RMG 0.00% 0.7¢ rmg limited

Announcement

  1. 762 Posts.
    MEDIA RELEASE
    asat 1 May2002
    RMG Limited has moved to clarify its current trading position and outlook for the medium term following weakness in its share price in recent days.
    RMG Executive Chairman, Mr James Boult, advised that while RMG's medium term outlook is positive, various factors had affected the current year's likely result. These factors are: RMG has, since July 2001, been undertaking a substantial restructuring of its business. As the restructuring proceeded, various issues related to the company's management systems and operations had become apparent.
    As at the end of the first half of the current financial year, Directors believed that these issues were behind the company and that the second half would produce
    a considerably enhanced performance.
    Based on revenue achieved in the November 2001 to February 2002 period the Board believed the company's results were improving and that fourth quarter trading would be EBITDA positive. Thisresult would provide a firm indicator of RMG's outlook for the 2003 financial year and beyond.
    From a review of March trading results (in the latter part of April) it has become
    apparent that a number of the operational and management system issues
    remained and that these have had the effect of downgrading the recent results
    upon which the Board and management has relied.
    As a consequence of these issues, RMG's EBITDA profit for the financial year ending 30th
    June 2002 is likely to be in the range of $0.5~1 to $1 .Om.
    Included in the above are recoveries from restructuring provisions made in the last
    financial year of $1 .bm. Also included is the profit o n sale of the Oil and Gas Assets of
    $3.4rn and recovery on the sale of previously written off assets of $35U,OUU.UU.
    The company's revenue for the year will be lower than expected at a range of $49.Um
    to $50.0m.
    The Board has taken the step of clarifying the position for the market given the
    aforementioned weakness in the company's share price and to clarify the Board's and
    Management's own position with respect to their own understanding of the
    Company's trading until very recently. When Directors became aware of the current
    position they resolved to immediately inform the market.
    The Board has resolved the issues outlined in point 4 above and has appointed Mr Paul
    Cooney as Deputy Chairman and Chief Operating Officer. Mr Cooney, who is a past
    Managing Director of RMG, has in excess of 30 years experience in the collection
    industry. In particular, Mr Cooney has a strong background in collection process
    management and systems.
    MEDIA RELEASE
    asat 1 May2002
    RMG Limited has moved to clarify its current trading position and outlook for the
    medium term following weakness in its share price in recent days.
    RMG Executive Chairman, Mr James Boult, advised that while RMG's medium term
    outlook is positive, various factors had affected the current year's likely result. These
    factors are:
    RMG has, since July 2001, been undertaking a substantial restructuring of its
    business. As the restructuring proceeded, various issues related to the company's
    management systems and operations had become apparent.
    As at the end of the first half of the current financial year, Directors believed that
    these issues were behind the company and that the second half would produce
    a considerably enhanced performance.
    Based on revenue achieved in the November 2001 to February 2002 period the
    Board believed the company's results were improving and that fourth quarter
    trading would be EBITDA positive. Thisresult would provide a firm indicator of
    RMG's outlook for the 2003 financial year and beyond.
    From a review of March trading results (in the latter part of April) it has become
    apparent that a number of the operational and management system issues
    remained and that these have had the effect of downgrading the recent results
    upon which the Board and management has relied.
    As a consequence of these issues, RMG's EBITDA profit for the financial year ending 30th
    June 2002 is likely to be in the range of $0.5~1 to $1 .Om.
    Included in the above are recoveries from restructuring provisions made in the last
    financial year of $1 .bm. Also included is the profit o n sale of the Oil and Gas Assets of
    $3.4rn and recovery on the sale of previously written off assets of $35U,OUU.UU.
    The company's revenue for the year will be lower than expected at a range of $49.Um
    to $50.0m.
    The Board has taken the step of clarifying the position for the market given the
    aforementioned weakness in the company's share price and to clarify the Board's and
    Management's own position with respect to their own understanding of the
    Company's trading until very recently. When Directors became aware of the current
    position they resolved to immediately inform the market.
    The Board has resolved the issues outlined in point 4 above and has appointed Mr Paul
    Cooney as Deputy Chairman and Chief Operating Officer. Mr Cooney, who is a past Managing Director of RMG, has in excess of 30 years experience in the collection industry. In particular, Mr Cooney has a strong background in collection process management and systems.

 
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