Nature Group Regulatory News (NGR)

28 Sep 2005 07:01

Nature Technology Solutions Limited28 September 2005 NATURE TECHNOLOGY SOLUTIONS LIMITED Interim Results for the 6 months ended 30 June 2005Chairmans statement I am pleased to report further progress in revenues compared with the first sixmonths last year, and in the continuing development of our technology aimed atbringing financial returns to shareholders. Group attributable turnoverincreased from £407,632 for first half 2004 to £541,807 for the the six monthsto 30 June 2005 and the loss, after all depreciation and amortisation costs, wasreduced from £67,375 to £33,248. With new shareholders investing in our company each year, a summary of theNature Technology Solutions Ltd ("NTS") activities may be of interest,particularly in highlighting our environmental and ethical investment status.NTS is an environmental solutions provider in three distinct but inter-relatedareas for the treatment of oily waste water. Our technology incorporates apatented environmentally friendly additive ('CF 200') for hydrocarbon removal toa very low level of pollution together with proprietary skills in engineeringsolutions and in biotreatment under constant flow. In addition to Norway,certain European and other areas previously granted, a United States patent wasgranted on our precipitating agent in July this year, No. US 6,916,431 B2. The first and most capital intensive of these areas is the onshore treatmentplants presently located in Gibraltar and Tananger, Norway both of which weredesigned and built utilising NTS competence and proprietary technology. Theseare owned 50% and 40% respectively in joint venture with established local wasteoperators and enjoy semi monopolistic trading positions. The treatmentfacilities in both locations have continued to be upgraded in order to handlelarger volumes, and in Gibraltar to clean and upgrade recovered oil to achievesubstantially higher resale prices. These improvements, internally funded,should result in higher financial returns in the second half of this year and in2006 onwards. We are looking forward to the day when these investments willresult in substantial cash flow back to NTS. The second area of business activity is to respond to enquiries for ourtreatment capabilities and for the potential installation of plants in overseaslocations. We designed and installed a purpose built industrial plant for amajor client in Denmark last year, with commissioning to conclude in 2005. Thisis a business segment with typically long lead times, and thus fluctuatingfinancial contributions to the group, but potentially providing useful profitswhen firm orders are eventually received. Enquiries are presently beingprocessed from the Caspian region as well as the Middle East, where ourpotential further programme with a major dry docks facility is subject to 2006client budget and environmental assessment approval. Thirdly, we have an exciting growth area at the cutting edge of technology inthe treatment of oily waste for the offshore oil industry, utilising ourpatented CF 200 and engineering design skills. NTS has been active with majoroil research programmes for many years and the opportunities to benefit are nowemerging as environmental pressures increase on reduction in hydrocarbondischarge. For drilling rig and platform operators in the North Sea the disposal of liquid oily wastes collected in 'slop tanks'requires transport ashore and then onshore treatment, a very costly disposalexercise. To exploit the commercial opportunity this provides we have, asannounced in June, agreed a new subsidiary in joint venture with SAR Group whichis one of the largest waste collection operators in Norway, and who are alreadyour highly successful partners in the Tananger plant. This venture is nowprogressing the design and build of a 'stand alone' containerised constant flowtreatment unit, which will enable the treatment of waste offshore to strictenvironmental standards and its discharge to sea direct from rig or platform. Ifsuccessful in the North Sea there should be global demand for these treatmentunits which we are currently intending to lease or rent to rig operators, thuscreating a source of recurring income. Meanwhile in order to fund our 60% share of developing the NTS offshoretreatment unit - which is anticipated to be trialled offshore in first quarter2006 with immediate prospects for demand - we made a placing of NTS shares inJuly to raise a gross sum of £480,000, less very effective direct costs of only£20,000. We welcome all new shareholders who participated in this fund raising. In addition to oil industry generated waste, there has been a continuing andhuge opportunity for NTS in the oil industry relating to 'produced water',generated in large scale quantities worldwide as part of oilfield reservoirextraction. In an increasingly environmentally conscious era this enormousgeneration of