15 Jul 2010 07:00
15 July 2010
Nature Group Plc
("Nature" or the "Group")
AGM Statement
At the annual general meeting of the Group to be held this afternoon, the Chairman, Richard Eldridge, will make the following statement:
"I am pleased to report on further successful overall progress of the Group in the first half of 2010.
In Norway, following the continued successful operation of our first Offshore Treatment Unit, we have been focusing on the upgraded design of a second generation Unit, in parallel to continuing discussions with a leading offshore oilfield and drilling fluids group as to deployment of more Units. Onshore, we are currently commissioning the treatment Unit delivered to Kazakhstan in early 2009 where the client had deferred such commissioning until this year. These commitments have focused efforts on future prospects rather than 2010 revenues, and together with the reduced rental income from our Unit deployed at our joint venture plant in Stavanger, have held back revenues in Norway so far this year. However, these events have not deflected from significant growth achieved by the Group in the first six months.
In Gibraltar our operations achieved revenues 45% higher than first half 2009, reflecting inflow of waste oil tonnage in larger shiploads from Malta and Ceuta, in addition to Las Palmas. Following recent discussions the Government of Gibraltar have responded to our requirements for increased tankage and site footprint, and given indicative approval for a site expansion on the North Mole This will enable our tankage to be expanded during 2011 from 7000 cubic metres to 12,000 cubic metres as part of an integrated covered development which will, in addition to our reception and treatment operations, provide quayside tankage for other products. This proposed arrangement would also provide for a potential extension of our site lease arrangements for a further period beyond the existing 17 years and provide the same extended tenure on the new site area.
In addition, our transshipment arrangements with Waste Oils Company Limited in Malta have been agreed to be contractually extended for a further 2 year term from January 2011.
In Oman the principal contractor has accelerated the site timescale for the new substantial port facility at Duqm, with all our plant modules now confidently expected to be on site in 2010. The significant design and procurement workload associated with this project has been excellently handled by our enlarged and contracted in engineering team, and I thank them for their efforts.
As a reflection of the above, Group turnover in the six months ended 30th June 2010 will be approximately £3.9 million compared with £2.7 million in the same period last year. Whilst overall gross margins will be lowered to a limited extent by the inclusion of the Omani project, this increase in revenues should result in a successful first half for the Group.
As to the outlook for the remainder of 2010, we expect a similarly successful trading performance to the first half, with the potential of further growth linked to the offshore rig market and a number of further potential regional port expansions.
I look forward to reporting further in September with the first half results and to providing an update on the continued progress of the Group."
For further information please contact
| Nature Group plc | Richard Eldridge Peter Snell | 01841 533 611 07000 892481 |
| Astaire Securities | Antony Legge (Nomad) Seb Wykeham (Broker) | 020 7492 4750 |
| Hermes Financial PR | Chris Steele Trevor Philips | 07979 604 687 07889 153 628 |
www.naturegroup.org