MRS reports progress

Management Resource Solutions continues to make progress investigating a number of issues within the legacy consulting business, which includes the PEAL contract and the decommissioning work announced in May, and has scheduled meetings with the counterparties to the relevant contracts under review over the coming week.

The directors hope to provide a further update on these issues, one of the underlying reasons for the current suspension of the company’s shares from trading on AIM, next week.

The company and its advisers continue to work to fully identify, quantify and resolve a number of matters and as soon as clarity has been achieved on these it is intended that an application be made for the resumption of trading in MRS’s ordinary shares on AIM.

The company says unaudited earnings before interest and taxation of Bachmann Plant Hire for the year ended 30 June is within the expected range of A$2.1m to A$2.6m (approximately £1.3m to £1.6m) set out in the company’s admission document published on 11 January 2016.

As such, the first deferred payment of A$1,333,333 (approximately £830,000) is due to the vendors of Bachmann and will be satisfied by the issue to the vendors of Bachmann of new ordinary shares of €0.01 each in the company, to be issued upon resumption of trading in the company’s ordinary shares on AIM.

The company says SubZero has reported unaudited revenue for the first quarter of the new financial year, to 30 September, of $16.4m (2015: $15.0m). The timing of the SubZero acquisition has aligned with an upturn in the resources industry, with the Newcastle thermal coal spot prices reaching USD$108 per tonne this week while Glencore, a major blue chip MRS customer, has locked in much of the recent spike in spot thermal coal pricing through a contract deal with leading Japanese Power Utility (JPU) Tohoku Electric that set the JPU September 2017-expiry thermal coal contract reference price at USD$94.75/t FOB.

Management Resource Solutions says Joe Clayton, who was appointed interim chief executive of the company and its subsidiaries on 28 October, has agreed, subject to due diligence and contract, to taking on this role on a permanent basis.

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