REG - Mercantile Ports&Log - Trading Update

Mercantile Ports & LogisticsAnnouncement

13/01/2022 07:05

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RNS Number : 2780Y  Mercantile Ports & Logistics Ltd  13 January 2022

13 January 2022

 

Mercantile Ports & Logistics Limited

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

 

Trading Update

 

 

Mercantile Ports & Logistics Limited, which is developing and
operating its port and logistics facility in Navi Mumbai, Maharashtra,
India, provides the following update.

 

MPL made further progress during 2021, with a number of new contracts signed
and the Facility's separate coal jetty handling volume cargo and generating
revenue for the first time. However, COVID continued to have an impact on the
Indian economy, with the Delta variant causing widespread hardship for Indian
businesses and the population in general. Despite this, MPL was able to sign
new contracts and recent months have seen the commencement of the construction
of new warehouses for two new customers.  In the last month, the Company was
proud to see the first blocks of the Mumbai Trans Harbour Link, which had been
constructed on the Facility by Tata Daewoo, leave by barge. This logistically
challenging exercise passed without incident and the Company's team on the
ground received positive feedback on the Facility from this important
customer.

 

The Company's Sales and Marketing team was making good progress in the last
quarter of the year, but the emergence of the Omicron COVID variant brought
further strict lockdown measures to India and hit this momentum. Omicron also
had an impact on cargo movements in December and some of the contracts that
had been expected to be signed that month have been delayed, impacting
revenues for 2021. Taken together, the Board has concluded that, whilst
revenues are expected to be significantly ahead of 2020, they will be below
market expectations.

 

Since the start of the year, the Company has seen some improvement in the
trading conditions in the region but, until such time as COVID restrictions
are removed, the Company will take a more cautious outlook for the current
financial year. The Board is hopeful that there will be a quick rebound in
activity and that the contracts that had been expected to be signed in
December will be concluded in short order. The Company will keep shareholders
informed.

 

 

 Jay Mehta, CEO of Mercantile Ports, commented, "Having made progress and
built momentum after the easing of restrictions from the Delta variant, it was
disappointing for this momentum to stall with the emergence of the Omicron
variant. However, the Company is well placed to make up lost ground and the
recent achievements by Tata Daewoo demonstrate exactly what our facility can
deliver. We expect to be able to evidence this further this year".

 

This announcement contains inside information.

 

Enquiries:

 

 Mercantile Ports & Logistics Ltd      Jay Mehta
                                       C/O Newgate Communications
                                       +44 (0)203 757 6880
 Cenkos Securities plc                 Stephen Keys
 (Nomad and Joint Broker)              +44 (0)207 397 8900
 SEC Newgate                           Isabelle Smurfit
 (Financial PR)                        +44 (0)203 757 6880
                                       mpl@secnewgate.co.uk (mailto:mpl@secnewgate.co.uk)

 

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