Management Resource Solu... Share Discussion Threads

[ewanwhose] 02/5/2019 13:48

RNS - JZ resigned

[regina61] 02/5/2019 09:10

Shareholders attending this afternoon's meeting may take the opportunity to ask be a little more about Cavialeco, which has a Toronto address but is registered in Cyprus, and was the second largest participant in the July 2018 placing by MRS to “employees, contractors and directors”. All the information which follows can be found, with a little digging from publicly available sources. Examining the published information appears to indicate an undisclosed and unexplained relationship between John Zorbas, Chairman of MRS and Cavialeco.

Cavialeco is also listed as an investor in Captor Capital on page 19 of the attached file from February 2018 which was filed and signed by John Zorbas (see page 30), overall it was one of the largest investors in this private placement, as was the case three months earlier in December 2017, in this case apparently contributing over C$2m. The form can be downloaded herehxxps://webfiles.thecse.com/CSE_Form_9_-_Notice_of_Issuance_of_Securities-1feb_12_2018.pdf

Cavialeco is listed as the 5th largest investor in this placement by Captor Capital on the attached form submitted in December 2017, listed on page 7. The form was submitted with John Zorbas as the signatory.
It can be found at hxxps://webfiles.thecse.com/CPTR-9-Dec11-2017.pdf

[andy pipkin] 01/5/2019 09:42

Thanks again 12iq.

How does it feel to be spectacularly wrong again? I guess its a familiar feeling for you.

[apfindley] 01/5/2019 09:02

Due to the previous issuing of shares and the TVR rns, major holders are required to notify by tr1 of their altered holding percentages....why has nobody yet released a tr1??

[apfindley] 01/5/2019 08:05

Yes ok Tom

[apfindley] 01/5/2019 07:34

So this first stage debt restructuring will save the equivalent of 840k aud per annum.I'm not sure of the exact exchange rate but say on the basis of 2v1 against gbp, that's over 400k gbp .On a simplistic 10-1 p/e this rns just added 4million to the market cap.Puts the potential here into perspective. Lol

[yourwrong] 29/4/2019 08:44

But this investigation is it real?

[apfindley] 23/4/2019 17:35

Indeed Danny.However it's rather concerning they first say they had a show of hands, at a meeting 12000 miles away.Then because they knew the votes had failed anyway, they decided not to count the votes as the show of hands apparently lost their motion.So it's a cheap way out of not revealing the votes.Also why has it taken this long. To update on the meeting and the tvr.And why have no notifiable holders come forward either since the meeting or BEFORE it as certain holdings had changed but weren't notified. And they wonder why nobody trusts them.They're buying time to get their share numbers in order.

[danny baker] 23/4/2019 16:25

There you go apf, after our prompting, MRS have put out a TVR RNS. They've also discovered another 1,000,000 shares which Trevor Brown got from his warrants in March 2018 which had never been admitted to AIM. Always happy to help a Nomad.

[gnnmartin] 23/4/2019 15:05

yasX, thanks for that post. A pity I did not see it at the time, as it would have certainly modified my enthusiasm. It is still interesting in the light of the GM that has been called. I assume that Burton & Brown have signalled their willingness to be directors of the company. I'm starting to be inclined to ask my SIPP to vote my shares.

[apfindley] 23/4/2019 12:56

WHY ARE WE NOT SEEING ANY HOLDINGS OR TVR RNS.??Mrs????

[troutisout] 23/4/2019 11:17

Just bumping this up the list again.

12bm 28 Feb '19 - 06:53 - 2561 of 2618
0 0 0
Updated shareholder list:

