TIDMMRS
RNS Number : 4773Z
Management Resource Solutions PLC
11 December 2014
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, INTO OR FROM THE UNITED STATES,
CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND, SOUTH AFRICA OR JAPAN.
ANY FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A
VIOLATION OF THE SECURITIES LAWS OF THE UNITED STATES, CANADA,
AUSTRALIA, THE REPUBLIC OF IRELAND, SOUTH AFRICA OR JAPAN.
11 December 2014 For immediate release
Management Resource Solutions PLC
("MRS" or the "Company")
Admission to AIM
MRS, the human capital resource consultancy, is pleased to
announce that admission takes place and dealings in its ordinary
shares commence today on the AIM market of the London Stock
Exchange under the ticker "MRS". The Company is also pleased to
announce the successful placing (the "Placing") of 2,416,667 new
ordinary shares of EUR0.01 each ("Ordinary Shares") at 30 pence per
share (the "Placing Price") to raise GBP725,000 to meet the costs
of admission.
Key admission highlights
-- Based on the Placing Price, the market capitalisation of MRS
on admission to trading on AIM ("Admission") will be approximately
GBP9.8 million.
-- The Placing will raise gross proceeds of approximately
GBP725,000 to be used for working capital to fund growth and the
cost of Admission.
-- On Admission, the Directors and senior management of the
Company will hold approximately 46.6 per cent. of the issued share
capital of the Company.
Background on MRS
MRS provides project, quality, environmental and health &
safety management services to some of the largest companies and
projects across Australia, Oceania and Southeast Asia. MRS are
sector specialists in the construction, engineering, civil
engineering, petrochemical and coal seam gas sectors. MRS sources
its contractors from a database of over 23,000 professionals around
the globe, allowing it to react quickly and fully to client
requirements.
KEY STRENGTHS
-- Niche player. Occupies a niche space as a provider of
services across a range of sectors and sought after as an industry
expert by clients.
-- Quality certification. ISO 9001 quality management system certification.
-- 23,000+ professionals. Large diversified consultant base of over 23,000+ contractors.
-- Acquisition growth strategy. Targeted strategic acquisition
strategy to expand highly profitable and diversified solutions
business.
-- Real time data ability. State of the art systems providing
real time data for clients, to maximise project efficiency.
-- Dividend Policy. The Board's objective following Admission is
to continue to grow the Group's business both organically and by
acquisition but during this period the Directors intend to
distribute up to two thirds of net profit after taxation to
Shareholders by way of dividends.
Paul Morfew, Chief Executive Officer of MRS, commented:
"We are pleased to announce the successful placing of shares and
admission to trading on AIM of MRS. I would like to welcome new
investors to the Company and thank existing investors for their
continuing support as we strive to add shareholder value through
the systematic execution of our growth strategy.
"MRS is a leading provider of project, quality, environmental
and health & safety management services to some of the largest
companies and projects across the Asia Pacific and we believe this
is a natural time in our growth trajectory to become a public
company in London. We have a long track record of consistent and
profitable growth with a highly cash generative business model
which we expect will deliver an attractive yield for investors.
"We are looking forward to updating the market in January on our
performance in the first half of this year where we have
experienced further significant growth".
-Ends-
For further information:
Management Resource Solutions c/o FTI +44
PLC (0)20 3727 1000
Paul Morffew, Chief Executive
Timothy Jones, Finance Director
Northland Capital Partners Limited
(Nominated Adviser and Broker)
William Vandyk +44 (0)20 7382
Gavin Burnell 1100
FTI Consulting
Edward Westropp
Oliver Winters +44 (0)20 3727
Adam Cubbage 1000
Terms capitalised but not defined herein are defined in the
Admission Document.
The Company's Admission Document can be found at
http://www.mrsplc.net/
Further information on the Company and AIM Admission
DETAILS OF THE PLACING
The Company has raised GBP725,000, before expenses, by way of
the issue of 2,416,667 new Ordinary Shares at a price of 30 pence
per share, to meet the costs of Admission and provide ongoing
working capital
The Directors believe that the admission to trading on AIM will
offer a number of benefits, including:
-- enhance the credentials of the Group with existing and potential customers;
-- access to equity capital; and
-- facilitate the continued recruitment of high calibre employees.
Tim Jones, Finance Director, has participated in the placing,
subscribing GBP40,000 for 133,333 new Ordinary Shares.
OVERVIEW OF MRS'S BUSINESS
MRS provides consulting services and contract personnel to add
value to client projects by optimising business focus and
efficiency whilst reducing costs. The majority of MRS's current
clients are in the coal seam gas industry in Australia and SE Asia
and MRS specialises in project management, quality management
standards, environmental management standards and health &
safety management standards. MRS does not provide mine management
or other commoditised services, operating only in specialist,
consistently profitable areas.
The vast majority of MRS's existing business is in assurance
services, including:
-- Quality assurance, involving the development, implementation,
monitoring and auditing of project quality assurance plans and
procedures in line with ISO 9001 and project requirements as
directed by the client;
-- Quality control services, such as the development and
implementation of project quality control inspection programmes;
and
-- Document and data management services, assisting clients to
manage and control all engineering design deliverables including
document management population, maintenance (i.e. registration,
scanning and filing), audit and recording of technical
deliverables.
