Press releases

MDM project pipeline shift

MDM's audited results

20 June 2011

MDM Engineering Group Limited (AIM:MDM) ("MDM Engineering" or "MDM" or "the Group") is pleased to announce its audited results for the full year ending 31 March 2012. MDM Engineering is an African-focused engineering and project management company which provides a range of value-adding services to the mining industry, including project evaluation, process engineering, design and project management.

Highlights

  • Revenue up 428% to US$ 89.1 million (2011: US$ 20.8 million)
  • Pre-tax profit of US$ 7.8 million (2011: US$ (2.1) million)
  • Second half pre-tax profit 36.4% higher than first half
  • Strong cash position of US$ 29.1 million (2011: US$ 17.8 million) with negligible gearing
  • Basic earnings / (loss) per share of US 15.37 cents per share (2011: US (3.89) cents)
  • Final dividend of US 5.20 cents per share (2011: US 3.00 cents)
  • Full year dividend of US 7.70 cents per share (2011: US 3.50 cents)
  • Commitment to pay a minimum 50% of after-tax profits as a dividend to shareholders
  • Strong pipeline for continued growth at both feasibility and project levels

MDM Engineering Chief Executive Officer, Martin Smith commented:

“We are very pleased to announce a strong set of financials to the market, which has been brought about by creating a strong business platform over the past two years.  Despite a difficult global economic backdrop, demand for our services remain robust, and since our last trading statement in April we have won additional orders both in and outside South Africa, which gives us further confidence for the current financial year. We have every confidence in our future, as we look to continue to grow the business both organically and by complementary acquisition.”

About MDM Engineering:
MDM is focused on providing premium value added services to its clients, establishing itself as a market leader in the junior and mid-cap mining space in Africa. MDM has in the past achieved a very high success rate of converting studies into execution projects. The Board believes that MDM has a robust business model, is financially sound and is set to continue with its positive earnings in the 2013 financial year. The Board has declared a final dividend of US 5.2 cents per share payable on 26 July 2012 to all shareholders on the register on 29 June 2012.
The financial information that follows does not constitute the Group’s annual report for the year ended 31 March 2012 or 31 March 2011. The auditors have reported on the financial statements and their report was unmodified.

Financials and Chairman's Statement (PDF)

Key Information:

MDM Engineering Group Limited is a minerals process and project management company focused on 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 date, the Company's clients have largely been junior and mid-tier mining corporations with operations in Africa.
The MDM Engineering core technical team has a 23 year track record of completing a wide range of studies and execution projects across a variety of minerals, including precious metals, base metals, ferrous and non-ferrous metals, uranium and diamonds.
The Company has adopted an approach to project execution based on an open-book Engineering, Procurement, Construction Management ("EPCM" or "; cost-plus") basis. With a core focus on Africa, MDM Engineering is setting the benchmark standard for best practice in the mining services industry through its commitment to providing the highest quality services and actively engaging with clients to ensure maximum transparency.

Enquiries:

MDM Engineering Group Limited

Martin Smith (CEO)
George Bennett (Executive Director)
Dominique de la Roche (Finance Director)
Tel: +27 (0) 11 993 4300

Canaccord Genuity Limited

John Prior / Sebastian Jones
Tel: +44 (0)20 7523 8350

Tavistock Communications Limited

Paul Youens
Emily Fenton
Tel: +44 (0)20 7920 3150

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