Management Resource Solutions PLC Update on Trading and Suspension (7374O)
November 09 2016 - 4:15AM
UK Regulatory
TIDMMRS
RNS Number : 7374O
Management Resource Solutions PLC
09 November 2016
9 November 2016
Management Resource Solutions Plc
Update on Trading and Suspension
Further to the announcements of 27 October, 28 October and 3
November, the directors of Management Resource Solutions Plc
("MRS", "Company" or "Group") are pleased to provide an update on
their review of the Group's business and the current suspension of
the Company's shares from trading on AIM.
Consulting Business
It has become apparent that there were significant shortcomings
in the Group's contracts with PEAL in Papua New Guinea and with
Aiotec in New South Wales. Having taken legal advice, the Company
is moving to commence proceedings to recover amounts due to it
under both contracts but in the interim the board has determined
that these contracts will be terminated immediately, thus
eliminating a significant ongoing cash drain on the Group.
As these contracts represent the entirety of the remaining
consulting business of MRS, their termination effectively marks the
closure of the consulting business and the Group has already
realised annualised cost savings of approximately $1.5m as a result
of discontinuing these services.
The amounts due to MRS from PEAL and Aiotec are to be determined
and subject to potential counter claim but are likely to be in the
order of several million dollars before costs. Further information
regarding recovery of these sums will be provided as
appropriate.
Suspension from trading on AIM
The directors of MRS continue to work with their advisers and
bankers to progress the Group audited accounts and to identify and
rectify areas of concern within the Group. Only once the directors
are satisfied that they have fully identified the issues within the
Group and notified shareholders of such, application will be made
for the Company's ordinary shares of EUR0.01 each to be restored to
trading on AIM and efforts are being made to do this as soon as
possible. However, the directors are able to confirm that the
businesses of SubZero and Bachmann are thriving and any issues
impacting the Group are contained within the now defunct consulting
business.
Further announcements will be made once additional information
is available.
For further information:
Management Resource Solutions PLC c/o FTI +44 (0)20 3727
1000
Murray d'Almeida, Chairman
Timothy Jones, Finance Director
Northland Capital Partners Limited +44 (0)203 861 6625
(Nominated Adviser and Joint Broker)
William Vandyk
Gerry Beaney
Peterhouse Corporate Finance Limited +44 (0)20 7469 0932
(Joint Broker)
Charles Goodfellow
Lucy Williams
FTI Consulting +44 (0)20 3727 1000
Edward Westropp
Emilie O'Herne
Management Resource Solutions (MRS), through its subsidiaries
Bachmann and SubZero, offers plant hire, equipment repair,
refurbishment and fabrication, mine rehabilitation, earthmoving,
road construction and other support services to a wide base of
private and public sector clients in Australia. MRS caters
predominately to the oil & gas, mining, civil engineering,
construction and infrastructure industries.
This information is provided by RNS
The company news service from the London Stock Exchange
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