NRC Group — Interim / Quarterly Report 2014

Feb 25, 2015

REPORT FOR 4TH QUARTER 2014

REPORT FOR 4TH QUARTER 2014

Profitable and cash flow positive

In 2014 the company's focus and resources have been

aimed at maintaining and developing the company's

profitable operations. At the same time, the company

has sought growth opportunities by exploiting its

existing expertise in new business areas.

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. Through

a more concentrated focus on special products and

customer segments, the company will seek to provide

growth that will deliver better margins and more

predictable earnings. In the 4th quarter, the

company delivered a result that confirms that the

company's strategy has started to show results.

Total revenues of NOK 51 million gave an EBITDA

result of NOK 3.4 million and a margin corresponding

to 7 per cent.

The company's greater focus on a broader application

of sensor technology has opened up new market

opportunities. The contract for 2015 for ice

monitoring in the Kara Sea was terminated in

November 2014 due to the political sanctions

implemented against Russia. The company received

compensation to cover costs and lost earnings in

2015. The company will continue to develop services

for monitoring in Arctic regions and areas with

environmental challenges.

The company reported revenues of NOK 51 million for

the 4th quarter of 2014, compared with NOK 41

million for the same quarter in 2013. The pre-tax

profit was NOK 4 million, compared with a loss of

NOK 5 million for the corresponding quarter in 2013.

The pre-tax profit for the 4th quarter of 2013

included a net positive non-recurring effect of NOK

9 million.

The company reported revenues of NOK 234 million for

2014, compared with NOK 200 million for 2013,

adjusted for the sale of intangible assets totaling

NOK 20 million. The pre-tax profit was NOK 6

million, compared with a loss of NOK 52 million for

2013. The pre-tax profit for 2013 included a net

negative non-recurring effect of NOK 11 million.

The company has shown overall good growth for

continued business and the company's balance sheet

has improved after the restructuring implemented.

The equity ratio is 50 per cent, the current ratio

is satisfactory, and the company has no ordinary

interest-bearing liabilities. The net interest-

bearing cash position is NOK 50 million.

F or further information please contact the CEO,

Dirk Blaauw, on tel. +47 22 13 19 20