Press releases

MDM Engineering Group Limited financial period results

6 August 2008

MDM Engineering Group (AIM:MDM) the African-focused engineering and project management company which provides services to the mining industry is pleased to announce its maiden results as a listed company for the 16 month period to 31st March 2008.

Highlights

Financial

  • Revenue of US$13.61 million
  • Gross profit of US$6.78 million
  • Profit before taxation of US$4.53 million
  • Net profit of US$3.19 million
  • Net cash generated from operating activities of US$4.10 million
  • Maiden dividend of US$0.04 per share
  • Cash and cash equivalents of US$5.15 million at year end
  • Basic earnings per share of US$0.13 per share

Operational

  • Project value under execution at year-end of US$330 million (Chemwes & Ezulwini)
  • Staff numbers have grown from 31 in January 2007 to 100 in March 2008 with excellent staff retention rates
  • Strong pipeline of studies ranging from scoping studies to bankable feasibility studies
  • One new study awarded and currently in negotiations on further study awards and two project awards

Corporate

  • Listed on AIM on 12th May 2008, raising US$10 million before listing expenses
  • Increased infrastructure, software resource and human capital to match the growth profile
  • Board and management expanded to ensure successful operational growth and financial performance

Summary of financial results

Consolidated net earnings for the 16 month period to the end of March 2008 were US$3.19 million, which equates to basic earnings per share of US$0.13 per share.

The Directors of MDM Engineering have declared a final dividend of US$0.04 per share payable on 22nd August 2008 to shareholders registered on 15th August 2008. This is in line with the stated dividend policy whereby approximately 50% of earnings will be paid out as a dividend.

MDM Engineering CEO, Grant Lowman commented:

“To report a profit in our maiden results is satisfying and shows the strength of the MDM business model. We are pleased to be rewarding our investors who supported the Group at our floatation in May and we look forward to generating further dividends in the future. As we enter our first year as a public company, MDM Engineering is well placed to exploit growth opportunities to the benefit of shareholders. Our order book is strong and the IPO has put the Group in an excellent position to continue to grow this.”

2007 financial year results to 31 March 2008 (PDF - 61KB)

For further information:

MDM Engineering Group Limited
Grant Lowman
Tel: +27 11 886 7981
George Bennett
Tel: +27 11 886 7981

Numis Securities Limited
John Harrison (Nominated Adviser )
James Black (Corporate Broker)
Tel: +44 (0) 207 260 1000

Pelham PR
Candice Sgroi
Tel: +44 (0) 207 743 6376
Chelsea Hayes
Tel: +44 (0) 207 743 6675

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