18 Dec 2012 07:00
18 Dec 2012
Mortice Limited
("Mortice" or the "Company")
Interim Results
Mortice Limited (AIM:MORT), the AIM listed security and facilities management company with India focused operations, today announces its interim results for six months ended 30th September 2012.
Financial highlights:
v Revenue has grown by 28% in INR terms and 5% in USD terms
v Guarding services has grown by 23% in INR terms and 2% in USD terms
v Facilities Management services has grown by 40 % in INR terms and 15% in USD terms
v Profit before taxation has grown by 51% in INR terms to 75.8 million (H1 2011/12: INR 50.1 million) and 25% in USD terms to 1.38 million (H1 2011/12: US$ 1.10 million)
v Profit after taxation has grown by 44% in INR terms to 48.8 million (H1 2011/12: INR 33.8 million) and 19% in USD terms to 0.89 million (H1 2011/12: US$0.75 million)
The Directors are pleased by the first half year performance but due to significant negative fluctuations of currency, the performance in reporting currency is moderate compared to that reported under the functional currency.
Statement by the Executive Chairman, Mr. Manjit Rajain
We are pleased to announce our third successive set of healthy interim half year profit profits. We have controlled our costs and have been able to achieve stable business growth in both Guarding and Integrated Facility Management services, despite more difficult market conditions. Additionally, we have successfully maintained our existing client base as well as win new clients during the period.
We continue to deliver a good performance in the context of the current macroeconomic environment. Our competitive position continues to grow and our financial strength is serving us well in this period of uncertainty and volatility. We anticipate improved revenues and profitability in the second half. Extracts from the unaudited financial statements are attached below and the full version of the unaudited financial statements will be available on the Company's website www.morticegroup.com.
For further information please contact:
Mortice Limited Manjit Rajain, Executive Chairman | Tel: +91 981 800 0011 |
Seymour Pierce Limited David Foreman / Rick Thompson (Corporate Finance) Paul Jewell / Jeremy Stephenson (Corporate Broking) | Tel: +44 207 107 8000 |
Unaudited condensed consolidated statement of financial position
(All amounts in United States Dollars, unless otherwise stated)
| As at | As at | As at |
30 September 2012 (Unaudited) | 31 March 2012 (Audited) | 30 September 2011 (Unaudited) | |
ASSETS |
|
|
|
Non current |
|
|
|
Goodwill | 1,248,005 | 1,285,587 | 1,344,215 |
Other intangible assets | 82,922 | 93,553 | 106,325 |
Property, plant and equipment | 1,165,936 | 1,164,316 | 1,219,279 |
Long-term financial assets | 693,293 | 715,813 | 583,545 |
Deferred tax assets | 1,429,221 | 1,325,870 | 1,478,440 |
| 4,619,377 | 4,585,139 | 4,731,804 |
Current |
|
|
|
Inventories | 185,490 | 186,436 | 128,513 |
Trade and other receivables | 19,039,367 | 16,560,561 | 15,572,895 |
Prepaid taxes | 811,474 | 1,005,950 | 831,530 |
Cash and cash equivalents | 1,097,447 | 1,704,137 | 1,917,017 |
| 21,133,778 | 19,457,084 | 18,449,955 |
Total assets | 25,753,155 | 24,042,223 | 23,181,759 |
EQUITY AND LIABILITIES |
|
|
|
Equity |
|
|
|
Capital and reserves |
|
|
|
Share capital | 9,555,312 | 9,555,312 | 9,555,312 |
Reserves | (1,059,181) | (1,742,329) | (2,299,802) |
| 8,496,131 | 7,812,983 | 7,255,510 |
Non- controlling interests | 18,431 | 13,712 | 8,264 |
Total equity | 8,514,562 | 7,826,695 | 7,263,774 |
Liabilities |
|
|
|
Non-current |
|
|
|
Employee benefit obligations | 794,117 | 624,776 | 566,856 |
Borrowings | 145,939 | 155,605 | 137,369 |
| 940,056 | 780,381 | 704,225 |
Current |
|
|
|
Trade and other payables | 11,401,360 | 10,095,809 | 11,095,100 |
Borrowings | 4,897,177 | 5,339,338 | 4,118,660 |
| 16,298,537 | 15,435,147 | 15,213,760 |
Total liabilities | 17,238,593 | 16,215,528 | 15,917,985 |
Total equity and liabilities | 25,753,155 | 24,042,223 | 23,181,759 |
Unaudited condensed consolidated statement of comprehensive income
(All amounts in United States Dollars, unless otherwise stated)
| Six months ended |
| Six months ended |
30 September 2012 |
| 30 September 2011 | |
| (Unaudited) |
| (Unaudited) |
Income |
|
|
|
Service revenue | 31,665,045 |
| 30,020,931 |
Other income | 82,368 |
| 178,619 |
Total income | 31,747,413 |
| 30,199,550 |
|
|
|
|
Expenses |
|
|
|
Staff and related costs | 27,674,168 |
| 26,272,493 |
Materials consumed | 415,001 |
| 382,942 |
