LONDON (Alliance News) - Security services firm Mortice Ltd said Tuesday it bought the remaining 49% stake in a Singapore security services subsidiary for GBP1.9 million.
Mortice acquired the 49% stake in Frontline Security Pte Ltd from Joe Singh for SGD3.5 million or GBP1.9 million in cash. This was after it acquired a 51% stake in Frontline in November 2015.
Mortice will pay SGD1.0 million at the end of June. The remaining consideration will be paid across three tranches with the final SGD500,000 payment - due at the end of June 2019 - subject to Frontline achieving SGD900,000 per month in revenue between May and December.
Payment is expected to be completed through a mixture of existing cash resources and additional debt facilities.
In 2017, Frontline generated pretax profit of SGD2.1 million on revenue of SGD13.8 million. For the year ended March, Mortice generated USD5.4 million pretax profit on revenue of USD181.0 million.
"Frontline Security has delivered exceptional performance since the group acquired a 51% stake in November 2015," Mortice Executive Chairman Manjit Rajain said. "Since that date revenues have trebled to SGD13.8 million and we continue to see this as an exciting growth market for the provision of security manpower services and other security products and services."
Shares in Mortice were untraded at 21.50 pence on Tuesday.
