Management Resource Solutions PLC Operational update and acquisition statement (5160B)

TIDMMRS

RNS Number : 5160B

Management Resource Solutions PLC

07 October 2015

7 October 2015

Management Resource Solutions PLC

Operational update and statement regarding proposed acquisition

On 20 August 2015, Management Resource Solutions PLC ("MRS" or "Company") announced its ordinary shares had been temporarily suspended from trading on AIM pending the publication of an admission document in relation to a proposed reverse acquisition or an announcement that such transaction was not proceeding. The Company would like to make the following statement in relation to this and provide an operational and trading update.

Potential Acquisition

The Company has signed a non-binding heads of terms for the purchase of an earthmoving business in Australia and this is continuing subject to a final approval from Westpac Bank and shareholder consent. The Company has now completed the audit of the acquisition target and an asset valuation. Work has commenced on the legal due diligence necessary prior to finalising a share sale agreement and securing formal approval from Westpac Bank in regards to a loan facility required for the acquisition. The Directors of MRS currently anticipate that they will be able to send an AIM admission document to shareholders regarding the proposed acquisition by mid-November 2015. It is anticipated that the Company's shares will be re-admitted to trading following this.

Business Update

The Company is pleased to report that it has just been awarded a four month contract for A$5.5M in relation to a new project in Papua New Guinea. This contract has been in negotiation since October 2014 and the Company originally hoped to secure and complete this project in the financial year ended 30 June 2015.

The Company has also tendered for numerous large projects in the Asia Pacific region and continues to see a steady pipeline of opportunities.

Trading Update

The Company is currently preparing its audited results for the year ended 30 June 2015 which will be published with details of the reverse transaction but, as has already been signaled, these will be adversely impacted by the exceptional costs of the Company's IPO in December 2014 and the aborted reverse takeover in the latter half of the financial year.

It is currently expected that, subject to any alterations made as part of the audit process, total income for the year will be in the order of A$17m (2014: A$10.5m) and that the Company will report a net loss after taxation of approximately A$900,000 (2014: A$52,000 profit) including exceptional non-recurring costs of approximately A$2m. Excluding these costs, the Company would have reported a profit of around A$1m for the year, a significant improvement on the previous comparable period. In light of the anticipated loss the Company does not intend to declare a final dividend in respect of the year ended 30 June 2015, having already paid an interim dividend of 0.35p per share.

It is anticipated that the Company will report its audited results for the year ended 30 June 2015 with the AIM Admission document in mid-November.

For further information please call:

 
 Management Resource Solutions   via FTI Consulting 
  PLC 
 Paul Morffew (CEO)              Tel: +44 (0) 
                                  20 3727 1000 
 
 
 Northland Capital Partners Limited   Tel: +44 (0)20 
  (Nomad)                              7382 1100 
 William Vandyk 
  David Hignell 
                                      Tel: +44 (0)20 
   FTI Consulting (Financial PR)       3727 1000 
 Edward Westropp 
  Adam Cubbage 
 
 

Notes to Editors

Management Resource Solutions is a quality assured ISO 9001 Company focused on delivering high quality services with emphasis on establishing mutually beneficial long-term relationships with its clients.

The Management Resource Solutions charter is to provide organisations involved in Engineering, Procurement, and Construction Management throughout Australia, Asian Pacific Region and the Middle East with solutions for managing quality, process and project risk. The Company provides the technical advice, expert staff, system components and training that enable our clients to build risk management systems into their environment, gain appropriate certifications and assist them in the operation of the systems.

More information is available at www.mrslimited.com

Ends

This information is provided by RNS

The company news service from the London Stock Exchange

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October 07, 2015 06:10 ET (10:10 GMT)