TIDMMRS
RNS Number : 0451S
Management Resource Solutions PLC
15 March 2016
15 March 2016
Management Resource Solutions PLC
("MRS" or the "Company")
Interim Results for the period Ended 31 December 2015
MRS, the human capital resource consultancy quoted on AIM, is
pleased to announce its interim results for the period ended 31
December 2015.
Financial Highlights
-- Revenue of A$6.2m (approximately GBP3.25m), down compared to the same period the previous year (Dec 2014:
A$11.4m) reflecting a decline in the provision of contract personnel and the slower than expected progress of the
Papua New Guinea ("PNG") project, largely due to adverse weather and construction issues;
-- Increase in profit before tax to A$522,000 (approximately GBP274,000), compared to the same period the previous
year (Dec 2014: A$491,000) from a significant reduction in cost of sales and administrative expenses due to the
AIM listing process in December 2014; and
-- Earnings per share of 1.56c (Dec 2014: 1.70c).
Operational Highlights
-- Non-binding heads of terms for the purchase of Bachmann Plant Hire ("Bachmann") in Australia were signed in
October 2015;
-- During the period Company focussed on stabilizing group revenue, whilst progressing the transformative
acquisition of Bachmann; and
-- Strengthened relationships with our blue chip client base.
Post period end update and outlook
-- Acquisition of Bachmann Plant Hire for a consideration of up to A$13.4 million announced on 11 January 2016 and
subsequent completion of the acquisition at the General Meeting of the Company on 28 January 2016 and the
enlarged MRS group readmitted to trading on AIM on 1 February 2016;
-- Received a loan facility of A$1.5m from Export Finance and Insurance Corporation (Efic), the Australian export
credit agency. This facility provides government-backed support of the CompanyÕs ongoing work in Papua New
Guinea;
-- Appointment of Christopher John Berkefeld as an independent Non-Executive Director following the acquisition of
Bachmann Plant Hire Pty. Ltd. on 11 January 2016;
-- The Company continues to look for suitable acquisitions in the region to expand our service offerings; and
-- The company has recently tendered on a major construction/demolition project, which would start towards the end
of March 2016 if successful.
Paul Morffew, MRS CEO said:
"Although we suffered the frustration of spending much of the
first half of the financial year with our shares suspended while we
progressed the transformative acquisition of Bachmann, considerable
operational progress was made with a significant contract win in
Papua New Guinea. The business has ended the period in a good
financial position, with stable revenue streams and a reduced cost
base.
"Post period end we announced the acquisition of Bachmann, which
has added a significant new business line to the Company and is a
transformative step for our business. Alongside Bachmann, we were
also pleased to announce the partnership with Efic, which is a
great endorsement for the enlarged business.
"I would like to take this opportunity to welcome Christopher
John Berkefeld to the Board and also to thank shareholders for
their support and patience in what has been another exciting period
for MRS.
"We have already started the second half of the financial year
at a pace and we believe the demand for work in Australia has
increased after a lull in the resources sector during 2015. I look
forward to updating you as to our progress in the coming
months."
- Ends -
For further information:
Management Resource Solutions c/o FTI +44 (0)20 3727
PLC 1000
Paul Morffew, Chief Executive
Timothy Jones, Finance Director
Northland Capital Partners Limited
(Nominated Adviser and Broker)
David Hignell
Gerry Beaney +44 (0)20 7382 1100
FTI Consulting
Edward Westropp
Adam Cubbage +44 (0)20 3727 1000
CEO Statement
Dear Shareholders,
Our aim during the past half-year ended 31 December 2015 (HY 15)
was to stabilize our turnover whilst progressing the acquisition of
the Bachmann Plant Hire Group ("Bachmann"). We have made good
progress on this with the acquisition of Bachmann completing at the
end of January 2016 and the enlarged MRS group being readmitted to
trading on AIM on 1 February 2016.
Revenue in the first half of 2015 was lower than the previous
year, reflecting a decline in the provision of contract personnel
and the slower than expected progress of the Papua New Guinea
("PNG") project, with weather and construction issues being the
major influencer in these delays. This project is set for
completion in mid-2016 and forms an integral part of MRS's larger
expansion and diversification strategy in and around PNG.
