Management Resource Solu... Share Discussion Threads

[parob] 21/9/2018 10:15

I managed to get a few at 7.1p - had to go kill or fill.

[biggest bill] 21/9/2018 10:12

I was trying to top up at this level but I can only buy 10k online. Are the market makers playing games?

[hulk2004] 21/9/2018 09:59

SmoggyG your ramping is rubbish! Must try harder! Joking aside it is very frustrating,need a couple of strong volume days to take away control of share price from mms,who just move this up and down on small volume to suit them!

[john henry] 21/9/2018 09:50

Market bidding 7p crazy levels. Simply no buyers.

[smoggyg] 21/9/2018 09:31

Like you said John it is not only the 2.2p ish actual earnings but the 3p or 4p projected earnings that is important here. I am expecting the results RNS in November like a couple of years ago but it could arrive at any time.

[john henry] 21/9/2018 08:36

I think they will come in around 2.2p Smoggy

[smoggyg] 21/9/2018 08:34

1H18, first half expectations of profit after tax and earnings per share exceeding $2.2m and 0.8p respectively, have been exceeded, with 1H18 NPAT $2.5m and EPS of 0.83p, whilst for the full year FY18 earnings per share of not less than 2.0p are in prospect.

[smoggyg] 21/9/2018 08:34

Dear Shareholders,

Financial Results for the half year ended 31 December 2017

All references to dollars or $ relate to Australian dollars, the Group's presentational currency.

The results for the half year ended 31 December 2017 ('1H18' or 'half year'), of a net profit after tax of $2.5m (1H17: net loss after tax $4.0m) on revenue of $33.6m (1H17: $20.6m), reflect the significant restructuring that has been executed within the MRS Group and the strength of the Bachmann Plant Hire ("BPH") and MRS Services Group ("MRSSG") businesses.

As a result, there is a significant step change in the 1H18 results compared to 1H17 as illustrated in the table below.


NPAT - A$'000s 1H18 1H17
Continuing Operations
Bachman Plant Hire
(BPH) 1,757,631 949,050
MRS Services Group
(MRSSG) 1,892,169 (1,787,037)
Overheads (1,125,361) (760,379)
------------ ------------
2,524,440 (1,598,366)
Discontinued Operations 0 (2,431,508)
Total 2,524,440 (4,029,874)
------------ ------------

As detailed in the FY17 Annual Report, the continuing operations of the MRS Group (being the holding companies and the two operations, BPH and MRSSG) have significantly changed from what was presented in the 1H17 half year report. The focus has changed from oil, gas and construction industries to a strong presence in plant hire and civil earthworks around Ipswich in Southern Queensland (BPH) and coal industry support services in the Hunter Valley of New South Wales (MRSSG).

Bachmann Plant Hire

BPH is based in Ipswich, approximately 40km west of Brisbane, and specialises in bulk earthworks for the civil construction industry. BPH provides plant and solutions both with and without operators (known as 'wet' and 'dry' hire respectively).

The Ipswich Economic Development Plan 2016 to 2031, enacted by the Queensland Government, is an ambitious plan to attract 292,000 people to 20 employment and population growth areas in the vicinity of Ipswich, resulting in an additional 120,000 jobs. More than 500 new residential dwellings are required to be completed every month to achieve the plan, resulting in the fastest growing residential growth corridor in Australia.

BPH has a 50-year history and an experienced workforce of long term employees and is perfectly located to exploit these opportunities. Most contracts are based on bulk earthworks within a small, well defined area of a residential or commercial sub-division to a final level finish of +/- 50mm. Although operations can be hampered by excessive rainfall, overall BPH operates in a relatively low risk contracting environment. Whilst contracts are generally relatively short (2 to 6 months in length), there is a steady pipeline of work to complete.

1H18 contribution by BPH to the MRS Group, was a net profit after tax of $1.8m (1H17 NPAT $0.9m) on revenue of $10.4m (1H17 Revenue $11.5m). Even though during 1H18 BPH operated at close to full utilisation of its plant & equipment there was a shift in the composition of the revenues, 1H18 saw more "wet hire" utilisation of equipment compared to 1H17, and "wet hire" utilisation has a lower revenue base (and cost base) than contract revenue.

MRS Services Group

MRSSG is strategically located in the heart of the coal mining region of the Hunter Valley in New South Wales, approximately 125km north west of the coal exporting port of Newcastle and about 240km north of Sydney. Some 90% of revenues are derived from blue chip miners including Yancoal, Rio Tinto, BHP and Glencore. Demand for high quality coal (with high energy content and low ash and pollutants) from the Hunter Valley remains strong and is expected to grow, in particular for export to China and East Asia where over 1,000 new high energy low emissions (HELE) ultra-supercritical coal fired power stations are planned or under construction.

The majority of MRSSG's work in the Hunter Valley is low risk, derived from providing skilled trade labour at hourly rates. The automotive, fabrication and mine rehabilitation businesses are based on longer-term contracts in well-established work relationships and well understood risk profiles.

Initially after acquisition, the business suffered from a lack of working capital, an excessive cost base and a lack of commercial and financial discipline, with the first 6 months of operating the MRSSG assets proving particularly challenging (which is reflected in the 1H17 results). However, the quality of the work provided by MRSSG, and strong demand for the services provided by MRSSG, have enabled management to grow revenues. A continuing programme of rationalisation, relocation and reductions in both overheads and operating costs has been implemented, resulting in the MRSSG business being profitable.

1H18 contribution by MRSSG was a net profit after tax of A$1.9m (1H17 net loss after tax ($1.8m)) on revenue of A$23.1m (1H17 Revenue $9.1m). Note that in 1H17 MRSSG only operated for 3 months (1 October 16 to 31 December 16, and this loss includes approximately $1.0m of one-off costs including relocation, finance, and redundancy).

