TIDMMORT
RNS Number : 6398K
Mortice Limited
11 July 2017
Mortice Limited
("Mortice" or the "Company")
Q1 Trading Update
Mortice Limited (AIM: MORT), the AIM listed security and
facilities management company, provides the following trading
update for the three-month period ended 30 June 2017.
Financial Highlights
Trading during Q1 remained robust as the Company built on last
year's strong financial performance, which as already announced is
expected to be ahead of market forecasts for the year ending 31
March 2017.
During Q1 year-on-year sales grew 12% as the Company won a
number of new contracts and achieved strong growth across all parts
of the business.
Like-for-like revenues for the period totalled US$48.33m,
compared to US$46.19m for the same period last year reflecting a
solid organic performance from the core existing business.
Furthermore, the contribution from recently acquired Elite Cleaning
& Environmental Services Ltd ("Elite"), enabled Mortice to
strengthen its position in the UK, adding a further US$3.5m in
sales during the period. As such, total sales for the period rose
12% to US$51.83m (Q1 2016: US$46.19m).
Security services revenues grew approximately 12% to US$27.1m
(Q1 2016: US$24.3m), accounting for 52% of sales with facilities
management revenues growing 13% to US$24.7m (Q1 2016: US$21.9m),
accounting for 48% of sales. The impact of the growing UK presence
was highlighted by the fact that sales from outside of the
Company's core market in India accounted for 39.10% of revenues (Q1
2016: 36.2%).
The strong performance was achieved despite currency
fluctuations impacting revenue growth in dollar terms from the
United Kingdom.
Q1 Operational Highlights
The Company continued to make good progress in expanding its
client base, driven by acquisitions and additions to the core
business.
Mortice strengthened its UK operations via the GBP4.5 million
addition of Elite, acquired in April 2017, which won contracts with
Surrey and Sussex Police and BMW worth a combined total of GBP2.25m
annually during the period.
Other wins in the UK include a three-year contract with Twitter
worth GBP200,000 with the option to extend by a further two years,
a three-year contract with men's fashion brand Hackett worth
GBP200,000 a year and further university contracts - with the
University of West Midlands worth GBP150,000 a year for three years
and the University of Warwick, worth GBP300,000 for an initial
three-month project.
Notable clients wins in India during the period included
American Tower Corporation, Tech Mahindra, Amazon. Pepsico,
Infosys, I-gate, Titan Industries Ltd, Suzuki Motorcycle and others
worth an aggregate of over US$5m annually.
Outlook
The long-term nature of the contracts in place provides high
levels of visibility and underpins management's confidence in
continued growth as the Company builds on its performance during
Q1. The Company will continue to focus on organic and acquisitive
opportunities as it further develops operations and targets
continued growth, underpinned by the confidence provided by the
strong start to the current year.
Commenting, Manjit Rajain, Executive Chairman of Mortice, said:
"I am delighted by the strong start to the year and the
considerable prospects for further growth. We continue to have a
growing pipeline of opportunities and look forward to further
developing existing relationships as we build on the continued
successes achieved to date. We very much look forward to further
updating the market with developments in due course."
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
Enquiries:
Mortice Limited www.morticegroup.com
Manjit Rajain, Executive Tel: +91 981 800 0011
Chairman
finnCap Ltd Tel: 020 7220 0500
Adrian Hargrave / Giles Rolls
/ Alex Price (Corporate Finance)
Tony Quirke (Corporate
Broking)
Walbrook PR Tel: 020 7933 8780 or mortice@walbrookpr.com
Paul McManus/ Sam Allen/ Mob: 07980 541 893 / 07884
Nick Rome 664 686/ 07748325236
About Mortice Limited
Mortice (AIM: MORT), is an AIM listed security and facilities
management company, incorporated in Singapore and based in India
with additional operations in Singapore and the UK.
Mortice operates under two brands, in India:
-- Peregrine - provision of guarding and security services to a
wide range of clients from blue-chip companies, smaller businesses,
commercial and private properties, and individuals.
-- Tenon - provision of a full range of facilities management
services to corporate occupiers, owners and developers of real
estate. Clients include respected blue-chip and home-grown
companies. Within the Tenon group of companies Mortice also offers
security surveillance services through its subsidiary Soteria and
mechanical and engineering services via Rotopower.
The business is growing and profitable and is focused on
expanding its geographical footprint and growing through targeted
acquisitions, as well as organically.
In 2015, the Company established Tenon UK and through this
wholly owned subsidiary acquired UK based Office & General
Group Limited, an independent property service company specialising
in cleaning and providing support services such as environmental
solutions and built fabric maintenance in the UK. Office &
General Group Limited has been fully integrated and re-branded as
Tenon FM Ltd. For more information see:
www.tenon-fm.com/what-we-do
In April 2017, Tenon UK completed the acquisition of
Manchester-based Elite Cleaning & Environmental Services Ltd
("Elite"). Elite has a strong blue-chip client base, which is
complementary to the Company's existing UK portfolio.
In November 2015, the Company acquired a 51% majority stake in
Singapore-based security company Frontline Security Pte. Ltd, and
has an option to acquire an additional 25% within three years.
Learn more about Mortice through this video interview with
Manjit Rajain, Executive Chairman of Mortice:
www.brrmedia.co.uk/broadcasts/57c94e8cd6c09fd74b0ae623/mortice-unlocking-potential
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTOKKDQPBKDBOD
(END) Dow Jones Newswires
July 11, 2017 02:00 ET (06:00 GMT)
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