Management Resource Solutions PLC Align Research MRS note release
May 12 2017 - 2:50AM
RNS Non-Regulatory
TIDMMRS
Management Resource Solutions PLC
12 May 2017
Management Resource Solutions - Conviction Buy Price Target
14.55p
GBP3.5 million fundraising to support working capital puts the
company on a solid footing to recommence operational growth after
AIM re-list
Management Resource Solutions (MRS) is an Australia based mining
services business. Via its two subsidiaries, Bachmann Plant Hire
and MRS Services Group, it provides services including plant hire,
equipment repair, refurbishment and fabrication, mine
rehabilitation, earthmoving, road construction and other support
services to a range of private and public sector clients in
Australia.
A tough six months at the corporate level but strong future
ahead
Shares in MRS were suspended from trading on AIM from 27th
October 2016 to 5th May 2017 after disputes with its former CEO and
problems within its consulting business led to a delay in
publication of the annual accounts. A new management team is
addressing the issues and trading in the remaining two divisions is
improving.
Total fundraising of GBP4 million for working capital
MRS has raised a total of GBP4 million via two placings at 5p
per share and a director subscription. The proceeds will mainly be
put towards the payment of creditors and future working capital
needs. With the company on a sound financial and operational
footing, post re-list it will once again consider additional growth
opportunities in line with its previous strategy.
Low valuation provides plenty of scope for upside
On our figures MRS trades on a FY2018 EV/EBITDA multiple of just
4.56 times. This is a low valuation which provides plenty of scope
for near-term upside should targeted profit figures for next year
be achieved. With our peer analysis suggesting a June 2018 target
of 14.55p per share we have a Conviction Buy stance.
To download the full note visit the following link -
http://www.alignresearch.co.uk/cpt-company/management-resource-solutions/
This information is provided by RNS
The company news service from the London Stock Exchange
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