30 sep 25   mercantile ports&log - interim results mercantile ports & logistics limited | mpl | 0.9 0 0.0% | mkt cap: 3.30m    rns number : 2985b mercantile ports & logistics ltd 30 september 2025   30 september 2025 mercantile ports & logistics limited ("mpl", the group or the "company") interim results mercantile ports & logistics limited (aim: mpl), which is operating a port and logistics facility in navi mumbai, maharashtra, india announces its interim results for the period ended 30 june 2025. management statement: as previously announced, the company's performance during the period was impacted by the company's ongoing negotiations with its lenders, given that the company has been engaged for nearly two years with its banks to refinance the debt held by its indian lenders. in may 2025 the company made a one-time settlement offer ("ots") offer to lenders to settle the debt at gbp 43mn. the lenders ran a process for price discovery, wherein they received a bid from the third party to settle the debt at gbp 46.5mn. in exercising its right of first refusal, the company offered a settlement amount of gbp 47.1 million and was subsequently declared as the successful bidder by the consortium. between june and july 2025, sanctioning authorities of two of the three lenders approved the ots proposal for the company's term debt, with approval from the third lender pending. in september 2025, the company was informed that the ots had been annulled, as the third lender's approval had not been received. it was further understood that an arbitrary bid had been received by the lenders which offered to settle the debt at gbp 52 million. the company maintains that it has met all of its obligations under the agreed terms and has taken steps to safeguard its position. legal proceedings have been initiated before the high court of delhi, where interim protection has been granted. the company is represented in these proceedings by senior legal counsel, including a former attorney general of india. through the continued support of its shareholders and the sustained efforts of the company, a strategically important and valuable port and logistics asset has been developed. however, business operations on the ground have been constrained by the uncertainty and the time taken to conclude the debt settlement process. the board remains fully committed to safeguarding the company's core asset and protecting the interests of all stakeholders. at present, the court is due to deliver its interim ruling on 6 october 2025. should the ruling be adverse to mpl, the company will have the opportunity to appeal against the verdict as per legal advice. the board will continue to act in the best interests of the company and will keep shareholders informed of material developments. the board firmly believes that there is significant inherent value in mpl's listing on the london stock exchange. the board is determined to ensure that mpl remains a going concern and that this value is preserved. the original purpose of mpl's listing in london was to provide a platform to invest in and develop niche infrastructure and logistics assets across india and internationally. that strategic objective remains unchanged. the board's priority is to safeguard the existing asset base and to position the company to deliver on its long-term strategy once the current challenges are resolved. trading and financial update: the protracted resolution of lender-related matters has weighed heavily on business operations and profitability. for 1h 2025, revenues fell by approximately 7% year-on-year, while operating profit at indian level declined by about 80%, largely due to higher legal and administrative costs associated with the debt negotiations. 1h 2025 consolidated operating loss before depreciation and impairment loss amounted to gbp 6.3 million primarily as a result of advances write off. the uncertainty has also presented challenges in sustaining confidence among customers, suppliers, and employees. this environment has led to delays in signing of new customer contracts until greater clarity emerges on the company's financial position. one-time items beyond operating performance, financial results were affected by specific one-time charges, including: i.          a write-off of approx. gbp 6 million in advances provided in fy2019/20 to an epc contractor for quarry booking and development. the contractor subsequently entered liquidation, with the order finalized by the court in 2025. ii.         a gbp 6.9 million impairment following a review of actual results versus budgeted revenues and profitability.   it is important to note that, given the current debt situation, the company reclassified borrowings to current liabilities and has prudently refrained from any new capital expenditure in 2025, focusing instead on stabilizing operations and safeguarding resources.   outlook as and when the position with the company's lenders is resolved, the board remains confident in the prospects of its facility and the board looks forward to updating investors in due course.   