segment. In particular, the
timing and nature of revenue recognition, expected margins and conversion to cash represent economic indicators of similarity for the segments;
as a result of this similarity, management review the results of the aggregated operating segments at this level so as to understand the cash
position of the Group.
The Group has aggregated its operating segments into two reportable segments as follows:
• Products (Including Geophysical Data, Globe, Regional Reports, Software revenues and Hydrogen manufacturing and distribution); and
• Services (Including Government Advisory Services, Geoscience Services and Geospatial Solutions revenues).
The Hydrogen operating segment is new in the current year, and at present does not generate any revenues. As such it has been included within
the Products reportable segment as this most closely aligns to the operations ongoing within it at present.
Segmental revenues and results
The following is an analysis of the Group’s revenues and results from continuing operations by reportable segment:
Products
Services
Total revenue/profit
Central administrative costs and exceptional items
Restructuring costs
Fair value gains and losses
Net finance costs
Loss before tax
Revenue
£’000
3,509
771
4,280
Revenue
£’000
2,602
961
3,563
2021
Profit
£’000
1,820
145
1,965
(4,857)
—
60
(55)
(2,887)
2020
Profit
£’000
1,862
20
1,882
(3,551)
(115)
10
(44)
(1,818)
The segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales.
The accounting policies of the reportable segments are the same as in the Group’s accounting policies described in note 1. Segment profit
represents the profit before tax earned by each segment without allocation of central administration costs, restructure costs or finance costs.
This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment
performance. Further, depreciation, amortisation and income tax are not disclosed as this information is not provided to the chief operating
decision maker.
Assets and liabilities are not reported to the chief operating decision maker by segment.
53
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
3 Revenue and segmental reporting cont.
Revenue and assets by geographical markets
The following is an analysis of revenue and non-current assets when disaggregated by geographical market:
United Kingdom
Italy
France
Ireland
Rest of Europe
United States of America
Rest of the Americas
Malaysia
Kazakhstan
Australia
Rest of Asia-Pacific
Sierra Leone
Rest of Africa
2021
Revenue
£’000
Non-current
assets
£’000
Revenue
£’000
479
280
210
317
177
7,651
—
—
—
—
391
155
—
215
307
2020
Non-current
assets
£’000
6,885
—
—
—
—
1,425
251
1,108
257
135
188
300
158
154
391
66
—
—
—
—
—
—
—
121
322
300
265
283
—
96
—
—
—
—
—
—
—
4,280
7,902
3,563
7,142
There was no concentration of revenues with a single customer exceeding 10% of the Group’s revenue (2020: no concentration).
Revenue by timing of recognition
The following table shows a disaggregation of revenue by timing of revenue recognition. The table also includes a reconciliation of the
disaggregated revenue within the Group’s two reportable segments.
Point in time
Over time
Products
Services
2021
£’000
1,724
1,785
3,509
2020
£’000
476
2,126
2,602
2021
£’000
13
758
771
2020
£’000
—
962
962
The Group has recognised the following assets and liabilities related to contracts with customers:
Contract assets
At 1 January
Transfers in the year from contract assets to trade receivables
Excess of revenue recognised over cash (or rights to cash) being recognised during the year
At 31 December
2021
£’000
1,737
2,543
4,280
2021
£’000
237
(237)
167
167
Total
2020
£’000
476
3,088
3,564
2020
£’000
898
(898)
237
237
54
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 3 Revenue and segmental reporting cont.
Revenue by timing of recognition cont.
Contract liabilities
At 1 January
Amounts recognised as revenue during the year
Amounts received in advance of performance and not recognised as revenue during the year
At 31 December
2021
£’000
387
(387)
504
504
2020
£’000
507
(507)
387
387
Contract assets and contract liabilities are shown within trade and other receivables and trade and other payables respectively. They arise from
the Group’s contracts because cumulative payments received from customers at each balance sheet date do not necessarily equal the amount
of revenue recognised on the contracts.
4 Exceptional items
Expenditure
Restructuring costs
Amortisation of supplier contracts
Note
17
2021
£’000
—
300
300
2020
£’000
115
—
115
5 Alternative Performance Measures
The Directors have used an Alternative Performance Measure ('APM') in the preparation of these financial statements. The Consolidated Income
Statement has presented Operating loss before exceptional items, which removes non-recurring items which are not relevant to the underlying
performance and cash generation of the business.
The Directors have presented this APM because they feel it most suitably represents the underlying performance and cash generation of the
business, and allows comparability between the current and comparative period in light of the changes in the business, and will allow an ongoing
trend analysis of this performance based on current plans for the business.
6 Operating loss
Operating loss for the year is stated after charging/(crediting):
Exchange gains
Research and development costs (including staff costs)
Government grants
Depreciation of property, plant and equipment
Impairment of property, plant and equipment
Depreciation of investment property
Amortisation of intangible assets
Share-based payments
2021
£’000
(7)
1,578
—
137
37
125
1,226
7
2020
£’000
(6)
502
135
214
—
—
960
31
55
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
7 Auditor’s remuneration
Fees payable to the Company’s auditor and associates:
For audit services
Audit of the financial statements of the Group and Company
Audit of the financial statements of the Company’s subsidiaries
For other services
Audit-related services
8 Employees
The average monthly number of persons (including Executive Directors) employed by the Group during the year was:
Directors
Administration
Technical
Total
Their aggregate remuneration comprised:
Wages and salaries
Government grants received
Social security costs
Pension costs
Share-based payment charges
2021
£’000
2020
£’000
80
15
95
6
62
—
62
6
2021
Number
2020
Number
3
13
44
60
2021
£’000
3,240
(22)
355
354
7
3
14
46
66
2020
£’000
3,004
(163)
384
327
31
3,934
3,583
A proportion of the Group’s staff costs shown above are capitalised as additions to intangible assets – development costs in accordance with the
Group’s accounting policies.
In April 2020 Getech took significant cost saving measures to manage the Group’s exposure to the uncertainties of the Covid business
environment. As a part of this, all staff agreed to temporary salary reductions, from 1 May 2020. Staff pay reductions ranged between 15% and
c8%, with salaries for the majority of staff reduced by c8%. These temporary reductions ended on 30 June 2021.
56
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 9 Directors’ remuneration
Directors’ remuneration for the year ended 31 December 2021 was as follows:
Executive Directors
Dr Jonathan Copus
Chris Jepps
Andrew Darbyshire
Non-Executive Directors
Dr Stuart Paton
Dr Alison Fielding (resigned 30 June 2021)
Chris Flavell (resigned 21 July 2021)
Peter Stephens (resigned 28 January 2021)
Richard Bennett (appointed 28 January 2021)
Michael Covington (appointed 13 May 2021)
Emma Parker (appointed 22 July 2021)
Salary/fees
£’000
Pension
£’000
Benefits
in kind
£’000
Total before
share options
£’000
Share
options
£’000
243
146
111
39
9
10
1
36
14
10
619
12
7
7
—
—
—
—
—
—
1
27
1
1
—
—
—
—
—
—
—
—
2
256
154
118
39
9
10
1
36
14
11
648
—
—
—
—
—
—
—
—
—
—
—
Directors’ remuneration for the year ended 31 December 2020 was as follows:
