Management Resource Solu... Share Discussion Threads

[arrynillson] 17/12/2018 15:08

SmoggyG - I've held from the 2s, when you recommended sell, to now so I'm in profit by ignoring your advice - explain it to me again how you sell at 7.5 if you've already sold in the 2s.

Selling in the 2s to buy KODswallop then MRS would have been almost TOTAL WIPEOUT 12bn!

[smoggyg] 17/12/2018 14:45

Revenge posting again arry,very low life,just like my other 2 fans Sm0ggyG and thesimpleman1. Stick to Cerp where you have held from 7.5p to 3.1p bid,very shrewd.

[arrynillson] 17/12/2018 14:39

SmoggyG - no revenge posting - you should be pleased I'm drawing attention to your history - surely you're proud of how you conducted yourself!

Hitman - couldn't agree more - nutters abound here!

[thehitman1] 17/12/2018 13:37

This thread is very childish though with lot of nutters about.

[thehitman1] 17/12/2018 13:36

Smoggy, I am a holder now and almost in profit.

[smoggyg] 17/12/2018 12:55

Revenge posting again arry,very low life,just like my other 2 fans Sm0ggyG and thesimpleman1. Stick to Cerp where you have held from 7.5p to 3.1p bid,very shrewd.

[arrynillson] 17/12/2018 12:34

SmoggyG - just doubled the daily fall is this one of your TIMBERRRRRRRRRRRRRRRRRRRRRRRRRRR days 12bn?

[arrynillson] 17/12/2018 12:31

SmoggyG - some management teams make it their business to end the year with a cash balance that doesn't need explaining - that they didn't might ring alarm bells with some onlookers - clever mentioning the weekly payroll - wouldn't be a big surprise for most companies!

No revenge 12bn - just like readers to see what you're like - surely you applaud the attention!

[smoggyg] 17/12/2018 12:05

Addressing concerns

One figure that may have caused some concern is MRS’s cash position, which came in at $50,000 on 31 June 2018. Brenton says this does not reflect the company’s financial health because cash fluctuates every week. As a result, this figures only provides a snapshot of time from around five months ago.

‘Our cash might look tight on the week of reporting, but we run a capital business. This means we have lots of equipment and a weekly payroll. As a result, our cash at bank balance fluctuates on a weekly basis anywhere from a couple of hundred thousand dollars to a couple of million dollars from week-to-week. As we are paying weekly, money is continuously coming in and out the door. For a growing business with capital equipment, cash management is a full-time part of the role, so we are very much on top of it.’

[smoggyg] 17/12/2018 12:01

Revenge posting again arry,very low life,just like my other 2 fans Sm0ggyG and thesimpleman1. Stick to Cerp where you have held from 7.5p to 3.1p bid,very shrewd.

[jagzoil] 17/12/2018 10:00

Suggest you read the TMS article...idiot

[arrynillson] 17/12/2018 09:45

SmoggyG - is this rise the dead cat bounce you’re always on about 12bn?

Let’s hope the management have got the funds for any expansion - cash looked very tight at FYE - perhaps they just enjoy having to convince people they are not flying by the seat of their pants!

Normally in these situations you are all over the board telling people a Placing is required - perhaps it’s different when you are attempting to pump 12bn - why did you change your moniker?

[sm0ggyg] 17/12/2018 09:44

Lining up nicely for the placing.

[smoggyg] 17/12/2018 09:27

Last week saw Australia-based Management Resource Solutions unveil a strong set of results for the year ended 30 June 2018. The period saw its new management introduce major cost-cutting measures. Meanwhile, its mining services and earthworks divisions enjoyed strong demand. Despite this, shares in the business faced a 13.8pc hit on the day the of the results’ release. Here, MRS chief executive Paul Brenton tells us what investors may be missing.

Turnaround efforts

MRS delivered year-on-year improvements across the board in the 12 months ended 30 June 2018. For most of the period it operated under a new leadership team headed up by Brenton and chairman John Zorbas. They joined when the firm’s previous board was ousted following a period of shareholder activism.

With revenues coming in at $69.1m, up almost a third on 2017, the new management has had an immediate positive impact. Meanwhile, EBITDA hit $12.3m, up from a loss of $4.9m, and net profit after tax reached $5.4m, up from a $10.8m loss in 2017. Despite this, shares failed to bounce on the results. As such, Brenton says the market is yet to acknowledge the progress the company has made:

‘The results do not seem to acknowledge our success in turning MRS around and stabilising it so it is in a position where it now has two years of clean audits. This puts us in a great position to move forward with an excellent revenue base. We have gone from a loss to a profit over the year. This is a fantastic result for the management team. We can now move forward and drive even more profitability.’;

Cost-cutting

MRS put its strong results down to two main drivers. The first of these was its efforts to cut costs by bringing together the two sides of its business. These are Bachmann Plant Hire and MRS Services Group. This has seen it align capabilities, leverage group purchasing and restructure senior management. It has also set up group HR, asset management, procurement, and financial management functions.



