SeaEnergy PLC Trading and Working Capital Update (0294R)
04 Mars 2016 - 8:00AM
UK Regulatory
TIDMSEA
RNS Number : 0294R
SeaEnergy PLC
04 March 2016
SeaEnergy PLC
("SeaEnergy", the "Company" or the "Group")
Trading and Working Capital Update
SeaEnergy, the innovation-led offshore energy services business,
announces an update on trading and working capital.
Since the acquisition of Return to Scene Limited ("R2S") in
August 2012, the Group has developed the business internationally
and begun to diversify into sectors in addition to oil and gas.
Progress towards Group profitability was good until the significant
decline in the oil price which commenced in late 2014. This
resulted in the deferral or cancellation of many projects by our
oil company customer base.
Signs of improvement in the market were evident through
discussions with our customers in late 2015 as their budgets were
finalised for 2016. However, trading conditions within the oil and
gas industry have deteriorated further since the start of the year
and a number of projects which were expected to be undertaken in
the early part of 2016 have been deferred to later in the year or
beyond.
Despite significant cost reductions and the exit from Marine and
Ship Management activities, the Group is generating losses at
current activity levels. The loan facilities announced in November
2015, which were intended to bridge the gap to improved trading
conditions, have proved to be insufficient and the Company's cash
position is becoming constrained.
The Board believes that the longer term prospects for R2S
software and services remain positive, but any short term
improvement in performance would require a rapid upturn in the oil
and gas market. Given the uncertainty over the timing of such an
upturn and the current working capital position, the Board is in
discussions with a number of parties who have expressed an interest
in the acquisition of the R2S Visual Asset Management business
and/or other assets of the Group. If agreed, such a disposal would
be likely to be classified as a fundamental change of business
under the AIM Rules for Companies and require the approval of
shareholders.
There can be no certainty that such a disposal will be completed
and, if not, the Group is expected to require additional funding to
be able to continue to trade beyond May 2016.
Further announcements will be made as appropriate.
ENDS
John Aldersey-Williams
Chief Executive Officer
Tel: +44 1224 748480
Claire Fleming
Corporate Communications & Research Manager
Tel: +44 7880 358920
Tim Feather/Liam Gribben
Nominated Adviser and Broker
WH Ireland Limited
Tel: 0113 394 6600
This information is provided by RNS
The company news service from the London Stock Exchange
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