Salary/fees
£’000
Pension
£’000
Benefits
in kind
£’000
Total before
share options
£’000
Share
options
£’000
Executive Directors
Dr Jonathan Copus
Chris Jepps
Andrew Darbyshire
Non-Executive Directors
Dr Stuart Paton
Dr Alison Fielding
Chris Flavell
Peter Stephens
234
141
99
37
19
19
19
568
13
8
15
—
—
—
—
36
1
1
—
—
—
—
—
2
248
150
114
37
19
19
19
606
3
3
3
—
—
—
—
9
57
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
9 Directors’ remuneration cont.
Directors’ share options
Date granted
Exercise period
Option price
31 December
2020
Granted
Lapsed
31 December
2021
Number of shares
Dr Jonathan Copus
2 Aug 2016
2 Aug 2016
2 Aug 2016
18 Nov 2018
18 Nov 2018
18 Nov 2018
Chris Jepps
18 Nov 2018
18 Nov 2018
Andrew Darbyshire
18 Nov 2018
18 Nov 2018
Dr Stuart Paton
27 Apr 2011
27 Apr 2011
27 Apr 2011
27 Apr 2011
27 Apr 2021
27 Apr 2021
27 Apr 2021
27 Apr 2021
2 Aug 2017 – 2 Aug 2026
2 Aug 2018 – 2 Aug 2026
2 Aug 2019 – 2 Aug 2026
2 Aug 2019 – 19 Nov 2028
18 Nov 2019 – 19 Nov 2028
18 Nov 2020 – 19 Nov 2028
18 Nov 2019 – 19 Nov 2028
18 Nov 2020 – 19 Nov 2028
18 Nov 2019 – 19 Nov 2028
18 Nov 2020 – 19 Nov 2028
27 Apr 2011 – 27 Apr 2021
27 Apr 2012 – 27 Apr 2021
27 Apr 2013 – 27 Apr 2021
27 Apr 2014 – 27 Apr 2021
27 Apr 2021 – 21 Apr 2022
27 Apr 2021 – 21 Apr 2022
27 Apr 2021 – 21 Apr 2022
27 Apr 2021 – 21 Apr 2022
24.50p
24.50p
24.50p
35.00p
35.00p
35.00p
35.00p
35.00p
35.00p
35.00p
17.50p
17.50p
17.50p
17.50p
17.50p
17.50p
17.50p
17.50p
500,000
500,000
400,000
100,000
125,000
125,000
125,000
125,000
125,000
125,000
300,000
200,000
200,000
200,000
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
300,000
200,000
200,000
200,000
—
—
—
—
—
—
—
—
—
—
(300,000)
(200,000)
(200,000)
(200,000)
—
—
—
—
500,000
500,000
400,000
100,000
125,000
125,000
125,000
125,000
125,000
125,000
—
—
—
—
300,000
200,000
200,000
200,000
Total Directors’ share options
3,150,000
900,000
900,000
3,150,000
58
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 9 Directors’ remuneration cont.
The market price of the shares at the end of the financial year was 33.80p and the range of market prices during the year was between
13.6p and 43.5p.
During the year, the Board granted a one-year extension to Dr Stuart Paton’s share options by way of issuing identical options to those
above except for an exercise period of one year. The Directors do not consider this to have any impact on the fair value of the options,
which had been fully recognised in earlier years.
Full share-based payment disclosures are provided in note 33. In addition, further share options were granted to Directors on 8 February 2022,
as disclosed in note 39.
10 Investment income
Interest income
Financial instruments measured at amortised cost:
Bank deposits
11 Finance costs
Interest on bank overdrafts and loans
Interest on lease liabilities
Core interest expense
Interest on contingent consideration for H2 Green Limited acquisition
12 Other gains and losses
Reversal of expected credit losses with H2 Green Limited
Change in value of financial assets at fair value through profit or loss
2021
£’000
2020
£’000
—
1
2021
£’000
2020
£’000
23
21
44
11
55
2021
£’000
70
(10)
60
23
22
45
—
45
2020
£’000
—
10
10
Other gains and losses relate to adjustments prior to, and on, the acquisition of H2 Green Limited. Further details are provided in notes 2 and 36.
59
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
13 Income tax
Current tax
UK corporation tax on profits for the current period
Adjustments in respect of prior periods
Tax expense relating to prior year adjustments recognised in profit or loss
Total UK current tax
Foreign taxes and reliefs
Deferred tax
Origination and reversal of temporary differences
Changes in tax rates
Adjustment in respect of prior periods
Foreign exchange differences
Total tax (credit)
The charge for the year can be reconciled to the loss per the income statement as follows:
Loss before taxation
Expected tax credit based on a corporation tax rate of 19.00% (2020: 19.00%)
Effect of expenses not deductible in determining taxable profit
Change in unrecognised deferred tax assets
Effect of change in UK corporation tax rate
Depreciation on assets not qualifying for tax allowances
Adjustments in respect of financial assets
Research and development tax credit
Other permanent differences
Under/(over) provided in prior years
Foreign exchange adjustments
Surrender of R&D losses for tax credit refund
Adjustments for tax in foreign jurisdictions
R&D tax credits – claims in respect of the prior year
Taxation credit for the year
The UK corporation tax rate was 19% throughout the year.
2021
£’000
2020
£’000
(454)
(446)
—
(900)
27
(873)
(45)
(22)
—
2
(65)
(938)
(231)
—
(6)
(237)
(4)
(241)
75
(15)
7
—
67
(174)
2021
£’000
2020
£’000
(2,887)
(1,818)
(549)
36
225
(2)
—
—
(206)
(20)
(6)
—
—
31
(447)
(938)
(345)
31
282
(7)
7
(2)
(188)
(2)
(45)
6
59
30
—
(174)
In the March 2021 Budget, a change to the future UK corporation tax rate was announced, indicating that the rate will increase to 25% from April
2023. Deferred tax balances at the reporting date are therefore measured at 25% (2020: 19%).
60
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 14 Dividends
No dividends have been paid during the current or prior year, nor any proposed by the Directors in respect of the current year end.
15 Earnings per share
Number of shares
2021
Number
2020
Number
Weighted average number of ordinary shares for basic earnings per share
59,612,590
37,564,000
Earnings (all attributable to equity shareholders of the Company)
Loss for the period from continued operations
Basic and diluted earnings per share
From continuing operations (pence/share)
2021
£’000
2020
£’000
(1,949)
(1,644)
(3.27)
(4.38)
Basic EPS is calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of ordinary shares
outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of ordinary shares
outstanding plus the weighted average number of shares that would be issued on conversion of all the dilutive share options into ordinary shares.
In the current and comparative year the Group has incurred losses and as such has not presented any dilution of earnings per share in accordance
with IAS 33 ‘Earnings per share’. However, these dilutive shares would dilute the earnings per share should the Group become profitable.
Adjusted Earnings per share
The Directors use 'Adjusted Earnings' as a Key Performance Measure, which is defined as earnings before exceptional items. In the current year this
includes a material component of non-recurring amortisation which has only arisen as a result of the business combination with H2 Green Limited.
Adjusted Earnings is considered to more faithfully represent and measure the ongoing profitability and performance.
The calculated Adjusted Earnings for the current period are as follows:
Loss for the period from continued operations
Adjusted for:
Exceptional items
Adjusted Earnings
Basic Adjusted Earnings per share (pence per share)
Notes
4
2021
£’000
2020
£’000
(1,949)
(1,644)
300
(1,649)
(2.77)
115
(1,529)
(4.07)
16 Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2021
£’000
2020
£’000
In respect of:
Property, plant and equipment
Financial assets – loans and receivables
Recognised in:
Administrative expenses
Other gains and losses
37
(70)
37
(70)
The impairment of property, plant and equipment results from a loss on inception of a sublease, as disclosed in note 19. Other gains and losses
relate to adjustments prior to, and on, the acquisition of H2 Green Limited, for which further details are provided in notes 2 and 36.
