LONDON (Alliance News) - Management Resource Solutions PLC on Tuesday reported growth in profit in the first half of its financial year, but a drop in revenue due to issues with its project in Papua New Guinea.
The Australian business management consultancy firm said its pretax profit in the six months ended December 31 grew to AUD522,000 from AUD491,000 in the same period the year before, due to a significant reduction in cost of sales and administrative expenses.
However, revenue almost halved to AUD6.2 million from AUD11.4 million, which the company said reflected a decline in the provision of contract personnel and the slower-than-expected progress of its Papua New Guinea project because of adverse weather and construction issues.
The project is set for completion in mid-2016.
Management Resource said it will not pay an interim dividend while it is in the middle of stabilising the Bachmann Plant Hire business which it bought in January.
"The business has ended the period in a good financial position, with stable revenue streams and a reduced cost base," Chief Executive Paul Morffew said in a statement.
"We have already started the second half of the financial year at a pace and we believe the demand for work in Australia has increased after a lull in the resources sector during 2015," he added.
Shares in Management Resource were trading up 3.3% at 15.10 pence on Tuesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.