CER Group expects to report an operating loss when it releases its results for the 12 months ended March 31 on May 30.The company also advised of a new sale agreement to sell its New Zealand Nature Co Ltd business to former CER Group managing director Dav
CER Group expects to report an operating loss when it releases its results for the 12 months ended March 31 on May 30.
The company also advised of a new sale agreement to sell its New Zealand Nature Co Ltd business to former CER Group managing director David Warrick for $3 million.
The sale was announced last November and then twice extended so finance conditions could be met.
Today the company said the sale price would be satisfied by the payment of $1.75m in cash on settlement, $250,000 in cash payable in 12 months following completion of the transaction and a deferred payment of a maximum $1m payable in three payments over three years, subject to the satisfaction of certain financial performance criteria.
The agreement announced today is conditional on the company obtaining shareholder approval by May 31, and the landlord of the principal business premises consenting to the deemed assignment of lease to the purchaser by May 7.
New Zealand Nature, which sells natural products online and via catalogues, had unaudited gross sales of $4.6m in the 12 months ended March 31, down from $5.1m in the 12 months ended March 31.
The result was affected by exchange rate movements and a slowdown in theK market.
"The combined effect of adverse exchange rates and very soft volumes over the peak season for the company was a major disappointment," chairman Evan Davies said.