—
—
—
—
61
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
17 Intangible assets
Goodwill
£’000
Supplier
contracts
£’000
Other
intangibles
£’000
Development
costs
£’000
Reports
£’000
Data
holdings
£’000
Customer
relationships
£’000
Software
development
£’000
Total
£’000
Cost
At 1 January 2020
Additions
Foreign currency adjustments
At 31 December 2020
Additions – internally
generated
Additions – on business
combinations
Foreign currency adjustments
3,428
—
—
3,428
—
335
—
At 31 December 2021
3,763
Amortisation and impairment
At 1 January 2020
Charge for the year
Foreign currency adjustments
At 31 December 2020
Charge for the year
Foreign currency adjustments
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
At 31 December 2019
3,132
—
—
3,132
—
—
3,132
631
296
296
—
—
—
—
—
300
—
300
—
—
—
—
300
—
300
—
—
135
34
—
—
34
—
—
—
34
31
2
—
32
2
—
34
—
2
3
5,006
1,509
1,670
902
—
—
—
—
(54)
5,908
1,509
1,616
847
—
—
—
—
—
—
—
21
6,755
1,509
1,637
2,043
1,509
1,595
813
—
—
—
15
(52)
2,856
1,509
1,558
829
—
—
—
15
19
3,685
1,509
1,592
3,070
3,052
2,963
—
—
—
45
58
76
877
—
—
877
—
—
—
877
485
38
—
523
38
—
561
316
354
257
462
12,986
—
—
902
(54)
462
13,834
—
—
—
847
635
21
462
15,337
327
92
—
419
43
—
462
—
43
135
9,122
960
(52)
10,029
1,227
19
11,275
4,062
3,805
3,865
Impairment tests for cash generating units
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or
groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose. The units or groups of
units are identified at the lowest level at which goodwill is monitored for internal management purposes, being the operating segments.
The recoverable amount was determined based on value in use calculations, covering a detailed five-year forecast, followed by an extrapolation
of expected cash flows for the remaining useful lives. The present value of the expected cash flows is determined by applying a suitable discount
rate reflecting the current market assessments of the time value of money and risks specific to the cash-generating unit.
The allocation to cash generating units is as follows:
Geospatial Solutions
Hydrogen manufacturing and distribution
2021
£’000
296
335
631
2020
£’000
296
—
296
The recoverable amount of cash-generating units ('CGU') has been tested for impairment using future cash flows attributable to each CGU.
In extrapolating future cash flows, long-term industry growth has been modelled at an annual rate of 2%, together with a 2% rate of inflation
on costs annually.
62
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021
17 Intangible assets cont.
Geospatial Solutions
Sales volumes over the five-year period are based on past performance and management’s expectations of a market recovery staggered over that
period, reflected by 5% year-on-year growth, no additional growth has been factored in beyond this five-year period beyond inflationary growth.
The discount rate applied of 9.01% (2020: 7.7%) takes into consideration the industry-wide risks as well as those specific to the Group’s
operating segment.
Hydrogen manufacturing and distribution
Sales values over an extended period have been based on early-stage budget developments through an extended period, with a longer-
term assumption of 2% inflation. This is contingent on the achievement of certain milestones to enable revenues to be generated, with such
milestone triggering payments of contingent consideration; failure to meet milestones might result in the impairment of the goodwill as well as
a corresponding release of the liability associated with the contingent consideration. The discount rate applied is 40.00%. Which is significantly
heightened from the Group's discount rate so as to reflect the early stage of the business.
Sensitivity analysis is carried out on all budgets, strategic plans and discount rates used in the calculations. The cash flow model is sensitive
to short-term market fluctuations. However, the impact of a longer-term decrease of 10% in projected cash flows does not impact the outcome
of the impairment review.
The hydrogen manufacturing and distribution business is new and historical financial data is minimal, therefore this could result in an impairment to
the extent that forecast revenues are not achieved.
Amortisation charges are included in ‘Administrative costs’ in the consolidated statement of comprehensive income, except for the amortisation of
supplier contracts which is included within exceptional costs on the grounds that this is non-recurring and arising from the acquisition of H2 Green
Limited.
Included in development costs are completed phases of product development that are being amortised. The total cost of these products is
£6,224,000 (2020 - £5,682,000) and they carry a net book value of £2,683,000 (2020 - £2,891,000).
18 Property, plant and equipment
Cost
At 1 January 2020
Additions
Disposals
Foreign currency adjustments
At 31 December 2020
Additions
Disposals
Transfer to investment property
At 31 December 2021
Accumulated depreciation and impairment
At 1 January 2020
Charge for the year
Eliminated on disposal
Foreign currency adjustments
At 31 December 2020
Charge for the year
Impairment loss (profit or loss)
Eliminated on disposal
On assets reclassified as investment property
At 31 December 2021
Freehold
property
£’000
Right of use
assets
£’000
Plant and
equipment
£’000
2,798
—
—
—
2,798
—
—
—
2,798
446
36
—
—
482
35
—
—
—
517
641
—
—
—
641
83
—
(641
)
83
162
128
—
—
290
67
37
—
(342
)
52
1,162
24
(212
)
(1
)
973
29
(40
)
—
962
1,087
50
(212
)
(1
)
924
35
—
(40
)
—
919
Total
£’000
4,601
24
(212
)
(1
)
4,412
112
(40
)
(641
)
3,843
1,695
214
(21
)
(1
)
1,696
137
37
(40
)
(342
)
1,488
63
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
18 Property, plant and equipment cont.
Carrying amount
At 31 December 2021
At 31 December 2020
At 31 December 2019
More information on impairment movements in the year is given in note 16.
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
Net values
Property
Additions
Depreciation and impairment charge for the year
Property
Impairment charge for the year
Property
2,281
2,316
2,352
31
351
479
43
49
75
2,355
2,716
2,906
2021
£’000
2020
£’000
31
83
67
67
37
350
—
128
128
—
Depreciation charges are included in ‘Administrative costs’ in the consolidated statement of comprehensive income.
The carrying amount of freehold land not subject to depreciation amounted to £1,000,000 (2020: £1,000,000).
The Group continues to explore the future sale of Kitson House. The requirements of IFRS 5 have been reviewed and based on the expected
timeframe for disposal it is considered appropriate to continue to classify the land and buildings as a non-current asset rather than an asset
held for sale. This property is pledged as security against borrowings of the Group, which are shown in note 25.
Details of the transfer of the right of use asset are given in note 19.
19 Investment property
Cost
At 1 January 2021
Transfers from owner-occupied property
At 31 December 2021
Accumulated depreciation
Transfers from owner-occupied property
Charge for the year
At 31 December 2021
Carrying value
At 31 December 2021
At 31 December 2020
2021
£’000
2020
£’000
—
641
641
342
125
467
174
—
—
—
—
—
—
—
—
—
The property represents a sublease to a third party, where the Group holds the head lease. The lease is held at historic cost, being cost less
accumulated depreciation. The lease represents a short term lease and as such it is not possible to reliably determine a fair value where this
lease is to expire in a short period of time.
64
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 19 Investment property cont.
