Revenues rise at Mortice while profits slip

Security and facilities management company Mortice saw revenues grow 16.6% in its first half to $106.3m, it reported on Monday.

The AIM-traded firm said its Man Guarding business increased by 15.5% for the six months to 30 September, to $56.0m, contributing 53% of group revenues.

Its Facilities Management business revenue grew 17.6% to $50.0m, contributing the other 47% of group revenues.

Mortice said it saw 14.6% growth, or $8.4m, from Indian operations, while it saw 19.8% growth, or $6.7m, from the Tenon FM UK and Frontline units.

Tenon FM UK revenue was $35.5m, up from $28.8m a year earlier, while Frontline revenue was $5.0m - flat year-on-year.

It revenue mix for the first half was 62% from India, 33% from the UK and 5% from Singapore.

Adjusted EBITDA fell marginally, down 4% to $4.8m, which the board said primarily reflected the cost pressures on a specific contract that had now been resolved.

Adjusted profit before tax was down 15.4% to $2.2m, and the company had net debt of $17.6m, up from $13.5m at the start of the period.

“The company has demonstrated once again its ability to integrate the businesses and drive the growth across the geography and business segments,” said Mortice executive chairman Major Manjit Rajain.

“The group is investing heavily on technology via ERP, mobility solution, to drive internal efficiency and productivity as well as scale up its businesses.”

On the operational front, Mortice said more than 150 new clients had been added in the period.

It also strengthened its UK operations through the £4.5m acquisition of Elite in April, which won contracts with Surrey and Sussex Police and BMW, adding £2.25m of annual revenues.

“The GST implementation in the country provides a significant edge to the company to scale up in a fastest growing economy in the world,” Rajain added.

“The company remains on track to meet market expectations for full year ending 31 March 2018.”