1st Jun 2007 11:50
Nature Technology Solutions Limited01 June 2007 NATURE TECHNOLOGY SOLUTIONS LIMITED Preliminary Results for the Year ended 31st December 2006 I am pleased to report that as a result of the continuing application ofmanagement and resources to the evolution of "best available technology"required for the offshore oil industry, the Group is in a number of discussionswith major oil and oilfield service companies with regard to expansion of ouractivities, as I have outlined below. A recently completed contract worth over£450,000 with Norway's largest oil company for the collection of pollutedwastewater from near Hammerfest in the Arctic Circle will enhance Group revenuesfor 2007 and should provide further commercial opportunities. For the year ended 31st December 2006 the Group achieved a modest increase inturnover, and with the focus of resources applied to our small footprintoffshore treatment unit (OTU) completion and testing, the Group results againshowed a small loss for the period of £73,298 (2005 loss £121,625). Howeverearnings before depreciation, reflecting cash flow from operations including ourshare of joint ventures, were positive. During 2006 and early 2007 we were pleased to bring additional skills into ourteam at all levels, including the appointment of Nigel Sandy (former chiefexecutive of Waste Recycling Group) as a non executive director. The staffjoining the Group have shown commitment and belief in the future success of theGroup and I welcome their contribution to this exciting period in ourdevelopment. We believe that by the end of 2007 we will have commenced offshoretreatment operations having concluded testing, demonstrations, and achievementof regulatory certification. The enhanced team in Norway will be vital togenerating ongoing revenues for our OTU operational subsidiary, NorthernTreatment AS, in the Norwegian sector. The capability of the containerised OTU to treat polluted wastewater offshorewithin the acceptable limits of the "zero discharge" philosophy adopted by theEnvironmental Agency in Norway, should in due course set new standards for theoffshore industry elsewhere in the North Sea and worldwide - as higherenvironmental standards are required or legislated internationally. In the UK North Sea sector the Group is currently discussing the establishmentof our treatment capabilities at a quayside location in Aberdeen, in conjunctionwith a leading multinational oilfield services group. We are also in discussionswith regard to a successful environmental remediation business also based inAberdeen. Our venture in Gibraltar (the Government contract there and subsequentconstruction of initial treatment facilities being the the foundation of ouroriginal AIM listing in 2001) was the major contributor to our improvement inrevenues in 2006. The group's 50% joint company Slop Oil Reception and TreatmentLtd., achieved a significant increase in volumes received and treated from theshipping industry. Despite the operational difficulties whilst undergoing verysignificant capital expenditure in the transition to our new quayside site withsubstantially increased storage and treatment capacity (in conjunction with anew 20 year Government agreement), a useful increase in profit was achieved. Inaddition the recovered oil upgrade facilities installed have enabled regulardaily export of cleaned oil to Spain by our own road tanker, generating valuableincome from such recycling. Future plans include utilisation of our recoveredoil in power generation. In Stavanger Norway, at our minority owned joint venture, capital expenditureand installation time incurred in order to cope with more complex wastewaters,had the effect of significantly slowing treatment throughput and as a result theyear's financial outcome was disappointing. We will be reviewing the performanceof this operation with our joint venture partner in coming months , togetherwith Northern Treatment our OTU company in Norway , in which they are alsoshareholders. At the end of January 2007 we successfully arranged a placing of ordinary sharesin order to ensure the Group's cash resources would support the plannedexpansion in capabilities required in 2007. As a reflection of their confidence,directors and staff contributed some 15% of the £286,000 subscribed. We believe strongly in the potential success of the Group through thedevelopment and exploitation of technologies in the environmental sector, andwiith the strengthening of our Directorate and operational team we are wellplaced to take advantage of potential opportunities to expand the activities ofthe Group. Richard Eldridge Chairman 1st June 2007 CONSOLIDATED PROFIT AND LOSS ACCOUNT YEAR ENDED 31ST DECEMBER 2006 2005 £ £TURNOVERContinuing operations 264,036 183,878Joint Venture operations 927,205 749,944 --------- -------- 1,191,241 933,822 OPERATING COSTSContinuing operations (225,854) (118,770)Joint Venture operations (431,820) (313,382) ------- -------OPERATING PROFIT 533,567 501,670Interest and dividends receivable 7,535 8,73Administrative costs (473,738) (479,781)Depreciation and goodwill impairment cost (151,110) (137,916)Interest and charges (20,622) (3,930) -------- --------LOSS ON ORDINARY ACTIVITIES (104,368) (111,093)BEFORE TAXATIONMinority interest 21,354 (128)Taxation on loss on ordinary activities 9,716 (1,397) -------- --------DEFICIT FOR THE FINANCIAL PERIOD £ (73,298) £ (112,618) ======== ========BASIC LOSS PER SHARE (0.00017) (0.00033) ======= ======= There are no recognised gains or losses other than those included above. CONSOLIDATED BALANCE SHEET AT 31ST DECEMBER 2006 2005 £ £FIXED ASSETSIntangible assets 148,429 98,559Tangible assets 434,450 28,134Investments 1,715,856 1,568,281 --------- --------- 2,298,735 1,694,974CURRENT ASSETS 316,279 251,688DebtorsBalance at bank 211,902 564,082 --------- --------- 528,181 815,770CREDITORS:AMOUNTS FALLING DUE (325,896) (137,640)WITHIN ONE YEAR --------- ---------NET CURRENT ASSETS 202,285 678,130 CREDITORS:AMOUNTS FALLING DUE AFTER ONE YEAR (194,400) (186,207)Minority interests (12,151) (34,611) --------- ---------NET ASSETS 2,294,469 2,152,286 ========= =========CAPITAL AND RESERVESCalled up share capital 43,959 39,559Share premium 1,696,196 1,485,115Capital Reserve 2,864,130 2,864,130Profit and loss account (2,309,816) (2,236,518) --------- --------- 2,294,469 2,152,286 ========= =========CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED 31ST DECEMBER 2006 2005 £ £Net cash flow from operating activities:Operating loss (60,171) (116,027)Depreciation of fixed assets 8,865 18,473Depreciation of intangible fixed assets 4,162 4,202Disposal of fixed assets - 4,587(Increase) in debtors (64,591) (6,302)Increase in creditors 196,449 169,527(Decrease)/Increase in minority interests (22,460) 34,611 ------- ------- 62,254 109,071 Returns on investments and servicing of finance:Interest and dividends received 7,535 8,736Interest paid (20,662) (3,930)Increase in investments (147,575) (52,680) Capital expenditure:Acquisition of tangible fixed assets (415,181) (59,774)Acquisition of intangible fixed assets (54,032) - Financing:Issuing of ordinary share capital 215,481 462,161 -------- --------(DECREASE)/INCREASE IN CASH BALANCES (352,180) 463,584 ======== ========Movement in cash balances:Balance at bank 1st January 2006 564,082Net cash inflow (352,180) -------Balance at bank 31st December 2006 211,902 ======= Notes to the accounts 1. The calculation of loss per share has been based on the loss for the period and the weighted average number of Ordinary Shares in issue throughout the period of 426,760,051. 2. These unaudited results have been prepared on the basis of the accounting policies adopted in the accounts to 31 December 2005. 3. The audited accounts of the Company will be despatched to shareholders on or around 6 June 2007 and will be available for collection by the public free of charge at the offices of Seymour Pierce, 20 Old Bailey, London EC4M 7EN. The annual general meeting of the Company is to be held on 27 June 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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