NRC Group — Interim / Quarterly Report 2014

Aug 21, 2014

REPORT FOR 2ND QUARTER 2014

REPORT FOR 2ND QUARTER 2014

IMPROVED RESULTS

The company's focus and resources during the quarter

have been aimed at maintaining and developing the

company's profitable operations further. In addition,

the company has focused on the development of a

sustainable business model by exploiting its existing

expertise in new business areas.

Blom entered into an agreement to build a new

European map data set during the quarter. The

agreement has an initial value of up to NOK 30

million, but it is expected to increase significantly

if the project is carried out as planned. This

agreement confirms the company's position as a strong

expertise and resource centre for large complex jobs.

The agreement will give us rights linked to the

database, which may offer future earning

opportunities.

The company reported revenues of NOK 71 million in

the 2nd quarter, compared with NOK 69 million for the

same quarter in 2013. EBITDA for the quarter was NOK

5 million, compared with NOK 3 million for the

corresponding quarter in 2013. This corresponds to an

EBITDA margin of 6.7 per cent, compared with 4.5 per

cent in the 2nd quarter of 2013. The pre-tax profit

was NOK 2 million, compared with a pre-tax loss of

NOK -7 million for the corresponding quarter in 2013.

Revenues for the 1st half year totalled NOK 113

million, compared with NOK 105 million for the same

period in 2013. EBITDA for the 1st half year was NOK

-1 million, compared with NOK -4 million for the

corresponding period in 2013. This corresponds to an

EBITDA margin of -0.8 per cent, compared with -3.3

per cent for the 1st half of 2013. The operating loss

for the 1st half year was NOK -5 million, compared

with NOK -19 million for the same period in 2013.

The company's principal operations are focused now on

the Nordic region, where the company has had a strong

market position over time. A stronger concentration

of the resources combined with a more concentrated

focus on special products and customer segments is

expected to give more predictable earnings and better

margins over time.

The challenging macroeconomic conditions in Iberia

continue. In 2014, the company has scaled down its

operations further through the sale and liquidation

of its subsidiaries. The operations linked to the

company's database technology will still be managed

by a Spanish subsidiary.

In the future, the company will focus on increasing

sales and measures to develop business opportunities

in markets where the company's competence can be

exposed to a better risk and earnings profile. The

company will also assess new development and business

opportunities in which we can exploit the company's

expertise to improve the results through various

forms of partnership. The company will also continue

its work to adapt its structure, cost base and

product portfolio.

The company has a satisfactory balance sheet. The

company's equity ratio is 41 per cent, and the

current ratio has improved.

For further information please contact the CEO, Dirk

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