The sublease was entered into in February 2021 in order to utilise the space already leased by the Group, but no longer required for use.
On inception the net investment in the sublease was calculated at the present value of contractual cash inflows arising from the lease,
discounted at a rate of 3.5%. As a result of this calculation the Group recognised an impairment on inception of the lease, as shown in note 16.
20 Subsidiaries
Details of the Company’s subsidiaries at 31 December 2021 are as follows:
Name of undertaking
Exprodat Consulting Limited(1)
ERCL Limited(1)
Geophysical Exploration Technology Inc(2)
H2 Green Limited(3)
Address
England & Wales
England & Wales
United States of America
Scotland
Class of shares held
Ordinary
Ordinary
Ordinary
Ordinary
Registered office addresses (all UK unless otherwise indicated):
1 Kitson House, Elmete Hall, Elmete Lane, Leeds, LS8 2LJ
2 3000 Wilcrest Drive, Suite 155, Houston, Texas 77042, United States of America
3 93 George Street, Edinburgh, EH2 3ES *
% Held
Direct
100.00
100.00
100.00
100.00
Voting
100.00
100.00
100.00
100.00
* As at the year end, the registered office of H2 Green Limited was Spaces 1, Lochrin Terrace, 92-98 Fountainbridge, Edinburgh, EH3 9QA. The results for H2 Green Limited are
included for a nine-month period only, as control was only obtained on 30 March 2021.
On 5 January 2022 the Group incorporated a new subsidiary, H2G Opco1 Limited, which is wholly owned by H2 Green Limited. H2G Opco1 Limited
has not traded to date.
Getech Group plc has provided, under s479C Companies Act 2006, a guarantee which permits its wholly owned subsidiary ERCL Limited
(company number 08743541, registered in England & Wales) to not obtain an audit of its individual financial statements for the year ended
31 December 2021.
It has also provided, under s479C Companies Act 2006, a guarantee which permits its wholly-owned subsidiary Exprodat Consulting Limited
(company number 04371594, registered in England & Wales) to not obtain an audit of its individual financial statements for the year ended
31 December 2021.
21 Cash and cash equivalents
Cash at bank and in hand
2021
£’000
5,864
2020
£’000
2,192
22 Credit risk
The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Group’s maximum
exposure to credit risk. This exposure is summarised below:
Classification of financial assets – carrying amounts
Trade and other receivables
Cash and cash equivalents
2021
£’000
1,213
5,864
7,077
2020
£’000
1,016
2,192
3,208
The Group does not hold any collateral or other credit enhancements to cover this credit risk.
Tthe Group is not exposed to any significant credit risk exposure to any single counterparty or group of counterparties having similar characteristics.
The Group’s customers are generally major natural resource companies with whom the Group has strong trading relationships with no recent history
of default. The Group continually monitors its trade receivables and incorporates this information into its credit risk controls.
Trade receivables are stated on the basis of factors such as historical trends, age of debts and debt specific information. Details of amounts past
due but not impaired are set out in note 24. The credit risk for liquid funds is considered negligible since counterparties are reputable banks with
high-quality external credit ratings.
65
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
23 Trade and other receivables
Trade receivables
Loss allowance
Contract assets (note 3)
VAT recoverable
Other receivables
Prepayments
Fair value through profit and loss derivative
2021
£’000
1,127
(88)
1,039
167
72
7
306
—
2020
£’000
619
—
619
237
38
112
337
10
1,591
1,353
24 Trade receivables – credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
The Group’s trade receivables have been reviewed for expected credit losses. Allowances have been made amounting to £88,000 (2020: £nil).
It is considered that the expected credit loss for receivables balances less than six months is £nil (2020: £nil). The carrying value for trade and
other receivables is stated after the following allowance for credit losses:
Movement in the allowances for doubtful debts
Balance at 1 January 2021
Additional allowance recognised
Balance at 31 December 2021
2021
£’000
—
88
88
Calculation of expected credit loss
The expected credit loss for trade receivables as at 31 December 2021 was determined as follows:
Expected credit loss rate
Gross carrying amount
Expected credit loss (£'000)
Current
0.0%
672
—
Less than
3 months 3 to 6 months
More than
6 months
0.0%
175
—
0.0%
97
—
50.0%
180
(88)
The expected credit loss for trade receivables as at 31 December 2020 was determined as follows:
Expected credit loss rate
Gross carrying amount
Expected credit loss (£’000)
Current
0.0%
316
—
Less than
3 months
3 to 6 months
More than
6 months
0.0%
119
—
0.0%
31
—
0.0%
153
—
2020
£’000
—
—
—
Total
0.0%
1,124
(88)
Total
0.0%
619
—
Expected credit losses – other receivables
Included within other receivables in the prior year were gross receivables from H2 Green Limited ('H2 Green'), a company in which the Group held
an option to acquire 100% of the ordinary share capital. This option was exercised in March 2021, as described in note 35. As part of this option
agreement, the Group provided working capital facilities to H2 Green in the form of debts advanced prior to the year-end of £nil (2020: £53,606),
and maximum committed loans to be advanced in January 2021 of £nil (2020: £20,000).
66
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 24 Trade receivables – credit risk cont.
Expected credit losses – other receivables cont.
The Directors, when performing the fair value exercise on the option in the prior year, determined that the Group had an implied associated
expected credit loss under IFRS 9 in respect of these loans and loan commitments of 95.2%, which was provided for in full in 2020. As the option
has subsequently been exercised, the Group no longer carries any exposure to credit risks from this loan and as such the losses expensed in 2020
have been recognised as a gain in the current year.
25 Borrowings
Borrowings held at amortised cost:
Bank loans
2021
£’000
Current
2020
£’000
Non-current
2021
£’000
2020
£’000
110
85
659
750
The bank loan carries a variable interest rate of 2.75% above bank base rate and is repayable in monthly instalments over a 60-month term.
The loan is secured by land and buildings owned by the Parent Company, which is shown in note 18 with a current carrying value of £2,281,000
(2020: £2,316,000). The loan is due for repayment with a balloon payment by the end of 2024.
26 Financial risk management
The Group is exposed to financial risks. The Group’s risk management is co-ordinated by its Directors who focus actively on securing the Group’s
short- to medium-term cash flows through regular reviews of the operating activity of the business.
The Group does not actively engage in the trading of financial assets for speculative purposes, nor does it write options. The most significant
financial risks to which the Group is exposed are described below.
Foreign exchange risk
The carrying amounts of the Group’s foreign currency denominated monetary assets and liabilities at the reporting date are as follows:
US dollars
Euros
2021
£’000
959
8
967
Assets
2020
£’000
471
36
507
Liabilities
2020
£’000
68
3
71
2021
£’000
23
—
23
Exposure to currency exchange rates arises from the Group’s overseas sales and purchases, most of which are denominated in US dollars
and some of which are denominated in euros. Assets and liabilities denominated in US dollars and euros give rise to foreign exchange exposures
at the end of the reporting period.
To mitigate the Group’s exposure to foreign currency risk, exchange rates are monitored and the timing of settling invoices, where sales and
purchases are made in currencies other than pound sterling, is matched as far as possible. Furthermore, there is no systematic exposure to
exchange rates because selling prices are not fixed in currencies other than sterling.
The Group has a US-based subsidiary whose net assets are exposed to foreign currency translation risk. With no matching borrowings
denominated in US dollars, it is the Group’s policy not to hedge against this translation exposure.