All
1. Leon Hogan R 20,574,467 10.45 0 02/13/19
2. Hargreaves Lansdown Asset ManagemU 19,086,803 9.69 -8,345,220 02/13/19
3. URU Metals Ltd R 17,550,000 8.91 0 02/13/19
4. D M Smith R 7,520,123 3.82 0 02/13/19
5. Ross Charles R 7,500,000 3.81 0 02/13/19
6. MUNIR M A R 7,247,309 3.68 0 02/13/19
7.M Interactive Investor Trading Ltd R 7,072,348 3.59 1,492,077 02/13/19
8.M EQUINITI SHAREVIEW R 6,770,321 3.44 2,044,716 02/13/19
9. Barclays PLC U 6,769,142 3.44 1,704,006 02/13/19
10.M WH Ireland Group PLC R 6,720,000 3.41 70,000 02/13/19
11. Burton Nigel R 6,500,000 3.30 0 02/13/19
12. KARRABIN INVESTMENTS PTY LTD R 6,429,403 3.26 0 02/13/19
13. ESQ P Morffew R 5,400,296 2.74 0 02/13/19
14. Macquarie Group Ltd U 4,679,926 2.38 -42,500 02/13/19
15.M Halifax Share Dealing Ltd R 4,669,409 2.37 134,104 02/13/19
16. HSBC Holdings PLC U 4,377,750 2.22 -2,251,552 02/13/19
17.M KAS BANK NV CUSTODIANS R 4,257,765 2.16 0 02/13/19
18. ALEGANA ENTERPRISES R 4,000,000 2.03 0 02/13/19
19. Beaufort International Associates LtdU 3,964,889 2.01 2,814,640 02/13/19
20. AJ Bell Securities Ltd U 3,947,721 2.00 2,218,026 02/13/19
21.M Share Centre Ltd/The R 3,341,382 1.70 55,510 02/13/19
22.M IG Markets Ltd R 3,111,296 1.58 -1,572,998 02/13/19
23. CAVIALECO LIMITED R 2,895,000 1.47 0 02/13/19
24. D Athan R 2,832,282 1.44 0 02/13/19
25. Smith & Williamson Holdings Ltd U 2,500,000 1.27 0 02/13/19
26. EATON EQUITIES LIMITED R 2,350,000 1.19 0 02/13/19
27.M Jarvis Investment Management Ltd R 2,238,045 1.14 -149,095 02/13/19
28. Jones Timothy Stephen R 1,480,573 0.75 0 02/13/19
29.M Walker Crips Group PLC R 1,435,253 0.73 -700,000 02/13/19
30. Alliance Trust PLC U 1,245,025 0.63 651,025 02/13/19
31. Investec PLC U 1,170,000 0.59 1,050,000 02/13/19
32.M Tilney Investment Management R 1,099,691 0.56 1,099,691 02/13/19
33. Le Duy Min A 1,050,134 0.53 0 11/24/15
34. Banco Bilbao Vizcaya Argentaria SA U 1,004,791 0.51 0 02/13/19
35. Charles Stanley Group PLC U 1,004,300 0.51 171,662 02/13/19
36. Brenton Paul R 1,000,000 0.51 0 02/13/19
37. Christopher Grover "Christopher" R 1,000,000 0.51 0 02/13/19
38.M SVS SECURITIES R 919,233 0.47 669,128 02/13/19
39. Winterflood Securities Ltd U 740,291 0.38 -273,314 02/13/19
40.M RBS MORGANS LTD R 673,708 0.34 0 02/13/19
41. LE MARE SIMON GEOFFREY R 492,000 0.25 0 02/13/19
42. Peel Hunt LLP U 439,473 0.22 109,970 02/13/19
43. Gregory Phillip Burke R 343,166 0.17 0 02/13/19
44. Anne Elizabeth Reid R 343,166 0.17 0 02/13/19
45. Kevin Lonergan R 305,029 0.15 0 02/13/19
46. Commerzbank AG U 259,890 0.13 0 02/13/19
47. Sassey Pty Ltd R 250,000 0.13 0 02/13/19
48.M Sanlam Ltd M 228,700 0.12 0 02/13/19
49. SHAUN FRASER R 225,000 0.11 0 02/13/19
50. HARCOO SUPER PTY LIMITED R 225,000 0.11 0 02/13/19
51. Zorbas John R 219,080 0.11 0 02/13/19
52.M Fusion Wealth Ltd R 213,381 0.11 0 02/13/19
53. McTaggart Jonathon R 200,000 0.10 0 02/13/19
54. Canton of Vaud U 200,000 0.10 0 02/13/19
55.M Renta 4 Banco SA R 188,537 0.10 -16,190 02/13/19
56. Jason John Lonergan R 171,583 0.09 0 02/13/19
57. Howard Gabrielle Reti R 171,583 0.09 0 02/13/19
58. Chau Le R 171,583 0.09 0 02/13/19
59. Paul Lancaster Wiltshire R 171,583 0.09 0 02/13/19
60. Graeme Cole R 171,583 0.09 0 02/13/19
61. John Charles De Andrade R 171,583 0.09 0 02/13/19
62. Maree Chilton R 171,583 0.09 0 02/13/19
63. MANAGEMENTT RESOURCE SOLUTION 2 R 171,583 0.09 0 02/13/19
64. Andrea Leigh Kelly R 148,705 0.08 0 02/13/19
65. James Douglas Beckitt R 125,000 0.06 0 02/13/19
66.M iDealing.com Ltd R 102,200 0.05 15,000 02/13/19
67.M PILLING & CO STOCKBROKERS R 100,000 0.05 0 02/13/19
68. Taing Meng Wong R 85,792 0.04 0 02/13/19
69.M Stifel Nicolaus Europe Ltd R 62,962 0.03 -14,071 02/13/19
70. INVERSIS CLIENTS R 48,891 0.02 0 02/13/19
71. Christina Melich R 40,036 0.02 0 02/13/19
72. PERSHING & CO NEW YORK CLI ACC R 14,850 0.01 14,850 02/13/19
73. Brown Trevor Edward R 0 0.00 -7,151,000 02/28/18
74.M Shore Capital Group Ltd M 0 0.00 -29,357 02/13/19
75. Novum Securities Ltd U 0 0.00 -100,000 02/13/19
76. WEISER ASSET MANAGEMENT R 0 0.00 -633,286 02/13/19

[danny baker] 23/4/2019 09:39

Yasx good well-thought out post. My view is Nigel Burton and Trevor Brown now see an opportunity following the Alerion acquisition of reversing their RMS drone company into MRS in exchange for new MRS shares in an agreed deal. Very easy to do if they can gain seats on the MRS board and then appoint a couple of tame independent non-execs. They could probably save £200k a year in costs by combining the companies plus TB would regain a shareholding in MRS.

