TIDMNGR
RNS Number : 1729S
Nature Group PLC
28 September 2017
Nature Group PLC
("Nature" or the "Company" or the "Group")
Unaudited Interim Results for the 6 months to 30 June 2017
Nature Group PLC (AIM:NGR), the provider of port reception
facilities and waste treatment solutions for the oil, marine and
process industries, announces its interim results for the six
months ended 30 June 2017.
Financial Performance
-- Revenues for the period of GBP 5.4 million (H1 2016: GBP 6.2 million)
-- Underlying pre-tax loss of Continuing Operations for the
period of GBP 1.8 million (H1 2016: loss GBP 0.9 million)
-- Finalized the sale and transfer of the NPRF Gibraltar assets on 16(th) of January 2017 for a consideration of GBP4.0 million.
-- Profit from Discontinued Operations for the period of GBP 2.0
million (H1 2016: loss GBP 0.6 million) due to the combination of a
book profit on the sale of NPRF Gibraltar and a book loss due to
the dissolvement of Nature Environmental Services Limited ("NESL")
in Jersey .
-- Underlying earnings per share for the period of -2.26 pence (H1 2016: -0.81 pence)
-- Net indebtedness at 30 June 2017 was GBP1.0 million (H1 2016:
GBP0.36 million cash and cash equivalents).
-- Since the period end, the Board has been managing the cash
position of the Group on a daily basis and is currently in
discussions in regards to a number of strategic options which
include the provision of immediate liquidity to the Group.
Chairman's Statement
The first six months of 2017 has been a very disappointing
period for the Directors of Nature Group. 2017 started
optimistically with the sale of our Gibraltar business to World
Fuel Services for a total consideration of GBP4 million of which
GBP3.2 million has been received and GBP0.8 million is held in
escrow until January 2019, against any unforeseen liabilities that
might arise in that period.
Trading in the first six months of 2017, has, however, been
challenging. The Oil and Gas division has continued to struggle,
and has consequently drained the Group's financial resources as
contracts were delayed or failed to materialise. Our initial
inability to flex the Group overhead to match the downturn was not
helpful.
As announced in July, the Board had to act decisively and as a
first step, the CEO and CFO left the Group. In their place, Andreas
Drenthen, who held a non-executive position on the Board, and who
is based in Rotterdam and has significant experience in the
Maritime sector, has been reappointed Chief Executive Officer. René
Verbruggen has been appointed to the Board as non-executive
director and is currently closely supervising our financial
resources and leading on the financial reporting. He has held a
number of senior financial appointments in a similar capacity, and
more importantly in business turnaround situations where his
experience is already benefiting the Board. For an interim period,
I intend to lead the Board with just Andreas and René to ensure
close communication and rapid decision-making.
Turnaround Plan
One of the first decisions the restructured Board has taken, is
to undertake a strategic review of all of the Group's operations.
This remains ongoing. As well as continuing to scrutinise and
reduce the Group's overhead we are in negotiations with a number of
parties about the immediate financing, structure and strategic
direction of the business. In addition, we are ensuring that the
Board is monitoring, on a daily basis, the precarious financial
position. Cash is being closely supervised. We look forward to
updating shareholders as soon as possible on the outcome of our
negotiations and expect to be able to do so within a few weeks.
Oil and Gas Division
The volatility in oil prices has curtailed offshore exploration
which is the Oil and Gas Division's target market. Although we had
secured a significant contract with Maersk, the start was delayed
and the division was not able to secure any additional material
contracts despite the technological superior process we have in
comparison to our competitors. Overheads have been cut but we
continue to carrying a high fixed cost base which continues to put
pressure on the Group's cash flow. In previous periods, Nature
Group had the confidence to invest considerable resources in this
division and we continue to receive a flow of contract enquiries
from clients. Accordingly, the Board still believes that a
reorganized business model has a good future in this sector.
Maritime Division
Nature Group has a substantial and market-leading position in
Rotterdam for the removal and treatments of ships generated and
cargo related waste. Working in the largest port in Europe and the
third largest in the world provides the scope to increase the
services Nature Group offers. Our services are backed up by waste
and environmental legislation in Europe. The take up by ship owners
is not discretionary and is strictly monitored by environmental
regulators.
The strategic review has highlighted that the distraction from
having to chase oil and gas contracts has, to a limited extent, had
an impact on the Maritime operations. This is currently being
addressed to exploit the growth potential we have always identified
for this division.
