25 Mar 2015 07:00
25 March 2015 For immediate release
Management Resource Solutions PLC
("MRS" or the "Company")
D&M Group trading update
MRS, the human capital resource consultancy quoted on AIM, announces that following the General Meeting of the Company held on 23 March 2015, at which shareholders voted in favour of the acquisition of the D&M Group of companies ("D&M") (as detailed in the admission document published on 4 March 2015), they are pleased to announce a trading update for the acquired business.
On 27 February 2015, MRS published its unaudited interim results for the six months ended 31 December 2014 and the Company now wishes to provide similar information for D&M.* In the six months to 31 December 2014, D&M reported a profit before taxation of approximately A$799,000 (£421,000) on turnover of A$9.06m (£4.78m). Earnings before interest, depreciation and amortisation for the period were approximately A$1.39m (£730,000). On a pro forma basis D&M would have contributed an additional 2.43¢ (1.28p) earnings per share for the period. At 31 December 2014 D&M had net assets of A$5.67m (£2.99m) including cash of A$1.0m (£530,000).
D&M has shown its strength and seen stable margins and a consistent level of contract wins in line with the previous year, against a backdrop of reduced investment linked to natural resources projects. Since 1 January 2015, there has been an increase in both the number and scale of sales enquiries driven largely by an increase in infrastructure spending at the Australian Federal government level. Whilst this added investment will not match the estimated reduction in private sector activity as a result of actual and projected falls in resource prices, D&M stands to benefit due to their broad customer base and long standing commercial relationships with public bodies such as Brisbane and Gold Coast City Councils.
The potential for synergies and cost rationalisation across the enlarged group remains the strategic driver for the integration and the first full audited financial information for the enlarged MRS group incorporating D&M will be for the year ended 30 June 2015.
As noted in the announcement dated 23 March 2015, the Company will provide an update regarding the release of security held by the existing lenders over the assets of the enlarged group as soon as possible.
-Ends-
For further information:
Management Resource Solutions PLC Paul Morffew, Chief Executive Timothy Jones, Finance Director | c/o FTI +44 (0)20 3727 1000 |
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Northland Capital Partners Limited (Nominated Adviser and Broker) William Vandyk David Hignell | +44 (0)20 7382 1100 |
FTI Consulting Edward Westropp Oliver Winters Adam Cubbage
| +44 (0)20 3727 1000 |
* Shareholders should note that this information is unaudited and derived from D&M's management accounts before the application of a group audit process which may result in adjustments to allow for differences in accounting policies between MRS and D&M.
About MRS
MRS provides project, quality, environmental and health & safety management services to some of the largest companies and projects across Australia, Oceania and Southeast Asia. MRS are sector specialists in the construction, engineering, civil engineering, petrochemical and coal seam gas sectors. MRS sources its contractors from a database of over 23,000 professionals around the globe, allowing it to react quickly and fully to client requirements.
Terms used but not defined in this announcement are defined in the Company's AIM admission document published today. The Admission Document can be found at http://www.mrsplc.net/.