MCS Services presents half-year financial report and Appendix 4D

MCS Services Limited (ASX: $MSG) is pleased to present its auditor reviewed half-year report (Report) for the six (6) months ending 31 December 2023 (Period) and Appendix 4D. The Group recorded a loss from continuing and discontinuing operations before interest, tax, depreciation and amortisation (EBITDA) of $1,299,804 before significant items. The net loss after tax from continuing and discontinuing operations was $3,432,597.

Executive Commentary on Financial Performance and Sale Agreements

The Company has entered into conditional agreements to sell 100% of its interest in the share capital of MCS Security Group Pty for $3m and all business assets of Highways Traffic for $1.8m cash. The proposed transactions are subject to satisfactory completion of due diligence, negotiation of formal transaction documents, and obtaining necessary approvals. The Company's ability to continue operations is dependent on generating positive cashflows, successful negotiation with the Australian Taxation Office, and/or completing the sale of the security and traffic management businesses.

Summary of Half-Year Report and Outlook

MCS Services reported a loss from continuing and discontinuing operations and has entered into conditional agreements to sell its Security and Traffic businesses. The Company's ability to continue operations is dependent on generating positive cashflows, successful negotiation with the Australian Taxation Office, and/or completing the sale of the businesses. The financial statements have been prepared on a going concern basis, and the Company is awaiting the ATO's decision on the Traffic Business repayment proposal. The proposed transactions suggest all liabilities can be paid in full, and the Company aims to preserve value for shareholders through the sale of the businesses.