[king suarez] 19/4/2019 18:20

Yas,

Yes, I remember that posting and I did take note, however I decided that there was an opportunity with (what I perceived to be low downside risk due to the strong financial fundamentals) high risk/reward.

I'm not sure I was exactly 'espousing the company's virtues'? - I posted that it appeared very lowly valued based on fundamentals (which it definitely is) - but appears that was probably due to mistrust in the BOD (people who's background I was not familiar with at the time).

As it turns out the downside risk was far higher than I perceived (evidently) and I have lost money (so far). I will continue to hold due to the cash generation and see what happens going forward - you appear to have been right about the 'dodgy directors' which I did not pay enough credence to.

You cannot make your investment decisions based on what one poster writes on a message board, however I shall take your perspective into consideration more strongly going forward as you were obviously better informed than myself - thanks for the attempted warning!

ATB.

KS

[yasx] 19/4/2019 17:34

KS,

Not encouraging - well, that is putting it mildly.

I did warn both you and thebigfella months and months ago when you were espousing the virtues of this Co. on the basis pf the (perceived) low PE that it was all smoke and mirrors and that those in charge were merely engaging in fleecing the Co. I rather suspect you did not pay attention. Oh well.


yasX 18 Jul '18 - 01:28 - 1320 of 2585 Edit

TBF,

A bit more to it than that.

It did appear to me a very good recovery story some months ago, worth perhaps multiples of the current price - but, I bailed at prices higher than where we currently.

A few issues, though there are many more:

1: The Co has a patchy history (I am being overly generous) - this may not seem particularly relevant, indeed it is characteristically noted in many recovery plays. But, what is significant is that when the previous Board were essentially booted out, at or around that time there was a concerted effort led by two former non execs (being N Burton and T Brown) and supported by a enthusiastic base of retail holders to oust them. It proved to be a strenuous affair, but, by dint of their strenuous exertions and an emergency recapitalisation restoration of the shares to trading was enabled, with Zorbas appointed the current Chairman. Both the Non Exec's ploughed in heavily committing their own funds and buying shares and in the process declaring notifiable holdings.

2: Now, here is what you might wish to think about. I have no firm idea as to the cause of the same, but, I will in a moment speculate freely. Several months ago Mr Brown departed and immediately sold all his shares. Even more recently, Mr Burton tendered his resignation. He has not yet sold down but it is my expectation that he too will sell into any bonce that possibly might be induced by, say, alternative refinancing facilities if that were to happen as is hoped for - time will tell if he does. Then around the same time Bachmann starts offloading.

3: Now, of course, each might have good reason for moving on to pastures new. But, TB and NB put in not inconsiderable effort into trying to turn this around. I doubt they did this with a view to moving on a few months later and in the case of TB selling out entirely. Bachmann has been at the core of one of the two core businesses, and his selling also does not inspire confidence. We have also noted a bit a of selling recently by the former CEO although i think he needs the money for ongoing expenditure so that is not as material to affairs in my view.

4: I speculate (nothing more) that perhaps there has been a lack of harmony and consensus in terms of strategic direction between those that have departed and the current Chairman. This has been a rumour that has done the rounds although I have no evidence. But, I would not dismiss the thesis. As far as I am concerned, I would much rather have seen the back of Zorbas and retained the others. For me, Zorbas has not the faintest inkling about how to steer this efficaciously going forward, though of course that is merely my opinion.

5: As for the metrics, indeed given the projected EPS it might appear cheap - but, you need to consider that there is the debt burden and this is a very cash intensive business with little scope to increase margins since the mining majors are tough negotiators. The Co is running at full tilt and expanding services is difficult unless the Co has access to additional cash resources, which is a difficult bind. There is negligible institutional support, and we have Bachmann offloading and my expectation that Mr Burton will probably look to do the same (I might be wrong, but, we will see).

In the right hands, and if the wider markets hold up (I reckon they will have a tough time doing so in the months ahead), this could well have proven a very good play. But, I do not consider Zorbas the appropriate charge to lead this outfit. However, I do not rule out trading the gyrations if that opportunity presents itself.

Caveat Emptor - as is always the case.

My views only.