ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

MRS Management Resource Solutions Plc

2.30
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Management Resource Solutions Plc LSE:MRS London Ordinary Share GB00B8BL4R23 ORD EUR0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 2.30 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Management Resource Solu... Share Discussion Threads

Showing 4501 to 4522 of 6500 messages
Chat Pages: Latest  188  187  186  185  184  183  182  181  180  179  178  177  Older
DateSubjectAuthorDiscuss
13/11/2018
15:59
My elementary charting skills indicate a short term double bottom - hopefully, a build up to results next month.
wooster4
13/11/2018
12:45
Can somebody just buy this company out at 10-15p and put us out of our misery so we can move on.

I'm not greedy

dave4545
13/11/2018
12:13
I think the clever and informed money is selling, and the less than clever money, like smoggster for example, are buying.

Seen it all before.

sm0ggyg
13/11/2018
11:56
for me is whether the reported 18-20% interest on the loan can be re-financed. Some cannot especially if it was a sweetheart deal, which will eat up nearly all the profits just paying the interest alone.
Also if over payments are also allowed, might well have quite a few conditions attached that we are not aware of yet..unless anyone has received this info from the company, i'd certainly appreciate knowing what the true facts are.

belgrano2
13/11/2018
10:49
There is a lot of them on these boards, but I think his is tongue in cheek, hence village_idoit.

Read the link fully and he says at the bottom.

troutisout
13/11/2018
10:45
Who the hell is village idiot?.
thehitman1
13/11/2018
10:42
So why didn't you just say that troutisout? I merely noticed that the link was the same as BB posted last week. You could have said that in your first post on the subject as it was obvious that I didn't know that he was the original poster. Why come over critical and 'holier than thou'?
smoggyg
13/11/2018
10:36
SmoggyG,

You seem so used to snapping at everyone around you, you have lost your manners.

The link was posted here by village_idoit and you immediately came back with,

"Good find but it was found last week."

I just pointed out that if you had read the link you would have seen that village_idoit wrote the article in the first place.......

troutisout
13/11/2018
10:29
The share price is artificially low because a couple of private holders (Bachmann and Morffew) have been selling their shares. Bachmann got his shares for selling his company and he obviously would have preferred cash but these are temporary sellers who will eventually finish selling and then fundamentals will come out. I will simply add to my holding if the share price stays artificially low as I know that fundamentals will come out here at some point.
smoggyg
13/11/2018
10:22
I fail to see your gripe trout. I cut n pasted a link put up by another poster so that PIs could read it easier. I thanked that poster for the link,what are you complaining about,I was trying to be helpful,eos./////Biggest Bill7 Nov '18 - 10:31 - 2340 of 2361
0 1 0
Interesting article from lse:
hxxps://cube.investments/management-resource-solutions-mrs-dig-for-a-single-digit-pe-that-is-growing/
SmoggyG7 Nov '18 - 14:37 - 2341 of 2361 Edit
0 2 0
Thanks BB,here is the article.//

smoggyg
13/11/2018
10:21
All they have to do is consolidate and hammer down the debt for a while. I'm not too keen on more expansion and keep taking on new people while they have this debt. Get the debt right down or eliminate then expand.

Just my thoughts.

dave4545
13/11/2018
10:08
This may be a problem.....

They don't seem to have been able to do anything so far to change financing to a lower cost option...

(From the article above)

"...One of the reasons for MRS’s lowly rating is likely to be its debt. The Hermes facility is 18-20% interest including charges – they are the lenders of last resort, so this is very expensive as at the time the company did not have much of a choice (source: previous NED, confirmed at AGM by Chairman). A review of the debt is on the agenda and would significantly de-risk the company and free up a lot of cash...."

unionhall
13/11/2018
10:02
Dave the company have never replied to any of my emails.

There PR is a shambles.

john henry
13/11/2018
09:49
Well from his twitter, LSE username and the one above I would say the poster that posted the link above.
troutisout
13/11/2018
09:45
As soon as there's buying the mm's hike up the offer and kill it off.

This has been manipulated for ages now, the mm's have no real interest in taking this to a more fair value.

