TIDMNGR
RNS Number : 7030O
Nature Group PLC
22 September 2011
Nature Group PLC
("Nature Group" or the "Group")
Unaudited Interim Results for the 6 months to 30 June 2011
Chairman's Statement
The results for the Group in the first half of this year
demonstrate the strength and quality of revenues and profits in the
enlarged Nature Group following the acquisition of Rotterdam based,
International Slop Disposal BV (ISD), now Nature International Slop
Disposal (NISD), at the end of 2010.
Results
I am pleased to report that the Group revenues for the half year
to 30th June 2011 were GBP8.38 million compared with GBP2.90
million for the same period in 2010 (which excluded ISD). Pretax
profits of the Group were GBP2.03 million (2010: GBP0.82 million)
and earnings after tax rose to GBP1.89 million (2010: GBP0.84
million) after charging GBP75,000 reorganisation and other one-off
expenses incurred as we integrate the two businesses. In arriving
at the results for the half year, we have not taken credit for any
part of the loss incurred in June by Nature Port Reception
Facilities Limited (NPRF) in Gibraltar following the accident of 31
May 2011 which might be expected to be recovered from insurance
under our Loss of Business insurance cover. That said, we have not
provided at 30 June for the costs of repairing the damage to the
storage tanks estimated at some GBP900,000 as we expect to recover
these from insurers, and we have adopted the same approach with
third party liability claims which are covered by Liability
insurance.
Regarding Norway, we have restated the 2010 comparative figures
to reflect the removal of the proportionate share of revenues and
costs of our 40% Joint Venture, by including only our share of
after tax profits (which for 2011 were substantially above budget
but the 2010 adjustment has no effect on Group profits after
tax).
Nature Environmental Solutions Ltd's (NESL) contract in Oman for
the construction of a new port treatment plant reached 60%
completion at end June enabling a further 20% of projected profit
to be included in these Accounts.
Capital expenditure for the half year amounted to some GBP1.1
million, more than covered by profits before depreciation of GBP2.3
million. Major items comprised the initial land and building costs
of the extension in Gibraltar, the cost of our second and updated
compact treatment unit and another barge in Rotterdam. Group cash
balances as at 30 June were a healthy GBP6.7 million, up from
GBP5.7 million at 31 December 2010.
Dividend
Your Directors announced our intended dividend policy at the
time of the ISD acquisition in December 2010. Accordingly, your
Directors are sufficiently confident in the earnings and cash flow
that the Group will generate this year to declare an interim
dividend of 0.5p per share (2010 nil), payable to shareholders on
20 October 2011 with a record date of 30 September 2011 and an ex
dividend date of 28 September 2011. This compares with the final
dividend of 0.7p declared and paid in July 2011 relating to profits
for 2010. Note that neither the 0.5p dividend payable in October
2011, nor the 0.7p dividend declared and paid in July 2011 have
been accounted for as at 30 June 2011, in line with IFRS.
Operations
Rotterdam (NISD)
NISD, our key volume operation based in Rotterdam, the leading
port in Europe, started strongly in the first quarter, but due to a
general slow down in the shipping industry has shown some weakness
in the second quarter. Year on year volumes were down 9% partly due
to winning a large one off contract in 2010. However, net profit
remained solid compared to 2010 and on the same basis gross margin
was slightly improved after being adjusted on a like for like
basis.
Seasonally the second half typically shows a rise in volumes
compared to the first half and we anticipate that this trend will
continue for 2011.
Gibraltar (NPRF)
The accident in Gibraltar was a set back for our operations in
that region; however, the local management team has taken action to
mitigate losses whilst the full treatment plant is out of action.
Our contingency plans have ensured that we continue to provide our
maritime customers with waste collection and disposal services.
This has meant that we have been able to maintain volumes
comparable to those of 2010, although profitability is reduced as
we sub-contract treatment to a third party. The current focus is on
working with our insurers and Government agencies to enable us to
organise repairs to our storage tanks and re-commission the process
plant, which was undamaged.
The unfortunate accident has not prevented us from continuing
our strategy to develop a hub and spoke operation to service other
ports in South West Europe, primarily in the Mediterranean Region,
for the collection and treatment of hydrocarbon contaminated water.
The development of our business strategy to handle shipments of
waste oil that was initiated in 2010 has continued into 2011 with
transhipments from our Rotterdam operation into Gibraltar for
reprocessing in the first half. There are further developments on
service and operational expansion that we hope to report in due
course.
