29 Nov 2016 15:05
29 November 2016
Management Resource Solutions Plc
Update on Trading and Suspension
Notice of AGM
Further to previous announcements of 27 October 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.
Financial Position
The directors of MRS have become aware that certain of the funds raised by way of a placing of new shares in August 2016 to finance the acquisition of SubZero (now MRS Services Group) were not applied to MRS Services Group's working capital as anticipated. This combined with non-receipt of amounts due to the Company in relation to the consulting contracts means the Group will face a cash constrained period over the next two months.
To address this situation, the Company has been in discussion with its banks, who have expressed their continuing support for the remaining business, and has secured an invoice finance facility from Hermes Capital Australia Pty Ltd ("Hermes") which, combined with the annualised savings of A$2.5 million already announced and undrawn existing facilities of approximately A$700,000, provides adequate headroom for operations for the foreseeable future.
The Hermes facility is for up to A$6 million at an advance rate of 80% of applicable invoices. The facility will remain in place for a minimum term of 12 months and is secured over certain assets of the group.
Audited Accounts
Regrettably access to the management accounts of MRS Pty Ltd, through which the Group formerly operated its consulting business and head office, was disrupted by a former member of staff and has only recently been re-established. As a result, the auditing process of the results to 30 June 2016 has been delayed. Whilst every effort is being made to complete the audit prior to 31 December 2016 as required under the AIM Rules, there can be no certainty that this will be achieved and a further announcement will be made in respect of the accounts in due course.
Notice of AGM
The Company will be holding its annual general meeting at 9.00 a.m. on 19 December 2016. A notice of AGM and accompanying proxy card have been sent to shareholders. Due to the delay in the preparation of the audited accounts it will not be possible to put these to shareholders at the AGM and a separate general meeting will be called for this purpose.
Suspension from trading on AIM
In light of the potential delay in the publication of the audited accounts, no application will be made for the suspension of the Company's ordinary shares from trading on AIM to be lifted until the board has more clarity on the likely completion of the accounts.
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 MRS Services Group, offers plant hire, equipment repair, refurbishment and fabrication, mine rehabilitation, civil earthworks, labour hire and other support services to a wide base of private and public sector clients in Australia. MRS caters predominately to the mining, civil construction and infrastructure industries.