Shares in Nature Group (LON:NGR) plummeted on Wednesday morning after the company issued a disappointing trading update.
The port reception facility and waste treatment solutions provider updated the market on the financial progress for 2017, after a challenging first six months to the year.
The group provides these services for oil, marine and process industries. Specifically with regards to its Oil & Gas division, the company noted that it has four units currently deployed with eight operators, which continue to encounter “difficult trading conditions”.
In response to the difficult year, the company said it intends to prioritise its Maritime division, following its business-wide strategic review conducted by the Board last year.
The group is looking to address the group’s immediate cash flow issues, to facilitate the moving ahead in discussions regarding a proposed sale.
Accordingly, Nature Group announced that the Board had secured a verbal waiver from lender, DNB, permitting the deferral of the repayment of lease and debt financing facilities totalling £1 million. The deferral is conditional upon the proposed sale.
Berend van Straten, Chairman of Nature Group, commented:
“2017 was another difficult year for Nature Group and we continue to face significant headwinds, particularly in our Oil & Gas division.
However, we are encouraged that steps taken by the Board during the period to identify the operational and structural issues problems and to define and begin to implement a new strategy are beginning to yield positive results.
There is much more work to do to ensure Nature Group has a viable future, and the proposed sale of the Oil & Gas division is a vital step in achieving that and to addressing the Group’s urgent, short-term cash requirements.”
Shares in Nature Group are currently trading down as much as 49.65 percent as of 10.35AM (GMT).
