23 Sep 2008 07:00
Nature Technology Solutions Ltd
(the "Company")
Interim 2008 Results
Results
I am pleased to report that the improvement in performance by the Group in 2007 has been maintained, with the achievement of a Group net profit for the six months ended 30th June 2008 of £193,883, compared with £33,339 for the same period in 2007. Attributable turnover in the six months increased to £1,420,872 compared to £967,056 last year. The profit shown includes a one-off currency translation gain of £32,190, which under international accounting standards is correctly included in the Profit and Loss account. Excluding this gain, Group profits for the period still showed an excellent increase over the same period last year.
Whilst revenues from deliveries of equipment, services and technology increased modestly over the same period of 2007, our share of joint-venture revenues from Gibraltar and Norway maintained the growth we had planned for, but Gibraltar revenues may now flatten out in the second half on a comparative basis to last year, due to the 'non-recurring' pollution stand-by contract awarded in the final six months of 2007.
Other financial aspects
The reduction in net cash as at 30th June 2008 was a consequence of the increased level of turnover leading to higher receivables and the timing of dividend receipts from our joint ventures operations. However, the receipt of dividends in July 2008 onwards has restored the cash position to a level comparable to 2007. It should be noted that substantial cash reserves that may build up in our joint ventures are not consolidated in these accounts unless transferred to joint venture partners by way of internal dividend.
With the contracted deployment in the second quarter of our Offshore Treatment Unit ('OTU'), we have felt it prudent to commence the depreciation of the build and development costs of this unit , although our technology for offshore treatment could still be regarded as in a development phase . However, there is further penetration of the OTU market to achieve, despite our currently successful offshore phase as referenced below.
Treatment Units
As announced in my Chairman's Statement of June 2008 , our 'OTU' was deployed to a drilling rig in Norway at end-April and will remain on that contract to at least mid October. Our discussions with regard to offshore treatment of rig-based fluids waste in Norway are continuing and may lead to further supply contracts for 2009 - either on a rental or outright sale basis. Also at end July, I announced the award to the Group of a contract to supply a modular treatment unit to a major oilfield service group in Kazakhstan for delivery within 2008, and that contract is now under final engineering design and manufacture.
Gibraltar and Port activities
Our Gibraltar joint venture achieved useful growth once again as highlighted above, and we are actively reviewing business opportunities to further increase its long term revenues and profits. Our Ports-related team is responding to several enquiries for stand-alone treatment plants in a number of locations in the Mediterranean and Middle East.
Other locations
Whilst it is also our plan to secure a suitable commercial entry to a UK North Sea port location such as Aberdeen, and indeed to diversify into related activities in the UK, we have not yet been able to secure such an opportunity on suitable terms.
Share Capital
Under prevailing Stock Market conditions it is not proving possible to achieve the growth in capital value, as expressed by our quoted share price, that we had hoped to deliver to shareholders,even though our results are generating useful net earnings per share. However, we will continue to focus on building valuable environmental treatment businesses within our Group which, if successful, should contribute to progressively increasing the inherent value attributable to shareholders..
In conclusion, shareholders will be aware that in July the consolidation of our share capital was approved and implemented. As a result your Company now has in issue 24,819,669 ordinary shares of 0.2p nominal value per share. All shareholders will have received new share certificates reflecting their consolidated shareholding, being one twentieth in number of those previously held.
