Following the RNS today in which the new Board of Management Resource Solutions (MRS) sets out the company’s immediate plans to raise AUD $5m at a price of 5p per share, Align Research declares its support for this move.

For many shareholders (ourselves included), the last 6 months no doubt did not pan out quite the way that was expected. The Boardroom tussles have proved to be a time consuming and expensive distraction and certainly a period I am sure all parties want to put behind them. As ever in these situations, aside from being a “fly on the wall” it is almost impossible to ascertain the real facts as there are usually a number of interpretations on them, particularly with the benefit of hindsight.

When all is said and done however, as a shareholder in the company, our focus is on in aiding its continuity as a quoted entity and, importantly, one where there is a restoration of appropriate equity value and hopefully returning to a future growth profile whereupon the benefits will flow through to equity holders.

Accordingly, based on figures that we have seen in covering the company, and ones in which management have a good degree of conviction, at the capital raising level of 5p we believe the shares to be priced for a buoyant relist with the enterprise value of MRS at this level being at a decent discount to its fellow listed peers. We will produce a full update note in the weeks ahead as the company looks to return to the market but in the interim we reiterate our support for this raising and look forward to the resumption of trading in the shares.

DISCLAIMER

Management Resources Solutions (MRS) is a research client of Align Research. Align Research holds an interest in the shares of MRS.

• Management Resource Solutions