Organics company CER Group is no longer going to sell its New Zealand Nature Company business to interests associated with former managing director David Warrick.

The conditions in a heads of agreement were not satisfied and the agreement was terminated, the company said.

CER Group earlier twice extended the finance condition in the agreement.

The sale price was $3 million, with an initial payment of $2 million in cash and a deferred payment of $1 million within two years.

CER Group, which operates Certified Organics and New Zealand Nature, is reporting a 39 percent rise in first quarter sales revenue from a year earlier to $1.28 million.

Managing director David Warrick said the group's biological control and remediation segment revenues grew from a modest base to a solid performance for the quarter to March of $400,000.

Sales drivers included new season orders for the South Australian government seed eradication contract, together with a contribution from Vital Resource Management (VRM), he said.