Probably waiting until I sell then they will spike it 150%

dave4545
13/11/2018
08:25
trout,I just cut n pasted the article for ease of reading for PIs,it saves them having to input the link. I have no idea who Michael Taylor is,maybe you can enlighten us.
smoggyg
13/11/2018
08:07
SmoggyG,

Nice quick retort, but if you had looked at the article fully you would realise who wrote it, maybe just maybe you might show the author some respect and gratitude....

troutisout
13/11/2018
07:50
10 x earnings is 20p a share,sooner or later the share price will reflect this.
smoggyg
13/11/2018
07:49
Good find but it was found last week.//////Biggest Bill7 Nov '18 - 10:31 - 2340 of 2361
0 1 0
Interesting article from lse:
hxxps://cube.investments/management-resource-solutions-mrs-dig-for-a-single-digit-pe-that-is-growing/
SmoggyG7 Nov '18 - 14:37 - 2341 of 2361 Edit
0 2 0
Thanks BB,here is the article./////Management Resource Solutions (MRS) – Dig a single digit PE that is growing
Michael TaylorNovember 5, 2018 8:42 am 0
Management Resource Solutions (MRS) is a UK listed company operating in the Hunter Valley in Australia, offering maintenance support, mining services, and labour hire. It has seen many a drama, including a long suspension, several board bust-ups, board changes, a deeply discounted placing, and a revolving door of sellers. Despite this I believe, should its debt be refinanced, that there is significant scope for a re-rate.

Opportunity

MRS consists of Bachmann Plant Hire and MRS Services Group (formally Subzero). The company is on track for 2p earnings per share and this is set to grow. With a share price of 6.5p this gives the company a current year PE of just above 3, which is either priced to fail or screamingly cheap!

MRS will never achieve a PE like the FANGs, but could easily trade at 10x earnings given other support services group ratings. A revolving door of sellers has created an artificially depressed price and therefore there is (in my opinion) scope for a re-rate through the earnings cycle, but also as the market re-rates it on a more traditional PE for the sector and earnings prospects.

MRS Service Group (MRSSG)

MRSSG predominantly provides coal industry support services in the Hunter valley in New South Wales (Australia). No contract with MRSSG is bigger than 25% of revenues, which means the company is not dependent on any single customer. The contracts are not just single contracts but they are a multitude of contracts within a client contract. The pricing framework is agreed upon upfront, and once it starts work is often added as and when needed due to the nature of the industry. Some work may be mine work, some work might be vehicle repair, equipment repair etc, all different sectors within the industry. This is why we do not see huge contracts announced with their clients BHP, Rio, Yancoal, Glencore, because a framework is agreed rather than a specific contract. We did see recently an additional contract with Glencore for rehabilitation works.

As long as MRS is on the PSL (Preferred Supplier List) and the company produces good quality work and delivers, it will continue to receive more work. Work is initially agreed upon, and then more work is piled on top additionally. Plenty of client machinery that has been mothballed is now being refurbished due to the miners working flat out, and so there are plenty of large one-off contracts for this. Though these are, of course, not sustainable, this then translates into recurring maintenance revenue. More equipment online simply means more work.

An example of a new business stream is buying pre-cut patented buckets (these buckets are huge, big enough to fit a small house into!) and MRS welding them together. This is a completely new revenue stream that did not exist a year ago. Plenty of low margin business has been discontinued but only if it doesn’t add value to the bigger picture. MRS will literally replace windshields for Glencore (GLEN), which means they are doing the same work that Autoglass do in the UK. This is very low margin but if Glencore want something doing it makes sense to respond – they are a large customer and a FTSE 100 company. A good working relationship is necessary.

Bachmann Plant Hire (BPH)

Bachmann Plant Hire works within the civil construction industry as bulk earthworks specialists. They are the providers of wet plant hire solutions and have over fifty years of service in the civil construction industry. BPH has room for growth in a new strategy of securing opportunities in remote and challenging locations; this means less competition and higher bargaining power on pricing. Currently BPH is operating with a 17% net profit margin and is likely to continue to grow. This is because of the Ipswich Economic Development Plan 2016 to 2031, an initiative driven by the local government, which will require 500 new residential homes every month in order to achieve this plan, meaning there will be no shortage of work should the government keep pressing on.

