Management Resource Solutions reports larger loss, turns down new meeting request

Management Resource Solutions has turned down a requisition for another general meeting due to a legal loophole and reported that pre-tax losses more than tripled last year.

The AIM-listed mining services business, which appointed Aussie mining veteran Joe Clayton chief executive in December, said pre-tax losses had increased to A$6m for the financial year ending 30 June 2016, which includes provisions of A$6.5m against the contracts entered into by the now defunct consulting arm.

Results include three months' contribution from Bachmann Plant Hire but no contribution from Clayton's SubZero business, which has been renamed MRS Services Group since it was acquired by the company on 30 September.

MRS said both new business continued to trade profitably.

After former CEO Paul Morffew requisitioned a general meeting on 6 January to try and appoint new directors and restrict the size of the board, the company said it received another requisition letter on 17 January "but after legal review, it was found to be non-compliant and no further action will be taken in respect of it".