Management Resource Solu... Share Discussion Threads

[thehitman1] 05/12/2018 07:44

Smoggy, you responding to his every silly post makes you a bigger idiot.

[smoggyg] 05/12/2018 07:41

The nutter also thinks that the share price has dropped just because I bought in here,that I have 'cursed it with my presence'. He is a crazy twisted skint individual. Here is the relevant post of his.///////Sm0ggyG - 04 Dec 2018 - 08:09:28 - 487 of 504 MRS 7.3p to buy with over 2p of earnings soon,a multi-bagger? - MRS
do you get anything right, smoggola? you've been living in a sea of ignorance ever since advfn had the misfortune for you to come across them.

when the results come out, and still the share doesnt rise, doubtless you'll take another hit, start trying to deramp it, and find some other penny share that will inevitably tank after you curse it with your presence.

[12bm] 05/12/2018 07:23

if you click on my posts, you will see the last list 3 months prior. And the list above shows the net change for each one since then.

[darola] 05/12/2018 07:21

Touchy! I was checking it’s credability as a recent list has been published, in a private twitter group, from somebody with direct register access. And the numbers have changed a bit - notably Leon Hogan has added.

[12bm] 05/12/2018 07:11

Thats November 7th, and seeing as you didnt have the poiliteness to say thank you, I'm not telling you where I got it.

[darola] 05/12/2018 07:06

Why are theses dates 11/07/2018?

Where did you get it from?

[f3rdinand] 05/12/2018 06:17

Thanks for the advice; why would that be? Oh and what sector would you recommend for next year?

