Management Resource Solutions PLC Update prior to General Meeting (5150D)
27 April 2017 - 5:08PM
UK Regulatory
TIDMMRS
RNS Number : 5150D
Management Resource Solutions PLC
27 April 2017
27 April 2017
Management Resource Solutions PLC
("MRS" or the "Company")
Update re accounting issues and lifting of suspension
In advance of the General Meeting of Shareholders being held
today to approve matters relating to the fundraising announced on
10 April 2017, the Directors wish to clarify some recent statements
concerning accounting issues.
In the circular to shareholders dated 27 January 2017, the
Company stated that it had engaged a third party firm of forensic
accountants to recover accounting information which had been
lost.
Following the suspension of trading in the Company's shares in
October 2016, the Board had engaged the services of an interim CFO
with forensic accounting experience and skills. Since documentation
appeared to be missing from the Company's office in Southport,
Queensland, as previously announced, the Board had determined that
some form of independent forensic review would be advisable to
establish whether there had been instances of fraud or other
misconduct.
Against this background, following publication of the circular
on 27 January, the board at the time decided not to proceed with
the investigation by the third party firm. Reliance was placed
instead on the work carried out internally, over several months and
in considerable detail, on the audit process and on the termination
of activities in the subsidiary concerned (Management Resource
Solutions Pty Ltd), to provide assurance that no fraud or
misappropriation had occurred.
Following the new board appointments announced on 10 April, the
two new independent non -executive directors, Nigel Burton and
Trevor Brown, have led a review of the Company's recent history.
This has focused amongst other things on the accounting issues.
They have concluded that:
-- No funds were improperly applied at a group level;
-- Management reviews and the review of the interim results to
31 December all indicate that all cash is fully accounted for,
notwithstanding the issues leading to the disclaimer of audit
opinion for the year ended 30 June 2016. There is no evidence of
any cash being missing or applied other than to legitimate business
purposes;
-- It is also important to note that the company within which
the loss of data/accounting problems arose (MRS Pty Ltd) is now in
Administration, as previously announced.
On the basis of a lack of evidence of fraud or misappropriation
of funds, the new Board confirmed the decision that notwithstanding
previous concerns there was no need for a formal forensic
investigation. As a footnote, the review has noted that the agreed
scope of work for the firm of forensic accountants was more focused
than described in the 27 January circular; and that the statement
in note 27 to the 2016 report and accounts re an ongoing forensic
investigation was incorrect.
A further announcement will be made in due course regarding the
lifting of suspension of trading in the Company's shares on AIM. In
the light of this, the long stop date in relation to the placing is
being extended to 5 pm on Friday 5 May 2017.
This Announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 ("MAR").
For further information:
Management Resource Solutions PLC +1 (0) 778 938-7631
John Zorbas, Chairman
Northland Capital Partners Limited +44 (0) 20 3861 6625
(Nominated Adviser and Joint Broker)
Tom Price
Gerry Beaney
Peterhouse Corporate Finance Limited +44 (0)20 7469 0932
(Joint Broker)
Charles Goodfellow
Lucy Williams
About MRS
Management Resource Solutions (MRS), through its subsidiaries
Bachmann and MRS Services Group, 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 mining, civil engineering, construction and
infrastructure industries.
Further information on the Company can be found at
http://www.mrsplc.net/.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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