Half-year Report

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)

Mortice Limited

("Mortice", the "Group" or the "Company")

Results for the Half Year ended 30 September 2018

Mortice Limited (AIM: MORT), the AIM listed security and facilities management company, announces its unaudited results for the half year ended 30 September 2018.

Financial results highlights:

· Revenues from operations grew by 9.75% to $116.7 m (HY 2017: $106.3m)

o Man Guarding business increased by 14.11% to $63.9m (HY 2017: $56.0m)

§ Contributing 55% of group revenues

o Facilities Management business revenue grew 4.85% to $52.5m (HY 2017: $50.0m)

§ Contributing 45% of group revenues

o 19.13% ($12.6m) growth from Indian Operations

o 5.54% ($2.2m) decline in growth from Tenon FM UK

§ Tenon FM UK- Revenue $33.2m (HY 2017: $35.4m)

§ Frontline - Revenue $5m (HY 2017: $5m)

o Revenue MIX current year first half

§ India - 67.3%

§ UK - 28.4%

§ Singapore - 4.3%

· Adjusted EBITDA* has grown by 8.57% to $5.18m (HY 2017: $4.8m)

· Adjusted profit before taxation* grown by 4.47% to $2.3m (HY 2017: $2.2m)

· Net debt of $20.1m (FY 2018: $18.4m) increased for working capital growth.

*EBITDA and PBT have been adjusted for the currency translation gain or loss and loss from financial liability, loss of $0.70 million for currency translation in first half of CY 2018-19 (HY 2017: $0.04 m loss),

Operational highlights:

· Acquired the remaining 49% of Frontline Security Pte ltd in May,2018 at 3.5 million SGD, payable in four trenches until 30 June,2019, to date 3.0 million SGD has been paid

· During H1- more than 150 new clients have been added across the geographies, some of the clients are as:

Delhi Integrated Multi-Model Transit System Ltd.(DIMTS), Amazon Development Center India Pvt Ltd, Hsbc Electronic Data Processing India Pvt Ltd, Odisha Power Generation Corporation Limited, BMW India , GE Aviation Engine Services, Knight Frank Property Asset Management Pte Ltd, Global Maritime and Port Services Pte Ltd , Yongnam Engineering and Construction (Pte) Ltd, Marinte knik Shipbuilders (S) Pte Ltd, MCSL Management Pte Ltd., London Academy of Music and Dramatic art

Post Period End:

· Share buyback of 1,094,400 ordinary shares was completed from the UK vendor of Office & General Group Limited

· Frontline Security Pte Ltd has been renamed as Peregrine Security Pte Ltd.

Major Manjit Rajain, Executive Chairman of Mortice Limited, said:

"The Company has demonstrated once again its ability to integrate the businesses and drive the growth across different geographies and business segments. The Group is investing heavily on technology for on boarding new clients and improving the processes to drive internal efficiency and productivity as well as scale up Mortice's businesses."

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 - 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 - provision of a full range of facilities management services to corporate occupiers, owners and developers of real estate. Clients include some of the world's most respected blue chip and home-grown companies. Within the Tenon group, Mortice also offers security surveillance services through its subsidiary Soteria and mechanical and engineering services via Rotopower

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 Tenon UK and through this wholly owned subsidiary, acquired UK based Office & General Group Limited (O&G"), an independent property service company specialising in cleaning and providing support services such as environmental solutions and built fabric maintenance in the UK. In addition, the Company acquired a 51% majority stake in Singapore-based security company Peregrine Security Pte Ltd (Formerly known as Frontline Security Pte. Ltd), and in 2018 the company acquired remaining 49% stake of Peregrine Security Pte Ltd (formerly known as Frontline Security Pte. Ltd).

The unaudited interim financial statements will be available on the Company's website: www.morticegroup.com.

Unaudited condensed consolidated statement of profit or loss and other comprehensive income

(All amounts in United States Dollars, unless otherwise stated)

The annexed notes form an integral part of and should be read in conjunction with these condensed financial statements.

