TIDMNEOS

RNS Number : 7826A

Neos Resources PLC

25 March 2013

NEOS Resources plc ("NEOS" or "the Company")

Update

Further to its announcement on 13 March 2013, NEOS Resources plc announces that Steven Rudofsky, Executive Chairman, and Graham Woolfman, Non-Executive Director, will resign from the Board on 29 March 2013. Effective from that date, Michael Moquette will assume the role of Non-Executive Chairman, Nicholas Myerson will become Chief Executive Officer and Ravi Jose will become Chief Operating Officer. The remaining Directors will continue to receive remuneration for a period equivalent to their contractual notice periods, which are three, six and three months respectively, following which they have waived rights to any further remuneration for a period of six months. At the end of this period, their employment will terminate in the absence of agreement to the contrary, although it is intended they will remain as statutory directors of the Company. Peter Harvey, Interim Chief Financial Officer, will also leave the Company with effect from 19 April 2013 and a further announcement about his replacement will be made in due course.

The Board had previously announced that it was to seek an orderly realisation of NEOS's assets and settlement of its liabilities. Following the indefinite adjournment of the General Meeting called to vote on the cancellation of the admission of the Company's shares to trading on AIM, the remaining Directors will continue to settle the Group's liabilities and take the necessary actions to minimise the Group's cost base, whilst seeking to identify opportunities which may maintain and improve value for shareholders.

As part of the orderly wind down of its Indian business, the Group has now substantially honoured its contract to sell 200 tonnes of crude jatropha oil to a major Indian customer which will realize sales of GBP175,000 in the second half of 2012/13 and which is expected to generate a contribution margin (sales less directly variable costs) in excess of 15%. The Group intends to pursue further sales opportunities in India but only those that are anticipated to yield an attractive contribution margin which is sufficient to cover that company's reducing fixed operating cost and overhead cost base.

The Group's financial position remains consistent with that previously announced. At 28 February 2013, the Group had cash amounting to GBP1.1m, other current assets realisable into cash of GBP255,000 and known liabilities, including potential claims, amounting to approximately GBP1.0m. The parent Company currently has cash amounting to approximately GBP630,000. Its known liabilities, including provisions for claims and contractual payments to the directors, amount to approximately GBP380,000. The Company's corporate overhead costs will immediately reduce to GBP40,000 per month and are expected to reduce incrementally over the next six months as the remaining directors cease to be paid and further cost reduction actions are taken to ensure the Company and Group maintains sufficient cash resources to enable it to operate and develop.

 
 NEOS Resources plc             +44 (0) 20 7499 5626 
 Steven Rudofsky - Executive 
  Chairman 
 
 finnCap Ltd                    +44 (0) 20 7220 0500 
 Stuart Andrews 
  Christopher Raggett

This information is provided by RNS

The company news service from the London Stock Exchange

END

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