Mortice Limited Contract Update (1829C)

TIDMMORT

RNS Number : 1829C

Mortice Limited

27 September 2018

Mortice Limited

("Mortice" or the "Company")

Contract update

Mortice Limited (AIM: MORT), the AIM listed security and facilities management company, announces that Tenon FM has lost a competitive bid for its existing UK contract with University College of London (UCL).

As announced at the time of the Group's final results on 23 August 2018; one of the Group's largest contracts was set to expire on the 31 October 2018 and was up for renewal. The Group now confirms that it has lost a competitive bid to a large multinational company for its UK contract with University College of London, representing 18% of UK revenue with effect from November 2018. However, the Group is confident to recover this loss soon with various business activities currently in the pipeline. The Group remains focused on cost and bidding discipline and remains highly active in bidding for appropriate contracts and expects a return to like-for-like growth from its UK operations in the medium term.

Manjit Rajain, Executive Chairman, commented: "The UK market is experiencing tough trading conditions. The Group is taking significant corrective action in order to ensure a more profitable and sustainable margin in this changing and challenging environment."

 
 Mortice Limited                                     www.morticegroup.com 
 Manjit Rajain, Executive Chairman                  Tel: [phone] 
 
 finnCap Ltd                                           Tel: [phone] 
 Carl Holmes / Giles Rolls 
 
 
 

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 Guarding Private Limited, as registered Company operating under the brand name of "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 Facility Management India Private Limited, as registered Company operating under the brand name of "Tenon", provision of a full range of facilities management services to corporate occupiers, owners and developers of real estate. Clients include respected blue-chip and home-grown companies. Within the Tenon group of companies Mortice also offers security surveillance services through its subsidiary Companies i.e. Soteria Command Center Private Limited and mechanical and engineering services via Roto Power Projects Private Limited.

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 in the name of Tenon Facility Management UK Limited and through this wholly owned subsidiary Company 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. Office & General Group Limited has been fully integrated and re-branded as Tenon FM Ltd. For more information see: www.tenon-fm.com/what-we-do

In April 2017, Tenon UK completed the acquisition of Manchester-based Elite Cleaning & Environmental Services Ltd ("Elite"). Elite has a strong blue-chip client base, which is complementary to the Company's existing UK portfolio.

The Company acquired a 51% stake in Singapore-based security company Frontline Security Pte. Ltd in November 2015 and the remaining 49% stake in May 2018 for a maximum consideration of SGD 3.5 million.

Learn more about Mortice through this video interview with Manjit Rajain, Executive Chairman of Mortice: www.brrmedia.co.uk/broadcasts/57c94e8cd6c09fd74b0ae623/mortice-unlocking-potential

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

CNTUBSRRWAAKUAR

(END) Dow Jones Newswires

September 27, 2018 06:44 ET (10:44 GMT)