MORT.L Regulatory News (MORT)

Mortice Limited

("Mortice" or the "Group")

FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2014

Mortice Limited (AIM:MORT), the AIM listed security and facilities management company with India focused operations, today announces its audited results for the financial year ended 31 March 2014.

Financial results highlights:

v Revenue has grown by 23.4% in INR terms to INR 448.12 Crores (2013: INR 363.27 Crores) and 11% in USD terms to US$ 74.07 million (2013: US$ 66.72 million)

v Security services revenue has grown by 26.7% in INR terms to INR 320.36 Crores (2013: INR 252.79 Crores) and 14.1% in USD terms to US$52.95 million (2013: US$ 46.43 million)

v Facilities Management services revenue has grown by 16.0% in INR terms to INR 127.07 Crores (2013: INR 109.59 Crores) and 4.4% in USD terms to US$21.00 million (2013: US$ 20.13 million)

v EBITDA of US$ 3.45 million (2013: US$ 4.26 million), a decrease of 19 % in US$ (INR 20.87 Crores (2013: 23.21 Crores), a decrease of 10.1% in INR terms).

v Profit before taxation of the Group has decreased by 27.4% in INR terms to 111.7 million ( 2013: INR 153.8 million) and 34.7% in USD terms to 1.85 million ( 2013: US$ 2.82 million)

v Profit after taxation of the Group has decreased by 34.7 % in INR terms to 67.7 million (2013: INR 103.7 million) and 41.2% in USD terms to 1.12 million (2013: US$ 1.90 million)

v There was a significant reduction in the value of INR compared with US$. The current year average price of US$1 was INR 60.5 whereas the previous year it was INR 54.45, resulting in a currency devaluation of 11.1%. INR is our functional currency while US$ is our reporting currency.

Commenting today, Major Manjit Rajain, the Executive Chairman of Mortice Ltd said:

"Despite the widespread economic difficulties suffered in India during the last year and the impact this has had on our clients we have continued to make progress and also make fundamental changes to the way we operate and strengthen the senior management and operational team. As a result, we are well positioned for the economic upturn which has begun and look ahead with confidence."

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Chairman's Statement

Overview

Our business was negatively impacted by a number of factors this year that were not in our control and caused in large part by the weak economic situation in India, with the consequence that business opportunities were reduced in our facilities management division and regrettably some of our large clients were forced to cease trading in India altogether. This had a direct impact on our revenues and profitability of the facilities management business, but I'm pleased to report that more recently, the economic climate in India has become much healthier and we are back into growth.

During the year we took the decision to establish a dedicated group sales and marketing division for the first time and although this has also impacted on Group costs, we expect to see the benefits from this materialise quickly going forward.

In addition we strengthened the senior management team with the appointment of Mr Arun Duggal as a strategic advisor. Mr Duggal has a wealth of experience and will be a great asset to us as we grow the company in the future. We have also invested in a new opportunity to increase revenues through our wholly owned subsidiary Soteria.

Results

In spite of the above, overall Group revenues were US$74.07 million (2013: US$66.72 million) with a decline in profit after tax to US$1.12 million (2013: US$1.90 million).

Revenues from our security business, Peregrine Guarding, increased to US$52.95 million (2013: US$46.43 million) with an improvement in profit after taxation to US$1.30 million (2013: US$1.20 million). This business remains at our core and continues to grow year on year. Currently, we are ranked as the fifth largest security services company in India and we see scope to improve on this as well as expanding into related areas where we can use our expertise.

Revenues from Tenon, our facilities management business, amounted to US$21.00 million (2013: US$20.13 million). The entire property and property management services sector in India has been deeply affected by the negative economic situation with a marked slowdown in the development of new real estate and, regrettably, we experienced a number of sizeable bad debts as a result of clients ceasing to trade in India or simply being unable to pay our costs. We are pursuing these situations through legal channels and whilst we are reasonably confident of being successful in this, inevitably it will take some time and has incurred unexpected extra costs.

In the year, we have continued to develop our international presence and in April this year, announced a joint venture between Tenon and the Tanami Holding Co, a leading Saudi Arabian multinational company which will provide Tenon the opportunity to develop its services in the Middle-East.

Peregrine Guarding performed strongly this year signing a co-operation agreement with Amsterdam ArenA, the Dutch sports arena specialist, to jointly maintain Indian sports infrastructure projects and to advise on training, safety, security and facility management, as well as signing an MOU with the Government of Meghalaya State in North Eastern India for the training of candidates into the security and guarding industry and for these trainees once qualified to be deployed all over India.

Most recently, we launched "Soteria" to provide clients anywhere in the world with an active 24-hour surveillance service capable of stopping or preventing unwanted events rather than simply monitoring them passively. We are confident that we can grow this business and are pleased to report that we have had very encouraging responses from clients both in India and the UK.

Outlook

Despite the financial setbacks we have experienced this year, from an operational point of view, we have continued to invest in the business, building new teams, appointing new senior people, launching new services and entering into new geographic regions such as Sri Lanka and Middle East and therefore are very well prepared for the year ahead, which I'm pleased to say has started positively and continues to improve.

Manjit Rajain

Chairman

15 September 2014

Extracts from the audited financial statements are provided below and the full version of the audited financial statements is available on the Company's website www.morticegroup.com. The Annual Report for the year ended 31 March 2014 will be posted to shareholders in due course.