The Texas based operation, acquired in 2014, has, after an
encouraging start, seen in this period a reduction in business from
both support service companies and oil and gas operators in the US
Gulf. This business is now being refocused to increase the range of
shipping services being offered with barge support and tank
cleaning adding to existing operations. We also continue to
maintain an interest in Middle East port opportunities.
We believe that giving even more focus to the Maritime Division
allows us to become a dedicated service business with strong growth
potential. In line with our longer term aim to expand our reach
outside of Europe, we see the potential of working in partnership
with international waste management and environmental businesses
that are looking to expand their activities into the Maritime
sector.
Outlook
The Board understands shareholders frustrations that we have not
been able to fulfil past optimism and has worked tirelessly to
review all aspects of Nature's operations. We are continuing the
restructuring that started in previous periods which will be
critical to the Group's survival and success and are confident that
we are putting in place a creditable and forward looking turnaround
plan. Our cash position is extremely difficult and, as outlined
above, we are working with partners to attempt to address our
immediate liquidity concerns.
For further information contact:
Nature Group PLC
Andreas Drenthen, CEO Tel: + 31 653261484
Berend van Straten, Chairman Tel: + 31 626805605
Cenkos Securities plc
Neil McDonald Tel: +44 (0)131 220 9771 / +44 (0)207 397 1953
Beth McKiernan Tel: +44 (0)131 220 9778 / +44 (0)207 397
1950
Nature Group is traded on the AIM market, (ticker: NGR).
www.ngrp.com
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME Unaudited Unaudited Audited
For the half year 30 June year to
to 30 June 2017 30 June 2017 2016 2016
GBP GBP GBP
Continuing operations
Revenue 5.362.780 6.166.292 11.990.529
Cost of sales (3.503.578) (3.668.381) (7.332.730)
------------- ------------ --------------
Operating profit/(loss) 1.859.202 2.497.911 4.657.799
Other expenses - - (203.961)
Share based payments - - 3.699
Administrative costs (3.026.092) (2.911.854) (5.814.627)
Depreciation and goodwill
amortisation (493.279) (445.259) (1.141.913)
Goodwill write off - 0 -
Finance costs (110.664) (20.780) (35.650)
Profit/(Loss) before
taxation (1.770.833) (879.982) (2.534.653)
Income tax gain/(expense) (20.211) 110.319 285.013
Profit/(Loss) for
the year and total
comprehensive income
for the year from
continuing operations (1.791.054) (769.662) (2.249.640)
============= ============ ==============
Discontinued operations
Profit/(Loss) for
the year and total
comprehensive income
for the year from
discontinued operations 2.077.620 (601.127) (1.055.144)
Profit/(Loss) for
the year and total
comprehensive income
for the year 286.566 (1.370.788) (3.304.784)
============= ============ ==============
Attributable to:
Owners of the parent
Profit/(Loss) for
the year from continuing
operations (1.770.833) (769.662) (2.249.640)
Profit/(Loss) for
the year from discontinued
operations 2.077.620 (601.127) (1.055.144)
------------- ------------ --------------
Profit/(Loss) for
the year attibutable
to owners of the parent 286.566 (1.370.788) (3.304.784)
Non-controlling interest:
Profit/(Loss) for
the year from continuing
operations - 125.173 47.367
Profit/(Loss) for
the year from discontinued
operations 61.056 - 132.187
------------- ------------ --------------
Profit/(Loss) for
the period attributable
to owners of the non-controlling
interest 61.056 125.173 179.554
Profit/(Loss) for
the year and total
comprehensive income
for the year attributed
to owners 347.622 (1.245.615) (3.125.230)
============= ============ ==============
Earnings per share
(pence):
From continuing operations:
Basic (2,259) (0,813) (2,778)
Diluted (2,192) (0,813)
From discontinued
operations:
Basic 2,698 (0,758) (1,164)
Diluted 2,617 (0,758)
Profit/(Loss) after
tax, before share
based payments 347.622 (1.245.615) (3.128.929)
Excluding Share based
payments (2,259) (0,813) (2,778)
----------------------------------- ------------- ------------ --------------
CONSOLIDATED BALANCE SHEET
As at 30 June 2017 Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
Assets
Non-current assets
Plant, vessels and equipment 8.150.475 6.303.694 8.341.330
Goodwill 1.174.448 961.489 1.238.137
Other intangible assets 19.846 129.022 17.680
