Mortice Limited (AIM: MORT) Acquisition Update and Contract Wins

Mortice Limited (AIM: MORT), the AIM listed security and facilities management company, announces that recently acquired Elite Cleaning & Environmental Services Ltd (“Elite”) has won two new contracts worth a combined total of £2.25m a year. These two new contracts take the Company into new sectors in the UK and provide further reliable revenue streams for the Company.

Since completing the £4.5m acquisition of Elite in April 2017 the focus has been on integrating it into the Company’s wholly-owned subsidiary, Tenon Facility Management UK Limited (“Tenon UK”), with a view to further broadening the Company’s UK footprint. This process is well underway.

Surrey and Sussex Police

Elite will provide cleaning and waste services for Surrey & Sussex Police having won a joint tender for both forces. The initial contract is for three years, with the potential to extend for a further two. This is the Company’s first UK contract win in the police forces sector and both Elite and Tenon UK are working on a number of additional tenders within this sector.

BMW

Elite has also secured a place on the BMW approved supplier list and won a new two-year contract. Having previously worked with BMW on an ad-hoc basis, this is the first long term contract it has secured. Furthermore, now that Elite has been named an approved supplier and is now part of the global framework for BMW, it is now tendering for a number of opportunities with other BMW Group companies.

Commenting, Manjit Rajain, Executive Chairman of Mortice, said:

“We are delighted with Elite’s performance to date. When we acquired the business in April we identified a number of significant growth opportunities and believe these contract wins highlight the potential for the Company to further strengthen its growing presence in the UK. These contract wins are further evidence of our ability to make judicious acquisitions and to use the Company’s infrastructure and finances to accelerate the growth of acquired 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 respected blue-chip and home-grown companies. Within the Tenon group of companies 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, an independent property service company specialising in cleaning and providing support services such as environmental solutions and built fabric maintenance in the UK. Office & General Group Limited has been fully integrated and re-branded as Tenon FM Ltd. For more information see: www.tenon-fm.com/what-we-do

In addition, the Company acquired a 51% majority stake in Singapore-based security company Frontline Security Pte. Ltd, and has an option to acquire an additional 25% within three years.

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.

Terms of Website Use

All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned