Management Resource Solu... Share Discussion Threads

[belgrano2] 18/10/2018 07:16

Many thanks for that info john henry.
We know that coal production in particular has been very cyclic in market price up to now. However the Chinese are building dozens of coal powered electricity stations all over the far east in small countries that quite frankly dont give a flying F... about global emissions.
I see demand at a minimum sustaining and probably increasing and taking prices north as well. Thats on a long time scale not just annual swings like we,ve seen o date.
Electricity demand is soaring as people want to power up their electric appliances and new air con, especially in nations that have low per head current consumption rates.

[sm0ggyg] 17/10/2018 07:09

And thats important because?

Someone invested 500 quid? Do you think it was Fidelity? Aberdeen Investments? George Soros?

[sm0ggyg] 17/10/2018 07:04

When a share doesnt rise on supposedly good news, you have to question why. Its pretty obvious the bulls here are missing something.

[smoggyg] 16/10/2018 13:50

Sm0ggyG is mentally ill imo,we should feel sorry for the poor twisted cretin.

[biggest bill] 16/10/2018 12:00

Sm0ggyg, your posts are becoming increasingly desperate and divorced from reality.

[unionhall] 16/10/2018 10:19

Easy to filter....

[wooster4] 16/10/2018 09:58

Sm0ggG - still got nothing to do all day.

[troutisout] 16/10/2018 09:32

and you think you do???

[sm0ggyg] 16/10/2018 09:14

You unfortunately dont understand how markets work, smoggo.

[smoggyg] 16/10/2018 08:45

The results were driven by strong demand for MRS' services in the resources and construction markets in Australia, continual investing in core profitable assets and cost management. There has also been a strong focus on growing operations in to new markets. The restructuring and maximising of synergies will continue into FY19.////// Looks good for the future to me.

[smoggyg] 16/10/2018 08:43

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.

The results were driven by strong demand for MRS' services in the resources and construction markets in Australia, continual investing in core profitable assets and cost management. There has also been a strong focus on growing operations in to new markets. The restructuring and maximising of synergies will continue into FY19.

Paul Brenton, Chief Executive Officer of Management Resource Solutions PLC, commented:

"The FY18 year has been a watershed year for the MRS Group, being able to focus on the core operations of Fabrication, Mechanical and Civil & Earthworks, with reduced distractions from the discontinued operations of FY17. We are a leading employer in both the Hunter Valley and Ipswich, and the group now has over 400 skilled employees. The MRS Group has invested significantly in our people and core profitable assets in FY18, which has driven this strong EBITDA result. The resources sector continues to improve with commodity prices stabilising and production demand strengthening, leading to increased demand in our Fabrication and Mechanical operations. There is a similar sentiment in the civil/construction sector, with record government spending on infrastructure providing new and exciting opportunities for our Civil and Earthworks operations. We are well positioned to capitalise on the upcoming market conditions////// It couldn't be more positive and my guess is it was issued to reassure holders in these turbulent times and to end speculation of when the results will arrive,December.

[smoggyg] 16/10/2018 08:40

PMSL at Sm0ggyG the nutty stalker,MRS has made it clear that business is great,costs are falling and debt is being repaid fast,things are very rosy here,unlike many other shares.

[sm0ggyg] 16/10/2018 01:26

As we've now entered a bear market, all stocks will suffer. The trading statement was a waste of time, telling no new news. Whilst on the surface eps of 2p vs a share price of 7.5p looks cheap, markets look ahead, and the future aint looking too hot. Small companies like MRS will be crushed by the big boys offering better deals, and the 2p eps for MRS is probably as good as it gets.

[dave4545] 15/10/2018 15:46

And they always dish it out mid morning. If you are going to say something MRS then do it at 7am or wait until next morning and issue it at 7am.

On the subject of debt that should get slashed next 2 years.

I doubt anybody selling is to use the money elsewhere. This is the worst I have seen the markets for many many years. You are either selling to pull your money out or just playing the patient game and holding.

Even with a crystal ball today I could not have made any profit even £100 beating the mm's on any stock on my monitor. It's that grim

[wooster4] 15/10/2018 15:31

smoggy - i doubt you'll get a response from Spooky to that.

[gnnmartin] 15/10/2018 15:19

I'm a bit disappointed that they couldn't say more than simply confirm previous guidance, already confirmed 3.5 months ago and first guided before that (6 months ago? I can't see when). We are into the second quarter of the new financial year.

Hopefully in December when they announce the audited results they will be able to offer some guidance on the first half of FY'19.

[smoggyg] 15/10/2018 14:03

Could you explain why you are here Sm0ggyG? Do you intend to buy in or are you just some nutty stalker? You really should get a life you sicko. Do have a nice day.

[sm0ggyg] 15/10/2018 13:35

Its the money that they've borrowed and owe.

Please let me know if you need any further help, smoggzy.

[smoggyg] 15/10/2018 12:40

12:13:24 7.4500 3,355 O 7.2000 7.8000 Sell 719,073 952,171
12:05:47 7.4500 7,000 O 7.2000 7.8000 Sell 719,073 948,816
11:25:10 7.2100 5,000 O 7.2000 7.8000 Sell ///// The 7.45p sells are in fact buys.

[smoggyg] 15/10/2018 12:33

Just what is the debt spooky?

[spooky] 15/10/2018 12:23

Think if you allow for debt, take account of the business they are in and apply a full tax charge, then it COULD be argued that they are fair value between here and 8.5p
.

[danny baker] 15/10/2018 12:05

I don't want to be a total cynic but that positive statement now paves the way for the URU holding to be placed. The shares undoubtedly look cheap but there always seems to be some share overhang or other reason for the shares not performing.

[smoggyg] 15/10/2018 11:31

Debt is being paid down fast.This is from the interims in Feb./////////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.

Paul Brenton