Norway and Offshore
Nature Oil and Gas (NOG) is the new division incorporating our
Norwegian assets reflecting the importance we place on the growth
of these activities. Our commitment to the development of offshore
treatment units has enabled us to achieve technical leadership with
our CTUs (Compact Treatment Units). The Norwegian team won a
significant North Sea contract recently to supply a major
International oil contractor with a unit, now successfully and
profitably completed, with two more likely before the end of the
year. Management attention has also been focused on a new sales and
business plan to target the global oil and gas offshore markets
based on solutions using our CTU know-how. As a result we were able
to announce recently the award of an important contract to provide
one of the leading oil companies with a CTU to operate on their
FPSO (Floating Production, Storage and Offloading vessel) working
offshore in Brazilian waters.
Our 40% share of SART, the Stavanger oil services port treatment
facility, had an excellent first half far exceeding budget as a
result of improved volume sales. This performance resulted in NOG
receiving an order for further treatment modules to be delivered
before the year end, in order to expand capacity at SART.
Engineering Services (NESL)
The Oman contract is on track to see the installation phase
completed by the end of 2011 with the initial stages of
commissioning starting. Currently we have shipped all components
for the treatment plant to Duqm ready for the next phase. Recently
we have been invited to bid for the contract to operate the plant
after we have completed the handover which we anticipate will be in
March 2012.
New and Strategic Developments
At the beginning of 2011 we appointed a Business Development
Manager with a brief to identify new opportunities for growth on a
global but targeted basis. His initial reports indicate that the
resources of the enlarged Group have the potential to open up new
markets to expand on current activities. As a result we see the
Group's organisational structure being developed with two 'legs',
the first being to continue the expansion of port reception
facilities to service the waste disposal requirements of the
Maritime Industry under MARPOL legislation. The second leg is to
focus on the offshore oil and gas sector to exploit our know how in
the development and operation of compact treatment units.
A good example of the potential of the oil and gas division is
the recently announced contract in Brazil operating on an offshore
"FPSO" for an oil major. We are able to offer our customers a
combination of financial and logistical benefits and at the same
time enhance our clients' environmental credentials. This contract
is not just important in its own right but also enables the Group
to establish a presence in Brazil as one of the key emerging
markets. It is fair to say that our management involved in business
development have very full diaries.
Directorate
I see 2011 as a year of transformation for Nature Group as we
integrate the two core businesses into a growth organisation. One
of the most obvious and visual changes is that the new executive
team is more youthful with an average age of around 40. This is not
to say that the older generation will not be around to provide the
guiding hand of experience. As part of this I am pleased to
announce a number of changes that are taking place.
Firstly, I welcome the appointment of Kieron Becerra FCCA as our
new Group Financial Director. Kieron, who joined us last year, has
been the Financial Director of NPRF in Gibraltar and will now be
joining the senior executive team. He will be taking over from
Peter Snell FCA who will remain on the board as a non-executive
Director. I, on behalf of my colleagues, would like to thank Peter
for the huge contribution he has made to Nature over the years and
I know that we are all pleased that he will be around to help and
support Kieron going forward.
Stig Keller, who has been the driving force behind the
development of our CTU and biological treatment technologies, has
decided to step back from the Group Board. However we are very
pleased that he will continue on the Norwegian subsidiary board to
focus on the technical developments to support our growth ambitions
in the oil and gas sector.
Currently, we are seeking to recruit an Executive Director based
in Rotterdam to support our CEO with responsibility for all
compliance matters relating to operational legislation, health and
safety and management systems under the ISO regime.
Regrettably, due to some recent health problems, I have decided
to announce my retirement as Chairman of the Group. I had
originally intended this to happen at the next AGM having reached
the age of 70. However, I am pleased that my colleagues have
persuaded me to continue for a further period as Company Secretary
and corporate counsel as a resource of past experience and to
provide continuity for a seamless change.
Therefore, I am pleased to announce that Bernard Muller will
take over as Chairman of the Group having successfully managed the
role of Deputy Chairman since the ISD acquisition last December.
The role is not new to Bernard as he is currently the Chairman of
the Burando Group in Rotterdam, the previous owner of ISD. I am
very confident that, with Bernard the Group will be in good hands
and that he will successfully lead Nature Group as we go forward
into a period of opportunity and growth.
