Management Resources warns cancellation of D&M Group acquisition will hit results

15th Jun 2015 11:47

Shares in Management Resource Solutions (MRS) lost a third of their value on Monday morning after the group said its full-year financial performance would be affected by the cancellation of the planned acquisition of D&M Group.The business's vendors told the firm on Friday that they no longer wished to pursue negotiations following MRS's struggle to secure funding after Halcyon Capital Management defaulted. The firm had originally announced the deal in early March, but this was delayed due to those financial issues.MRS suspended trading of its shares on 8 April before resuming on Monday.A statement from the company said: "The transaction process and the ramifications of Halcyon's default have impacted the financial performance of the existing MRS business for the year ending 30 June 2015 and the company will provide shareholders with an update in this regard following the year end."By 12:13, the shares were 29.92% lower at 9.11p, having hit a low 8p earlier on.