Mercantile Ports & Logistics Regulatory News (MPL)

SKIL Ports & Logistics Limited

("SPL" or the "Company")

Interim Report for the Period ended 30 June 2012

The Company is pleased to announce its interims results for the period ended 30 June 2012.

SPL Chairman's Statement

I am pleased to report that the Company has made significant progress during the period, particularly since the release of the Company's preliminary results for 2011 on 17 May 2012. Since that time, the major time consuming outstanding permissions and studies have been successfully cleared with the Government. The Company has finalised a shortlist of preferred EPC contractors and will make a further announcement once a contractor is finalised. As such, the Company expects to commence ground work shortly and does not believe that it will be necessary to return cash to shareholders, as referred to in the Company's announcement of 28 February 2012.

We continue to maintain a very conservative cash burn rate position and, as of 30 June 2012, we held £63.2m (31-Dec-11 £63.4m). This policy of cash preservation will continue although the cash burn rate will ramp up by the end of the year and into 2013 as works on the site starts.

We will also be enhancing our team in India with the recruitment of a head of sales and marketing to lead our efforts in selling capacity for the port and logistics facility in the construction phase of the project. We have identified a number of candidates and expect to finalise an appointment in the coming weeks.

Whilst the macro position of India remains positive, the issues impacting the Indian economy have been well documented. Some government delays have increased the challenges coupled with the global slowdown and, in common with the majority of corporate India, our company has had its fair share of political and regulatory hurdles to overcome. However, now that these have been overcome, I remain confident of delivering an operational port and logistics facility by end of 2013, within the timetable we set at the time of the IPO.

The dire need for ports and logistics facilities in India still remains and is not likely to be solved anytime soon and the opportunities for SPL remain vast. As a company we are well positioned to capitalise on this situation and I can assure you that the entire team at SPL and I remain committed to delivering a world-class port and logistics facility for our shareholders, our customers and for India.

Nikhil Gandhi

Chairman

SKIL Ports & Logistics Limited

Enquiries

SPL - Pavan Bakhshi

+44 (0) 7956 209433

Cenkos Securities Plc - Stephen Keys 020 7397 8926

SKIL Ports & Logistics Limited

Notes to the condensed interim consolidated financial statements

1. Reporting entity

SKIL Ports & Logistics Limited (the "Company") was incorporated in Guernsey under the Companies (Guernsey) Law 2008 on 24 August 2010. The condensed interim consolidated financial statements of the Company as at and for the period ended 30 June 2012 comprise the Company and its subsidiaries (together referred to as the "Group"). The Company has been established to develop, own and operate port and logistics facilities in India.

2. General information and basis of preparation

The condensed interim consolidated financial statements are for the period ended 30 June 2012. They have been prepared on the historical cost basis. They do not include all of the information required in annual financial statements in accordance with IFRS.

The condensed interim consolidated financial statements are presented in sterling. The preparation of the condensed interim consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these consolidated financial statements, the significant judgments made by management applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied in the first annual IFRS financial statements.

The Company's financing effort to date is considered sufficient to enable the Company to fund all aspects of its operations. As a result, the condensed interim consolidated financial statements have been prepared on a going concern basis.

The condensed interim consolidated financial statements have been approved for issue by the Board of Directors on September 26, 2012.

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 December 2011. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.

4. The loss for the period is calculated after charging a loss of £1,352,793 on the retranslation of cash balances held in Indian rupees to sterling.

5. Cash flow adjustments and changes in working capital

 The following non-cash flow adjustments and adjustments for changes in working capital have been made to profit before tax to arrive at operating cash flow:

Adjustments £ 000

Finance income 2,693

2,693

Net changes in working capital £ 000

Change in trade and other receivables (282)

Change in trade and other payables (23)

Change in Taxation (282)

(588)

Exchange diff on cash &cash equivalents £ 000

Translation Reserve (1,353)

Minority Interest in Translation Reserves (12)

Impact in opening balance on consolidation (388)

(1,753)

6.

a) Consolidated statement of changes in equity

b)

Consolidated statement of changes in Foreign exchange translation reserves

This information is provided by RNS

The company news service from the London Stock Exchange