The Group had short-term exposure to the US dollar and the euro at 31 December 2021. The following table illustrates the sensitivity of the net
result for the year with regard to the Group’s financial assets and financial liabilities. It assumes a +/-10% change in the US dollar and the euro
exchange rates for the period ended 31 December 2021. Sensitivity analysis is based on the Group’s foreign currency financial instruments held
at the end of each reporting period.
67
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
26 Financial risk management cont.
Foreign exchange risk cont.
If pound sterling had strengthened or weakened against the US dollar and the euro by 10%, this would have had the following impact:
Reported loss before tax
Sensitivity to movement in currency exchange rates:
US dollars
Euros
+10%
£’000
2021
-10%
£’000
(2,887)
(2,887)
(100)
(1)
82
1
+10%
£’000
(1,818)
(26)
(3)
2020
-10%
£’000
(1,818)
29
4
Sensitised loss before tax
(2,988)
(2,804)
(1,847)
(1,785)
Interest rate risk
The carrying amounts of financial assets/(liabilities) which expose the Group to cash flow interest rate risk are as follows:
Cash
Bank loans
2021
£’000
5,863
(769)
5,094
2020
£’000
2,192
(835)
1,357
Cash and bank loans are subject to variable rates of interest. Although the Group has lease liabilities, all leases are recognised on a present value
basis only with no cash interest payable, and as such there is no other material interest rate risk. To mitigate the Group’s exposure to interest rate
risk, market rates are monitored.
The following table illustrates the sensitivity of the profit before tax for the year to a reasonably possible change in interest rates of +/-1% with
effect from the beginning of the year on bank borrowings. These changes are considered to be reasonably possible based on observation of
current market conditions. The calculations are based on the Group’s financial instruments held at the end of each reporting period. All other
variables are held constant.
Reported loss before tax
Change in interest rates
Sensitised loss before tax
+1%
£’000
(2,887)
(8)
(2,895)
2021
-1%
£’000
(2,887)
8
(2,879)
+1%
£’000
(1,818)
1
(1,817)
2020
-1%
£’000
(1,818)
(1)
(1,819)
Capital and liquidity risk
The Group manages its liquidity needs by carefully monitoring scheduled cash outflows and anticipated cash inflows. Having regard to modest
visibility of sales, the cash forecasts are regularly reviewed and cover alternative income scenarios.
The undiscounted contractual maturity of the Group’s financial liabilities at the end of the reporting period was as follows:
Year ended 31 December 2021
Trade and other payables
Contingent consideration
Bank loans
Leases
68
Within
one year
£’000
In 1
to 2 years
£’000
In 2
to 5 years
£’000
1,072
250
110
187
1,619
—
—
110
101
211
—
—
549
2
551
Total
£’000
1,072
250
769
290
2,381
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 26 Financial risk management cont.
Capital and liquidity risk cont.
Year ended 31 December 2020
Trade and other payables*
Bank loans
Leases
Within
one year
£’000
In 1
to 2 years
£’000
In 2
to 5 years
£’000
734
85
166
985
—
114
167
281
—
636
98
734
* This excludes expected credit losses arising on loan commitments.
Below is a summary of the Group’s financial assets and liabilities as defined in IFRS 9 ‘Financial Instruments: Recognition and Measurement’:
Debt instruments at amortised cost
Trade and other receivables
Cash and cash equivalents
Equity instruments measured at fair value through profit and loss
Derivatives
Current financial liabilities measured at amortised cost
Trade and other payables
Bank loans
Leases
Current financial liabilities measured at fair value through profit and loss
Contingent consideration
Non-current financial liabilities measured at amortised cost
Bank loans
Leases
Total
£’000
734
835
431
2,000
2020
£’000
1,006
2,192
3,198
2021
£’000
1,213
5,863
7,076
—
10
(1,072)
(110)
(188)
(1,370)
(245)
(659)
(102)
(761)
4,700
(900)
(85)
(148)
(1,133)
—
(750)
(257)
(1,007)
1,068
The Directors consider that the fair value of financial assets and liabilities equates to the carrying value for both 2021 and 2020.
Capital management policies and procedures
The Group’s capital management objectives are as follows:
• To ensure the Group’s ability to continue as a going concern; and
• To provide an adequate return to shareholders.
These objectives are maintained by pricing products and services commensurately with the level of risk and by exercising a policy of progressive
dividends as appropriate.
69
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
26 Financial risk management cont.
Capital management policies and procedures cont.
The Group monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of the
consolidated statement of financial position. Capital for the reporting period under review is set out below:
Total equity
Less cash and cash equivalents
2021
£’000
12,030
(5,863)
6,167
2020
£’000
8,049
(2,192)
5,857
In order to achieve the Group’s objectives in capital management, the goal is to maintain adequate capital with the minimum amount of appropriate
borrowing. The Group has met its stated objectives for the year.
27 Trade and other payables
Trade payables
Accruals
Contingent consideration
Social security and other taxation
Other payables
Leases
Contract liabilities
Provisions
Current
Non-current
2021
£’000
2020
£’000
Notes
28
31
30
2021
£’000
329
740
245
118
3
118
504
—
2,127
2020
£’000
549
162
—
79
41
148
387
—
1,366
—
—
—
—
—
102
—
—
102
Other payables include £nil (2020: £19,040) of expected credit losses on loan commitments entered into, as described further in note 24.
Details of contingent consideration are provided in note 36.
28 Lease liabilities
Maturity analysis
Within one year
In two to five years
Total undiscounted liabilities
Future finance charges and other adjustments
Lease liabilities in the financial statements
2021
£’000
197
103
300
(10)
290
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from
the reporting date, as follows:
Current liabilities
Non-current liabilities
Amounts recognised in profit or loss include the following:
Interest on lease liabilities
70
2021
£’000
188
102
290
2021
£’000
21
2020
£’000
148
257
405
2020
£’000
22
—
—
—
—
—
257
—
25
282
2020
£’000
166
265
431
(26)
405
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 2020
£’000
(176)
364
188
Total
£’000
171
(412)
34
12
7
176
(364)
(45)
(22)
39
2
29 Deferred taxation
Deferred tax liabilities
Deferred tax assets
2021
£’000
—
214
214
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the current and prior
reporting period.
ACAs
£’000
88
—
2
10
—
100
—
(8)
30
—
—
Tax
losses
£’000
—
(311)
43
(3)
—
—
(271)
(101)
(91)
(18)
2
Retirement
benefit
obligations
£’000
Share-
based
payments
£’000
Foreign
tax
£’000
Provisions
£’000
Intangibles
£’000
R&D
£’000
—
(3)
—
—
—
—
(3)
1
(1)
�
—
—
(4)
—
(1)
—
—
(5)
4
—
—
—
—
(39)
(8)
(5)
—
—
—
(55)
22
—
—
—
(52)
(33)
(1)
(12)
—
—
19
—
—
—
11
—
—
—
—
11
—
(59)
—
57
—
72
—
(25)
11
7
65
—
100
52
—
—
Deferred tax liability at 1 January 2020
Deferred tax asset at 1 January 2020
Deferred tax movements in prior year
Charge/(credit) to profit or loss
Effect of change in tax rate – profit or loss
Other
Deferred tax liability at 1 January 2021
Deferred tax asset at 1 January 2021
Deferred tax movements in current year
Charge/(credit) to profit or loss
Effect of change in tax rate – profit or loss
Business combination
Foreign exchange adjustments
Deferred tax liability/(asset)
at 31 December 2021
122
(479)
(3)
(1)
(65)
(14)
9
217
214
The deferred tax asset in respect of foreign tax jurisdictions arises as a result of future capital allowances available following the part-payment
of the deferred consideration for the acquisition of assets from Lisle Gravity Inc. in an earlier period. These will be relieved against profits of the
foreign subsidiary.