Unaudited condensed consolidated statement of changes in equity

(All amounts in United States Dollars, unless otherwise stated)

\* The Group on 28 June 2018, through its wholly-owned subsidiary, Tenon Facility Management Singapore Pte. Limited ("Tenon Singapore"), acquired the remaining 49% of the issued and paid-up capital of its Singapore-based subsidiary Frontline Security PTE LTD ("Frontline Security") from minority shareholder, for a consideration of SGD 3.5 million.

Unaudited condensed consolidated statements of cash flows

(All amounts in United States Dollars, unless otherwise stated)

Notes to unaudited condensed consolidated interim financial statements

1. Introduction

Mortice Limited ('the Company' or 'Mortice') was incorporated on 9 January 2008 as a public limited Company in the Republic of Singapore. The Company's registered office is situated at 36 Robinson Road, #17-01 City House, Singapore 068877.

The Company was listed on the Alternative Investment Market (AIM) of the London Stock Exchange on 15 May 2008. The Company together with its subsidiaries (hereinafter, together referred to as 'the Group') is engaged in providing services such as guarding services, facilities management services, mechanical and engineering maintenance services, installation of safety equipment and sale of such equipment. The Group's operations are spread across India, UK and Singapore. The various entities comprising the Group have been defined below.

*increase in group shareholding in Frontline Securities Pte Limited during the period from 51% to 100%.

These unaudited condensed consolidated financial statements were approved by the Board on 26th Dec,2018.

The immediate and ultimate holding company is Mancom Singapore PTE ltd, a company incorporated in Singapore. (In the previous year Mancom Holding Limited was the Ultimate holding company)

2. Basis of preparation

These condensed consolidated interim financial statements for the six months period ended 30 September 2018 have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union (EU), on a going concern basis. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2018.

Notes to unaudited condensed consolidated interim financial statements (contd.)

The functional currency of the entities within the Group (other than the subsidiaries in Singapore & United Kingdom) is Indian Rupees ('INR'). The functional currency of subsidiary in Singapore is SGD & in United Kingdom is GBP. The Company has a functional currency of United States Dollars ('US$'). The group's management has chosen to present the consolidated financial statement in US$, the functional currency of the Company.

All inter-company transactions and balances are eliminated on consolidation and the unaudited condensed consolidated interim financial statements reflect external transactions only. The accounting periods of the subsidiaries are coterminous with that of the Company.

3. Significant accounting policies

The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the year ended 31 March 2018.

4. Estimates

When preparing the interim financial statements, management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results.

The judgments, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group's most recent annual financial statements for the year ended 31 March 2018.

5. Segment reporting

The Group has reported segment results based on internal management reporting information that is regularly reviewed by the Group's Chief Executive Officer and Chairman. Chief Executive Officer and Chairman have concluded that the operating segment disclosure should be based on service offered by Group.

The reportable segments identified by the group are: guarding services and facility management services.

The revenue and profit generated by each of Group's business segments are summarized as follows:

The totals presented for the Group's operating segments reconciliation to the Group's key financial figures presented in its condensed consolidated financial statements are as follows:

September 2018 September 2017

6. Property, plant and equipment - The acquisitions of property, plant and equipment, for the six months ended 30 September 2018 are US$ 1,235,066 (six months ended 30 September 2017: US$ 633,055 and for the twelve months ended 31 March 2018 are US$ 1,454,045 excluding property, plant and equipment acquired under business combination).

7. Earnings per share

Both basic and diluted earnings per share have been calculated using the profit or loss attributable to shareholders of Mortice Limited as the numerator. Calculation of basic and diluted profit per share is as follows:

8. Related party transactions

A. Related party relationship

Disclosure of Related parties and relationship between the parties:

Significant related party transactions, other than those disclosed elsewhere in the financial statements, are as follows

Transaction with key management: September

The outstanding balances payable to related parties under the category of key management as at 30 September 2018 and 30 September 2017 are US$ 176,510 and US$ 5,508 respectively.

9 Financial instruments

(Financials assets and liabilities measured at amortised cost)

Fair values

The carrying amount of financial assets and liabilities with a maturity of less than one year is assumed to approximate their fair values.

However, the Group and the Company do not anticipate that the carrying amounts recorded at financial position date would be significantly different from the values that would eventually be received or settled.

The carrying amounts of assets and liabilities presented in the statement of financial position relate to the following categories of assets and liabilities: