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SeaEnergy PLC (SEA)

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Friday 04 March, 2016

SeaEnergy PLC

Trading and Working Capital Update

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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