The deferred tax asset in respect of tax losses arises as a result of losses incurred by the Group after 1 April 2017. The Group is expected to
generate future taxable profits, which these losses will be set against in the next five years. The trading losses carried forward have no expiry date.
Losses incurred by the Group for which no deferred tax asset has been recognised amount to £2,510,000 (2020: £1,376,000). The Group further
has unutilised R&D expenditure credits of £53,000 (2020 - £20,000) which are available for utilisation against tax payable in future years. No
deferred tax asset has been recognised in respect of these credits. If deferred tax assets were recognised in respect of these balances, it would
increase the net assets of the Group by approximately £680,000 (2020: £281,000).
In the March 2021 Budget, a change to the future UK corporation tax rate was announced, indicating that the rate will increase to 25% from April
2023. Deferred tax balances at the reporting date are expected to reverse after that date and are therefore measured at 25% (2020: 19%).
30 Provisions for liabilities
Dilapidation provision
All provisions are expected to be settled after more than 12 months from the reporting date.
Movements on provisions:
At 1 January 2021 and 31 December 2021
2021
£’000
25
2020
£’000
25
Dilapidation provision
£’000
25
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Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
31 Contract liabilities
Arising from contracts with customers
All deferred revenues are expected to be settled within 12 months from the reporting date.
32 Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
2021
£’000
504
2021
£’000
354
2020
£’000
387
2020
£’000
327
The Group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those
of the Group in an independently administered fund.
The liability to the scheme was £2,000 (2020: £nil) at the end of the year.
33 Share-based payment transactions
At 31 December 2021, the Group operated an approved Enterprise Management Incentive (EMI) share scheme and an Unapproved Options
scheme. Under the share options plans, the Directors can grant options over shares in the Company to employees, subject to approval from the
Remuneration Committee. Options are granted with a fixed exercise price and the contractual life of an option of 10 years. Options will become
exercisable on the second anniversary of the date of grant. Exercise of an option is subject to continued employment.
At 31 December 2021, rights to options over Ordinary Shares of the Parent Company were outstanding as follows:
Number of share options
Weighted average
exercise price
Outstanding at 1 January 2021
Expired in the period
Outstanding at 31 December 2021
Exercisable at 31 December 2021
2021
2020
4,130,000
4,199,039
—
—
(69,039)
—
4,130,000
4,130,000
2021
£’000
0.28
—
0.28
0.28
The options outstanding at 31 December 2021 had an exercise price ranging from 15p to 35p, and a remaining contractual life of 10 years.
2021
£’000
2020
£’000
0.27
0.15
0.28
0.28
2020
£’000
Expenses
Related to equity settled share-based payments
7
31
During the year the Board granted a one-year extension to the 900,000 share options with original expiry date of 27 April 2021 by way of issuing
identical options to those above except for an exercise period of one year.
On 8 February 2022 a further 2,250,000 share options were granted, as explained further in note 39.
No share options were exercised during the year.
72
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 34 Share capital
Ordinary share capital
Authorised
Ordinary of 25p each
Issued and fully paid
Ordinary of 25p each
2021
Number
2020
Number
90,000,000
90,000,000
66,866,680
37,563,615
2021
£’000
225
167
2020
£’000
225
94
Each share issued has the same right to receive dividends and the repayment of capital and represents one vote at the shareholders’ meeting
of the Group.
Between 31 March and 1 April 2021, additional shares were issued relating to an equity fund raise and the acquisition of H2 Green Limited, as a
result of which an additional 29,303,065 shares were issued, called up and fully paid. On issue the Group received gross proceeds of £6,446,000
(of which £196,250 relates to shares issued as direct consideration for H2 Green Limited), against which a deduction of £547,000 was recognised
directly against the share premium account in respect of directly attributable costs of raising the additional capital.
35 Share premium account
At the beginning of the year
Issue of new shares
Costs of equity raise
At the end of the year
2021
£’000
3,053
6,179
(547)
8,685
2020
£’000
3,053
—
—
3,053
73
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Consolidated Financial Statements cont.
for the year ended 31 December 2021
36 Acquisitions of a business
On 30 March 2021 the Group acquired 100% of the issued capital
Net assets of business acquired
Intangible assets
Deferred tax asset (re losses)
Trade and other receivables
Trade and other payables
Deferred tax liability (re adjustments)
Total identifiable net assets
Non-controlling interests
Goodwill
Total consideration
The consideration was satisfied by:
Cash
Shares of Getech Group plc issued to vendors
Contingent consideration
Net cash outflow arising on acquisition
Cash consideration
Less: Cash and cash equivalents acquired
Book value
£’000
Adjustments
£’000
Fair value
£’000
—
18
11
(123)
—
(94)
300
—
—
—
(57)
243
300
18
11
(123)
(57)
149
—
335
484
£’000
54
196
234
484
£’000
54
—
54
£’000
—
(372)
Contribution by the acquired business for the reporting period included in the Group statement of comprehensive income since acquisition:
Revenue
Loss after tax
In addition to the above, the Group incurred fees of £15,000 relating to the acquisition, which have been expensed and are included within
administrative expenses.
The goodwill arising on the acquisition substantially relates to the significant growth that is anticipated using the funding of the Group. H2 Green
Limited is a start-up business with new technology, and the goodwill is linked to the contingent consideration which is only payable when certain
milestones are met over several years. The amounts paid might be £125,000, £250,000 or £750,000, depending on how many milestones are met.
The Directors consider these events to be probable based on due diligence and business planning undertaken during the option period, however
the expected timing of this remains uncertain; the recognition of contingent consideration includes a determination of the likelihood of this timing,
with the amounts expected to be paid discounted to present value.
Trade and other payables acquired includes a debt of £106,000 owed to the Group as part of the pre-acquisition agreements during the option
period, explained in notes 2 and 24.
74
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 37 Contingent liabilities
Except for the contingent consideration described in note 36, there were no contingent liabilities, capital commitments or guarantees provided
at either 31 December 2021 or 31 December 2020.
38 Capital risk management
The Group is not subject to any externally imposed capital requirements.
39 Events after the reporting date
On 8 February 2022 the Group granted 2,250,000 share options, of which 1,650,000 were granted to Directors of the Group. The options were
granted with an exercise price of 27.5p per ordinary share, being the mid-market closing price on 7 February 2022. The options have a seven-year
term and vest one third (750,000) on each of the next three anniversaries of the grant date, subject to satisfying certain performance condition.
The Directors have determined that the options carry a provisional fair value of £158,000 across all three tranches of shares. Of this, £116,000
relates to the options held by Directors, which is anticipated to be recognised as remuneration over the next three years.
40 Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, including Directors, is set out below in aggregate for each of the categories specified in IAS 24
Related Party Disclosures.
Short-term employee benefits
Post-employment benefits
Share-based payments
2021
£’000
725
35
—
760
2020
£’000
673
66
15
754
The remuneration of the Directors of the Parent Company is detailed in note 9. No Directors received dividends during the current or prior year.
Other information
During the year (and until the retirement of Chris Flavell from the Board), the Group made payments to Zinc Consultants Limited amounting to
£26,000 (2020: £11,000) for recruitment services, a company of which Chris Flavell is a Director. All transactions were conducted under standard
commercial terms.
