Nature Group PLC Sale of Gibraltar Operations (3004U)
January 17 2017 - 2:00AM
UK Regulatory
TIDMNGR
RNS Number : 3004U
Nature Group PLC
17 January 2017
This announcement contains inside information
NATURE GROUP PLC
("Nature Group" or the "Group")
Sale of Gibraltar Operations
Nature Group PLC, (AIM:NGR), the provider of port reception
facilities and waste treatment solutions for the oil, marine and
process industries, is pleased to announce that it has sold (the
"Sale") its wholly-owned subsidiary in Gibraltar, Nature Port
Reception Facilities Limited ("NPRF"), to Gib Oil Limited
("GibOil") for cash consideration of GBP4 million, of which GBP3
million was paid at closing of the transaction ("Closing") on
16(th) January 2017 and GBP1 million will be retained in escrow for
a period of up to two years ("Escrow Consideration").
The Company announced in December 2015 that it had entered into
a non-binding letter of intent in relation to the proposed sale of
NPRF. NPRF was created as part of a long-term agreement with the
Government of Gibraltar and, prior to the Group's activities in
that region being wound down in early 2016, NPRF operated the
Group's reception, treatment and storage facilities for maritime
waste in Gibraltar.
NPRF reported a loss on ordinary activities before taxation for
the year to 31 December 2015 of GBP1.51 million and anticipates
reporting a loss on ordinary activities before taxation for the
year to 31 December 2016 of approximately GBP0.9 million. This loss
will be fully incorporated in the 2016 Annual Accounts of the Group
(the "2016 Results") and classified as attributable to Discontinued
Operations.
The Group reported an after tax loss for both Continuing and
Discontinued operations of GBP1.4 million for the first six months
of 2016 and, based on the Group's unaudited management accounts,
the Board anticipates this loss to widen substantially for the full
year as a result of various factors, including the continued
downturn in the Oil and Gas market, losses incurred in the Group's
Portuguese joint venture and further write-downs and
re-organisation expenses. The 2016 Results will not include the
small gain on the book value of NPRF as this transaction will be
posted to 2017 accounts.
It is intended that the net proceeds of the Sale will be used to
primarily strengthen the balance sheet of the Group and,
secondarily, to fund several minor investment opportunities in the
Group's current activities.
Subject to there being no breach of any warranty agreed and
included in the sale and purchase agreement, GBP0.2m of the Escrow
Consideration is payable in June 2017 and the balance of GBP0.8m is
payable 24 months after Closing.
Jan Vesseur, Chief Executive Officer of Nature Group PLC,
commented:
"This has been a long-anticipated and crucial step in the
significant restructuring effort that was first initiated by the
new executive team over 16 months ago. Not only does the completion
of the Sale finally bring an end to an unhappy chapter in the
Company's history, it also brings in a substantial amount of new
capital to be deployed with the objective of beginning to restore
and increase shareholder value. We intend to use some of the
proceeds for some relatively small but sensible investments that we
had to postpone due to cash restrictions, potentially including
investments in Rotterdam and Houston and additional units for
deployment in the Oil and Gas division, subject to expected
demand."
Berend van Straten, Chairman of Nature Group PLC, commented:
"We believe the sale of the Gibraltar business to GibOil
represents an excellent result for the Company and its shareholders
and allows the Company to exit a loss making enterprise to progress
other projects and initiatives from a much improved financial
footing. We are thankful for the work done by our colleagues over
the years that Nature Group has operated in the region."
For further information:
Nature Group PLC
Jan Vesseur, CEO Tel: +31 6462 878 96
Maarten Smits, Tel: +31 6138 207 80
CFO
Berend van Straten, Tel: +31 6268 056 05
Chairman
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
Nick Tulloch Tel: +44 (0)131 220 9772
Notes to Editors
About Nature Group
Nature Group combines port reception services and facilities,
offshore treatment services and the latest sustainable waste
treatment technologies in a steadily growing global network. Nature
Group is traded on the AIM market, (ticker: NGR). www.ngrp.com
This information is provided by RNS
The company news service from the London Stock Exchange
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