As an example of our continued diversification, MRS has recently
tendered on a large demolition project which is outside our normal
sphere of activity. The project is due to start mobilization at end
of March 2016 and would run for approximately 6 - 9 months if we
were successful with the tender winner due to be advised 22 March
2016.
The Bachmann group has had an excellent first half year to 31
December 2015. These are based on the management reports and
unaudited financial statements but will give us a good idea of the
positive impact the transaction will have on the enlarged MRS group
in the future. The turnover for the Bachmann group was A$13.4M and
they reported an unaudited profit of A$1.7M. These numbers do not
include any potential rebates for fuel.
The acquisition of Bachmann will provide many synergies to the
existing business such as streamlining reporting through systems,
access to larger tenders as the enlarged group now has experience
and turnover for larger projects, an increased offering of
services, additional benefits of the MRS international
accreditations which should ultimately lead to a safer workplace
and more tender opportunities outside the current region where
Bachmann works. I am pleased to advise that the utilization of
Bachmann machines at present is around 90-95% and we are currently
renting machinery from other companies in order to meet the excess
demand.
The company continues to look for suitable acquisitions in the
region to expand our service offerings. We do believe the demand
for work in Australia has increased after a lull in the resources
sector during 2015.
Whilst the company is in the middle of stabilizing and getting a
firm grasp of the Bachmann business the company will not announce
an interim dividend at this stage.
On behalf of the Board, I would like to thank all employees at
MRS for their dedication and for the progress the company has made.
I would also like to thank our shareholders for their continued
support.
Paul Morffew
CEO
Management Resource Solutions PLC
Condensed Statement of Comprehensive Consolidated Income
For the six months ended 31 December 2015
6 months 6 months Year ended
ended ended 31
December
2014 (Unaudited)
31 December 30 June
2015 (Unaudited) 2015
(Audited)
Note A$'000 A$'000 A$'000
Revenue 6,194 11,403 17,089
Cost of sales (3,644) (7,156) (14,231)
------------------- ------------------ -----------
Gross Profit 2,550 4,247 2,858
Administrative
expenses (2,028) (3,757) (4,545)
------------------- ------------------ -----------
Operating profit
/ (loss) 522 490 (1,687)
Other Income - 2 -
Finance costs
- interest - (1) -
------------------- ------------------ -----------
Profit / (loss)
before tax 522 491 (1,687)
Tax (expense)/credit (10) 30 39
------------------- ------------------ -----------
Profit / (loss)
for the period
attributable to
equity holders
of the parent
company 512 521 (1,648)
------------------- ------------------ -----------
Earnings / (loss)
per share attributable
to equity holders
of the parent
company
Basic 3 1.56c 1.70c (5.19)c
------------------- ------------------ -----------
Fully diluted 3 1.33c 1.43c (5.19)c
------------------- ------------------ -----------
Management Resource Solutions PLC
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March 15, 2016 03:00 ET (07:00 GMT)
Condensed Consolidated Balance Sheet at 31 December 2015
At 31 December At 31 December At 30 June
2015 2014 2015
(Unaudited) (Unaudited) (Audited)
Assets A$'000 A$'000 A$'000
Non-current assets
Property, plant,
equipment 229 339 260
Deferred tax 187 193 194
416 532 454
----------------- ----------------- -------------
Current assets
Trade and other
receivables 3,541 2,651 1,121
Cash and cash
equivalents 722 2,109 920
4,263 4,760 2,041
----------------- ----------------- -------------
Total assets 4,679 5,292 2,495
Liabilities
Current liabilities
Trade and other
payables 3,005 2,168 1,323
----------------- ----------------- -------------
3,005 2,168 1,323
----------------- ----------------- -------------
Non-current liabilities
Borrowings 27 40 18
Deferred tax 6 13 5
33 53 23
----------------- ----------------- -------------
Total liabilities 3,038 2,221 1,366
----------------- ----------------- -------------
Net assets 1,641 3,071 1,129
================= ================= =============
Equity attributable
to equity holders
of the parent
Share capital 36,623 36,623 36,623
Share premium 1,221 1,221 1,221
Issue costs reserve (332) (332) (332)
Reorganisation
reserve (36,032) (36,032) (36,032)
