how much more info do you need, have a look at update isssued...

how much more info do you need, have a look at update isssued last Friday

10 July 2009
Dear Shareholder
ACTIVITY UPDATE
Please find enclosed a holding statement for your reconstructed and/or new shares in RER
Group Ltd (formerly Repcol Ltd).
As you will no doubt be aware, we have recently embarked on a major transformation of the
Company, which has culminated in its emergence as a specialised mining services company.
The sale of the debt collection operations has settled, as has the acquisition of Resource
Equipment Rentals Pty Ltd (“RER”).
RER Group Ltd is the listed holding company for RER. Our new ASX code is “RGD” and a new
web site ‐ www.rergroup.com.au ‐ will be activated by 17 July 2009.
We have completed relocation to RER’s headquarters in Welshpool, Western Australia and
relevant contact information is provided on this letterhead.
As part of a communications policy to our Shareholders, I shall be sending you two “Activity
Updates” per year in addition to the Annual Report. These updates will be simple in nature
and are intended to inform you of your Company’s recent activities, its financial health and
the general business climate and growth outlook.
Since the April 2009 signing of the agreement to acquire RER, the business has continued to
trade strongly. Meaningful new ongoing contracts have been signed each month with high
quality customers. These include:
• various projects for Australia’s largest coal miner, BHP Mitsubishi, from our new
Queensland office
• supply of a range of specialist pumping equipment for Tiwest in Western Australia
• supply of various equipment under a new “two plus two” year contract with
Consolidated Minerals
• supply of an automated water evaporation system for BHP in Queensland
• commissioning of a tailings return system for Newmont Mining, the world’s largest
gold producer
• supply of specialist equipment to McConnell Dowell for the Karratha ‐ Perth gas pipeline
• offshore equipment supply to RigCool of the UK
• annual renewal of contract with Anglo Ashanti which is to include a major upgrade
to the existing pit water management system
In all of these cases the work was specialised, was performed with a high degree of
professionalism and resulted in satisfied customers.
There is a considerable amount of new work “on the books” and RER is actively pricing a
range of new work in WA, NSW and Queensland – in some cases on an exclusive basis. It is
fair to say that there is no shortage of new work opportunities and that the enquiry rate is
buoyant.
As the business is highly specialized, it is important for you to know that RER’s entire
management team has signed on to multi‐year employment contracts. They are also excited
about being part of a publicly listed group and the backing that comes with this.
Furthermore, it has been most encouraging for me to hear first hand from staff at all levels
how much they enjoy working at RER, the pride that they take in doing so and their belief in
the long term success of the business. This, to me, is a sure sign of a good business and is
further supported by very low levels of staff turnover experienced by the business.
The Company’s recently completed capital raising was strongly supported, was
oversubscribed and had to be closed early. Unfortunately participating shareholders had to
be scaled back by 40% and, with the forced early closing of the offer, a number of
applications regretfully were not able to participate.
Following the capital raising, your Company is in sound financial health. We have no bank
debt and a strong balance sheet with which to execute our growth strategy for the RER
business.
The hard work now begins as we endeavour to put our expanded capital base to good use
for Shareholders. In this respect I am pleased to confirm that there are considerable
opportunities for management to pursue and that I am confident that we will deliver
rewarding results in the years ahead.
On behalf of our new look Board of Directors, I thank you for your support and look forward
to reporting further news later in the year.
Yours sincerely,
James Cullen