Mercantile Ports & Logistics : Interim Results

Mercantile Ports & Logistics Ltd - MPL Interim Results

Released 07:00 15-Sep-2017

RNS Number : 8262Q Mercantile Ports & Logistics Ltd 15 September 2017

15th September 2017

Mercantile Ports & Logistics Limited (the "Company") Interim results for the period ended 30 June 2017

Mercantile Ports & Logistics Limited ("MPL") is pleased to announce its interim results for the period ended 30 June 2017, as it develops its modern port and logistics facility in Mumbai, India, which when completed will consist of approximately 200 acres of reclaimed land.

Managing Director Pavan Bakhshi said,

"MPL is focused on developing its port facility in Mumbai so that it is in position to generate revenue from the end of 2017. We believe that, once completed, the facility will be well aligned with the Government of India's initiative to promote coastal and in-land waterways movement of cargo."

Enquiries:

MPL	Pavan Bakhshi/Jay Mehta C/O Redleaf Communications [phone]
Cenkos Securities plc (Nomad and Broker)	Stephen Keys/Camilla Hume [phone]
Redleaf Communications (Financial PR)	Charlie Geller/Fiona Norman [phone] [e-mail]

Chairman's Statement

We are pleased to report that activities have continued on site during the six months to 30 June 2017 without any unscheduled interruption.

Project update

As at 14 September 2017, 220 piles have been completed out of 248. This means that piles have been completed for approximately 340 meters of the 400-meter jetty. Pre-cast beams have been laid for approximately 140 meters of jetty, with top-deck slabs having been laid for 100 meters. By December 2017, 200 meters of jetty (400 meters of quay length), capable of handling four 4,000 DWT vessels, is expected to be complete in all respects and ready for operations.

As of 30 June 2017 MPL had £19.16 million cash on hand (31 Dec 2016: £35.69m and 30 June 2016: £35.7m) and £21.4 million (31 Dec 2016: £25m) headroom in it existing credit facility (using INR/GBP exchange rate at 30 June 2017 of 84.09, 31 December 2016: 83.8 and 30 June 2016:

90.6)

Operational update

We were excited to announce in August that we have signed a contract with a customer to start using the Facility, which is expected to commence from the end of the year. This is further to the two Memorandums of Understanding, which we referred to in June this year. The Company's business development team, led by Mr Grover, continues to gain traction with new customers and the team is being set the target of 70% utilisation of the facility by the end of year 1, while at the same time using discretion in selecting customers/port users to maximise revenue and earnings.

The Company confirms that it has been in compliance with Maharashtra Maritime Board ("MMB") requirements and was pleased to receive a letter from the MMB dated 14 September 2017, which acknowledges the expectation that commercial operations will commence in December 2017 and also that the MMB considers that the Company continues "to remain in full compliance".

Board Restructuring

As the Company moves to becoming fully operational, we were pleased to announce in August that John Fitzgerald will be joining the Board as Non-Executive Director and Andrew Henderson will also be joining the Board as Chief Financial Officer, immediately following the Company's AGM to be held on 20 September.

John Fitzgerald is a respected UK port infrastructure and services specialist, and has previously acted as a Board Member for Associated British Ports, and as Port Director for Humber, South Wales, Grimsby and Immingham Ports.

Andrew Henderson has over 15 years' experience acting as an ACA accountant and financial advisor to private and public companies in the UK and internationally, and has also worked with Deloitte and Grant Thornton.

The Company announced that James Sutcliffe and Peter Jones will be stepping down as Non- Executive Directors of the Company following the AGM. On behalf of myself and the rest of the Company, I would particularly like to thank James and Peter for their enormous contribution to MPL. Their experience was of great assistance, particularly when overcoming hurdles. They have played an important role in enabling the project to move into its operational phase and we wish them well.

Outlook

We thank our investors for supporting us during the development stage of the project and can report that the last six months has seen a sharpening of our focus to be ready for business by the end of this year and fully operational as early as possible.

Nikhil Gandhi Executive Chairman

Mercantile Ports & Logistics Limited 14th September, 2017

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2017

Note	6 months to 30 June 2017	6 months to 30 June 2016	Year to 31 Dec 2016
£000	£000	£000
CONTINUING OPERATIONS
Revenue	-	-	-
Administrative expenses	(1,629)	(966)	(2,409)
OPERATING LOSS	(1,629)	(966)	(2,409)
Finance income	1	972	1,301
Finance cost	-	-	-
NET FINANCING INCOME	1	972	1,301
(LOSS) / PROFIT BEFORE TAX	(1,628)	6	(1,108)
Tax expense for the period / year	-	(336)	(449)
LOSS FOR THE PERIOD / YEAR	(1,628)	(330)	(1,557)
Profit / (loss) for the period / year attributable to:
Non-controlling interest	3	-	2
Owners of the parent	(1,631)	(330)	(1,559)
Loss for the period / year	(1,628)	(330)	(1,557)
Other comprehensive income/(expense)
Exchange differences on translating foreign operations	4	(353)	4,589	9,697
Other comprehensive income / (expense) for the period / year	(353)	4,589	9,697
Total comprehensive income / (expense) for the period / year	(1,981)	4,259	8,140
Total comprehensive income / (expense) for the period / year attributable to:
Non-controlling interest	(3)	-	2
Owners of the parent	(1,979)	4,259	8,138
(1,981)	4,259	8,140
Loss per share (consolidated):
Basic & Diluted, for the year/period attributable to ordinary equity holders (£)	(0.004)	(0.008)	(0.020)