I am also pleased to announce that Nigel Sandy, who joined us in
2007 as a non executive Director with a wealth of PLC and waste
industry experience, has agreed to become Deputy Chairman, and
support Bernard in his role as Chairman. Thank you both.
Outlook for the Year
With both the European and Global economic situation going
through a period of uncertainty, and the expectation that our
Gibraltar treatment plant is unlikely to be back in full operation
before the end of 2011, the Board feels it would not be prudent to
predict the final outcome for 2011. In contrast, the Board feel
that with 2011 behind us and the task of business integration
completed, we will be going into 2012 with confidence based on all
the opportunities we have in hand, and the contacts made during
this year.
Despite all the gloom that we all read and hear about, it is
encouraging to see that the International commitment to higher
standards for a cleaner environment continues to hold strong. This
gives us optimism that the sectors in which we operate will
continue to grow, and support our corporate commitment to cleaner
seas and oceans.
Conclusion
I would like to conclude my last Chairman's Statement with my
personal thanks to all directors, staff, employees, investors,
clients, contractors, suppliers and anyone who has contributed to
the success of Nature in the last 10 years and I wish all a
continued success in our exciting endeavours.
Richard Eldridge
Chairman
21 September 2011
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the half year to 30 June
2011
Unaudited Unaudited Audited
Six months to Six months to Year to
30 June 2011 30 June 2010 31 December 2010
REVENUE GBP GBP GBP
Continuing operations 8,383,443 2,903,757 6,830,223
COST OF SALES
Continuing operations (4,631,483) (1,159,891) (3,650,881)
------------- ------------- ----------------
OPERATING PROFIT 3,751,960 1,743,866 3,179,342
Other income 14,353 933 16,439
Share based payments (26,840) 0 (151,303)
Administrative costs (1,384,992) (657,986) (938,028)
Depreciation and goodwill
amortisation (446,183) (326,430) (556,369)
Finance costs (37,760) (15,536) (17,284)
Costs to acquire group
companies 0 0 (106,937)
Share of profits of
associates after tax 162,667 79,530 78,482
------------- ------------- ----------------
Profit before taxation 2,033,205 824,377 1,504,342
Taxation on profit of
ordinary activities (139,258) 14,824 24,037
------------- ------------- ----------------
Profit after tax 1,893,947 839,201 1,528,379
------------- ------------- ----------------
Earnings per share (EPS)
(pence)
Basic earnings per share 2.433p 2.130p 3.711 p
Diluted earnings per share 2.365p 2.016p 3.546p
------------------------------ ------------- ------------- ----------------
Profit after tax, before
share based payments 1,920,787 839,201 1,786,619
EPS excluding Share based 2.467p 2.130p 4.338p
payments
------------------------------ ------------- ------------- ----------------
CONSOLIDATED BALANCE SHEET
At 30 June 2011
Unaudited Unaudited Audited
As at As at As at
30 June 2011 30 June 2010 31 December 2010
GBP GBP GBP
Assets
Non-current assets
Plant, vessels and equipment 7,724,000 4,072,838 7,060,992
Goodwill 13,224,120 308,067 13,224,120
Other intangible assets 111,427 143,252 29,289
Investment in associated
company 448,877 278,537 269,469
Deferred tax assets 149,156 23,918 89,827
------------ ------------ ----------------
Total non-current assets 21,657,580 4,826,612 20,773,697
Current assets
Stocks and work in progress 98,649 114,894 98,059
Trade and other receivables 3,734,938 1,584,095 4,096,871
Cash and cash equivalents 6,714,195 1,876,094 5,741,644
------------ ------------ ----------------
Total current assets 10,547,782 3,575,083 9,936,574
TOTAL ASSETS 32,205,362 8,401,695 30,710,271
LIABILITIES:
Current liabilities
Trade and other payables (1,738,172) (909,768) (2,716,534)
Bank loans and overdrafts (166,348) 0 (191,582)
Corporate taxes (205,716) 0 (8,743)
------------ ------------ ----------------
Total current liabilities (2,110,236) (909,768) (2,916,859)
Non-current liabilities
Term loans (1,523,586) (331,333) (1,555,110)
------------ ------------ ----------------
Net assets 28,571,540 7,160,594 26,238,302
------------ ------------ ----------------
EQUITY
Called up share capital 157,311 78,621 155,120
Share premium account 21,904,867 3,286,899 21,683,488
