RBR GROUP LIMITED ASX Release
29 October 2021
September 2021 Quarterly Report
Key Points
- Wentworth camp development remains suspended with installed capacity of 340 beds. Latest information suggests camp still largely intact.
- Camp contract with CCS JV remains in place with revenues (disputed by CCS JV) accruing at c.US$460k per month. RBR equity share is 50%.
- Security restored in Palma district and indications for LNG project restart in H1 2022 strengthen.
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Contract opportunities outside of LNG and Cabo Delgado province continue.
Operations and management restructure underway.
Labour and training specialist RBR Group (ASX: RBR) presents its September 2021 Quarterly Report.
Wentworth Camp Project in Palma, Mozambique
There is strong evidence that security in northern Cabo Delgado (from the regional capital of Pemba, north through the LNG site in Afungi, the Palma district and up to the Tanzanian border) has been restored following deployment of a large contingent of local and regional African "SADC" military personnel. Subject to some form of acceptable declaration from the security forces and Government that the region is safe, the Company understands that the LNG project developers intend to return to the site and restart the construction activities possibly as early as 1st half 2022.
Pleasingly, the camp at the Wentworth facility in Palma appears basically intact and camp constructor Projectos Dinamicos Lda ("PD") continues to issue invoices for monthly rental due under the contract with CCS JV.
As at 30 June, PD had remitted Service Acceptance Papers ("SAP", which are essentially preliminary invoices) for US$1,817,000. PD has continued to apply further accrued services revenues due by CCS JV during the current quarter at the rate of approximately US$460,000 per month.
These amounts remain unpaid and "without prejudice" discussions between the parties have been ongoing in accordance with the "Settlement of Disputes" clause of the contract, which remains in force. Notwithstanding these ongoing discussions, on 21 October 2021 PD formally invoked its right to resolve the matter via arbitration in the London Chamber of International Arbitration ("LCIA"). The Company and PD remain confident of a favourable outcome via either negotiation or the arbitration process.
RBR GROUP LIMITED
ASX: RBR ABN 38 115 857 988
Level 2, 33 Colin Street, West Perth, WA 6005 PO Box 534, West Perth, WA 6872
- +61 8 9214 7500 F: +61 8 9214 7575
www.rbrgroup.com.au
Delivering skilled labour to site, every day
ASX Release
Operational and Management Structure
With the suspension of activities at the Wentworth camp and pending departure of CEO Richard Carcenac (effected 24 September 2021) the Board took the opportunity to review the operating structures of the Group and the management thereof.
The result was the formation of distinct business units based on geographic location, currently Southern Africa (primarily Mozambique) and Australia, and the decision to appoint dedicated Chief Operating Officers ("COO") to lead each geographical business unit.
As announced on 25 October 2021, Mr Patrick Danaux was appointed COO Africa in charge of our Futuro Group-branded business units and via Futuro, our investment in PD.
Mr Danaux has significant African experience and in particular East Africa (including Mozambique). He is a career specialist in HR and recruitment, skill sets pivotal to our business strategies and is a resident of Mozambique.
The Company is in the process of assessment and recruitment of a COO for Australia, to be based in Perth WA, and will report further on this shortly.
Business Development
Mozambique
Although construction activities on the major LNG projects in the far northern province of Cabo Delgado are currently suspended, other business opportunities of scale for RBR exist in other regions, such as the project works about to start for Sasol (a South-African listed petroleum and chemicals company) in Inhambane province, and other prospects in Maputo, Inhambane and Nacala provinces. Staff are being redeployed to afford RBR the best chance of securing this work.
Futuro People, the human resources subsidiary, has upgraded its payroll systems to more cost effectively and efficiently service its clients. This has enabled the company to reduce its fees whilst maintaining or improving its operating margins.
Despite an overall decrease in Futuro Business Services' workload due to the economic slowdown caused by Covid-19, the company has experienced an increased demand for Work Visas and Permits services. The government-imposedCovid-19 requirements to reduce the number of employees in the office at any one time has severely impacted the speed of services from the government ministries and banking sector. This has boosted the demand for assistance and expediting services from Futuro Business Services.
Futuro Skills Mozambique ("FSM"), the training subsidiary, has completed several Health and Safety training interventions during the period under review. Further, FSM is working with a major Maputo- based multinational organisation to assist with the development of their Workplace Skills Development Plan to ensure that incumbents' have the right skills set as set out in the skills matrix for each position. Training will be provided to close any skills deficiencies.
Futuro Group has opened a branch in Vilankulos (Inhambane province) in preparation for the training and labour provision opportunities arising from Sasol's PSA Expansion, which will employ up to 5,000 workers at its construction peak. The Company expects that most, if not all, of the portfolio of services offered by Futuro Group will be in high demand in and around Vilankulos.
RBR GROUP LIMITED
ASX: RBR ABN 38 115 857 988
Level 2, 33 Colin Street, West Perth, WA 6005 PO Box 534, West Perth, WA 6872
- +61 8 9214 7500 F: +61 8 9214 7575
www.rbrgroup.com.au
Delivering skilled labour to site, every day
ASX Release
Australia
The Company continues to explore Australian opportunities leveraged off its existing registered training organisation, structured around a partnership model given RBR does not presently have a training facility in-country.
