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RNS Number : 9186H
Mortice Limited
02 March 2010 
 
Mortice Plc 
 
("Mortice" or the "Company") 
 
2 March 2010 
 
Trading Update 
 
Mortice Ltd (AIM:MORT), the AIM listed security and facilities management company based in India, announces the following
trading update. 
 
Whilst the Company achieved sales growth of 32.3% year-on-year (in INR terms) for the first half of the financial year
ending 31 March 2010, the Company anticipates posting a loss for the full financial year due to a combination of several
factors. The loss is expected to be smaller than in the last financial year. 
 
Sales growth in the current financial year has been slower than the Directors previously anticipated as cautious customer
sentiment in a slow economy has restricted customers from increasing their spend on security and facilities management
services. Additionally, the economic downturn has also made it challenging for the Company to collect full payment owed to
it from a minority of its clients, increasing provisioning in the current financial year. The Company is continuing to
pursue all outstanding debtors and is confident to be able to collect some of these outstanding amounts before the
financial year end. 
 
Lower margin levels, caused mainly by the economic environment and continued investment in the FM business, are also
expected to impact upon the Company's profitability for the financial year ending 31 March 2010. Revenues in the Company's
guarding and FM business's remains in line with management expectations for the full year to 31 March 2010. The Company
concentrated on the renewal of expiring contracts and gaining new business in 2009, and with both the guarding and FM
sectors in India now looking to return to growth, the Directors of the Company expect margins to reach higher levels in the
next financial year. 
 
Overall, although the economic downturn has affected margin levels and profitability in the financial year ending 31 March
2010, with greater stability in the Indian economy, the Directors believe that the Company's subsidiaries, with their solid
foundations and growth potential, are well positioned to drive both revenue growth and profitability in the next financial
year. 
 
Manjit Rajain, Executive Chairman, commented: 
 
"Whilst we anticipate making a small loss in the current full financial year, the Directors believe that the expected sales
growth supports the market's view of our business model. In the coming year, the Directors expect the margins to improve
and with the recent positive news surrounding the Indian economy, the Directors believe that the Company will continue its
growth going forward." 
 
For further information please contact: 
 
 Mortice Ltd                                                      
 Manjit Rajain, Executive Chairman         Tel: +91 981 800 0011  
                                                                  
 Grant Thornton Corporate Finance (NOMAD)                         
 Fiona Kindness / Robert Beenstock         Tel: +44 207 383 5100  
                                                                  
 Seymour Pierce Ltd (Broker)                                      
 Nandita Sahgal/Sam Tully                  Tel: +44 207 107 8000  
 
 
Nandita Sahgal/Sam Tully 
 
Tel: +44 207 107 8000 
 
Notes to Editors 
 
Mortice Limited, the India based security and facilities management company incorporated in Singapore, listed on AIM in May
2008. It is the holding company of Peregrine Guarding Private Limited (Peregrine), Tenon Property Services Private Limited
(Tenon) and Rotopower Projects Private Limited (together referred to as the "Group"), an Indian Facilities Management based
in Delhi, which was acquired by the Group in June 2009. 
 
Peregrine has been providing security services in India for 15 years, establishing a client base of over 450 customers and
developing a strong pan-India presence providing manned guarding in the process. Peregrine Group had opened 51 branches in
23 out of the 28 Indian states and has clients in a range of sectors including ITES, manufacturing, pharmaceutical, banking
and healthcare. 
 
Tenon, the facilities management arm of Mortice, was established to provide superior quality FM services to Peregrine
client base. Tenon today operates in 16 Indian states and employs 1200 people serving 30 clients. 
 
Rotopower was established 12 year ago and now employees over 1,600 employees servicing over 75 clients across 15 states in
India. It provides a range of facilities management services that include mechanical and electrical maintenance services,
annual maintenance contracts and housekeeping services to a wide range of customers. Rotopower also provides services to
telecom tower companies for the maintenance and running of electrical equipment. 
 
This information is provided by RNS
The company news service from the London Stock Exchange