Brenton said the work has led to around $3.5m of cost savings from MRS Services alone. He argues that the results provide proof that the initiatives are working. The business is now in the second phase of cost-cutting, which will see it improve communications further and refine overheads.

‘As well as increasing synergies, there has been a firm focus on ensuring we get the best prices for our supplies,’ he said. ‘Now the results are in I think the proof is in the pudding. What we have been talking about is now coming through. We are now in the second phase of cost-cutting, refining overheads and doing more restructuring between the two entities. Now we have a better utilisation of communications we are seeing more and more ways to streamline and improve efficiency.’

Demand growth

MRS said its second growth driver has been strong demand for specialist services. This has been clear across both divisions.

To recap, MRS Services Group operates in Hunter Valley, New South Wales, where it offers a wide range of mining services. These include equipment repair, refurbishment and fabrication, mine rehabilitation, earthmoving, and road construction. It serves many types of clients. However, it currently makes around 90pc of its turnover from blue-chips like Rio Tinto, BHP, and Glencore

Over the results period, MRS said ongoing demand for high-quality coal supported the division. In particular, this came from China and East Asia where more than 1,000 new coal-fired power stations are planned. As a result, the period has been the first full year of contribution from the subsidiary. Indeed, it generated net profit after tax of A$5m on revenues of A$46.2m. This compares to a net loss after tax of $7.4m over nine months in 2017.



Meanwhile, Bachmann Plant Hire operates in Ipswich, west of Brisbane. The arm is the market leader in the area for bulk earthworks in the civil construction industry. It also builds and rehabilitates residential and urban building pads, sports ovals & dams, and landfill sites.

As with its services arm, MRS said cost-cutting boosted Bachmann over the results period. However, it said it is also benefitted from the Ipswich Economic Development. This is a plan to attract 292,000 people to 20 local employment and population growth areas. It is set to create 120,000 jobs by 2031 and requires more than 500 new residential dwellings per month. This is resulting in the fastest growing residential growth corridor in Australia. It is also providing Bachmann with a steady pipeline of low-risk work.

Addressing concerns

One figure that may have caused some concern is MRS’s cash position, which came in at $50,000 on 31 June 2018. Brenton says this does not reflect the company’s financial health because cash fluctuates every week. As a result, this figures only provides a snapshot of time from around five months ago.

‘Our cash might look tight on the week of reporting, but we run a capital business. This means we have lots of equipment and a weekly payroll. As a result, our cash at bank balance fluctuates on a weekly basis anywhere from a couple of hundred thousand dollars to a couple of million dollars from week-to-week. As we are paying weekly, money is continuously coming in and out the door. For a growing business with capital equipment, cash management is a full-time part of the role, so we are very much on top of it.’

Another possible red flag could have been the absence of an update on MRS’s nomad situation. Last month saw the company announce that Northland had ‘voluntarily agreed to relinquish’ its nomad status. MRS has until 1 February 2019 to find a new nomad or risk the suspension of its shares. However, Brenton tells us that MRS has made steady progress here. He expects the company to announce an update early in the next calendar year.

Moving forward

Finally, the results saw MRS announce that trading in its new financial year has got off to a good start. Zorbas added that both sides of its business are operating in the strongest position they have been in years. Indeed, as it stands, Bachmann is currently working close to full capacity. Meanwhile, MRS Services Group is experiencing healthy end-market demand. It is also benefitting from ‘strong and stable’ Hunter Valley thermal coal prices. This is giving coal miners the confidence to commit to repairs and maintenance.

Speaking to Total Market Solutions, Brenton echoes this optimism. He says that the market can expect more deals and contracts on the horizon. This comes weeks after MRS announced that its services arm had secured a six-month contract to refurbish six excavators.

‘There will be a steady stream of contracts and work. As we move up to Christmas we are preparing for a lot of work, and much of it will start to be awarded between now and early 2019. We want to expand outside the Hunter Valley as well. There is quite a lot of opportunity to extend our footprint, which is what I am currently focusing on. Meanwhile, we are excited to deliver even more value for shareholders in the current financial year.’

[smoggyg] 17/12/2018 09:26

Management Resource Solutions (MRS) Trades
5.05
+0.20 (+4.12%)
Up she goes as more business is booked,this should be on a better p/e than just 3 !!!

[thehitman1] 17/12/2018 08:55

Very cheap!!

