Mortice Limited Acquisition (6551M)

TIDMMORT

RNS Number : 6551M

Mortice Limited

01 May 2018

Mortice Limited

("Mortice", the "Group" or the "Company")

Acquisition

Mortice Limited (AIM: MORT), the AIM listed security and facilities management company, announces that it has today, through its wholly-owned subsidiary, Tenon Facility Management Singapore Pte. Ltd. ("Tenon Singapore"), agreed to acquire the remaining 49% of the issued and paid-up capital of its Singapore-based subsidiary Frontline Security PTE LTD ("Frontline Security") from Mr. Joe Singh, the founder of Frontline Security, for a maximum consideration of SGD 3.5 million (approximately GBP1.89 million), in cash.

In November 2015, the Company acquired a 51% majority stake in Singapore-based security company Frontline Security, with an option to acquire an additional 25% within three years. Frontline Security's unaudited results for the year ended 31 December 2017 recorded total revenues of SGD 13.84 million and a profit before tax of SGD 2.08 million. The net assets of Frontline Security as at 31 December 2017 were SGD 2.24 million.

The consideration shall be paid in 4 tranches with the first amount SGD 1.0 million payable 30 June 2018. The final tranche of SGD 500k, due on 30 June 2019, is subject to Frontline achieving SGD 900k per month for the period 1 May 2018 to 31 December 2018. This is expected to be satisfied from a mixture of internal cash resources and additional debt facilities.

About Frontline Security (www.frontlinesecurity.com.sg)

Frontline Security, is a leading provider of security manpower services, close protection officers, security systems and technology solutions, providing services serving customers across 73 sites in Singapore. In March 2018, the company employed over 300 full-time and part-time security officers.

The business was founded in 2006 and prior to today's transaction was owned 51% by Tenon Singapore and 49% by Joe Singh. It also provides security management, consultancy services and training, as well as supplying a wide range of security and surveillance products including CCTV systems, GPS tracking systems, metal detectors, biometric time and attendance systems, and under vehicle surveillance systems.

Major Manjit Rajain, Executive Chairman of Mortice Limited, said:

"Frontline Security has delivered exceptional performance since the Group acquired a 51% stake in November 2015. Since that date Revenues have trebled to SGD 13.8 million and we continue to see this as an exciting growth market for the provision of security manpower services and other security products and services."

 
 Mortice Limited                    www.morticegroup.com 
 Manjit Rajain, Executive          Tel: [phone] 
  Chairman 
 
 finnCap Ltd                          Tel: [phone] 
 Adrian Hargrave / Giles Rolls 
  (Corporate Finance) 
 
 
 

About Mortice Limited

Mortice (AIM: MORT), is an AIM listed security and facilities management company, incorporated in Singapore and based in India with additional operations in Singapore and the UK.

Mortice operates under two brands, in India:

-- Peregrine - provision of guarding and security services to a wide range of clients from blue-chip companies, smaller businesses, commercial and private properties, and individuals.

-- Tenon - provision of a full range of facilities management services to corporate occupiers, owners and developers of real estate. Clients include some of the world's most respected blue chip and home-grown companies. Within the Tenon group, Mortice also offers security surveillance services through its subsidiary Soteria and mechanical and engineering services via Roto Power

The business is growing and profitable and is focused on expanding its geographical footprint and growing through targeted acquisitions, as well as organically.

In 2015 the Company established Tenon UK and through this wholly owned subsidiary, acquired UK based Office & General Group Limited, an independent property service company specialising in cleaning and providing support services such as environmental solutions and built fabric maintenance in the UK and Elite cleaning and environmental service Ltd providing facility management services based out of Manchester (UK) in April, 2017. In addition, the Company has a wholly owned Singapore-based security company Frontline Security Pte. Ltd.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 01, 2018 02:00 ET (06:00 GMT)