Resource Development Group

Resource Development Group Limited provides diversified services to the resource, infrastructure and energy sectors within Australia and internationally.

 

RDG's main operating subsidiary, Centrals provides a 'whole of project' contracting service offering.

 

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Impairment of Intangible Assets

Following the completion of its 2014 business planning and asset impairment testing process, the Board of Resource Development Group Ltd (“RDG”)has decided to write down the goodwill associated with its subsidiary Pacer Corporation Pty Ltd (“Pacer”).

The write down comes in light of the current market conditions and the recent settled dispute with Silver Lake Resources Ltd.

Pacer remains an important part of the RDG service offering, however, given the current slowdown in the awarding of Design and Construct work by the mining sector, the RDG board has taken the decision to write down its investment in Pacer.

The impairments are of a non-cash nature.

The impact of this $3.0M impairment on RDG’s results to 30 June 2013 is that RDG now expects to report only a small profit for the full year. Further details of the impairment will be provided in the financial statements for the full year ended 30 June 2013.

RDG’s Managing Director Jeff Brill commented “given the short term outlook for Pacer, the Board believes that writing down its investment in Pacer is an appropriate course of action. This write down will not however, impact on the ability of the group to continue to deliver its complete suite of resource and mining services”.

All other RDG subsidiaries continue to operate as normal and continue to win new contracts of work.

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