Mercantile Ports & Logistics Ltd Trading Update (1649Z)
10 January 2024 - 6:00PM
UK Regulatory
TIDMMPL
RNS Number : 1649Z
Mercantile Ports & Logistics Ltd
10 January 2024
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the EU Market Abuse Regulation (2014/596) which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended and supplemented from time to time.
10 January 2024
Mercantile Ports & Logistics Limited
("MPL" or the "Company" and, together with its subsidiaries, the "Group")
Trading Update
For the vast majority of the year, the Company traded well and
in line with expectations and further progress was made at Karanja.
However, the recent acquisition of a port in the region had a short
term impact on the trading volumes at Karanja in the month of
December. As a result of this transaction, importers sought to
clear stockpiles of existing supplies of coal at that port and that
has meant that a number of coal importing customers of Karanja
elected to take advantage of this short term dynamic and acquired
coal from that port, rather than import coal through the Company's
Karanja facility, as forecast. As a result, the Company expects
Revenue for the year ending 31 December 2023 to be approximately
GBP5.4m.
It is important to note that overall demand for coal in the
region has not decreased and, therefore, the stockpiles of coal
that were at the acquired port will need to be replenished and
stored elsewhere. As such, the Company is confident that the
volumes of coal that it had expected in December will be deferred
to early 2024 and the Company confirms that market conditions and
coal volumes have now normalised. In addition, the Company has
visibility of a robust pipeline and expects to announce contracts
for handling of new commodities in the coming weeks. The Company
was pleased to complete its contract with Tata Daewoo in June of
2023 and is proud to have played an important part in the
construction of the Trans Harbour Link, the country's longest
bridge, which is due to be inaugurated next week by the Prime
Minister of India. The high load bearing concretised ground at
Karanja that has been vacated by Tata Daewoo is ideally suited to
handle the Company's container business.
The Company is continuing to work with the lending consortium of
state-owned banks in restructuring its debt facility. While this
process has taken longer than originally envisaged, the Company
continues to have an excellent relationship with its banks and
remains confident of a facility with much more attractive terms
being put in place.
Jeremy Warner Allen, Chairman of MPL stated that "We close our
second full year of operations at the facility and while we are
surprised by the short term impact on trading in December, we are
confident that this is a deferral that will flow through as revenue
for the Company in 2024. The Company enters 2024 with real momentum
and the Board expects significant progress at its facility in the
coming months."
- Ends -
For further information, please visit www.mercpl.com or
contact:
MPL c/o SEC Newgate
+44 (0) 20 3757 6880
Cavendish Capital Markets Stephen Keys
Limited +44 (0) 207 220 0500
(Nomad and Broker)
------------------------------
SEC Newgate Elisabeth Cowell/ Bob Huxford
(Financial Communications) +44 (0) 20 3757 6880
mpl@newgatecomms.com
------------------------------
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