MS International looks to AIM for future benefits
SPECIALIST Yorkshire engineering firm MS International has today announced a proposed move to AIM.
The Doncaster-based business, which has three divisions – forgings, defence and petrol station superstructures, said the board has “carefully” considered the proposed AIM Admission and believes that it is in the best interests of the company and its shareholders as a whole for a number of reasons.
It said AIM, which AIM is the London Stock Exchange’s international market for smaller growing companies, provides a more suitable environment and market for the group and the directors hope the move will make the company’s shares more attractive to retail investors. The group also said there may be certain tax benefits.
Michael Bell, executive chairman of MS International, said: “As chairman and a major shareholder of the company, I firmly believe that the proposal to move to AIM is the right thing to do for the company and all its shareholders and recommend that you support the proposal.”
The company said it continues to trade well in both its Forgings and Petrol Station Superstructures divisions and prospects for their revenue growth remains “favourable”.
However, it said much of the global defence sector remains characterised by persisting procurement budget constraints and prevailing uncertainties.
MS International said: “Whilst our Defence division has a substantial order book for delivery in future years and a considerable pipeline of un-awarded new business prospects, the delay in such prospects becoming confirmed orders, means the company expects its revenue for the first half year and the year as a whole to be less than that reported last year. Furthermore, given the highly operationally geared nature of the Defence division, the board expects the company’s pre-tax profits to be appreciably less in both instances than that reported last year.
“The balance sheet remains robust with substantial net cash and short term deposits. In the light of this and the directors’ confidence in the company’s future business prospects, the board will seek to maintain the dividend for the year.”
Shore Capital is acting as financial adviser to the company in connection with the move and will act as nominated adviser and broker on AIM Admission becoming effective.
