Mortice's revenue surges as it gains nearly 260 new clients

28th Dec 2016 11:29

(ShareCast News) - AIM-listed facilities manager Mortice's interim revenue surged as it gained nearly 260 clients including Amazon, Samsung, Procter & Gamble and Renault Nissan.Revenue climbed 79% to $91.1m for the six months ended 30 September, compared to last year, while revenue from the Man Guarded business increased 40% to $48.5m, which contributed to 53% of group revenue.From the facilities management business revenue grew 158% to $42.5m, which contributed to 47% of group revenue.This resulted in a 449% surge in adjusted pre-tax profit of $2.6m, while adjusted earnings before interest, tax, depreciation and amortisation increased more than 200% to $500,000.Some $1.85m of EBITDA came from the acquisitions of O&G and Frontline during the period and more than 77% of income generated came from repeat business.Net debt was largely flat at $14.5m.Executive chairman Major Manjit Rajain, said: "Our underlying performance was especially pleasing, but the group's performance has also been assisted by the performance of our acquired businesses, which have benefited from the backing of Mortice to accelerate their expansion. We are focused on becoming a global business operating in multiple geographic regions and are excited by the potential to further extend our reach."Our existing operations provide a solid foundation for growth as we continue to benefit from high levels of visibility thanks to long-term contracts and a retention rate of over 77%. We have a blue-chip client base with a growing ability to cross sell our services and, as such, we view the future with confidence. Additionally, we have a proven ability to execute acquisitions and will continue to evaluate opportunities to further consolidate our position."He added that the company has a pipeline of potential new and existing opportunities and that there is scope for scalability across its target markets.In December the company raised £2.3m to reduce its debt and in order to pursue further growth opportunities.Shares in Mortice were up 1.6% to 95p at 1108 GMT.