Shares in Nature Group tumble following trading update

Shares in AIM-listed maritime waste treatment provider Nature Group tumbled on Monday following publication of a trading update by the company. Those were the first since naming a new Chairman.

Shares in AIM-listed maritime waste treatment provider Nature Group tumbled on Monday following publication of a trading update by the company. Those were the first since naming a new Chairman.

The company stated that the results for the year would be materially below market expectations as a result of the combined effect of delays in completion of a number of projects and orders, along with the increased costs associated with preparing for the expansion of the business.

The second half of 2012 would be adversely affected by a lower than expected level of revenue and decreasing margins in the company's oil and gas division, the company explained in its update.

"The deployment and sales of our compact treatment units (CTU) are taking longer than previously anticipated and consequently revenue from these units - that management had expected to occur in the year ending 2012 - are now expected to complete in 2013," the update stated.

"We had anticipated when building the last two CTU's that they would have been deployed sooner, but it is now apparent that they won't contribute to Nature's 2012 results," the firm explained.

At the right place even if not ....

Nevertheless, and as the pipeline of projects for its CTU's grows, the company says it is still confident that the operational shift within the oil and gas industry, for treating waste offshore instead of onshore, is happening."

In spite of challenges, the company reported promising developments: "Over the last two years we are extremely pleased by the number of opportunities which have been generated in both existing and new market locations and are actively progressing several of these and we expect to make further announcements in the near future".

Increased traffic through Rotterdam, company saysThe company stated that its Engineering division had signed a contract with the UK Ministry of Defence for the construction of a waste processing facility in an overseas territory with a contract value in excess of £2m.

As well, the Maritime division reported that it is benefiting from an improvement in global maritime traffic through Rotterdam.

"The Board is confident of the fundamental long-term prospects of the group. Our technology and services are gaining increasing recognition and we are committed to a controlled expansion. Our balance sheet is robust and we still have approximately £1m of net cash, despite our many recent capital expenditures. The company remains committed to its previously announced dividend payout policy," the statement added.

Lastly, the company remained committed to its previously announced dividend payout policy.

As of 11:02 shares of Nature Group are off by 27.7% to 21.5p.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020