Press releases

MDM's Annual Results

6 July 2009

MDM Engineering Group Limited (AIM:MDM) is pleased to announce its audited results for the year  ended 31st March 2009. MDM Engineering is an African-focused engineering and project management group which provides a range of value added services to the mining industry, including project evaluation, process engineering, design and project management.

2009 Highlights

  • Revenue up 164% to US$35.9 million (2008: US$13.6m)
  • Gross profit up 146% to  US$16.7 million (2008: US$6.8m)
  • Net profit up 144% to  US$7.8 million (2008: US$3.2m)
  • Pre-tax profit  up 158% to US$11.6 million (2008: US$4.5m)
  • Cash and cash equivalents of US$14.0 million (2008: US$5.20m)
  • Basic earnings per share of  US21.15 cents per share (2008: US12.94 cents)
  • Final dividend of US7.5 cents (2008: US4 cents for the 16 months ended 31 March 2008)
  • Full dividend of US11.25 cents (2008: US4 cents)
  • Strong balance sheet with virtually no gearing
  • Dividend cover of 1.9 times


  • Strong pipeline of studies ranging from scoping studies to bankable feasibility studies
  • Project value under execution at year-end of US$300million
  • Staff retention rate high with current headcount at 144
  • Two major new projects awarded since 31 March 2009


  • Appointment of Executive Financial Director Dominique de la Roche

The 2009 year has been one of significant growth for MDM as evidenced by the growth in earnings. Net profit for the year showed an increase of 144% to US$7.8 million (2008: US$ 3.2 million) with earnings per share showing an increase of 63% to US21.15 cents (2008: US12.94 cents). This was mainly driven by the increase and peaking of the current execution projects under MDM’s management. MDM has continued to maintain a strong gross profit margin of 46% (2008: 50%) for the year under review.

The Group’s balance sheet has been enhanced with the equity attributable to its shareholders increasing by US$11.4 million to US$15.9 million. The increase resulted from funds raised at the Group’s listing in May 2008 as well as the cash generated by operations over the last financial year.

The Group’s cash generated by operations increased by 42% to US$5.8 million (2008: US$4.1 million) after taking a taxation payment of US$4.4 million into account. This is further evidence of the cash generative nature of MDM’s business. The balance sheet shows strong cash on hand at year end to the value of US$13.9 million.

Summary of Financial Results

Consolidated net earnings for the 12 month period to the 31st March 2009 was US$7.8million, which equates to basic earnings per share of US21.15 cents.

The Directors of MDM Engineering have declared a final dividend of US7.5 cents per share payable on the 10th of August 2009 to shareholders registered on the 17th of July 2009. 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:
“The growth in profits over the year in such a tough operating environment is a satisfying result for MDM and testament to our business model and the hard work and dedication of the team. While we have felt the impact of the global economic crisis through the stalling and cancellation of mining projects over the last six months, whilst we are seeing some activity pick up, the commodity market will probably continue to reflect difficult trading conditions for some time: we are well placed to capitalise on a recovery in the sector when it occurs. “

Financials and Chairman's Statement (PDF)

Key Information:

MDM Engineering Group Limited is a minerals process and project management company that provides services to the mining industry. The Company provides a wide range of services from preliminary and final feasibility studies, through to plant design, construction and commissioning, to mining companies. To date, the Company’s clients have largely been junior and mid-tier mining corporations with operations in Africa.
The Company was established in November 2006. In February 2007 the Group purchased out of liquidation certain of the intellectual property and fixed assets of MDM Ferroman (Pty) Limited (“MDMF”), a mining services company with an established track record of providing services to the African mining industry. The Company subsequently employed a number of the technical staff of MDMF, and implemented an approach to project execution based on a transparent, open-book Engineering, Procurement, Construction Management (“EPCM” or “cost-plus”) basis. In May 2008, the Company successfully listed on the AIM market of the London Stock Exchange. The Company now has what the directors consider to be a strong portfolio of current studies and execution projects and a strong outlook of prospective work, which the directors believe provides the Company with an attractive and visible revenue stream to drive the Company’s growth in the future.


MDM Engineering Group Limited

Grant Lowman (Chief Executive)
Tel: +27 (0) 11 993 4300

Dominique de la Roche (Finance Director)
Tel: +27 (0) 11 993 4300

George Bennett (Executive Director)
Tel: +27 (0) 11 993 4300

Numis Securities Limited

John Harrison (Nominated Adviser)
Tel: +44 (0) 207 260 1000

James Black (Corporate Broker)
Tel: +44 (0) 207 260 1000

Pelham PR

Candice Sgroi
Tel: +44 (0) 207 337 1533

Chelsea Hayes
Tel : +44 (0) 207 337 1523


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