Mercantile Ports & Logistics Ltd - developer, owner and operator of ports and logistics facilities in India - Reports short-term impact on trading volumes at Karanja facility due to the acquisition of a nearby port. Multiple customers elected to acquire coal from the new port, as importers sought to clear stockpiles, instead of importing through Karanja as expected. Company therefore now anticipates approximately GBP5.4 million in revenue for 2023, up from GBP4.9 million in 2022, but below expectations. Says, however, that it "traded well" for "the vast majority" of 2023 and that overall demand remains stable. Also has a "robust pipeline" and expects to announce new contracts in the coming weeks.
Chair Jeremy Allen says that "while we are surprised by the short term impact on trading in December, we are confident that this is a deferral that will flow through as revenue...in 2024.
"The company enters 2024 with real momentum and the board expects significant progress at its facility in the coming months."
Current stock price: 1.58 pence, down 41% on Wednesday
12-month change: down 82%
By Emma Curzon, Alliance News reporter
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Mercantile Ports & Logistics (MPL)