Final Results

    RNS Number : 6890V
  Nature Technology Solutions Limited
  02 June 2008
   

      Nature Technology Solutions Limited  

       Preliminary Unaudited Results for the Year ended 31st December 2007

    Contract awarded for deployment of treatment unit in the North Sea


    Financial Highlights 2007

    *     Maiden Group Profit, pre-tax of £391,984 , post-tax of £312,111

    *     Turnover up 89% to £2.25m

    *     Operating profit up 110% to £1.12m

    *     Earnings before interest, tax, depreciation and amortisation ('EBITDA') of £0.56m


    Chairman's Statement

    Results

    I am delighted to report our first year of Group profits, which is a tribute to the application of our technology, enthusiasm of the
team, and indeed a reward for the patience of our shareholders over the last seven years. 

    Pretax profits for the Group in 2007 amounted to £391,984 (2006 - loss £104,368) from attributable revenues of £2,254,234 (2006 -
£1,191,241) which is an excellent outcome for the year, and demonstrated the earnings capacity of our technologies in both Norway and
Gibraltar. This translated into post tax profits of £312,111 compared to a £73,298 loss in 2006. Revenues for 2007 included two contracts,
one in the north of Norway and the other in Gibraltar, which could be described as 'non-recurring', and which contributed significantly to
the year's profits. However, we believe that the Group is now sufficiently well established and broadly based to win such major contracts on
a regular basis.

    Of the operating profit of £1.12m, Norway contributed £0.7m of which our 40% owned quayside joint venture in Tananger provided £0.18m in
earnings to our Group , partly due to favorable prices and volumes in 2007, which may take some effort to repeat in 2008.

    The balance of operating profit, £0.42m, was generated from our share of earnings achieved by our 50% owned Gibraltar company, Slop Oil
Reception and Treatment Ltd ('SORT'), which is the port oil waste reception facility in that location, and indeed was the original
foundation for the Group. The substantial improvement in both turnover and profits were also enabled by completing the re-siting and
enlargement of facilities in the Port of Gibraltar which now offer over 6,000 cubic metres of storage for reception and treatment of oily
wastewaters. Its reputation as a reception facility at the entrance to the Miditerranean was further enhanced by the award of the new EU
IPPC waste licence and ISO 9001 accreditation. The substantial profit earned by SORT and near completion of its major capital expenditure
enabled the company to pay its first dividend to the Group, a policy which is expected to continue.

    Other significant developments in 2007

    Purchase of 100% of Northern Treatment AS
    Shareholders will be aware that over the last 3 years, we have invested in the development of a new Offshore Treatment Unit ('OTU')
which was designed to treat rig and platform generated wastes offshore in the North Sea (and, if successful, worldwide). The technology was
designed to treat the waste, and then discharge clean water to sea under the new and demanding standards in place, thus saving very
substantial transport and disposal costs ashore and contributing to the 'greener' environment. This project was financed through our 60%
owned Norwegian company, Northern Treatment AS, but in September last year we bought out our 40% partner's interest to give us full control
over final development, marketing. and ongoing OTU operations in Norway.  

    Near sale of our Gibraltar investment
    In October last year we received an unsolicited approach from a well established Greek 'slops' operator for our 50% interest in SORT,
the Gibraltar joint venture. After exhaustive negotiation we agreed a price of $6m (about £3m) and, having signed a Memorandum of
Understanding, commenced the sale process.. The offer capitalised the value of our Gibraltar investment at an effective amount of 0.6p per
ordinary share and potentially enabled a substantial return of cash to shareholders and retention of our core Norwegian interests. In the
event, we withdrew from this transaction in March and, having established a fundamental value on SORThave identified opportunities to expand
our Ports operations in the region and elsewhere.

    Current trading and prospects

    Norway
    After more than a year of discussions and negotiations we are delighted to report the contracted deployment of our OTU on a major North
Sea drilling rig, operating offshore Norway.. The unit is currently being installed and will be tested to ensure that our rigorous targets
for treatment of offshore wastes, and their discharge to sea as clean water, are met in the field. The contract is on a 'day rate' basis for
equipment, chemicals and operating staff for an initial period of 3 months . A successful outcome to these tests will enable possible
extension of this contract and acceleration of marketing to other rigs and platforms in the North Sea and elsewhere.

    Whilst it will be challenging to maintain the 2007 profitability of our joint venture quayside plant in Tananger, its considerably
enhanced capacity should enable increased throughput if waste volumes are available. The company, SAR Treatment AS ('SART'), paid its maiden
dividend to the Group this year from 2007 profits and we believe it should be a good source of future cash flow. 

    Internationally, we have been negotiating a contract for the design, build and delivery of a treatment unit to a man-made drilling
island in Kazakhstan which, if awarded, would generate revenues for 2008 and onwards .

    Gibraltar
    Since 2007 we have further increased our reception tankage from 6,000 to approximately 7,000 tonnes and now have the facilities and
approvals to accept 'low flash' wastewaters resulting from crude oil tanker washings. This has already resulted in an increase of
approximately 60% in volumes for the first 5 months of 2008. Whilst certain of 2007's one-off revenues will not recur this year,  SORT's
budget is for gross revenues to equal or exceed those achieved last year. An additional location from which waste would be generated for
SORT's reception and treatment operations is under active discussion, although will not impact profitability in the current year.

