MRS updates on business, suspension of shares

Management Resource Solutions has provided an update on its review of the group’s business and the current suspension of the company’s shares from trading on AIM.

CONSULTING BUSINESS

“The Company has previously announced the identification of material issues with the consulting contracts in Papua New Guinea and New South Wales,” it said in a statement.

“As a result of the external review and advice MRS Guernsey Limited (operating entity of the Papua New Guinea contract) has been placed into voluntary liquidation. The liquidation of MRS Guernsey is part of the ongoing process of resolving various legacy issues within the MRS Group, which led to the termination of the previous CEO, Paul Morffew and the closure of the consulting business in November 2016.

“For the purposes of Schedule 2(g) to the AIM Rules for Companies, Tim Jones, a director of MRS, was a director of MRS Guernsey Limited until June 2016. Paul Morffew, former CEO of MRS, was also a director of MRS Guernsey Limited and had principal responsibility for its activities.

“The Company has yet to conclude the review of the consulting contract in NSW and will provide a market update when appropriate.

SUSPENSION FROM AIM

“The MRS Group accounts audit is ongoing and proving more difficult than anticipated as a result of financial and operational issues kept from the board by former CEO Paul Morffew.

“Only once the directors are satisfied that they have fully identified the issues within the Group and notified shareholders of such, will application be made for the Company’s ordinary shares of €0.01 each to be restored to trading on AIM and efforts are being made to do this as soon as possible.”

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