- MCS Services has seen shares jump 37.5 per cent today following the release of a strong quarterly report
- MCS finished the quarter with a cash balance of $2.1 million: a big jump compared to the $827,000 cash balance of last quarter
- MCS cited more timely payments from customers as one of the key drivers for the increase in cash inflow
- The company also appointed CEO Paul Simmons as the new Managing Director in July
Security company MCS Services has seen shares jump 37.5 per cent today following the release of a strong quarterly report.
The company reported a net cash inflow of $1.27 million over the three months ending June 30 2019. MCS finished the quarter with a cash balance of $2.1 million.
For comparison, the company’s cash balance at the end of the March quarter this year was $827,000.
There was a big swing in the company’s net receivables this quarter, dropping from $1.8 million worth of net receivables in the March quarter to just $0.4 million by the end of June.
Net receivables refers to the total amount of money owed to the company by its customers.
MCS cited more timely payments from customers as one of the key drivers for the increase in cash inflow.
On top of the prompt payments, MCS has managed to maintain all of its major clients throughout the quarter, and add on some more.
MCS won uniformed security contracts at shopping centres and TAFE colleges across WA this quarter, and lodged a tender with an existing WA customer for security in South Australian and Victorian shopping centres.
A tender was also lodged for a major art precinct in WA.
MCS provided security at some major sporting events this quarter, including Perth Glory and Western Force matches, as well as several music and community events across Perth.
As well, MCS appointed CEO Paul Simmons as the company’s Managing Director in July.
Earlier this year, the company won a security operating licence for Victoria, and applied for the same licence in New South Wales.
MCS said it plans to keep seeking security contracts in Victoria and New South Wales.
MCS is one of the largest security providers in Western Australia, with over 500 operational staff and supervisors employed by the company. The company’s clients include Kmart, Perron Group and Vicinity Centres.
MCS shares peaked at 2.4 cents each just after midday today, but have since settled to trade for 2.2 cents per share in a $4.13 million market cap. This is an increase of 37.5 per cent compared to yesterday’s closing price.