In addition, MRS provides a range of consulting services
including:
-- Environmental Impact Assessments, which provide an evaluation
of the potential physical, biological, cultural, and socioeconomic
effects of a project element and its practical alternatives;
-- Assurance technical consultancy, such as surveillance
officers, material, mechanical & welding, electrical &
instrumentation and coating & fibreglass inspectors and
commissioning support personnel; and
-- Health and Safety, which encompasses the training and implementation of safety systems.
-- Finally, MRS offers a number of training programs to assist
clients with quality assurance and safety programs covering
introductory courses, implementation and audits as part of overall
project support.
MRS sources its contractors from a database of over 23,000
professionals around the globe, allowing it to react quickly and
fully to client requirements. MRS has 50 contractors acting on 7
active projects.
The Directors believe that MRS is differentiated from its
competitors both by the depth of the talent pool it has available
and its ability to respond to requests from clients for new
contractors in very short time periods, thus allowing it to deploy
staff on a project who fully meet the criteria for the assignment
in a matter of days.
CURRENT TRADING AND PROSPECTS
Since the start of 2014 MRS has seen an improvement in its
trading operations, including a significant new business in Papua
New Guinea which has increased in value and scope since it was
initially agreed and is expected to materially improve the Group's
revenue and profitability in the financial year to 30 June 2015.
MRS has experienced a marked increase in enquiries and orders
generally along with extensions and expansions of other existing
contracts.
FINANCIAL SUMMARY
Set out below is a summary of MRS's financial performance for
the periods ended 30 June2014 which has been extracted without
material adjustment from the audited accounts of the Company.
Shareholders should read the accounts in their entirety and not
rely solely upon the summarised information below.
Year End Year End Year End
30 June 30 June 30 June
2014 A$'000 2013 A$'000 2012 A$'000
Turnover 10,490 7,205 7,226
Profit Before
Taxation 187 194 1,128
Profit After
Taxation 52 232 767
Net Assets 1,251 1,199 1,523
Although work commenced on the Papua New Guinea contract in the
financial year ended 30 June 2014 the contract was only formalised
after the year end and thus income, related costs and profits can
only be recognised in the current financial year to 30 June
2015.
ACQUISITION STRATEGY
The Directors consider that there are significant opportunities
for expansion by acquisition of complementary businesses providing
services and consulting to the natural resources industry and that
the majority of the Group's future growth will be delivered in this
way. The Directors do not intend to specialise in or exclude any
particular resource, industry or geography but will focus on
businesses operating within the higher tiers of the contracting
process. The Directors have adopted valuation criteria within which
it is intended all acquisitions will be made and will be looking to
acquire established businesses which can operate as self-contained
entities within the Group whilst benefitting from some centralised
functions and cross-selling opportunities. The Directors are
currently considering a number of acquisitions in Europe and
Australasia but there can be no certainty as to when, or if,
further acquisitions will be made.
MRS'S EXECUTIVE MANAGEMENT
Paul Morffew (48), Chief Executive
Paul Morffew has over 20 years' experience in managing public
and private businesses within the oil, roads, and mining sectors.
He has a Bachelor of Applied Science (Chemistry and Mineral
Chemistry) and a background in environmental management and Quality
Assurance, with a direct working knowledge of Quality Management
Systems.
Prior to founding MRS, Paul founded and successfully managed
similar start-up firm ML (Air) and has also managed businesses for
Australian Environmental Labs, SGS, Water Ecoscience and Sigma
Energy Solutions (GE Alstom). Paul has worked in joint ventures for
numerous mining, construction, oil gas and engineering companies
such as Inco Australia Management, Worley Parsons, Foster Wheeler,
Maunsell, Bateman and Oracle.
Murray d'Almeida (66), Chairman
Murray has over 35 years of diverse national and international
business experience. He commenced his career in Perth with a firm
of Chartered Accountants before moving into a broad range of
commercial and financial reporting positions with two major USA
based mining companies.
He founded the Australian and international retailer, Retail
Food Group and developed their presence in seven overseas
countries. He has maintained operating and board positions in a
number of sectors including commercial, academic, government,
financial services, resources, agriculture, retail, franchising,
hospitality, importing, distribution and sport.
Tim Jones (65), Finance Director
Timothy Jones trained as a Chartered Accountant with Price
Waterhouse in London where his clients included a major offshore
oil and gas operator. He then joined a client as Financial Director
before founding his own accountancy and consultancy practice in
1990. He has clients in a range of business sectors but his main
focus is on natural resources. He sits on the boards of a number of
companies, including AIM listed Falkland Oil and Gas Limited and
AIM and TSX listed Xcite Energy Limited, where he is Chairman. His
previous public directorships include Bahamas Petroleum Company
Limited and Beacon Hill Resources Plc, both of which he saw through
the listing process. His areas of expertise include the provision
of high-level financial advice to growing businesses, merger and
acquisition planning and execution and assistance with listing
procedures.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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