(Alliance News) - Australian construction and support services firm Management Resource Solutions PLC said Friday it expects annual results to "fall short" of expectations after weak housing demand pushed revenue lower.
For the year ended June, revenue was below forecast due largely to "weaker residential housing demand and deferral of a major contract into the current year." Despite this, earnings before interest, taxes, depreciation & amortisation before one-off items held up "reasonably well" against forecasts.
Nonetheless, the firm did book a number of "significant" one-off items, amounting to around AUD1.6 million. This included the investigation in Alerion and valuation and professional costs incurred.
Consequently, results for the year are expected to "fall short of earlier expectations."
"In light of this, the directors intend to strengthen the balance sheet and will put proposals to shareholders in due course," Management Resource said.
"In order to create a fresh start for the Company and put a difficult year behind us, these proposals will include wider initiatives to stabilise our business and to gain the trust of all our shareholders," the firm added. "Specifically, we will complete the process of appointing additional experienced non-executive directors to strengthen corporate governance."
Shares in Management Resource closed untraded at 2.55 pence in London on Friday.
By Ahren Lester; ahrenlester@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.