[12bm] 05/12/2018 06:05

Latest shareholder list

1. Hargreaves Lansdown Asset ManagemU 27,432,023 13.93 2,455,772 11/07/18
2. Leon Hogan R 20,574,467 10.45 3,000,000 11/07/18
3. URU Metals Ltd R 17,550,000 8.91 0 11/07/18
4. D M Smith R 7,520,123 3.82 0 11/07/18
5. Ross Charles R 7,500,000 3.81 0 11/07/18
6. MUNIR M A R 7,247,309 3.68 0 11/07/18
7.M WH Ireland Group PLC R 6,650,000 3.38 -30,000 11/07/18
8. HSBC Holdings PLC U 6,629,302 3.37 -395,930 11/07/18
9. Burton Nigel R 6,500,000 3.30 0 11/07/18
10. KARRABIN INVESTMENTS PTY LTD R 6,429,403 3.26 -1,250,000 11/07/18
11.M Interactive Investor Trading Ltd R 5,580,271 2.83 1,687,131 11/07/18
12. ESQ P Morffew R 5,400,296 2.74 -1,643,439 11/07/18
13. Barclays PLC U 5,065,136 2.57 2,851,820 11/07/18
14.M EQUINITI SHAREVIEW R 4,725,605 2.40 -362,977 11/07/18
15. Macquarie Group Ltd U 4,722,426 2.40 -1,024,894 11/07/18
16.M IG Markets Ltd R 4,684,294 2.38 43,262 11/07/18
17.M Halifax Share Dealing Ltd R 4,535,305 2.30 -117,590 11/07/18
18.M KAS BANK NV CUSTODIANS R 4,257,765 2.16 -32,483 11/07/18
19. ALEGANA ENTERPRISES R 4,000,000 2.03 4,000,000 11/07/18
20.M Share Centre Ltd/The R 3,285,872 1.67 84,403 11/07/18
21. CAVIALECO LIMITED R 2,895,000 1.47 2,895,000 11/07/18
22. D Athan R 2,832,282 1.44 -951,300 11/07/18
23. Smith & Williamson Holdings Ltd U 2,500,000 1.27 0 11/07/18
24.M Jarvis Investment Management Ltd R 2,387,140 1.21 267,786 11/07/18
25. EATON EQUITIES LIMITED R 2,350,000 1.19 0 11/07/18
26.M Walker Crips Group PLC R 2,135,253 1.08 -470,000 11/07/18
27. AJ Bell Securities Ltd U 1,729,695 0.88 325,560 11/07/18
28. Jones Timothy Stephen R 1,480,573 0.75 1,000,000 11/07/18
29. Beaufort International Associates LtdU 1,150,249 0.58 1,054,890 11/07/18
30. Le Duy Min A 1,050,134 0.53 0 11/24/15
31. Winterflood Securities Ltd U 1,013,605 0.51 2,410 11/07/18
32. Banco Bilbao Vizcaya Argentaria SA U 1,004,791 0.51 0 11/07/18
33. Brenton Paul R 1,000,000 0.51 1,000,000 11/07/18
34. Christopher Grover "Christopher" R 1,000,000 0.51 1,000,000 11/07/18
35. Charles Stanley Group PLC U 832,638 0.42 699,292 11/07/18
36.M RBS MORGANS LTD R 673,708 0.34 0 11/07/18
37. WEISER ASSET MANAGEMENT R 633,286 0.32 0 11/07/18
38. Alliance Trust PLC U 594,000 0.30 -491,426 11/07/18
39. LE MARE SIMON GEOFFREY R 492,000 0.25 0 11/07/18
40. Gregory Phillip Burke R 343,166 0.17 0 11/07/18
41. Anne Elizabeth Reid R 343,166 0.17 0 11/07/18
42. Peel Hunt LLP U 329,503 0.17 -27,974 11/07/18
43. Kevin Lonergan R 305,029 0.15 0 11/07/18
44. Commerzbank AG U 259,890 0.13 0 11/07/18
45.M SVS SECURITIES R 250,105 0.13 27,116 11/07/18
46. Sassey Pty Ltd R 250,000 0.13 0 11/07/18
47.M Sanlam Ltd M 228,700 0.12 0 11/07/18
48. SHAUN FRASER R 225,000 0.11 225,000 11/07/18
49. HARCOO SUPER PTY LIMITED R 225,000 0.11 225,000 11/07/18
50. Zorbas John R 219,080 0.11 0 11/07/18
51.M Fusion Wealth Ltd R 213,381 0.11 213,381 11/07/18
52.M Renta 4 Banco SA R 204,727 0.10 -8,899 11/07/18
53. McTaggart Jonathon R 200,000 0.10 200,000 11/07/18
54. Canton of Vaud U 200,000 0.10 0 11/07/18
55. Jason John Lonergan R 171,583 0.09 0 11/07/18
56. Howard Gabrielle Reti R 171,583 0.09 0 11/07/18
57. Chau Le R 171,583 0.09 0 11/07/18
58. Paul Lancaster Wiltshire R 171,583 0.09 0 11/07/18
59. Graeme Cole R 171,583 0.09 0 11/07/18
60. John Charles De Andrade R 171,583 0.09 0 11/07/18
61. Maree Chilton R 171,583 0.09 0 11/07/18
62. MANAGEMENTT RESOURCE SOLUTION 2 R 171,583 0.09 0 11/07/18
63. Andrea Leigh Kelly R 148,705 0.08 0 11/07/18
64. James Douglas Beckitt R 125,000 0.06 0 11/07/18
65. Investec PLC U 120,000 0.06 0 11/07/18
66.M PILLING & CO STOCKBROKERS R 100,000 0.05 0 11/07/18
67. Novum Securities Ltd U 100,000 0.05 0 11/07/18
68.M iDealing.com Ltd R 87,200 0.04 -40,000 11/07/18
69. Taing Meng Wong R 85,792 0.04 0 11/07/18
70.M Stifel Nicolaus Europe Ltd R 77,033 0.04 -8,474 11/07/18
71. INVERSIS CLIENTS R 48,891 0.02 0 11/07/18
72. Christina Melich R 40,036 0.02 0 11/07/18
73.M Shore Capital Group Ltd M 29,357 0.01 -385,292 11/07/18
74. Brown Trevor Edward R 0 0.00 -7,151,000 02/28/18
75. Ian Bruce Cartmill R 0 0.00 -171,583 11/07/18
76.C Cantor Fitzgerald Europe R 0 0.00 -306,986 11/07/18
77. ALTERNATIVE DEBT AUSTRALIA PTY L R 0 0.00 -844,023 11/07/18

[sm0ggyg] 05/12/2018 04:24

Wouldnt want to be in any share involved in diggers, construction etc next year.

