15th Sep 2014 09:49
LONDON (Alliance News) - Mortice Ltd Monday said its full-year pretax profit fell on the back of a rise in costs over the period, but said its fortunes are improving as the economic backdrop in the Indian market brightens.
The India-focused security and facilities management company said its pretax profit for the year to March 31 was USD1.8 million, down from USD2.8 million last year.
Revenue increased over the period, up to USD74.3 million from USD66.8 million a year earlier, but this was offset by a jump in costs in the period, up to USD72.5 million from USD64.0 million last year. The biggest rise came in its staff costs in the year, which increased to USD65.7 million from USD58.2 million in 2013 after it created a dedicated group sales and marketing division for the first time.
Revenue from its core Peregrine Guarding security business rose to USD53.0 million in the year, up from USD46.4 million. Revenue from its facilities management arm, Tenon, rose marginally to USD21.0 million from USD20.1 million last year as it was hit by the impact felt by the property and property management services sector in India amid the difficult economic situation in the country over the reporting period, Mortice said.
The company said the economic situation in India has improved since the change of government in the country and said its facilities management arm is returning to growth. The Tenon business also signed a joint venture agreement with Tanami Holding Co in April this year which Mortice expects to help it expand its operations in the Middle East.
The company said its new year has started positively, and it expects this to continue in 2014.
Mortice shares were untraded on Monday, quoted at 51.50 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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