27 Sep 2019 15:20
27 September 2019
Management Resource Solutions plc
Update
The Board of Management Resource Solutions plc (MRS) provides the following update.
The Board continues to work with the administrators to restructure the debt; a further update on this progress will be provided next week.
Work is progressing on the preparation of financial statements for the year ended 30 June 2019, but has inevitably been delayed by recent events. However, it is now clear that factors that have affected the business during the year have impacted the results.
Revenue for the Group was below forecast, largely because of a weaker residential housing demand and deferral of a major contract into the current year. Despite this, EBITDA before non-recurring items held up reasonably well against the forecast. There have been a number of significant one-off events that have affected results, notably the Alerion investigation and valuation costs and the professional costs associated with the numerous EGM's. These amounted to some A$1.6m in aggregate. Additionally, the delay in concluding re-financing arrangements has meant that the forecast interest saving of A$1.0m has not been achieved.
Accordingly, the directors expect that the results for the year to 30 June 2019, which remain subject to audit, will 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. 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. Specifically, we will complete the process of appointing additional experienced non-executive directors to strengthen corporate governance.
ENDS
For further information:
Management Resource Solutions plc Paul Brenton, CEO Tim Jones, Finance Director
| via FTI Consulting Tel: +44 (0) 20 3727 1000 |
Arden Partners plc (NOMAD & Broker) Paul Shackleton/Tom Price
| Tel: +44 (0) 20 7614 5900 |
FTI Consulting (Financial PR) Alex Beagley James Styles Sam Macpherson | Tel: +44 (0) 20 3727 1000 |
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