30 Dec 2016 09:30
30 December 2016
Management Resource Solutions Plc
Update on Consulting Business, Audit and Suspension
Further to previous announcements of 9 November and later, the directors of Management Resource Solutions Plc ("MRS", "Company" or "Group") wish to provide an update on their review of the Group's business and the current suspension of the Company's shares from trading on AIM.
Consulting Business
The Company has previously announced the identification of material issues with the consulting contracts in Papua New Guinea and New South Wales.
As a result of the external review and advice MRS Guernsey Limited (operating entity of the Papua New Guinea contract) has been placed into voluntary liquidation. The liquidation of MRS Guernsey is part of the ongoing process of resolving various legacy issues within the MRS Group, which led to the termination of the previous CEO, Paul Morffew and the closure of the consulting business in November 2016.
For the purposes of Schedule 2(g) to the AIM Rules for Companies, Tim Jones, a director of MRS, was a director of MRS Guernsey Limited until June 2016. Paul Morffew, former CEO of MRS, was also a director of MRS Guernsey Limited and had principal responsibility for its activities.
The Company has yet to conclude the review of the consulting contract in NSW and will provide a market update when appropriate.
Suspension from trading on AIM
The MRS Group accounts audit is ongoing and proving more difficult than anticipated as a result of financial and operational issues kept from the board by former CEO Paul Morffew. Only once the directors are satisfied that they have fully identified the issues within the Group and notified shareholders of such, will application be made for the Company's ordinary shares of €0.01 each to be restored to trading on AIM and efforts are being made to do this as soon as possible.
Further announcements will be made once additional information is available.
For further information:
Management Resource Solutions PLC c/o FTI +44 (0)20 3727 1000
Murray d'Almeida, Chairman
Timothy Jones, Finance Director
Northland Capital Partners Limited +44 (0)203 861 6625
(Nominated Adviser and Joint Broker)
William Vandyk
Gerry Beaney
Peterhouse Corporate Finance Limited +44 (0)20 7469 0932
(Joint Broker)
Charles Goodfellow
Lucy Williams
FTI Consulting +44 (0)20 3727 1000
Edward Westropp
Emilie O'Herne
Management Resource Solutions (MRS), through its subsidiaries Bachmann and SubZero, 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 to the oil & gas, mining, civil engineering, construction and infrastructure industries.