displaced water requires the application of solutions notpreviously available in treatment to levels now required. We have researched andtrialled with a leading oil company project Group over 5 years, and will nowfurther explore the application of NTS solutions, possibly in co-operation witha major oil industry drilling fluids and service group. As explained above, the long lead time between enquiry and installation of'third party' plants makes it difficult to forecast the level of growth inturnover year on year, but we are confident that our share of joint venturerevenues will continue to increase in the second half of 2005 and into 2006.With the launch of our new offshore treatment unit next year we are hopeful thatNTS will achieve a further breakthrough into significant revenue generation insecond half 2006 and beyond. Richard EldridgeChairman, 28 September 2005 Consolidated Profit and Loss Account For the half year ended 30 June 2005 Unaudited Unaudited Audited Six months Six months Year to to to 30 June 30 June 31 December 2005 2004 2004 £ £ £Turnover 158,609 159,305 583,473Continuing operationsJoint ventures 383,198 248,327 529,822 ----------- --------- ---------- 541,807 407,632 1,113,295Operating costs (107,503) (81,073) (282,701)Continuing operationsJoint ventures (152,982) (138,445) (223,963) ----------- --------- ----------Operating profit 281,322 188,114 606,631Interest receivable 600 109 1,013Administration costs (251,474) (232,130) (511,019)Bank interest and charges (986) (2,087) (5,860)Depreciation and goodwillimpairment cost (5,442) (7,589) (21,736)Depreciation and goodwill injoint venture companies (57,268) (13,792) (100,769) ----------- --------- ----------Loss on ordinary activitiesbefore taxation (33,248) (67,375) (31,740)Taxation on loss on ordinaryactivities - (12,400) ----------- --------- ----------Deficit for the financialperiod (33,248) (67,375) (44,140) ----------- --------- ----------Basic loss per share (0.00011p) (0.00022p) (0.00014) Balance sheet at 30 June 2005 Unaudited Unaudited Audited Six months to Six months to Year to 30 June 2005 30 June 2004 31 December 2004 £ £ £Fixed assets 46,447 36,729 42,297Intangible assetsTangible assets 49,010 55,884 51,194Investments 1,553,279 1,512,832 1,515,601 ----------- --------- ---------- 1,648,736 1,605,445 1,609,092Current assets - 14,185 -StockDebtors 165,422 165,812 245,386Balance at bank 16,169 65,918 100,498 ----------- --------- ---------- 181,591 245,915 345,884Creditors: amountsfalling due within oneyear (60,832) (71,852) (152,233) --------------- --------------- --------------- ----------- --------- ----------Net current assets 120,759 174,063 193,651Net assets 1,769,495 1,779,508 1,802,743 ----------- --------- ----------Capital and reserves 29,959 29,959 29,959Called up share capitalShare premium 1,032,554 1,032,554 1,032,554Capital reserve 2,864,130 2,864,130 2,864,130Profit and loss account (2,157,148) (2,147,135) (2,123,900) ----------- --------- ----------Shareholders funds 1,769,495 1,779,508 1,802,743 ----------- --------- ---------- Cash flow statement For the half year to 30 June 2005 Unaudited Unaudited Audited Six months Six months Year to to to 30 June 30 June 31 December 2005 2004 2004 £ £ £Net cash flow from operatingactivities: (32,862) (65,397) (26,893)Operating lossDepreciation 5,442 7,589 21,736(Increase)/Decrease indebtors 79,964 33,552 (46,022)(Increase)/Decrease in stock - - 14,185(Decrease)/Increase increditors (91,401) (37,021) 30,960 ---------- -------- ---------- (38,857) (61,277) (6,034)Return on investments andservicing of finance: 600 109 1,013Interest receivedInterest paid (986) (2,087) (5,860)Capital expenditure: (4,150) - (8,725)Acquisition of intangible fixedassetsAcquisition of tangible fixedassets (3,258) - (6,300)Increase in investments (37,678) (23,674) (26,443) ---------- -------- ----------Decrease in cash balances (84,329) (86,929) (52,349) ---------- -------- ----------Movement in cash balances: 100,498 152,847 152,847Balance at bank 1 January 2005 ---------- -------- ----------Net cash outflow (84,329) (86,929) (52,349) ---------- -------- ----------Balance at 30 June 2005 16,169 65,918 100,498 ---------- -------- ---------- Notes to the accounts 1. The calculation of loss per share has been based on the loss for the periodand the 299,593,384 Ordinary Shares in issue throughout the period. 2. These unaudited results have been prepared on the basis of the accountingpolicies adopted in the accounts to 31 December 2004. 3. The interim report to 30 June 2005 was approved by the directors on 27September 2005. The report will be posted to shareholders and will be availableto the public, free of charge, from the offices of Seymour Pierce Limited,Bucklersbury House, 3 Queen Victoria Street, London EC4N 8EL and from theCompany's Head Office in Jersey. This information is provided by RNS The company news service from the London Stock Exchange