25th Nov 2013 08:18
LONDON (Alliance News) - Nature Group PLC saw its shares fall sharply early Monday after it warned that it expects its full-year results to be below market expectations after its maritime unit was hit by delays to the rebuild of a plant in Gibralter and higher costs in Rotterdam.
The maritime and offshore waste company said planning approval for rebuilding the Gibraltar plant, damaged by fire in May 2011, has been delayed due to the local planning authority requiring a limited Environmental Impact Assessment report over and above the work already carried out.
"Steps are being taken to speed up this process and we shall continue to work diligently with all Gibraltar authorities and the Government of Gibraltar in order to deliver the requested limited EIA as soon as possible," it said in a statement.
On top of that, the company said it's experiencing difficult market conditions combined with higher costs at its Rotterdam operations after it had to comply with new legislation introduced in the Netherlands.
"The division has seen a small increase in volumes but at a lower margin and also with a reduction in the value of oil recovered," it said. "As a consequence of these factors the results for the maritime division are currently below expectations."
It said it is continuing to push forward with developing its operations in Oman and establishing a base in Houston.
Nature added that its oil and gas unit is ahead of expectations in the year to date.
"Overall, trading in the second half of the year has been slower than in the first half and at this time the board anticipates the results for the year ending 31 December 2013 will be below market expectations," it said.
Nature Group shares were down 15.5% at 29.8 pence early Monday, the second-biggest decline on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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