Other operating expenses | 1,594,581 |
| 1,770,178 |
Depreciation and amortisation | 226,338 |
| 244,556 |
Finance costs | 451,212 |
| 420,628 |
Total expenses | 30,361,300 |
| 29,090,797 |
|
|
|
|
Profit before taxation | 1,386,113 |
| 1,108,753 |
Tax expense | (493,774) |
| (359,941) |
Profit for the period | 892,339 |
| 748,812 |
|
|
|
|
Other comprehensive income: Exchange difference on translating foreign operations |
(204,472) |
|
(710,840) |
Total comprehensive income for the year net of tax | 687,867 |
| 37,972 |
Profit for the period attributable to: |
|
|
|
- Owners of the parent | 887,620 |
| 745,530 |
- Non-controlling interest | 4,719 |
| 3,282 |
| 892,339 |
| 748,812 |
|
|
|
|
Total comprehensive income attributable to: |
|
|
|
- Owners of the parent | 683,148 |
| 34,690 |
- Non-controlling interest | 4,719 |
| 3,282 |
| 687,867 |
| 37,972 |
|
|
|
|
Earnings per share:
Basic and diluted |
0.02 |
|
0.02 |
Unaudited condensed consolidated statement of changes in equity
(All amounts in United States Dollars, unless otherwise stated)
| Equity attributable to shareholders of the Company | |||||
| Share capital | Exchange translation reserve | (Accumulated losses)/ Retained earnings | Total attributable to owners of the parent | Non-controlling interest | Total equity |
| US$ | US$ | US$ | US$ | US$ | US$ |
Balance as at 1 April 2011 | 9,555,312 | (316,785) | (2,017,707) | 7,220,820 | 4,982 | 7,225,802 |
Total comprehensive income/ (loss) for the period | - | (710,840) | 745,530 | 34,690 | 3,282 | 37,972 |
Balance as at 30 September 2011 | 9,555,312 | (1,027,625) | (1,272,177) | 7,255,510 | 8,264 | 7,263,774 |
|
|
|
|
|
|
|
Balance as at 1 April 2012 | 9,555,312 | (1,386,856) | (355,473) | 7,812,983 | 13,712 | 7,826,695 |
Total comprehensive income/(loss) for the period | - | (204,472) | 887,620 | 683,148 | 4,719 | 687,867 |
Balance as at 30 September 2012 | 9,555,312 | (1,591,328) | 532,147 | 8,496,131 | 18,431 | 8,514,562 |
Unaudited condensed consolidated statements of cash flows
(All amounts in United States Dollars, unless otherwise stated)
| Six months ended |
| Six months ended |
| 30 September 2012 |
| 30 September 2011 |
| (Unaudited) |
| (Unaudited) |
(A) Cash flow from operating activities |
|
|
|
Profit before taxation | 1,386,113 |
| 1,108,753 |
Adjustments for: |
|
|
|
Depreciation and amortisation | 226,338 |
| 244,556 |
Interest expense | 451,212 |
| 420,628 |
Interest income | (28,583) |
| (41,850) |
Impairment of trade receivables | 90,825 |
| 141,619 |
Liabilities no longer required written back | (17,097) |
| - |
Foreign exchange (gain) / loss | (9,735) |
| 32,678 |
Bad debts written off | 8,494 |
| 79,256 |
Operating profit before working capital changes | 2,107,567 |
| 1,985,640 |
Changes in operating assets and liabilities |
|
|
|
Working capital changes: |
|
|
|
Trade and other receivables | (2,915,158) |
| (4,983,603) |
Inventories | (4,336) |
| 2,251 |
Trade and other payables | 1,755,626 |
| 2,390,336 |
Cash generated from / (used in) operations | 943,699 |
| (605,376) |
Income tax paid | (471,670) |
| 21,654 |
Interest paid | (468,471) |
| (412,632) |
Net cash generated from / (used in) operating activities | 3,558 |
| (996,354) |
|
|
|
|
(B) Cash flow from investing activities |
|
|
|
Acquisition of plant, property and equipment | (198,349) |
| (232,174) |
(Placement)/ withdrawn of pledged fixed deposit (net) | (25,672) |
| 639,523 |
Interest received | 19,543 |
| 85,216 |
Net cash generated (used in)/ from investing activities | (204,478) |
| 492,565 |
|
|
|
|
(C) Cash flows from financing activities |
|
|
|
Repayment of finance lease obligation | (63,113) |
| (68,008) |
Repayment of long term borrowings | - |
| (8,826) |
Repayment /(proceeds) from short term borrowings (net) | (271,944) |
| 168,219 |
Net cash generated (used in)/ from financing activities | (335,057) |
| 91,385 |
|
|
|
|
Net decrease in cash and cash equivalents | (535,977) |
| (412,404) |
Cash and cash equivalents at the beginning of the period | 1,704,137 |
| 2,508,965 |
Effect of change in exchange rate on cash and cash equivalents | (70,713) |
| (179,544) |
Cash and cash equivalents at the end of the period | 1,097,447 |
| 1,917,017 |
Notes to unaudited condensed consolidated interim financial statements
(All amounts in United States Dollars, unless otherwise stated)
1. INTRODUCTION
Mortice Limited was incorporated on 9 January 2008 as a public limited Company in the Republic of Singapore. The Company's registered office is situated at 36 Robinson Road, #17-01 City House, Singapore 068877.
