Neos Resources PLC Update (7826A)
25 März 2013 - 1:07PM
UK Regulatory
TIDMNEOS
RNS Number : 7826A
Neos Resources PLC
25 March 2013
NEOS Resources plc ("NEOS" or "the Company")
Update
Further to its announcement on 13 March 2013, NEOS Resources plc
announces that Steven Rudofsky, Executive Chairman, and Graham
Woolfman, Non-Executive Director, will resign from the Board on 29
March 2013. Effective from that date, Michael Moquette will assume
the role of Non-Executive Chairman, Nicholas Myerson will become
Chief Executive Officer and Ravi Jose will become Chief Operating
Officer. The remaining Directors will continue to receive
remuneration for a period equivalent to their contractual notice
periods, which are three, six and three months respectively,
following which they have waived rights to any further remuneration
for a period of six months. At the end of this period, their
employment will terminate in the absence of agreement to the
contrary, although it is intended they will remain as statutory
directors of the Company. Peter Harvey, Interim Chief Financial
Officer, will also leave the Company with effect from 19 April 2013
and a further announcement about his replacement will be made in
due course.
The Board had previously announced that it was to seek an
orderly realisation of NEOS's assets and settlement of its
liabilities. Following the indefinite adjournment of the General
Meeting called to vote on the cancellation of the admission of the
Company's shares to trading on AIM, the remaining Directors will
continue to settle the Group's liabilities and take the necessary
actions to minimise the Group's cost base, whilst seeking to
identify opportunities which may maintain and improve value for
shareholders.
As part of the orderly wind down of its Indian business, the
Group has now substantially honoured its contract to sell 200
tonnes of crude jatropha oil to a major Indian customer which will
realize sales of GBP175,000 in the second half of 2012/13 and which
is expected to generate a contribution margin (sales less directly
variable costs) in excess of 15%. The Group intends to pursue
further sales opportunities in India but only those that are
anticipated to yield an attractive contribution margin which is
sufficient to cover that company's reducing fixed operating cost
and overhead cost base.
The Group's financial position remains consistent with that
previously announced. At 28 February 2013, the Group had cash
amounting to GBP1.1m, other current assets realisable into cash of
GBP255,000 and known liabilities, including potential claims,
amounting to approximately GBP1.0m. The parent Company currently
has cash amounting to approximately GBP630,000. Its known
liabilities, including provisions for claims and contractual
payments to the directors, amount to approximately GBP380,000. The
Company's corporate overhead costs will immediately reduce to
GBP40,000 per month and are expected to reduce incrementally over
the next six months as the remaining directors cease to be paid and
further cost reduction actions are taken to ensure the Company and
Group maintains sufficient cash resources to enable it to operate
and develop.
NEOS Resources plc +44 (0) 20 7499 5626
Steven Rudofsky - Executive
Chairman
finnCap Ltd +44 (0) 20 7220 0500
Stuart Andrews
Christopher Raggett
This information is provided by RNS
The company news service from the London Stock Exchange
END
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