Accounts Filing Extension and Update

30 June 2021

Mercantile Ports & Logistics Limited

("MPL" or the "Company")

Accounts Filing Extension and Update

MPL announces that it has been granted an extension to the timeline for the filing of its audited accounts for the period ending 31 December 2020 until 30 September 2021. Whilst the audit process is nearly complete, as has been widely reported, the COVID-19 situation in India has continued to cause significant disruption.   The audit is expected to be concluded soon and the Company will make further announcements as the timetable is concluded.

Like many companies around the world, MPL's performance in 2020 was impacted by COVID-19. Despite this, the Company expects to report turnover of approximately £0.75 million for 2020 and that it had cash and cash equivalents of approximately £3.9 million at the year end and approximately £1.7 million at the end of May*. Whilst COVID-19 has also had an impact on the current year, the Company has been able to make significant progress, signing new contracts in February and also earlier this month, with revenues expected to ramp up from now through to the end of the year and beyond. Performance under the contract with the Tata Projects and Daewoo Engineering Joint Venture continues to go well and, as COVID-19 restrictions are lifted in India, the Company believes that it is well placed to build on this momentum and win further new business.

As announced earlier this month, the Company was delighted to complete the restructuring of its debt facility after an extensive due diligence process conducted by its banking consortium. The INR 475.57 Crores debt (approximately £46.2 million*) now has a significantly reduced interest rate and the Board considers this to be a clear endorsement of the Company's strategy and recognition of the status of the Company's facility. MPL has a strong and supportive, India based, shareholder in Hunch Ventures and, with there having been discussions with other parties and an offer of alternative debt facilities, the Company is confident that it would have access to additional debt should that be required in the future.   

Chairman, Jeremy Warner Allen said "As India recovers from the COVID pandemic, MPL is well placed to benefit from the expected increased levels of economic activity. The board continues to be pleased with the numbers of enquiries from potential new customers and, as restrictions are lifted, expects to secure new contracts and revenues through the rest of the year and beyond."

*Taking INR/GBP exchange rate of 103 as at 31 May 2021.

This announcement contains inside information.