CER Group flags up expected loss

CER Group said it 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 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.

Yesterday the company said the sale price would be satisfied by the payment of $1.75 million in cash on settlement, $250,000 in cash payable in 12 months following completion of the transaction and a deferred payment of a maximum $1 million payable in three payments over three years.

The agreement 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 had unaudited gross sales of $4.6 million in the 12 months ended March 31.

- NZPA