8 Jun 2009 15:30
Mortice Plc
8 June 2009
Trading update
Mortice Ltd (AIM:MORT) ("Mortice" or the "Company"), the AIM listed security and facilities management company based in India today provides a trading update for the year ending 31 March 2009.
As was announced in early March, both our operating companies Peregrine Guarding Private Limited ("Peregrine") and Tenon Property Services Limited ("Tenon") have continued to win new business and the Board remains very optimistic for the growth prospects of the Company.
In the financial year ended 31 March 2009, the Company committed a high level of investment to developing the business of Tenon, which included widening the infrastructure of the business as well as the appointment of senior executives to the management team. The benefits of this investment have allowed the Company and its subsidiaries (together the "Group") to continue to build on its success and to develop new services which will continue to enhance the overall offering both in the near term and over future years.
As announced on 24 December 2009, the Board decided not to pursue the general contracting business as it was most likely to face an impact as a result of economic slowdown and its direct impact on the real estate and infrastructure sectors, resulting in low margins and high working capital requirements.
The overall impact of the global economic slowdown including the weakening of the Indian Rupee against the US dollar, the charging of expenses associated with the Company's listing process, and the matters mentioned above have adversely impacted the Group's financial performance during the year. As a result the profits for the year ended 31 March 2009 will be materially lower than the market expectations.
Based on the level of new business enquiries, the Board remains optimistic about its continued growth over the next year with along with the expectations of improved market conditions in India. The Directors believe that the Company remains very well positioned to grow through both organic and inorganic routes.
For further information please contact:
| Mortice Ltd | ||
| 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 / Francesca Tuckett | Tel : +44 207 337 1552 |