Nature Group PLC Sale of Gibraltar Operations (3004U)

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: [phone] 
 Maarten Smits,        Tel: [phone] 
  CFO 
 Berend van Straten,   Tel: [phone] 
  Chairman 
 
 Cenkos Securities 
  plc 
 Neil McDonald         Tel: [phone] / +44 
                        (0)207 397 1953 
 Beth McKiernan        Tel: [phone] / +44 
                        (0)207 397 1950 
 Nick Tulloch          Tel: [phone] 
 

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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January 17, 2017 02:00 ET (07:00 GMT)