NRC Group — Interim / Quarterly Report 2014

Oct 30, 2014

REPORT FOR 3RD QUARTER 2014

REPORT FOR 3RD QUARTER 2014

Improved earnings

The company's focus and resources have been aimed

this year at maintaining and developing the

company's profitable operations further. At the

same time, the company has sought growth

opportunities by exploiting its existing expertise

in new business areas.

Blom delivered a result from its operational

activities for the quarter demonstrating that the

company's strategy has started to show results.

Total revenues of NOK 79 million gave an EBITDA

result of NOK 12.8 million and a margin

corresponding to 16 per cent.

The company's increased focus on a broader

application of sensor technology has opened up new

market opportunities in Arctic regions, areas with

substantial mineral deposits and environmental

challenges.

Work has started on the contract to build up a

European orthophoto database. The contract will

have a major impact on the company's op-erations

over the next two years. The contract gives the

company sales rights to the database, which may

provide future earning opportunities.

The company reported revenues of NOK 79 million in

the 3rd quarter, compared with NOK 61 million for

the same quarter in 2013, adjusted for the sale of

intangible assets totalling NOK 20 million in 2013.

The pre-tax profit was NOK 9 million, compared with

a loss of NOK 23 million for the corresponding

quarter in 2013. The pre-tax profit for the 3rd

quarter 2013 included the sale of intangible assets

of NOK 20 million and a NOK 40 million write-down

of databases, which gave a net negative non-

recurring effect of NOK 20 million.

The company's principal operations are focused now

on the Nordic region and the UK, where the company

has had a strong market position over time. A

stronger concentration of the company's resources,

combined with a more concentrated focus on special

products and customer segments is expected to

provide growth, better margins and more predictable

earnings.

The company will also assess new development- and

business opportunities in which the company,

through various forms of partnership, can exploit

its ex-pertise in combination with access to

partners' resources. This can create a foundation

for growth with lower investment needs.

The company's balance sheet is acceptable. The

equity ratio is 44 per cent, the company's current

ratio is good, and the company has no ordinary

interest-bearing liabilities. The net interest-

bearing cash position is NOK 29 million.

For further information please contact the CEO,

Dirk Blaauw, on tel. +47 22 13 19 23.