Further, the Company has received investment proposals from brokers and other interested investors, which are currently under review and assessment.
Technology
As detailed in previous reports, the Company has exclusive rights in specific locations to technologies which complement its portfolio of services. These training and geolocation technologies are available as add-on services packages, most suited to application in medium to large-scale businesses or projects (due to the expenditure profile to implement them).
The Mozambique LNG projects are an almost perfect scenario for implementation. The suspension of the LNG projects as covered earlier in this report, has required the Company to reconsider how to implement and monetise this technology in the near term.
Cash Flow and Cash Balance
During the quarter RBR spent $488k on operating activities with the remaining cash balance of $1,501k at the end of the quarter. Included in the cash flow report are payments to related parties of the entity and their associates of $118k for Director's fees and salaries.
For more information, please contact:
Ian Macpherson Executive Chairman +61 8 9214 7500 info@rbrgroup.com.au
For the purpose of ASX Listing Rule 15.5, this announcement has been authorised for release by the board.
The information in this announcement has been disclosed by RBR and is the responsibility of RBR. Neither CCS JV, nor their directors, officers, employees or agents assume any responsibility for the accuracy or completeness of that information.
RBR GROUP LIMITED
ASX: RBR ABN 38 115 857 988
Level 2, 33 Colin Street, West Perth, WA 6005 PO Box 534, West Perth, WA 6872
- +61 8 9214 7500 F: +61 8 9214 7575
www.rbrgroup.com.au
Delivering skilled labour to site, every day
Rule 4.7B
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
RBR Group Limited | |
ABN | Quarter ended ("current quarter") |
38 115 857 988 | 30 September 2021 |
Consolidated statement of cash flows | Current quarter | Year to date | ||
$A'000 | (3 months) | |||
$A'000 | ||||
1. | Cash flows from operating activities | |||
1.1 | Receipts from customers | 58 | 58 | |
1.2 | Payments for | |||
(a) | research and development | - | - | |
(b) product manufacturing and operating costs | (14) | (14) | ||
(PD Mar reallocation -431) | ||||
(c) | advertising and marketing | - | - | |
(d) | leased assets | (31) | (31) | |
(e) | staff costs | (158) | (158) |
- administration and corporate costs (PD Mar
reallocation -338) | (282) | (282) | |
1.3 | Dividends received (see note 3) | - | - |
1.4 | Interest received | - | - |
1.5 | Interest and other costs of finance paid | (61) | (61) |
1.6 | Income taxes paid | - | - |
1.7 | Government grants and tax incentives | - | - |
1.8 | Other (provide details if material) | - | - |
1.9 | Net cash from / (used in) operating activities | (488) | (488) |
2. | Cash flows from investing activities | |||
2.1 | Payments to acquire or for: | |||
(a) | entities | - | - | |
(b) | businesses | - | - | |
(c) property, plant and equipment (PD Mar | - | - | ||
reallocation -305) |
- investments (Projectos Dinamicos Lda
investment From Mar 21 has been reallocated on | ||
consolidation this quarter across operating and | - | - |
investing) | ||
ASX Listing Rules Appendix 4C (17/07/20) | Page 1 | |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Consolidated statement of cash flows | Current quarter | Year to date | ||
$A'000 | (3 months) | |||
$A'000 | ||||
(e) | intellectual property | - | - | |
(f) | other non-current assets | - | - | |
2.2 | Proceeds from disposal of: | |||
(a) | entities | - | - | |
(b) | businesses | - | - | |
(c) | property, plant and equipment | - | - | |
(d) | investments | - | - | |
(e) | intellectual property | - | - | |
(f) | other non-current assets | - | - | |
2.3 | Cash flows from loans to other entities | - | - | |
2.4 | Dividends received (see note 3) | - | - | |
2.5 | Other (provide details if material) | - | - |
2.6 Net cash from / (used in) investing
activities | - | - |
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities
(excluding convertible debt securities) | - | - |
3.2 Proceeds from issue of convertible debt
securities | - | - | |
3.3 | Proceeds from exercise of options | - | - |
3.4 Transaction costs related to issues of equity
securities or convertible debt securities | - | - |
3.5 Proceeds from borrowings (This quarter includes
loan funds from Projectos Dinamicos partner following | - | - | |
consolidation) | |||
3.6 | Repayment of borrowings | - | - |
3.7 Transaction costs related to loans and
borrowings | - | - | |
3.8 | Dividends paid | - | - |
3.9 | Other (provide details if material) | - | - |
3.10 Net cash from / (used in) financing
activities | - | - |
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period | 1,976 | 1,976 |
4.2 Net cash from / (used in) operating activities
(item 1.9 above) | (488) | (488) |
ASX Listing Rules Appendix 4C (17/07/20) | Page 2 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
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RBR Group Limited published this content on 01 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2021 17:00:05 UTC.