Richard Eldridge
Chairman
23 September 2008
For further information:
Nature Technology Solutions Limited
PROFIT AND LOSS ACCOUNT
FOR THE HALF YEAR TO 30TH JUNE 2008
| Unaudited | Unaudited | Audited | |||||||
| Six months to | Six months to | Year to | |||||||
| 30/06/2008 | 30/06/2007 | 31/12/2007 | |||||||
| £ | £ | £ | |||||||
| REVENUE | Subsidiary operations | 633,077 | 531,097 | 1,030,888 | |||||
| Joint venture | 787,795 | 435,958 | 1,223,346 | ||||||
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| 1,420,872 | 967,055 | 2,254,234 | |||||||
| OPERATING COSTS | Subsidiary operations | (324,044) | (260,272) | (517,375) | |||||
| Joint venture | (441,452) | (235,094) | (616,019) | ||||||
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| OPERATING PROFIT | 655,376 | 471,689 | 1,120,840 | ||||||
| Interest receivable | 1,558 | 528 | 18,962 | ||||||
| Administrative costs | (354,427) | (365,068) | (582,878) | ||||||
| Bank interest and charges | (7,859) | (12,237) | (24,496) | ||||||
| Profit on exchange | 32,190 | - | 23,571 | ||||||
| Depreciation and goodwill amortisation | (132,955) | (72,323) | (164,015) | ||||||
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| Profit on ordinary activities before taxation | 193,883 | 22,589 | 391,984 | ||||||
| Minority interest | - | 10,749 | - | ||||||
| Taxation on profit on ordinary activities | - | - | (79,873) | ||||||
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| Profit for the financial period | 193,883 | 33,338 | 312,111 | ||||||
| Basic profit per share on shares in issue as at 30th June 2008. | 0.00039 | 0.00007 | 0.00064 | ||||||
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| Basic profit per share on shares currently in issue | 0.0078 | ||||||||
| BALANCE SHEET AT 30TH JUNE 2008 | |||||||||
| Unaudited | Unaudited | Audited | |||||||
| As at | As at | As at | |||||||
| 30/06/08 | 30/06/07 | 31/12/07 | |||||||
| £ | £ | £ | |||||||
| ASSETS: | |||||||||
| Non current assets | |||||||||
| Plant and equipment | 708,408 | 511,653 | 678,762 | ||||||
| Intangible assets | 234,137 | 148,988 | 152,172 | ||||||
| Investments | 2,121,852 | 1,799,846 | 1,954,553 | ||||||
| Deferred tax asset | 58,939 | 110,888 | 85,047 | ||||||
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| Total non current assets | 3,123,336 | 2,571,375 | 2,870,534 | ||||||
| Current assets | |||||||||
| Trade and other receivables | 506,255 | 98,999 | 305,780 | ||||||
| Cash and cash equivalents | 3,167 | 556,556 | 268,375 | ||||||
| Total current assets | 509,422 | 655,555 | 574,155 | ||||||
| TOTAL ASSETS | 3,632,758 | 3,226,930 | 3,444,689 | ||||||
| LIABILITIES: | |||||||||
| Current liabilities | (283,434) | (322,754) | (323,304) | ||||||
| Non -current liabilities | |||||||||
| Long term loan | (240,807) | (287,246) | (227,085) | ||||||
| Minority interest | - | (1,402) | - | ||||||
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| NET ASSETS | 3,108,517 | 2,615,528 | 2,894,300 | ||||||
| EQUITY | |||||||||
| Called up share capital | 49,639 | 46,859 | 49,239 | ||||||
| Share premium | 1,998,570 | 1,981,016 | 1,978,636 | ||||||
| Capital Reserve | 2,864,130 | 2,864,130 | 2,864,130 | ||||||
| Profit and loss account | (1,803,822) | (2,276,477) | (1,997,705) | ||||||
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| Total equity attributable to equity shareholders | 3,108,517 | 2,615,528 | 2,894,300 | ||||||
| CASH FLOW STATEMENT | |||||||||
| FOR THE HALF YEAR TO 30TH JUNE 2008 | |||||||||
| Unaudited | Unaudited | Audited | |||||||
| half year to | half year to | year to | |||||||
| 30/06/08 | 30/06/07 | 31/12/07 | |||||||
| £ | £ | £ | |||||||
| Reconciliation of operating profit to net cash flow from operating activities: | |||||||||
| Operating profit | 193,883 | 33,338 | 391,984 | ||||||
| Depreciation | 132,955 | 72,323 | 9,539 | ||||||
| (Increase)/Decrease in debtors | (200,475) | 106,392 | (74,548) | ||||||
| (Decrease)/increase in creditors | (26,148) | 89,704 | (49,780) | ||||||
| Decrease/(Increase) in minority interests | - | (10,749) | (12,151) | ||||||
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| Net cash from operating activities | 100,215 | 291,008 | 265,044 | ||||||
| Investing activities: | |||||||||
| Increase in investments | (167,299) | (83,990) | (238,697) | ||||||
| Acquisition of fixed assets | (198,124) | (150,084) | (257,594) | ||||||
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| Financing activities: | |||||||||
| Cash consideration from issuance of shares | - | 287,720 | 287,720 | ||||||
| net of issuance costs | |||||||||
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| Increase/(Decrease) in cash balances | (265,208) | 344,654 | 56,473 | ||||||
| Movement in cash balances: | |||||||||
| Balance at bank 1st January 2008 | 268,375 | 211,902 | 211,902 | ||||||
| Net cash inflow/(outflow) | (265,208) | 344,654 | 56,473 | ||||||
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| Balance at 30th June 2008 | 3,167 | 445,907 | 268,375 | ||||||
Notes to the accounts:
1. The calculation of profit per share has been based on the profit for the period and the average 492,393,384 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 2007.
3. The interim report to 30 June 2008 was approved by the directors on 22 September 2008. The report will be posted to shareholders and will be available to the public, free of charge, from the officies of Seymour Pierce Limited, 20 Old Bailey, London EC4M 7EN.