MRS Group

Property, Plant & Equipment

During the 6 months to 31 December 2017, both MRS operations have invested approximately $2.4m in total, in existing and additional plant and equipment, and all of this has been funded through free cash flow.

Borrowings

There are 3 core debt facilities utilised by the MRS Group

1) Debtor Finance
2) Commercial Bills
3) Equipment Finance
1) Debtor Finance: BPH has a $2.6m facility and MRSSG has a $6.0m facility. The drawn down balance of both operations fluctuates on a weekly basis depending on the invoicing cycle and the receipts from customers.

2) Commercial Bills: The current commercial bills were established with the restructure of the company in February 2017. The initial balance in February 2017 being $4.3m, the balance at 31 December 2017 is $2.8m. These commercial bills will be fully repaid by early in 2020.

3) Equipment Finance: BPH was acquired in February 2016 partially with a 48 month $4.2m equipment finance facility, MRSSG was also acquired in October 2016 partially with a 48 month $4.2m equipment finance facility. During FY17 the rent to buy agreement within BPH was recognised on the balance sheet, increasing both the PP&E and debt by $3.6m. There are 25 repayments remaining at 31 December 2017.

Overall, the Group's borrowings net of cash reduced by $1.5 million between June and December 2017.

MRS Outlook

The markets which BPH and MRSSG service continue to be the strongest they have been in years. BPH is currently working at full capacity and has a strong pipeline of work to complete. MRSSG is experiencing strong demand, with revenues now averaging close to $4.0m per month.

The Hunter Valley thermal coal price has been strong and stable providing confidence for the coal mines to commit to repairs and maintenance and Yancoal has recently completed the acquisition of the Rio Tinto assets in the Hunter Valley.

Both BPH and MRSSG were run as separate operations with little interaction or utilisation of shared services and group purchasing during the financial years 2015-16 ('FY16') and 2016-17 ('FY17'). During late FY17 and 2017-18 ('FY18') the new board prioritised significant cost cutting and restructuring, and has restructured the senior management, which now includes Group Human Resources, Group Asset Management, Group Procurement and Group Financial Management. Further changes include the recent recruitment of a General Manager - Civil and Earthworks, as part of succession planning at BPH.

The cost cutting, and restructuring continues as well as the drive to grow revenues., The board is committed to focusing on earnings growth and shareholder value for the remainder of FY18 and beyond.

1H18, first half expectations of profit after tax and earnings per share exceeding $2.2m and 0.8p respectively, have been exceeded, with 1H18 NPAT $2.5m and EPS of 0.83p, whilst for the full year FY18 earnings per share of not less than 2.0p are in prospect.

Further progress is anticipated in 2018-19 as debt continues to be repaid from the strong operational cash-flows generated by the major changes which are now taking effect.

On behalf of the board, I'd like to thank all employees for their continued commitment to working safely and to all stakeholders of MRS including employees, customers, suppliers, funders and shareholders for maintaining their support for the Company.

[truffle1] 21/9/2018 08:22

Not impressed with this thread though, for a start, the header could do with some additional information.

[smoggyg] 21/9/2018 08:21

LOL,well said truffle1.

[truffle1] 21/9/2018 08:19

I am looking to add a few too, tipped by thehitman on the toople board, i think.

[smoggyg] 21/9/2018 08:17

Management Resource Solutions (MRS) Trades
7.40
+0.15 (+2.07%)/////// Bounce underway,I guess 12bns fans must be buying in today,very wise imo.

[smoggyg] 21/9/2018 08:14

BLUE and good solid buying.//////Management Resource Solutions (MRS) Trades
7.35
+0.10 (+1.38%)
live: 8:13AM BST
Buy Volume 196,978 Trade Low 7.34
Sell Volume 0 Trade High 7.37
? Volume 0 VWAP 7.35
Total Volume 196,978 Prev day Vol 0
Status: Connected
(Pause Streaming)
08:11:47 7.3700 10,705 O 7.1000 7.4000 Buy 196,978 0
08:11:41 7.3700 45,451 O 7.1000 7.4000 Buy 186,273 0
08:07:29 7.3700 20,543 O 7.1000 7.4000 Buy 140,822 0
08:06:10 7.3400 100,000 O 7.1000 7.4000 Buy 120,279 0
08:04:59 7.3400 20,279 O 7.1000 7.4000 Buy

[dave4545] 21/9/2018 08:13

Here we go again, all buys it goes up a little then it's all sales and it drops back.

mm's doing well out of the two way trade again.

Another week flies by without a Bachmann holding update

[smoggyg] 21/9/2018 08:11

Thanks for the post above 12bn and well done in selling Kod so near the top,I am sure that your fans were pleased for you. It is a pity that they are mainly skint trolls as there is a lot of money to be made here very soon imo. 15p by xmas?

[parob] 21/9/2018 08:09

Oversold and looking for a bounce.

[12bn] 21/9/2018 08:05

Nice thread smoggy,I am glad that you noticed that I informed everyone that I was selling Kod but I am afraid that my 'fans' only see what they want to see,the truth is ignored by them. The title here promotes MRS well and as coincidence would have it I am a holder here as well! LOL :)

[thehitman1] 21/9/2018 07:40

Soggyg, you said the same thing on KOD whilst selling your KOD holding.

[unionhall] 20/9/2018 23:52

If you dont want to read someone's posts just filter them....

[thehitman1] 20/9/2018 20:51

A thread for smoggyg only, lol.

[dave4545] 20/9/2018 17:45

someuwin

Clean up your thread please