Mastermyne Group Ltd has been faced with a weakness in customer operations and difficulties in the mining sector, and therefore is taking steps to reduce the impact this is having on the group in order to maintain a strong financial foundation and provided leading supplier of contract services.
The group’s unaudited results from the most recent quarter were weaker than the first half results. Revenue for the quarter was $38 million, which resulted in a breakeven EBITDA. Mastermyne anticipates that it is unlikely to see improvement during the fourth quarter of the financial year.
Despite the challenges the company has faced, it has maintained a strong balance sheet and reduced its net debt position during the quarter with unaudited net dent position totalling $10.2 million – a reduction of $3.8 million during the quarter.
With the intention to reduce board costs, Darren Hamblin, a company Founder and Non-Executive Director, has resigned with immediate effect.
Hamblin said: “My decision to resign is motivated by a desire to effect immediate cost reduction for the company. I have always put the Mastermyne business interests ahead of my own and I see this decision as in the best interest of the company. I plan to remain a substantial shareholder and will retain a close interest in the perormance of Mastermyne.”
Mastermyne Chairman Colin Bloomfield commented: “Darren’s actions demonstrate the character of a person who has built a tremendous business from nothing. His long-term vision and leadership are a key reason the company has grown to be a leader in its field. The Board of Mastermyne thanks Darren for his tireless efforts over the last twenty years.”
The remaining Non-Executive Directors of Mastermyne have agreed to reduce their individual salaries by 20% from the headline rates until market conditions improve.
It is expected that the reduction in salaries as well as the resignations of Darren Hamblin and James Wentworth plus other efficiencies will reduce board related costs by about 50%.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/mining/06052016/mastermyne-streamlining-in-response-to-mining-industry-weaknesses-728/