    UK and Middle East
    We are hopeful of establishing a joint venture facility in Aberdeen similar to our quayside plant in Norway, in order to service the UK
North Sea oil industry. Also in Aberdeen we have been discussing the acquisition of a soil remediation solutions provider which, if
completed, would extend our technology base into the UK and provide another environmental leg to the Group.

    A recently signed joint venture with a major US Group could also introduce us to potential business in the treatment of maritime
wastewaters in the Gulf region of the Middle East.

    Staff

    As will be evident from the growing pace of activities within all areas of the Group over the last year, staff have been continually
challenged by the demands of finding treatment solutions, the design and production of complex equipment and its commissioning, and the
hours involved in interfacing with clients. All have risen to the occasion and I would like to thank them for their commitment on behalf of
shareholders, and hope that they are enjoying the environment they have helped to create. The current, and the next, phases of growth
require additional key staff in many areas of the business and I trust that we can attract the additional talent necessary to take the next
quantum leap forward.  




    Richard Eldridge Chairman  2nd June 2008



 NATURE TECHNOLOGY SOLUTIONS LIMITED

 CONSOLIDATED INCOME STATEMENT

 FOR THE YEAR TO 31ST DECEMBER 2007

                                                                 Unaudited         Audited
                                                                  Year to          Year to
                                                                 31/12/2007      31/12/2006
                                                                     £                £

 REVENUE                Revenues from operations                   1,030,888         264,036
                        Joint ventures                             1,223,346         927,205
                                                                                            
                                                                   2,254,234       1,191,241

 COST OF SALES          Direct cost of operations                  (517,375)       (225,854)
                        Joint ventures                             (616,019)       (431,820)
                                                                                            
 OPERATING PROFIT                                                  1,120,840         533,567

 Other income                                                         18,962           7,535
 Administrative expenses                                           (559,307)       (473,738)
 Finance costs                                                      (24,496)        (20,622)
 Depreciation and goodwill impairment cost                         (164,015)       (151,110)
                                                                                            
 Profit / (Loss) on ordinary activities before taxation              391,984       (104,368)

 Minority interest                                                   -                21,354
 Taxation on profit /(loss) on ordinary activities                  (79,873)           9,716
                                                                                            
 Profit / (Loss) for the financial period                            312,111        (73,298)

 Basic profit / (loss)per share                                      0.00064       (0.00017)



 NATURE TECHNOLOGY SOLUTIONS LIMITED

 CONSOLIDATED BALANCE SHEET AT 31ST DECEMBER 2007
                                                                 Unaudited         Audited
                                                                   As at            As at
                                                                  31/12/07        31/12/06
                                                                     £                £
 ASSETS:

 NON CURRENT ASSETS
 Tangible assets                                                     678,762         434,450
 Intangible assets                                                   152,172         148,429
 Investments                                                       1,954,553       1,715,856
 Deferred tax assets                                                  85,047         110,888
                                                                                  
 Total non current assets                                          2,870,534       2,409,623

 CURRENT ASSETS
 Debtors                                                             305,780         205,391
 Balance at bank                                                     268,375         211,902
                                                                                            
 Total current assets                                                574,155         417,293
                                                                                  
 TOTAL ASSETS                                                      3,444,689       2,826,916

 LIABILITIES:

 CURRENT LIABILITIES                                               (323,304)       (325,896)

 NON CURRENT LIABILITIES                                           (227,085)       (206,551)

                                                                                  
 NET ASSETS                                                        2,894,300       2,294,469

 EQUITY
 Called up share capital                                              49,239          43,959
 Share premium account                                             1,978,636       1,696,196
 Capital Reserve                                                   2,864,130       2,864,130
 Profit and loss account                                         (1,997,705)     (2,309,816)

                                                                                  
 TOTAL EQUITY                                                      2,894,300       2,294,469



 NATURE TECHNOLOGY SOLUTIONS LIMITED

 CONSOLIDATED CASH FLOW STATEMENT

 FOR THE YEAR TO 31ST DECEMBER 2007
                                                                 Unaudited         Audited
                                                                  Year to          year to
                                                                  31/12/07        31/12/06
                                                                     £                £

 Reconciliation of operating profit to net cash flow from operating activities:

 Profit for the year/(loss) before tax                               391,984        (73,298)
 Adjustments for:
 Depreciation                                                         24,567          13,027
 (Increase)/Decrease in debtors                                    (100,389)        (58,082)
 Decrease/(increase) in deferred tax                                  25,841         (6,509)
 (Decrease)/increase in creditors                                   (61,931)         173,989
                                                                                  
 Net cash from operating activities                                  280,072          49,127


 Financing activities:
 Issuing of ordinary share capital                                   287,720         215,481

 Investing activities:
 Acquisition of intangible fixed assets                            (268,879)        (54,032)
 Acquisition of tangible fixed assets                                (3,743)       (415,181)
 Increase in investments                                           (238,697)       (147,575)
                                                                                  
 Increase/(Decrease) in cash and cash equivalents                     56,473       (352,180)

 Analysis of cash and cash equivalents during the year

 Balance at start of period                                          211,902         564,082

 Increase/(decrease) in cash and cash equivalents                     56,473       (352,180)
                                                                                  
 Balance at end of period                                            268,375         211,902




 Notes to the accounts

 1. The calculation of profit per share has been based on the profit for the
 period and the average 487,993,384 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 2006.



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