Retained earnings 161 1,591 (351)
Total equity attributable
to equity holders
of the parent 1,641 1,300 1,129
================= ================= =============
Management Resource Solutions PLC
Condensed Consolidated Statement of Changes in Equity
(unaudited)
For the six months ended 31 December 2015
Issue
Share Share costs Reorganisation Retained Total
capital premium reserve reserve earnings equity
A$'000 A$'000 A$'000 A$'000 A$'000 A$'000
At 1 July 2014 36,586 - (332) (36,032) 1,029 1,251
Profit for the
period - - - - 521 521
Total comprehensive
income - - - - 521 521
--------- --------- --------- --------------- ---------- --------
Other movements
Shares issued 37 1,342 - - - 1,379
Costs of issue - (121) - - - (121)
Share based
payment charges - - - - 41 41
Total other
movements 37 1,221 - - 41 1,299
--------- --------- --------- --------------- ---------- --------
At 31 December
2014 36,623 1,221 (332) (36,032) 1,591 3,071
Loss for the
period - - - - (2,169) (2,169)
Total comprehensive
income - - - - (2,169) (2,169)
--------- --------- --------- --------------- ---------- --------
Other movements
Share based
payment charges - - - - 449 449
Dividends paid - - - - (222) (222)
Total other
movements - - - - 227 227
--------- --------- --------- --------------- ---------- --------
At 30 June 2015 36,623 1,221 (332) (36,032) (351) 1,129
Profit for the
period - - - - 512 512
At 31 December
2015 36,623 1,221 (332) (36,032) 161 1,641
========= ========= ========= =============== ========== ========
Management Resource Solutions PLC
Condensed Consolidated Statement of Cash Flows
For the six months ended 31 December 2015
6 months 6 months Year ended
ended ended 30 June
31 December 31 December 2015 (Audited)
2015 2014
(Unaudited) (Unaudited) A$'000
A$'000 A$'000
Cash flows from operating
activities
Receipts from
customers 4,693 10,853 18,606
Payments to suppliers
and employees (4,865) (10,821) (19,592)
Interest received - 2 13
Finance costs (32) (20) (72)
Income tax
paid (2) (21) -
------------- ------------- ----------------
Net cash flow from
operating activities (206) (7) (1,045)
------------- ------------- ----------------
Cash flows from investing
activities
Purchase of non-current
assets - (185) (105)
------------- ------------- ----------------
Net cash flow from
investing activities - (185) (105)
------------- ------------- ----------------
Cash flows from financing
activities
Increase/(decrease)
in borrowings 8 (19) (27)
Issue of shares
net of costs - 1,257 1,257
Dividends paid - - (222)
------------- ------------- ----------------
Net cash flow from
financing activities 8 1,238 (1,007)
------------- ------------- ----------------
Net (decrease)/increase
in cash held (198) 1,046 (143)
------------- ------------- ----------------
Cash and cash equivalents
at 1 July 2015 920 1,063 1,063
------------- ------------- ----------------
Cash and cash equivalents
at 31 December 2015 722 2,109 920
------------- ------------- ----------------
Management Resource Solutions PLC
Notes forming part of the Interim Results
For the six months ended 31 December 2015
1. Accounting Policies
The condensed consolidated unaudited interim financial
information set out in this report is based on the financial
statements of Management Resource Solutions Plc ("MRS"). The
condensed financial information should be read in conjunction with
the annual financial statements for the year ended 30 June 2015,
which were prepared in accordance with International Financial
Reporting Standards. The financial statements for the Group for the
six months ended 31 December 2015 were approved and authorised for
issue by the Board on 3 March 2016. These financial statements have
been prepared in accordance with the accounting policies that are
expected to be applied in the Report and Accounts of MRS for the
year ending 30 June 2016 and are consistent with International
Financial Reporting Standards adopted for use in the European
Union.
2. Basis of preparation
The financial information for the six months ended 31 December
2015 and 2014 is unreviewed and unaudited and does not constitute
the Company's statutory financial statements for those periods. The
comparative financial information for the full year ended 30 June
2015 has been derived from the statutory financial statements for
that period. The statutory accounts for the year ended 30 June 2015
have been filed with the Registrar of Companies. The auditorsÕ
report on those accounts was unqualified.
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