for further information, please visit www.mercpl.com or contact:  mpl c/o cavendish +44 (0) 20 7220 0500 cavendish capital markets limited (nomad and broker) stephen keys +44 (0) 20 7220 0500           consolidated statement of comprehensive income      6 months ended 30 june 2025 unaudited   6 months ended 30 june 2024 unaudited   year ended 31 dec 2024 audited   £000 £000  £000 continuing operations     revenue  976 1,050 4,352 operating costs  (473) (790) (2,330) advances given written off  (5,658) - - administrative expenses  (1,157) (1,284) (2,841)      operating (loss) / profit before depreciation and impairment loss   (6,287) (1,024) (819) depreciation  (1,998) (2,360) (4,740) impairment loss  (6,488) - (6,772) other income  182 935 921 operating loss  (14,591) (2,449) (11,410) finance income  13 18 34 finance cost  (3,380) (3,590) (7,291) net financing cost  (3,367) (3,572) (7,257) loss before tax  (17,958) (6,021) (18,667) tax expense for the period  - - - loss for the period  (17,958) (6,021) (18,667)      loss for the period attributable to:     non-controlling interest  (33) (12) (37) owners of the parent  (17,924) (6,009) (18,630) loss for the period / year  (17,958) (6,021) (18,667) other comprehensive income/(expense)     items that will not be reclassified to profit or loss      re-measurement of net defined benefit liability  -                        - 1 items that may be reclassified to profit or loss      exchange differences on translating foreign operations  2,256 708 (460) other comprehensive income / loss for the period / year  2,256 708 (459) total comprehensive income / loss for the period / year  (15,702) (5,313) (19,126) total comprehensive income / loss for the period / year attributable to:     non-controlling interest  (33) (12) (38) owners of the parent  (15,668) (5,302) (19,088)   (15,872) (5,313) (19,126) loss per share (consolidated):     basic and diluted, for the period attributable to ordinary equity holders  (£0.050p) (£0.017p) (£0.052p)       for the period ended 30 june 2025 consolidated statement of financial position as at 30 june 2025    period ended 30 june 2025 unaudited period ended 30 june 2024 unaudited year ended 31 dec 2024 audited     £000 £000 £000   assets       property, plant and equipment  85,236 104,553 93,543   intangible asset  4 49 33   non-current tax assets  - - -   total non-current assets  85,240 104,602 93,576          inventory of traded goods  26 - 323   current tax assets  299 2,995 2,879   trade and other receivables  5,801 15,953 13,296   investments  171 179 180   cash and cash equivalents  480 937 911   total current assets  6,777 20,065 17,589   total assets  92,017 124,667 111,165           liabilities       non-current       employee benefit obligations  37 24 42   borrowings  - 35,320 28,461   lease liabilities payables  1,235 1,242 1,206   non-current liabilities  1,272 36,586 29,709   current       employee benefit obligations  54 128 259   borrowings  48,415 15,531 22,037   current tax liabilities  47 26 17   leases liabilities payable  473 533 590   trade and other payables  2,955 3,546 4,048   current liabilities  51,944 19,763 26,951   total liabilities  53,216 56,349 56,660             net assets  38,801 68,318 54,505           equity        share capital and share premium  152,354 152,354 152,354   retained earnings  (83,770) (53,226) (65,846)   translation reserve  (29,650) (30,736) (31,093)   equity attributable to owners of parent  38,934 68,392 54,605   non-controlling interest  (133) (74) (100)   total equity and liabilities       38,801            68,318        54,505   condensed statement of cash flows for the period ended 30 june 2025    6 months ended 30 june 2025 unaudited 6 months ended 30 june 2024 unaudited year ended 31 dec 2024 audited   £000 £000  £000 cash flows from operating activities     loss before tax for the period / year  (17,958) (6,021) (18,667) non cash flow adjustments  12,358 5,831 18,664   net cash generated/(used in) operating activities  (5,600) (190) (3)      net changes in working capital  5,205 25 1,116 taxes paid  -- (869) (765) net cash from operating activities  (395) (1,034) 348      cash flows from investing activities     purchase of property, plant and equipment  - (870) 518 sale proceeds of property, plant and equipment  8 4 25 finance income  7 14 34 net cash generated/(used in) investing activities  15 (852) 577           cash flows from financing activities     subscription money received (from the previous fund raise)  - - 290 repayment of bank borrowing principal  - - (3094) interest paid on borrowing  - (2) - repayment of leasing liabilities principal (net)  - (22) (54) interest payment on leasing liabilities  - (16) (31) net cash generated / (used in) from financing activities  - (40) (2,890) net change in cash and cash equivalents  (380) (1,926) (1,965)      cash and cash equivalents, beginning of the period  911 2,881 2,881 exchange differences on cash and cash equivalents  (51) (18) (5) cash and cash equivalents, end of the period  480 937 911                       note: 1.    the adjustments and working capital movements have been combined in the above statement of cash flows.     consolidated statement of changes in equity for the period ended 30 june 2025  stated capital translation reserve retained earnings other components of equity non- controlling interest total equity  £000 £000 £000 £000 £000 £000 balance at 1 january 2024 152,354 (31,444) (47,217) -- (62) 73,631 issue of share capital -- -- -- -- -- -- share issue cost -- -- -- -- -- -- transactions with owners 152,354 (31,444) (47,217) -- (19) 73,631 loss for the year -- -- (18,630) -- (37) (18,667)        foreign currency translation differences for foreign operations -- (459) -- -- (1) (460)   re-measurement of net defined benefit pension liability -- -- -- 1 -- 1 re-measurement of net defined benefit pension liability transfer to retained earning -- -- 1 (1) -- -- total comprehensive income for the year -- (459) (18,629) -- (38) (19,126) balance at 31 december 2024 152,354 (31,903) (65,846) -- (100) 54,505               balance at 1 january 2025 152,354 (31,903) (65,846) -- (100) 54,505 loss for the period -- -- (17,924) -- (33) (17,958) foreign currency translation differences for foreign operations -- 2,253 -- -- -- 2,253 total comprehensive income for the period -- 2,263 (17,924) -- (33) (15,705) balance at 30 june 2025 152,354 (29,650) (83,770) -- (133) 38,801               this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may 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