22nd Dec 2015 11:15
LONDON (Alliance News) - AIM-listed security and facilities management company Mortice Ltd Tuesday reported a fall in pretax profit for its first half, primarily caused by costs related to its acquisition of Office & General Ltd, as well as investment in sales and marketing.
For the half year to end-September the company reported a pretax profit of USD313,580, down from USD1.3 million a year before, as a rise in revenue to USD51.2 million from USD43.0 million was offset by a big increase in staff and related costs, as well as other operating expenses.
The company agreed to buy UK-based Office & General for GBP6.3 million in August, and it contributed less than a month to the company's results for the half year. Mortice expects Office & General to begin contributing to its sales "more materially" in the second half.
Mortice added 150 clients during the half year, including Samsung India Pvt Ltd and PVR Ltd.
Following the end of the half year the company bought a 51% stake in Singapore-based security services and products company Frontline for GBP1.9 million, which it said further enhances its geographic reach.
"Having grown its client base and geographic reach during the period the company is well-placed to grow. The investment and acquisition that were made are expected to enhance performance during the second half as the company takes advantage of its increased scale and enhanced operations base. With a strong pipeline of sales and high levels of repeat business from existing clients the company looks forward to updating the market with further developments during the second half," said Executive Chairman Majit Rajain in a statement.
Shares in Mortice were untraded Tuesday morning at 85.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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