The Company was listed on the AIM Market of the London Stock Exchange on 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.
Name of subsidiaries | Country of incorporation | Effective group Shareholding % |
Tenon Property Services Private Limited ('Tenon Property') | India | 99.48 |
Peregrine Guarding Private Limited ('PGPL') | India | 99.48 |
Tenon Support Services Private Limited ('Tenon Support') | India | 99.48 |
Tenon Project Services Private Limited ('Tenon Project') | India | 99.48 |
Roto Power Projects Private Limited ('Roto') | India | 99.43 |
These unaudited condensed consolidated financial statements were approved by the Board on 14th Dec'12.
The immediate and ultimate holding company is Mancom Holdings Limited, a company incorporated in British Virgin Islands.
2. BASIS OF PREPARATION
These condensed consolidated interim financial statements are for the six months ended 30 September 2012 have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union (EU), on a going concern basis. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2012.
The functional currency of the entities within the Group (other than the Company) is Indian Rupees ('INR'). The Company has a functional currency of United States Dollars ('US$'). The group's management has chosen to present the consolidated financial information in US$, the functional currency of the Company.
All inter-company transactions and balances are eliminated on consolidation and the unaudited condensed consolidated interim financial statements reflect external transactions only. The accounting periods of the subsidiaries are coterminous with that of the Company.
Previous period's amounts have been regrouped/ reclassified, wherever considered necessary to make them comparable with those of the current period.
3. SIGNIFICANT ACCOUNTING POLICIES
The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's last annual financial statements for the year ended 31 March 2012. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements
4. ESTIMATES
When preparing the interim financial statements, management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results.
The judgments, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group's last annual financial statements for the year ended 31 March 2012.
5. SEGMENT ANALYSES
The Group has reported segment results based on internal management reporting information that is regularly reviewed by the Group's Chief Executive Officer and Chairman. Chief Executive Officer and Chairman have concluded that the operating segment disclosure should be based on service offered by Group.
The reportable segments identified by the group are: guarding services and facility management services.
The revenue and profit generated by each of Group's business segments are summarized as follows:
1 April 2012 to 30 September 2012 | ||||
| Guarding | Facility Management | Others | Total |
Revenue from external customers | 22,051,398 | 9,474,820 | 138,827 | 31,665,045 |
Segment operating profit | 942,922 | 475,776 | (26,507) | 1,392,191 |
Total segment assets | 17,290,790 | 8,667,365 | 50,760 | 26,008,915 |
|
|
|
|
|
1 April 2011 to 30 September 2011 | ||||
| Guarding | Facility Management | Others | Total |
Revenue from external customers | 21,703,413 | 8,210,471 | 107,047 | 30,020,931 |
Segment operating profit | 759,020 | 284,931 | (24,399) | 1,019,552 |
Total segment assets | 15,150,060 | 8,098,094 | 122,575 | 23,370,729 |
Reconciliation on reportable segments profit to group profit is summarised as under:
| Six months ended 30 September 2012 | Six months ended 30 September 2011 |
Segment operating profit before tax | 1,392,191 | 1,019,552 |
|
|
|
Reconciling items: |
|
|
Other income not allocated | 82,368 | 178,619 |
Other expense not allocated (Mortice Limited) | (88,446) | (89,418) |
Group profit before tax | 1,386,113 | 1,108,753 |
|
|
|
6. EARNINGS PER SHARE
Both basic and diluted earnings per share have been calculated using the profit or loss attributable to shareholders of Mortice Limited as the numerator.
Calculation of basic and diluted profit per share is as follows:
| Six months ended 30 September 2012 | Six months ended 30 September 2011 |
Earning attributable to equity holders (US$) | 887,620 | 745,530 |
Weighted average number of ordinary shares outstanding for basic and diluted earnings per share | 47,700,001 | 47,700,001 |
|
|
|
Basic and diluted earnings per share (US$) | 0.02 | 0.02 |
|