Mercantile Ports & Logistics Limited (AIM: MPL), which is operating and developing out its port and logistics facility in Navi Mumbai, Maharashtra, India, is pleased to announce its preliminary results for the year ended 31 December 2020.
· Significant increase in revenues generated in FY 2020 to £0.75m (FY 2019: £0.03m) following recommencement of operations of the port in a very challenging environment
· Tata-Daewoo JV, which is constructing the longest sea bridge in India and is the first customer of the port, took over the contracted land parcel in April 2020 to commence fabrication activities for the bridge.
· Advanced negotiations with numerous customers during the period, culminating in the delivery of three new long-term contracts post period end
Post Period End Highlights
· Successfully raised £10.1 million in August 2021 to enable the Company to secure further contracts, construct further storage facilities, service debt and for general working capital purposes
· Completed debt restructuring with existing lenders on favourable terms including a c400 bps reduction in interest rate from 13.45% to 9.5%
· Healthy pipeline of future potential business interacting with some of the largest global companies as well as some of the largest known companies in our region
While the audit was intended to be released on September 30th, the auditors brought to the attention of management a tax provision that had been stated in the previous years and queried whether that provision continued to be required in light of a judgement in favour of the Group given by the Income Tax Appellate Tribunal. Upon challenge, management determined that evidence supporting the release of the provisions was available at the time of filing the 2019 financial statements. The release of the audited financials had to be delayed as the Group processed the financials to release the provision, which represents a further strengthening of the company's capital structure.
Jeremy Warner Allen, Chairman of MPL, commented:
"In 2020 we re-commenced operations of the port in a very challenging environment caused due to the impact of Covid-19 pandemic, with the firm support of our stakeholders.
"At the same time, we continued to make progress with our strategic objectives and continue to strive to sign long term contracts with niche clients which will add value to our facility as well as market standing. Our team has continued to make progress with contract negotiations and other areas despite the lockdown and, given the current capability of the facility and its location, I believe that we are well positioned in every way to perform strongly as restrictions are lifted and trading conditions improve."
View the Full Results Here: https://www.londonstockexchange.com/news-article/MPL/final-results/15164220