The Company has taken advantage of the exemption available in FRS 101 whereby it has not disclosed transactions with the ultimate parent
company or any wholly owned subsidiary undertaking of the Group, which would otherwise be required by IAS 24 ‘Related party disclosures’.
75
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Company Statement of Financial Position
as at 31 December 2021
Non-current assets
Intangible assets
Property, plant and equipment
Investment property
Investments
Current assets
Trade and other receivables
Tax receivable
Cash and cash equivalents
Current liabilities
Net current assets
Total assets less current liabilities
Non-current liabilities
Provisions for liabilities
Net assets
Equity
Called up share capital
Share premium account
Merger reserve
Share-based payment reserve
Retained earnings
Total equity
Notes
£’000
43
44
45
46
1,952
656
4,615
7,223
47
(3,108)
47
55
£’000
1,194
191
1,119
2,504
(2,025)
2021
£’000
2,834
2,312
174
2,244
7,564
4,115
11,679
(756)
(25)
10,898
167
8,685
194
258
1,594
10,898
2020
£’000
2,782
2,695
—
1,760
7,237
478
7,715
(1,013)
(109)
6,594
94
3,053
—
251
3,196
6,594
As permitted by s408 Companies Act 2006, the Company has not presented its own income statement and related notes. The Company’s loss for
the year was £1,602k (2020: £1,495k loss).
The financial statements were approved by the Board of Directors and authorised for issue on 18 May 2022 and are signed on its behalf by:
Mr A L Darbyshire
Director
Company Registration No. 02891368
76
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021
Company Statement of Changes in Equity
for the year ended 31 December 2021
Share
capital
£’000
Share
premium
account
£’000
Revaluation
reserve
£’000
Merger
reserve
£’000
Hedging
reserve
£’000
Notes
Capital
redemption
reserve
£’000
Share-
based
payment
reserve
£’000
Retained
earnings
£’000
Total
£’000
Balance at 1 January 2020
94
3,053
—
—
—
—
242
4,669
8,058
Year ended 31 December 2020:
Loss and total comprehensive
income for the year
Transactions with owners
of the Company:
Share-based payment charge
33
Forfeit of share options
Balance at 31 December 2020
Year ended 31 December 2021:
Loss and total comprehensive
income for the year
Transactions with owners
of the Company:
Issue of share capital
Share-based payment charge
Issued on acquisition of
subsidiary
Costs of share issue deducted
from share premium
34
33
45
34
—
—
—
94
—
—
—
3,053
—
—
73
—
—
—
6,179
—
—
(547)
Balance at 31 December 2021
167
8,685
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
194
—
194
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(1,495)
(1,495)
31
(22)
—
22
31
—
251
3,196
6,594
—
(1,602)
(1,602)
—
7
—
—
—
—
—
—
6,252
7
194
(547)
258
1,594
10,898
77
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Company Financial Statements
for the year ended 31 December 2021
41 Accounting policies
Company information
Getech Group plc is a public company limited by shares incorporated in England and Wales. The registered office is Kitson House, Elmete Hall,
Elmete Lane, Leeds, West Yorkshire, LS8 2LJ. The Company’s principal activities and nature of its operations are disclosed in the Directors’ Report.
41.1 Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101)
and in accordance with applicable accounting standards.
The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements
are rounded to the nearest £’000.
The Company applies accounting policies, key judgements, and key estimates on a consistent basis as the Group, except for disclosure
exemptions set out below. To the extent that an accounting policy is relevant to both Group and parent company financial statements,
please refer to the Group financial statements for disclosure of the relevant accounting policy.
As permitted by FRS 101, the Company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
•
inclusion of an explicit and unreserved statement of compliance with IFRS;
• presentation of a statement of cash flows and related notes;
• disclosure of the objectives, policies and processes for managing capital;
• disclosure of key management personnel compensation;
• disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
• the effect of financial instruments on the statement of comprehensive income;
• comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment,
intangible assets, investment property and biological assets;
• a reconciliation of the number and weighted average exercise prices of share options, how the fair value of share-based payments was
determined and their effect on profit or loss and the financial position;
• comparative narrative information;
• for financial instruments, investment property and biological assets measured at fair value and within the scope of IFRS 13, the valuation
techniques and inputs used to measure fair value, the effect of fair value measurements with significant unobservable inputs on the result
for the period and the impact of credit risk on the fair value; and
• related party disclosures for transactions with the parent or wholly owned members of the Group.
42 Employees
The average monthly number of persons (including Directors) employed by the Company during the year was:
Directors
Administration
Technical
Total
Their aggregate remuneration comprised:
Wages and salaries
Government grants received
Social security costs
Pension costs
Share-based payment charges
78
2021
Number
2020
Number
3
10
34
47
2021
£’000
2,375
—
248
282
7
3
11
39
53
2020
£’000
2,134
(80)
239
241
31
2,912
2,565
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 43 Intangible assets
Cost
At 1 January 2021
Additions – internally generated
At 31 December 2021
Amortisation and impairment
At 1 January 2021
Charge for the year
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
44 Property, plant and equipment
Cost
At 1 January 2021
Additions
Disposals
Transfer to investment property
At 31 December 2021
Accumulated depreciation and impairment
At 1 January 2021
Charge for the year
Impairment loss (profit or loss)
Eliminated on disposal
On assets reclassified as investment property
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
Other
£’000
Development
costs
£’000
Reports
£’000
5
—
5
4
1
5
—
1
5,494
740
6,234
2,713
687
3,400
2,834
2,781
399
—
399
399
—
399
—
—
Freehold
property
£’000
Right of use
assets
£’000
Plant and
equipment
£’000
2,798
—
—
—
2,798
481
35
—
—
—
516
2,282
2,317
641
—
—
(641)
—
291
14
37
—
(342)
—
—
350
835
21
(20)
—
836
808
18
—
(20)
—
806
30
27
Total
£’000
5,898
740
6,638
3,116
688
3,804
2,834
2,782
Total
£’000
4,274
21
(20)
(641)
3,634
1,580
67
37
(20)
(342)
1,322
2,312
2,694
The carrying amount of freehold land not subject to depreciation amounted to £1,000,000 (2020: £1,000,000).
The Company continues to explore the future sale of Kitson House. The requirements of IFRS 5 have been reviewed and based on the expected
timeframe for disposal it is considered appropriate to continue to classify the land and buildings as a non-current asset rather than an asset held
for sale.
79
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Company Financial Statements cont.
for the year ended 31 December 2021
45 Investments
Investments in subsidiaries
Classified as part of a disposal group held for sale
Current
Non-current
2021
£’000
—
—
2020
£’000
—
—
2021
£’000
2,244
—
2020
£’000
1,760
—
Fair value of financial assets carried at amortised cost
Except as detailed below the Directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements
approximate to their fair values.
Investment in subsidiary undertakings
Details of the Company’s principal operating subsidiaries are included in note 20, and details of the addition detailed below are given in note 36.
Movements in non-current investments
Cost or valuation
At 1 January 2021
Additions
At 31 December 2021
Impairment
At 1 January 2021 and 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
Shares in
subsidiaries
£’000
7,228
484
7,712
(5,468)
2,244
1,760
The Parent Company owns 100% equity interest in Geophysical Exploration Technology Inc. (trading as Getech Inc.), a company incorporated
in the USA. The principal activity of Geophysical Exploration Technology Inc. is the marketing of gravity and magnetic data, services and geological
evaluations. The cost of US$10 capital stock was £1 and this has been written off in an earlier period. The results of Getech Inc. are included in the
consolidated figures for the year.
