2 Mar 2009 07:00
Press Release 02 March 2009
MORTICE LIMITED
("Mortice" or "the Company")
Contract Wins
Mortice Limited (AIM:MORT), the security and facilities management company based in India, is pleased to announce that since the last financial update the Company has won 33 new contracts across both its subsidiaries, Peregrine Guarding Limited ("Peregrine") and Tenon Property Services Limited ("Tenon") (together the "Group") with a combined value of approximately £744,000* (INR 54 million).
Peregrine has won 27 of the new contracts for the provision of security services in India. New clients include a leading Indian health insurance corporation, a large industrial corporation and the retail operations of a premier consumer electronics corporation. Reinforcing Peregrine's strong capability to deliver high service standards across the Indian sub-continent, these wins are for clients across eight Indian states.
Tenon, the Group's facilities management arm, has won six new contracts. Tenon will be providing facilities services for clients including a leading, NASDAQ-listed provider of information technology and consulting services, a global fleet management corporation and a global print solutions corporation.
In addition to the new contracts, Tenon has also won mandates for increased service and geographic scope from some of its existing customers including a full-services appointment for the Bangalore premises of a network solutions corporation for whom Tenon currently manages a facility in New Delhi. Tenon now provides services to a pan-India portfolio of 4 million square feet.
Tenon and Peregrine continue to explore additional opportunities regarding the provision of similar services.
Manjit Rajain, Executive Chairman, commented:
"We continue on our path to successfully implementing a highly differentiated model for facilities services in India while continuing to grow our well established guarding business. The quality of our services is ensuring that many of our customers are engaging us for enhanced services mandates and our core value propositions ensure that we are among the few providers of services which continue to be very relevant in these challenging times."
* As per current exchange rate of 1 GBP = INR 72.59 as of 5 PM (IST) on 27.02.2009
For further information please contact:
Mortice Limited
Manjit Rajain, Executive Chairman Tel: +91 981 800 0011
Andrew Barker, Executive Director Tel: +91 974 130 9401
Grant Thornton UK LLP
Fiona Owen Tel: +44 207 383 5100
Jermyn Capital Partners PLC
Dharmesh Doshi Tel: +44 207 399 2020
Pelham PR
Alex Walters / Charles Goodwin Tel: +44 207 337 1500
Notes to Editors
The Future Development of the Property and Facilities Management Market in India
Over the last decade, the Indian Property and Facilities Management market has seen considerable growth following the continuing influx of a large number of multinational corporations that are seeking a higher quality, cost efficient services. Market drivers include those such as, the recent relaxation of FDI regulations; hotel supply and demand; financial products and insurance for a new generation of wealthy Indians; a growing middle class with new aspirations; and increased privatisation of infrastructure projects and increased manufacturing outsourcing/off-shoring.
Rising labour and infrastructure costs mean that India cannot continue to compete on price beyond the next three to five years. Across all market sectors, the evolving market in India needs property and facilities management companies that can self-perform their services to unlock value throughout the supply chain.
The Directors believe that by vertically integrating with the supply chain for services such as transport management, critical environment management and maintenance, a truly-integrated property and facilities management service provider can significantly influence core business productivity and reduce risk. All of the major property and facility management companies in the market today are still, predominantly servicing customers in the first-tier cities and have little presence in the emerging cities. More businesses across a variety of sectors are now looking at the second and third tier cities to maximise growth potential and to be able to reduce the labour costs associated with location in the major cities.
The Directors believe that there is a need for service providers with a true pan-India presence to help these organisations to scale their operations and introduce operating efficiencies.