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Investing.com -- A former director at Geotek, a subsidiary of Judges Scientific, has shared insights with In Practise the company’s history and future growth potential. Geotek represents around 33% of the Judges Scientific group and is its largest acquisition to date.
Geotek has seen significant growth over the years, particularly in its services and instruments-based businesses. According to the former director, a good year for services previously meant a turnover of £700,000 to £800,000, while a bad year could be as low as £150,000 to £200,000. However, the company has successfully grown this into a £10 million-a-year business.
This growth can be attributed to large work programs such as the Vale Leap laboratory project in Brazil, the Petronas Core 360 project, and offshore work with Petrobras in Brazil. These projects, the former director remarked, were "seminal projects that developed into larger programs," helping Geotek secure consistent, high recurring revenue for its services.
Geotek holds a 100% market share in the profitable coring niche, particularly in the area of gas hydrates. The company has the capability to collect, store, analyze, measure, and transport samples, a niche within the geoscience field. While other companies have ventured into pressure coring and pressure core analysis, few have focused on gas hydrates. Despite attempts by other nations to create their own analytical procedures, Geotek remains the preferred expert in this field.
Looking ahead, the former director believes that Geotek’s services have the potential to double in the coming years, particularly in core services. With the right investment, structure, and opportunity, the company could see significant growth. However, doubling instrument sales in a few years is unlikely due to customer requirements. For instance, a Multi-Sensor Core Logger, one of Geotek’s products, is typically used for 10 to 15 years. While new product lines could be introduced, doubling the business in the short term is seen as a challenging task.
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