MGL
09/07/2015 09:31
GENERAL
PRICE SENSITIVE
REL: 0931 HRS Mercer Group Limited
GENERAL: MGL: Mercer Group Ltd - Trading Update and CEO Appointment
Mercer Press Release: Trading Update and CEO appointment - [see pdf attached]
Mercer Group Ltd (NZX:MGL) is today providing a trading update for the its
financial year end, 30th June 2015 (FY15). In MGL's interim report to 31st
December 2014, guidance was given for the full year outturn which included:
1. Increased profitability (EBITDA) over the prior year.
2. $3m of headroom in the banking facility by year end.
3. (The) sale of at least 12 Titan 500 slicers in the year.
As of 30th June 2015 the company had secured eight Titan 500 slicer sales.
This shortfall has had a knock on effect such that the company will not meet
the guidance as noted in 1 and 2 above, however its underlying revenue growth
remains within previous guidance at FY14 plus a minimum of 10%. FY15 EBITDA
is now forecast to lie within the range of $600k to $800k. A further effect
of the shortfall of Titan sales has been that BNZ has agreed to waive the
covenants as at 30 June 2015 and remains supportive of the company.
The Titan division remains a key part of MGL's growth strategy and its
products and technology remain in demand and are well received worldwide.
Developing those products and markets has taken considerable resources and
while it is disappointing that the company has not achieved its targeted
sales numbers, its momentum is positive.
The Board remains confident that the business is positioned for profitable
growth. MGL has received confirmation that Callaghan Innovation will
continue to provide funding for S-CLAVE, having achieved certain milestones
this year. MGL will provide an update on Titan and S-CLAVE in its Annual
Report.
To assist with the Titan division's growth, MGL has also established a
working capital facility from Gresham Finance Ltd, a company owned by
interests associated with director and shareholder Humphry Rolleston.
MGL is also announcing changes to its executive team. The Board of Mercer is
pleased to announce that Richard Rookes has today been appointed CEO of the
Mercer Group with immediate effect. This has allowed Rodger Shepherd to
bring forward his resignation to today. Richard remains a director of MGL and
is a manager of the Rakaia Fund, a material shareholder of MGL. The Board
thanks Rodger for his leadership and efforts over the last three years.
Tobin Blathwayt will remain with the business. As previously announced, he
is leaving his role as Chief Financial Officer on 31st August 2015, on which
date, having also overseen the profitable outturn of MGL's Stainless
Division, will become Chief Operating Officer.
For further information contact:
John Dennehy, Board Chair, 021 734 202 Richard Rookes, CEO,
021 414 016
End CA:00266817 For:MGL Type:GENERAL Time:2015-07-09 09:31:25