The Parent Company owns 100% of the Ordinary Share capital in ERCL Limited, a company incorporated in England and Wales. The principal
activity of ERCL is specialist international upstream oil and gas consultancy.
The Parent Company owns 100% of the Ordinary Share capital in Exprodat Consulting Limited, a company incorporated in England and Wales.
The principal activity of Exprodat Consulting Limited is providing Geospatial and information management solutions to the upstream oil and
gas industry.
Since 31 March 2021, the Parent Company owns 100% of H2 Green Limited, a company incorporated in England and Wales. The principal activity
of H2 Green is building and managing a network of Hydrogen Hubs across the UK. On 31 March 2021 Getech exercised its option to acquire 100%
of the share capital of H2 Green.
The investment in subsidiary undertakings has been tested for impairment and in the opinion of the Directors, the aggregate value of the
Company’s investment in subsidiary undertakings is not less than the amount included in the balance sheet. This impairment testing has been
done on the same basis as goodwill has for the Group, full details of which are provided in note 17.
Sensitivity analysis is carried out on all budgets, strategic plans and discount rates used in the calculations. The cash flow model is sensitive
to short-term market recovery.
80
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 46 Trade and other receivables
Trade receivables
Loss allowance
VAT recoverable
Amounts owed by subsidiary undertakings
Other receivables
Prepayments and accrued income
Derivative contracts
2021
£’000
2020
£’000
731
(85)
646
43
839
1
423
—
382
—
382
38
285
—
479
10
1,952
1,194
All amounts are short term. The carrying amounts of trade and other receivables are considered to be reasonable approximations to fair value.
The Company has taken advantage of the disclosure exemptions of FRS 101 to not present an analysis of its credit risks. Disclosure for the Group
can be found in note 24.
Details of the derivative contract, representing the option over H2 Green Limited, can be found in notes 12 and 36.
47 Liabilities
Borrowings
Trade and other payables
Lease liabilities
Deferred income
48 Borrowings
Borrowings held at amortised cost:
Bank loans
Notes
48
49
50
53
2021
£’000
110
2,751
158
89
3,108
2021
£’000
Current
Non-current
2020
£’000
78
1,711
148
88
2,025
2021
£’000
659
—
97
—
756
2020
£’000
756
—
257
—
1,013
Current
2020
£’000
Non-current
2021
£’000
2020
£’000
110
78
659
756
The bank loan carries a variable interest rate of 2.75% above the bank base rate and is repayable in equal monthly instalments. The loan is secured
by land and buildings owned by the Parent Company, with a carrying value of £2,280,000 (2020: £2,317,000). The loan is due for repayment with
a balloon payment by the end of 2024.
81
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Notes to the Company Financial Statements cont.
for the year ended 31 December 2021
49 Trade and other payables
Trade payables
Amounts owed to subsidiary undertakings
Accruals
Contingent consideration
Social security and other taxation
Other payables
Current
Non-current
2021
£’000
2020
£’000
2021
£’000
242
1,458
717
245
89
—
2020
£’000
486
1,032
90
—
65
38
2,751
1,711
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2020
£’000
166
265
431
(26)
405
Other payables include £19,040 of expected credit losses on loan commitments entered into, as described further in note 24.
50 Lease liabilities
Maturity analysis
Within one year
In two to five years
Total undiscounted liabilities
Future finance charges and other adjustments
Lease liabilities in the financial statements
2021
£’000
167
98
265
(10)
255
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from
the reporting date, as follows:
2021
£’000
158
97
255
2020
£’000
148
257
405
Current liabilities
Non-current liabilities
82
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021
51 Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the Company and movements thereon during the current and prior
reporting period.
ACAs
£’000
Tax losses
£’000
Retirement
benefit
obligations
£’000
Share-based
payments
£’000
R&D
£’000
Total
£’000
Deferred tax liability at 1 January 2020
Deferred tax movements in prior year
Charge/(credit) to profit or loss
Effect of change in tax rate – profit or loss
Other
Deferred tax liability at 1 January 2021
Deferred tax movements in current year
Charge/(credit) to profit or loss
Effect of change in tax rate – profit or loss
Deferred tax liability at 31 December 2021
88
1
10
—
99
(5)
30
124
(21)
—
(3)
—
(24)
(187)
(66)
(277)
(4)
—
(1)
—
(5)
5
—
—
(39)
(8)
(5)
—
(52)
(1)
(12)
(65)
71
(23)
11
7
66
100
52
218
95
(30)
12
7
84
(88)
4
—
The deferred tax asset in respect of tax losses arises as a result of losses incurred by the Company after 1 April 2017. The Group is expected
to generate future taxable profits, which these losses will be set against. The trading losses carried forward have no expiry date. There exists
total tax losses of £3,136,000 (2020: £488,000) of which £2,150,000 (2020: £488,000) is not recognised as a deferred tax asset.
Losses incurred by the Company prior to 1 April 2017 amount to £124,000 (2020: £124,000) which have been recognised in full as a deferred
tax asset.
The Company further has unutilised R&D expenditure credits of £33,000 (2020: £33,000) which are available for utilisation against tax payable
in future years. No deferred tax asset has been recognised in respect of these credits.
In the March 2021 Budget, a change to the future UK corporation tax rate was announced, indicating that the rate will increase to 25% from
April 2023. Deferred tax balances at the reporting date are expected to reverse after that date and are therefore measured at 25% (2020: 19%).
52 Provisions for liabilities
Dilapidation provision
All provisions are expected to be settled after more than 12 months from the reporting date.
Movements on provisions:
At 1 January 2021 and 31 December 2021
53 Deferred revenue
Arising from customer contracts
All deferred revenues are expected to be settled within 12 months from the reporting date.
54 Share-based payment transactions
The Company information for share-based payments is the same as the Group information and is shown in note 33.
55 Share capital
Refer to note 34 of the Group financial statements.
2021
£’000
25
2021
£’000
89
2020
£’000
25
£’000
25
2020
£’000
88
83
Getech Group plcFinancial StatementsGovernanceStrategic ReportAnnual Report and Accounts 2021 Advisors
Registered office for the Parent Company
Kitson House
Elmete Hall
Elmete Lane
Leeds
LS8 2LJ
Nominated advisor and broker
Cenkos Securities plc
6 7 8 Tokenhouse Yard
London
EC2R 7AS
Auditor
Grant Thornton UK LLP
No. 1 Whitehall Riverside
Whitehall Road
Leeds
LS1 4BN
Solicitors
Womble Bond Dickinson
1 Whitehall Riverside
Leeds
LS1 4BN
Principal bankers
National Westminster Bank Plc
PO Box 183
8 Park Row
Leeds
LS1 1QT
Registrars
Link Asset Services
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
HD8 0GA
84
Getech Group plcFinancial StatementsAnnual Report and Accounts 2021 Design and Production
www.carrkamasa.co.uk
Printed on Arena Extra White Smooth,
an FSC certified mixed sources paper.
Printed by DG3 Leycol, an FSC and ISO
14001 accredited company.
Getech Group plc
Kitson House
Elmete Hall
Elmete Lane
Leeds
LS8 2LJ
UK
+44 (0)113 322 2200
info@getech.com
www.getech.com