24 Jan 2018 08:25
Management Resource Solutions plc
EPIC: MRS
24 January 2018
Management Resource Solutions plc
Operational Update
Management Resources Solutions plc ('MRS' or 'the Company'), the diversified mining and civil services company which provides plant hire and civil earthworks services in Southern Queensland ('QLD') and coal industry support services in the Hunter Valley of New South Wales ('NSW'), is pleased to provide an operational update ahead of the publication of its interim results for the 6 months to 31 December 2017, which are expected to be released by the end of February 2018.
MRS Services Group ('MRSSG')
MRSSG has seen strong demand for its services in the first half of 2017-18 ('1H18'). Although the former SubZero business only became part of MRS on 1 October 2016, overall revenue in 1H18, when compared on a like for like basis with the revenues for the period July-December 2016, grew by over 28%, with the business operating profitably throughout 1H18.
Demand and revenue growth have been and remain particularly strong in the mechanical repair and fabrication business lines.
New earth moving equipment has recently been deployed on a 12-month contract, reflecting the increased demand for earth moving and rehabilitation work at tier 1 mines in the Hunter Valley.
Bachmann Plant Hire ('BPH')
As indicated in the Annual Report, released in December, the Board approved capital expenditure to provide access to additional plant and equipment, to enable BPH to grow revenues where they are expected to be earnings enhancing. Additional equipment was deployed in December 2017, commencing operations near Miles, QLD.
In addition to its traditional activities in urban development projects, BPH has recently entered into a contract for road development works required to create access roads for gas wells in the Surat Basin, which straddles the QLD-NSW border.
Financial
The company has traded profitably throughout 1H18 and has continued to reduce debts significantly, from $14.7m (excluding debtor finance) at 30 June 2017 to $12.6m at 31 December 2017 (excluding debtor finance), and expects to continue to reduce debt further from its strong operational cashflows. The Company held cash and trade receivables of $17.1m at 31 December 2017.
Overall the Company continues to meet or exceed the earnings expectations, of 0.8p and 2.0p per share for the first half and full year 2017-18 respectively, as indicated in December.
Paul Brenton, CEO of MRS said:
"The past 9 months have seen management finalise the legacy issues arising from the discontinued operations of MRS. Throughout this period, the Company and its employees have continued to provide excellent quality and customer service, and management has been proactively seeking suitable opportunities for profitable business growth. The Company is now well positioned to take advantage of the buoyant Hunter Valley Coal market in New South Wales, and the continued strong demand for civil earthworks in South East Queensland."
For further information:
Management Resource Solutions plc
John Zorbas, Chairman +1 (0) 778 938-7631
Paul Brenton, CEO +61 (0) 401 072 464
Tim Jones, Finance Director +44 (0) 79 6644 2985
Nigel Burton, Non-executive Director +44 (0) 77 8523 4447
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
This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations. On the publication of this announcement via a Regulatory Information Service ("RIS"), this information is considered to be in the public domain.
About MRS
Management Resource Solutions plc (MRS), through its subsidiaries Bachmann Plant Hire 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 for the mining, civil engineering, construction and infrastructure industries.
Further information on the Company can be found at http://www.mrsplc.info