Whilst the 2p per share is seemingly in the bag here for last year, the future for this sector is looking perilous going forward, which is all that matters.

Thats why the informed money is selling and the bozos buying imo.

[thehitman1] 04/12/2018 17:06

Nice blue finish, more to come tokorrow, hopefully.

[smoggyg] 04/12/2018 13:35

Worth reading again,my thanks to the author.//////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 MRSs 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 companys £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 MRSs 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] 04/12/2018 13:34

The weak holders have been well and truly squeezed out of this and the fundamentals are great.

[smoggyg] 04/12/2018 13:29

Up she goes,hold onto your hats. :)

[smoggyg] 04/12/2018 13:28

No problems thesimpleman1,the only person I see on your intellectual level is that skint tramp stalker Sm0ggyG. Double digit share price soon. :)

[thehitman1] 04/12/2018 12:53

Thanks Smoggy, I hate the cut and paste approach.Double digits soon!!!

[smoggyg] 04/12/2018 12:47

Results out this month.////////RNS Number : 0343E

Management Resource Solutions PLC

15 October 2018

Management Resource Solutions plc

EPIC: MRS

15 October 2018

Management Resource Solutions plc

("MRS PLC" or the "Company" or the "Group")

Trading Update

Management Resource Solutions PLC (AIM: MRS), a leading Maintenance, Fabrication, Civil and Earthworks company, provides the following trade update ahead of its Final Results for the year ended 30 June 2018 (the "financial year", "FY18"). The Group intends to announce its Final Results in December 2018.

Trading update

The Group is pleased to report that it has traded well and in line with the Board's expectations during the financial year. As a result, the Board expects to report Net Revenue for FY18 AUD$68.4m (FY17: AUD$52.4m) and EBITDA for FY18 of AUD$12.3m (FY17: loss AUD$4.9m). The Company is still in the process of completing final reviews and audit work, including tax; however, Net Profit before Tax is expected to be FY18 AUD$6.1m (FY17: loss AUD$10.8m), which is in line with prior guidance of 2.0p per share (excluding any foreign exchange impacts). These results are unaudited.

[smoggyg] 04/12/2018 12:44

Well said thesimpleman1,you are correct for once. ps I do like a sophisticated ramper like you :)

[thehitman1] 04/12/2018 11:28

Boom boom, the train is about to leave, destination 15p.

[smoggyg] 04/12/2018 10:02

Here we go,all aboard the double digit express....//////09:58:19 6.0000 127,582 O 5.7000 6.0000 Buy 477,582 0
09:44:27 5.8900 150,000 O 5.6000 5.9000 Buy 350,000 0
09:38:14 5.9000 50,000 O 5.6000 5.9000 Buy 200,000 0
09:37:58 5.9000 100,000 O 5.6000 5.9000 Buy 150,000 0
09:13:57 5.8900 50,000 O 5.5000 5.9000 Buy 50,000 0

[smoggyg] 04/12/2018 09:34

Up again I see,the inexorable rise to double figures has started........I hope. :)

[smoggyg] 04/12/2018 08:25

Worth reading again,my thanks to the author.//////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 MRSs 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 companys £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 MRSs 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.

[sm0ggyg] 04/12/2018 08:09

do you get anything right, smoggola? you've been living in a sea of ignorance ever since advfn had the misfortune for you to come across them.

when the results come out, and still the share doesnt rise, doubtless you'll take another hit, start trying to deramp it, and find some other penny share that will inevitably tank after you curse it with your presence.