Investment in associated
company 308.446 308.446 308.446
Deferred tax assets 494.029 264.202 478.508
Total non-current assets 10.167.464 7.966.853 10.384.100
------------- ------------- -------------
Current assets
Insurance Recoveries on
3rd Party Claims 1.665.682 - 1.593.352
Corporate taxes 7.427 121.864 86.978
Stocks and work in progress 107.743 1.470.253 79.234
Trade and other receivables 4.741.669 5.397.481 3.369.337
Cash and cash equivalents 426.722 328.855 383.642
Total current assets 6.949.243 7.318.453 5.512.544
------------- ------------- -------------
Assets classified as held
for sale - 5.903.509 6.387.737
Total Assets 17.096.486 21.188.815 22.284.382
Liabilities
Current liabilities
Trade and other payables (6.394.535) (3.683.426) (7.031.742)
Bank loans and overdrafts (1.466.993) (642.888) (1.186.456)
Corporate taxes (409.417) (390.784) (386.907)
Provision for 3rd Party
Claims (1.665.682) - (1.593.352)
Liabilities directly associated
with assets classified
as held for sale - (5.111.259) (5.608.227)
Total current liabilities (9.936.627) (9.828.357) (15.806.685)
------------- ------------- -------------
Non current liabilities
Term loans (822.923) (2.920.396) (1.220.277)
------------- ------------- -------------
Net assets 6.336.936 8.440.062 5.257.420
============= ============= =============
Equity
Called up share capital 158.561 158.561 158.561
Share premium account 21.953.617 22.019.285 21.953.617
Share option reserve 107.047 110.746 107.047
Capital reserve 2.702.399 2.925.520 2.702.399
Foreign currency translation
reserve 311.270 324.200 (265.625)
Profit and loss account (18.804.998) (17.248.549) (19.128.164)
------------- ------------- -------------
6.427.897 8.289.763 5.527.835
Amounts recognised directly
in equity relating to assets
classified as held for
sale - - -
------------- ------------- -------------
Equity attributable to
owners of the group 6.427.897 8.289.763 5.527.835
Non-controlling interest (90.961) 150.299 (270.415)
Total equity attributable
to equity shareholders 6.336.936 8.440.062 5.257.420
============= ============= =============
CONSOLIDATED CASH FLOW STATEMENT
For the half year to 30
June 2017 Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
Reconciliation of operating
profit to net cash flow
from operating activities:
Profit/(Loss) before taxation 306.787 (1.576.255) (3.600.996)
Adjustments for:
Depreciation and amortisation 493.460 504.446 1.150.457
Decrease/(Increase) in stock (28.509) (284.623) -
Decrease/(Increase) in debtors (1.365.111) 1.099.299 1.798.041
(Decrease)/Increase in creditors (542.367) (1.089.716) 2.011.300
Foreign exchange differences (218.763) 587.822 30.533
Increase in reserves due
to share based payments - - (3.699)
Impairment of financial/fixed
assets - - 646.405
------------ ------------ ------------
Net cash from operating
activities (1.354.503) (759.026) 2.032.040
Investing activities:
Result from divestment of
asset held for sale 1.383.284 - -
Acquisition of tangible
fixed assets (256.421) (392.782) (1.968.916)
Acquisition of intangible
fixed assets (2.166) - (166.478)
Proceeds from disposal of
fixed assets - 34.761 -
Financing activities:
Proceeds from bank borrowings (116.817) 955.768 (336.884)
Proceeds from investments
by non-controlling interest - - -
Increase in cash balances (346.622) (161.278) (440.238)
============ ============ ============
Analysis of cash and cash
equivalents during the period:
Balance at start of period (693.649) 525.578 (253.411)
Increase/(Decrease) in cash
and cash equivalents (346.622) (161.278) (440.238)
Balance at end of period (1.040.271) 364.300 (693.649)
============ ============ ============
1. The calculation of earnings per share has been based on the
loss for the period and the average 79,280,655 Ordinary Shares and
2.440.000 Options in issue throughout the period.
2. These unaudited results have been prepared on the basis of
the accounting policies adopted in the accounts to 31 December
2016.
3. The Cash Flow Statement incorporates both continuing
operations as discontinued operations but does not provide a split
as in the Consolidated Balance Sheet and Consolidated Statement of
Comprehensive Income.
4. The interim report to 30 June 2017 was approved by the
Directors on 29 September 2017. The report will be available to the
public on the Nature Group website via www.naturegroup.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UWVRRBNAKUUR
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