Electromagnetic resource sensing innovator Offshore Hydrocarbon Mapping (OHM) warns its results will fall ‘significantly short’ of expectations.

After cutting its losses from £1.6 million to £1 million in the year to August on turnover up 70 per cent to £18 million, Aberdeen-based OHM blames ‘lumpiness’ in take-up from oil and gas explorers and seasonal factors in the controlled source electromagnetic imaging (CSEM) market for more recent setbacks. The AIM-quoted company insists CSEM is becoming accepted as a ‘mainstream exploration tool’, but admits ‘order flow is proving to be lumpy’.

OHM argues that this is the same as what happened after the introduction of 3DF seismic, now a standard industry technique, though CSEM’s present novelty delayed the award of permits for the company’s South East Asian data library programme. David Pratt, who replaced Pierre Jungels as chairman of the AIM-quoted company last Friday, says OHM expects activity levels in North West Europe to rebound in the spring.

He argues the market will grow in the long term and claims ‘our offering to clients is technically superior’. He adds ‘our cash position remains strong’.

Floated at 170p in 2004, OHM’s volatile shares surged to 337.5p before falling all the way to 82p in early 2006 before rebounding to 295.5p last August and falling again to 104p, down 80 today, valuing the company at £45 million, where they are unlikely to show much action until future prospects become clearer.

Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.