Mortice Limited

and its subsidiaries

Statements of financial position

as at 31 March 2014

Mortice Limited

and its subsidiaries

Consolidated statement of profit or loss and other comprehensive income

for the financial year ended 31 March 2014

Mortice Limited

and its subsidiaries

Consolidated statement of changes in equity

for the financial year ended 31 March 2014

Mortice Limited

and its subsidiaries

Consolidated statement of cash flows

for the financial year ended 31 March 2014

Notes to the consolidated financial statements

for the financial year ended 31 March 2014

1 Introduction

Mortice Limited ('the Company' or 'Mortice') was incorporated on 9 January 2008 as a public limited company in Singapore. The Company's registered office is situated at 36 Robinson Road #17-01, City House, Singapore 068877.

The Company is listed on the AIM Market of the London Stock Exchange (AIM) since 15 May 2008. The Company together with its subsidiaries (hereinafter, together referred to as 'the Group') is engaged in providing services such as guarding services, facilities management services, mechanical and engineering maintenance services, installation of safety equipment and sale of such equipment. The Group's operations are spread across India. The various entities comprising the Group have been defined below.

The immediate and ultimate holding company is Mancom Holdings Limited, a Company incorporated in British Virgin Islands.

2 Basis of preparation

2.1 General information and statement of compliance with IFRS

The Consolidated financial statements for the year ended 31 March 2014 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). In addition to the presentation requirements prescribed under IFRS, the consolidated financial statements also includes information on the standalone statement of financial position of the Company as required by the Singapore Companies Act, Cap. 50 in order for the financial statements to show a true and fair view

 The consolidated financial statements have been prepared on a going concern basis.

11 Trade and other receivables

Related parties are entities over which key management are able to exercise control.

The advances to related parties are interest-free, unsecured and receivable on demand.

The ageing analysis of trade receivables not impaired is as follows:

The credit risk for trade receivables based on the information provided by key management, by geographical area, is located in India.

The Group's management considers that all the above financial assets that are not impaired or past due for each of the reporting dates under review are of good credit quality.

12 Cash and bank balances

Cash and bank balances are denominated in the following currencies:

16 Borrowings

All the loans are denominated in Indian Rupees.

16.1 Obligations under finance leases

Represented by:

The interest rate varies from 9% to 13% (2013- 10% to 13.5%)per annum.

The Group leases motor vehicles from non-related parties under finance leases. The finance lease obligations are secured by the underlying assets.

16.2 Bank loans

The interest rate for the bank loanis10.50% (2013 - 10.50%)per annum.

The amount repayable within one year is included under current liabilities whilst the amount repayable after one year is included under non-current liabilities.

16.3 Loan from related party

The Company has taken a loan from one of the directors of the Company at the rate of 13 %. The loan from the related party is usecured and repayable on demand (Note 22).

16.4 Other bank borrowings

Bank overdraft/cash credit and demand loans carrying interest rates within the range of 10.50% to 13.75% (2013 - 13.25%) per annum. These are secured by an exclusive charge on all the current assets amounting to US$ 23,674,871 and movable fixed assets amounting to US$ 452,514 both present and future.

Other bank borrowings are denominated in Indian Rupees.

17 Trade and other payables

Related parties include key management and their spouse and entities over which key management are able to exercise control.

Both the advances from related parties and amount due to subsidiaries are unsecured and repayable on demand.

Interest rate for advances from related parties and amount due to subsidiaries are 13.25% (2013 - 13.25%).

18 Other income

19 Finance costs

20 Tax expense

The tax expense on the results of the financial year varies from the amount of income tax determined by applying the Singapore statutory rate of income tax at 17% on profits as a result of the following:

Income tax is based on the tax rate applicable on statement of comprehensive income in various jurisdictions in which the Group operates. The effective tax at the domestic rates applicable to profits in the country concerned as shown in the reconciliation above have been computed by multiplying the accounting profit with the effective tax rate in each jurisdiction in which the Group operates. The individual entity amounts have been aggregated for the consolidated financial statements. The effective tax rate applied in each individual entity has not been disclosed in the tax reconciliation above as the amounts aggregated for individual group entities would not be a meaningful number. The details of statutory tax rates:

Country Rate

Singapore 17.00% (previous year - 17%)

India 32.445% (previous year - 32.445%)

21 Earnings per share

Both the basic and diluted earnings per share has been calculated using the profit attributable to shareholders of Mortice Limited as the numerator.

Calculations of basic and diluted loss per share are as follows:

22 Related party transactions

A. Related party relationship

Disclosure of Related parties and relationship between the parties:

Related parties key management and entities in which the key management has interest or control.

Significant related party transactions, other than those disclosed elsewhere in the financial statements, are as follows:

Transactions with key management:

The outstanding balance payable to related parties under the category of key management as at 31 March 2014 and 31 March 2013 is US$ 43,604 and US$ 40,924 respectively. These have been included under salaries payable under Note 17.

In addition to the above, the key management personnel participate in the gratuity plan of the Group.

23 Operating segments

Segment accounting policies are the same as the policies described in Note 2 of the financial statements. The Company accounts for inter-segment sales and transfers as if the sales or transfers were to third parties at current market prices.

Revenues are attributed to geographic areas based on the location of the assets producing the revenues.

The following tables present revenue and profit information regarding industry segments for the years ended 31 March 2014 and 2013, and certain assets and liabilities information regarding industry segments as at 31 March 2014 and 2013.

The totals presented for the Group's operating segments reconcile to the entity's key financial figures as presented in its financial statements as follows:

The operating subsidiaries are domiciled in India and there is only one geographical segment, i.e. India. Thus, no information has been presented by geographical segments.

27 Events after end of reporting period

On 2 June2014, the Group incorporated a wholly-owned subsidiary, Peregrine Cash Management Pvt.Ltd. ('Peregrine Cash') with paid up capital of Rs.500,000. The principal activities of Peregrine Cash are providing security services for cash transportation on behalf of financial institutions/banks.