Recent accelerated bookbuild and turnaround

One of the warning signs that I previously highlighted was that management did not own any shares. They were not incentivised to act as owners and this was shown in the recent placing which was done at the very bottom of the range (6.5p) to allow management and the board in at a lower price than in the previous months’ trading range. One of the advantages was that this did provide some cash for the company, and finally aligned the board with shareholders. The full 14 million shares (£910,000) were taken up by the board, employees, and contractors which is a strong show of confidence in the company.

The swing in MRS’s fortunes are there to be seen in the HY results. From an AUD$4 million loss the company delivered a half year profit of AUD$ 2.5 million net profit after tax, equating to £1.4 million. This is ~0.7p EPS and the company released a trading update recently stating that 2p EPS was on target. The £3.4m expected NPAT versus the company’s £12.8 million market cap at 6.5p puts the company trading on a PE of slightly above 3. I am not aware of a company that is trading on such a low earnings multiple and growing – such PE ratios are usually value traps, where the share price is falling faster than profits!

Competition

There are several slightly smaller companies that are competition but the competitive advantage is that MRS has a big shed, which means a lot of work can be done indoors as opposed to outdoors. This makes a difference in the quality of the welding; doing it inside is better than in a dusty environment. A tent can be used but inside is much more practical given the huge size of some of the trucks, diggers, etc. being repaired. Local competitor Austin Engineering closed its Muswellbrook Upper Hunter facility and also provided an influx of labour; one of the challenges of recruiting more employees is the remoteness of the location and so with the competitor closing this had two positive effects.

The shed

The shed was bought by MRS for $3.0m which was satisfied in cash on completion. Further finance was arranged in order to complete outstanding work in order to bring the shed to its full potential. MRS had bid for the shed and winning was the best possible outcome – there was a lot of work that needed doing on the shed and so they were able to submit a competitive bid. As owners, they are now able to complete necessary work at a lower cost and the money pocketed can be spent elsewhere. Owning the shed provides the company with an asset, lower costs, and no future worries over tenancy agreements.

With regards to the shed, a quarter of the space has been cleared and the rest used more efficiently and this has enabled 50% more work to be done in the same shed.

Debt and cost savings

One of the reasons for MRS’s lowly rating is likely to be its debt. The Hermes facility is 18-20% interest including charges – they are the lenders of last resort, so this is very expensive as at the time the company did not have much of a choice (source: previous NED, confirmed at AGM by Chairman). A review of the debt is on the agenda and would significantly de-risk the company and free up a lot of cash.

Another concern was that maintenance capex was being delayed and so a cash call would come in the future – the company invested $AUD2.4m in existing and additional plant and equipment from June to December 2017 of which all was funded through free cash flow. Trade receivables are likely to stay high as the blue chips tend to pay between 45-60 days and so also not of a concern.

The majority of cost savings have been done and which will continue to show benefits each year; for example rentals have been replaced with leases – this is cheaper and saves on future expenditure too. The fat has been trimmed resulting in a much leaner and streamlined business.

Conclusion

MRS is not without risk – if the company is unable to pay off its debts then clearly it could have serious problems. However, with several operational updates showing good progress, a new and invested board, and a growing macroeconomic environment, I believe MRS offers substantial upside with much of the downside priced in.

smoggyg
13/11/2018
07:36
hxxps://cube.investments/management-resource-solutions-mrs-dig-for-a-single-digit-pe-that-is-growing/

Free to read article on MRS.

@vilage_idoit

vilage_idoit
13/11/2018
03:09
you have to feel sorry for smoggo. he's clearly a bit simple and the ultimate mug punter, given his strong track record of losing money 96% of the time.

his sure things are best avoided.

sm0ggyg
12/11/2018
21:39
Dave there isnt enough volume to clear. No volume because the market doesnt trust the company, many fingers got burnt here.
john henry
Chat Pages: Latest  188  187  186  185  184  183  182  181  180  179  178  177  Older

Your Recent History

Delayed Upgrade Clock