Management Resource Solutions PLC Deferred Consideration Payment & Update on Trading (2836O)
04 November 2016 - 1:33AM
UK Regulatory
TIDMMRS
RNS Number : 2836O
Management Resource Solutions PLC
03 November 2016
3 November 2016
Management Resource Solutions Plc
Payment of Deferred Consideration and Update on Trading and
Suspension
Further to the announcements of 27 and 28 October, the directors
of Management Resource Solutions Plc ("MRS", "Company" or "Group")
are pleased to provide an update on various matters.
Bachmann Plant Hire performance payment
We are pleased to report that the unaudited earnings before
interest and taxation of Bachmann Plant Hire ("Bachmann") for the
year ended 30 June 2016 is within the expected range of A$2.1m to
A$2.6m (approximately GBP1.3m to GBP1.6m) set out in the Company's
admission document published on 11 January 2016. As such, the first
deferred payment of A$1,333,333 (approximately GBP830,000) is due
to the vendors of Bachmann and will be satisfied by the issue to
the vendors of Bachmann of new ordinary shares of EUR0.01 each in
the Company (the "Deferred Consideration Shares"), to be issued
upon resumption of trading in the Company's ordinary shares on
AIM.
SubZero integration continuing
SubZero has reported unaudited revenue for the first quarter of
the new financial year, to 30 September 2016, of $16.4m (2015:
$15.0m). The timing of the SubZero acquisition has aligned with an
upturn in the resources industry, with the Newcastle thermal coal
spot prices reaching USD$108 per tonne this week while Glencore, a
major blue chip MRS customer, has locked in much of the recent
spike in spot thermal coal pricing through a contract deal with
leading Japanese Power Utility (JPU) Tohoku Electric that set the
JPU September 2017-expiry thermal coal contract reference price at
USD$94.75/t FOB.
MRS Services Group has changed premises in two of its three
workshops and renegotiated the lease terms for the main workshop to
achieve a saving in rent of $800-900k per annum. Other initiatives
are being implemented to further drive down costs. The Company is
at the same time recruiting relevant individuals to meet the strong
market demand for its services.
Consulting Business
The Company continues to make progress investigating a number of
issues within the legacy consulting business of the Group, which
includes the PEAL contract and the decommissioning work announced
in May 2016, and has scheduled meetings with the counterparties to
the relevant contracts under review over the coming week. The
directors hope to provide a further update on these issues, one of
the underlying reasons for the current suspension of the Company's
shares from trading on AIM, next week. The Company and its advisers
continue to work to fully identify, quantify and resolve a number
of matters and as soon as clarity has been achieved on these it is
intended that an application be made for the resumption of trading
in MRS' ordinary shares on AIM.
Chief Executive
The directors are pleased to announce that Joe Clayton, who was
appointed interim chief executive of the Company and its
subsidiaries on 28 October, has agreed, subject to due diligence
and contract, to taking on this role on a permanent basis. Further
information regarding Mr Clayton's formal appointment to the board
will be announced upon the completion of the appropriate due
diligence and agreement of his contract of employment.
For further information:
Management Resource Solutions c/o FTI +44 (0)20 3727
PLC 1000
Murray d'Almeida, Chairman
Timothy Jones, Finance
Director
Northland Capital Partners
Limited (Nominated Adviser
and Joint Broker)
William Vandyk
Gerry Beaney +44 (0)203 861 6625
Peterhouse Corporate Finance
Limited (Joint Broker)
Charles Goodfellow
Lucy Williams +44 (0)20 7469 0932
FTI Consulting
Edward Westropp
Emilie O'Herne +44 (0)20 3727 1000
Management Resource Solutions (MRS), through its subsidiaries
Bachmann and SubZero, offers plant hire, equipment repair,
refurbishment and fabrication, mine rehabilitation, earthmoving,
road construction and other support services to a wide base of
private and public sector clients in Australia. MRS caters
predominately to the oil & gas, mining, civil engineering,
construction and infrastructure industries. Furthermore, MRS
supplies technical and strategic consultancy services to some of
the largest companies and projects across Australasia, Oceania and
Southeast Asia.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUGGPWGUPQGCW
(END) Dow Jones Newswires
November 03, 2016 10:33 ET (14:33 GMT)
Management Resource Solu... (LSE:MRS)
Historical Stock Chart
From Apr 2024 to May 2024
Management Resource Solu... (LSE:MRS)
Historical Stock Chart
From May 2023 to May 2024