NRC Group — Interim / Quarterly Report 2014

May 15, 2014

REPORT FOR 1ST QUARTER 2014

REPORT FOR 1ST QUARTER 2014

Blom looks to the future

Extensive restructuring has marked the company's

reports in recent years. In the first quarter of

2014, the sale of the consulting engineering company

in Romania was finalized. The company will also

complete the restructuring of the company's

operations in Iberia in the 2nd quarter of 2014. The

company's focus and resources will in the future be

directed towards new revenue-generating measures that

will establish the foundation for a healthier

business model in markets where the willingness and

capacity to pay for the company's expertise is

better. The first quarter is seasonally weak for the

company.

The company reported revenues of NOK 49 million for

the 1st quarter of 2014, compared with NOK 42 million

for the same quarter in 2013. EBITDA for the quarter

was NOK -6 million, compared with NOK -10 million for

the corresponding quarter in 2013. This corresponds

to an EBITDA margin of -11.4 per cent, compared with

-22.9 per cent in the 1st quarter of 2013. The

operating loss for the quarter was NOK 7 million,

compared with an operating loss of NOK 17 million for

the same period in 2013. The pre-tax loss was NOK 9

million, compared with a pre-tax loss of NOK 20

million for the corresponding quarter in 2013.

The company's principal operations are focused out of

the Nordic region, where the company holds a strong

historic market position. After three years when a

significant portion of the operations in Sweden were

linked to a major contract, the Swedish operations

have now demonstrated an excellent ability to develop

new business areas aimed at new customer groups based

on products with satisfactory margins, in a market

marked by overcapacity, the company has increased its

market share in certain customer segments to over 50

per cent. The company believes that these development

trends, combined with a focus on a broader range of

services developed on the basis of the company's core

competence, may form a solid foundation for growth in

the time to come.

The challenging macroeconomic conditions in Iberia

continue, and the order intake to date in 2014 has

been weak and significantly lower than expected.

Therefore, the company will scale down its operations

further through the sale and liquidation of its

subsidiaries. Operations linked to specific customer

segments in the region, as well as the operation and

development of the company's database technology,

will still be carried out by the 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 established a satisfactory balance

sheet through the measures that have been

implemented. The company's equity ratio is 35 per

cent, and the current ratio has improved.

A new Board of Directors and a new shareholder

structure with express confidence in the company's

competence and opportunities is a strong motivation

for the company's employees.

For further information please contact the CEO, Dirk

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