Share option reserve 114,021 0 151,303
Capital reserve 2,925,520 2,925,520 2,925,520
Foreign currency translation
reserve 188,881 0 0
Profit and loss account 3,280,940 869,554 1,322,871
------------ ------------ ----------------
Total equity attributable to
equity shareholders 28,571,540 7,160,594 26,238,302
------------ ------------ ----------------
CONSOLIDATED CASH FLOW STATEMENT
For the half year to 30 June Unaudited Unaudited Audited
2011 Reconciliation of half year half year year to
operating profit to net cash to to 31 December
flow from operating 30 June 2011 30 June 2010 2010
activities: GBP GBP GBP
Profit for the year after
taxation 1,893,947 839,201 1,528,379
Adjustments for:
Depreciation and amortisation 446,183 326,430 556,369
(Increase)/decrease in stock (590) (22,023) 6,825
Decrease/(increase) in debtors 302,605 (659,159) (1,304,481)
(Decrease)/increase in
creditors (838,147) 60,864 648,605
Foreign exchange differences 188,881 0 0
Increase in reserves due to
share based payments 26,840 0 151,303
------------- ------------- ------------
Net cash from operating
activities 2,019,719 545,313 1,587,000
Investing activities:
(Increase)/decrease in
investments (179,408) (3,212) 5,850
Acquisition of tangible fixed
assets (1,099,377) (306,830) (607,661)
Acquisition of intangible fixed
assets 8,047 0 0
Acquisition of subsidiaries net
of cash acquired 0 0 (7,026,347)
Financing activities:
Cash consideration from issuance
of shares net of issuance
costs 223,570 54,000 10,431,839
Dividends paid 0 0 (235,861)
------------- ------------- ------------
Increase in cash balances 972,551 289,271 4,154,821
Analysis of cash and cash
equivalents during the year:
------------- ------------- ------------
Balance at start of period 5,741,644 1,586,823 1,586,823
Increase in cash and cash
equivalents 972,551 289,271 4,154,821
------------- ------------- ------------
Balance at end of period 6,714,195 1,876,094 5,741,644
------------- ------------- ------------
Notes to the accounts
1. The calculation of basic earnings per share has been based on
the profit for the period and the weighted average 77,845,221
Ordinary Shares 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
2010.
3. The unaudited results for the half year to 30 June 2010 have
been restated as previously the Group's share of the income and
expenses of the Group's associate company, SAR Treatment AS, were
accounted for in the consolidated statement of comprehensive income
by proportianate consolidation. The results are now recognised
under the separate line item "Share of profits of associates after
tax" in line with IAS 28.
4. The interim report to 30 June 2011 was approved by the
Directors on 21 September 2011. The report will be posted to
shareholders and will be available to the public, free of charge,
from the offices of Northland Capital Partners Ltd, 60 Gresham
Street, London EC2V 7BB.
Nature Group Plc
-------------------------- ----------------- --------------------
Bernard Muller Chairman Tel 0031 653 30 5775
-------------------------- ----------------- --------------------
Andreas Drenthen CEO Tel 0031 181 291144
-------------------------- ----------------- --------------------
Keron Becerra FD Tel 00 350 200 44468
-------------------------- ----------------- --------------------
Northland Capital Partners Nominated Adviser
-------------------------- ----------------- --------------------
Shane Gallwey Tel 0044 2077 968823
-------------------------- ----------------- --------------------
Rod Venables Tel 0044 2077 968827
-------------------------- ----------------- --------------------
WH Ireland Broker
-------------------------- ----------------- --------------------
Sebastian Wykeham Tel 0044 2072 200473
-------------------------- ----------------- --------------------
Ruari McGirr Tel 0044 2072 201666
-------------------------- ----------------- --------------------
Hermes Financial PR
-------------------------- ----------------- --------------------
Chris Steele Tel 0044 7979 604687
-------------------------- ----------------- --------------------
Trevor Phillips Tel 0044 7889 153628
-------------------------- ----------------- --------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LFFLFAIILFIL
Nature Grp (LSE:NGR)
過去 株価チャート
から 6 2024 まで 7 2024
Nature Grp (LSE:NGR)
過去 株価チャート
から 7 2023 まで 7 2024