[arrynillson] 17/12/2018 07:32

SmoggyG - great to see you exciting yourself about earth moving - thought when I saw rns there might be early news about borrowing or refinancing but there's time yet before suspension looms - now you've had the boiler room rah rah motivation prayers and the shared tablet has been ceremoniously passed back how's the memory 12bn - if you tell the truth you don't need a good memory - you've had plenty of time over the weekend to research your old posts - you said you would bet - why are you still prevaricating?

[smoggyg] 17/12/2018 07:11

17/12/2018 7:01am
RNS Non-Regulatory

TIDMMRS

Management Resource Solutions PLC

17 December 2018

Management Resource Solutions plc

EPIC: MRS

17 December 2018

Management Resource Solutions plc

("MRS" or "the Company")

Bachmann Plant Hire confirms $2.5m (AUD) work programme across South East Queensland

Management Resource Solutions PLC, a leading Maintenance, Fabrication, Civil and Earthworks company, is pleased to announce that its Bachmann Plant Hire (BPH) business has secured and commenced the delivery of civil earthworks solutions to Shadforth Civil across the Infrastructure and commercial construction sectors.

This project has grown significantly for BPH from the initial mobilisation of a small number of machines in November, to now being one of the larger projects for the business. The value of the work programme is expected to be in the region of $2.5m (AUD) and demonstrates the strong momentum and level of demand for BPH's specialist services.

Shadforth is a family owned civil contracting company and works on some of the largest civil contracting projects in Queensland.

Following completion of the infrastructure works programme, known as stage one, which is expected to continue to January 2019, all equipment will be re-positioned on to, and continue to work on the the adjoining stage two.

Shaun Fraser, GM Civil & Earthworks at BPH said: "The securing of this parcel of work again reflects the hard work, expertise and agility of the team in continuing to explore opportunities, this time within BPH's traditional markets. The opportunity to initially place a few items of equipment, has exploded to a point where BPH now has eight of our larger earthmoving specialist equipment deployed."

-ENDS-

[smoggyg] 17/12/2018 07:10

17/12/2018 7:01am
RNS Non-Regulatory

TIDMMRS

Management Resource Solutions PLC

17 December 2018

Management Resource Solutions plc

EPIC: MRS

17 December 2018

Management Resource Solutions plc

("MRS" or "the Company")

Bachmann Plant Hire confirms $2.5m (AUD) work programme across South East Queensland

Management Resource Solutions PLC, a leading Maintenance, Fabrication, Civil and Earthworks company, is pleased to announce that its Bachmann Plant Hire (BPH) business has secured and commenced the delivery of civil earthworks solutions to Shadforth Civil across the Infrastructure and commercial construction sectors.

This project has grown significantly for BPH from the initial mobilisation of a small number of machines in November, to now being one of the larger projects for the business. The value of the work programme is expected to be in the region of $2.5m (AUD) and demonstrates the strong momentum and level of demand for BPH's specialist services.

Shadforth is a family owned civil contracting company and works on some of the largest civil contracting projects in Queensland.

Following completion of the infrastructure works programme, known as stage one, which is expected to continue to January 2019, all equipment will be re-positioned on to, and continue to work on the the adjoining stage two.

Shaun Fraser, GM Civil & Earthworks at BPH said: "The securing of this parcel of work again reflects the hard work, expertise and agility of the team in continuing to explore opportunities, this time within BPH's traditional markets. The opportunity to initially place a few items of equipment, has exploded to a point where BPH now has eight of our larger earthmoving specialist equipment deployed."

-ENDS-

[inthemix] 16/12/2018 14:11

If you buy on someone else's say you're a tinpot trader an need to put on your big boys pants.

[arrynillson] 14/12/2018 15:49

thehitman - I can see why that theory might have legs!

[thehitman1] 14/12/2018 15:16

I will always do the opposite to what Smoggy says and have done well.

[arrynillson] 14/12/2018 14:15

SmoggyG - I take your claims with a sack of salt regarding your own personal buys and sells but what I'm talking about is how a reader would have fared if they took your published advice - could be a basis for a new TV show - Annihilation!

People would lose less money on AIM by pin sticking than by following your advice!

[smoggyg] 14/12/2018 13:59

arry, I made a lot of money on Kod by buying as the share price fell to 0.13p and selling most of the shares at 0.26p,I have told you that before and even showed you the post where I sold out,a week before the share price dropped. Kod was a winner for me,just like I think MRS will be eventually. You were advised to sell Cerp at 7.25p and the share price is now 3.28p to buy, I think my advice was fine. There are better examples of losers I have had,nobody wins them all and shares that fall can bounce far. (Unless it is Cerp of course). :)