Financial Highlights

John Foster, Chief Executive said:

“Overall, we are pleased with the first half performance of FIH, maintaining profits in a period where we have made investments to support future growth, and in which there have been external challenges to trading in the Falkland Islands and at PHFC offset by a continued improvement in trading at Momart.”

“The group’s cash position remains strong, and in line with its strategy, the board continues to consider acquisition opportunities.”

“We are also pleased to announce an increase in the interim dividend by 10% to 1.65 pence per share.”

“As part of making preparations for the potential production of oil in the Falklands, the group looks forward to participating in the tender for onshore facilities in the second half. A final investment decision on the development of Sea Lion from licence holder, Premier Oil, is expected by the middle of 2019.”

“With overall profits on a par with the prior year, the Group is well placed to deliver another satisfactory set of results in the traditionally stronger second half, and the board looks forward to the future with confidence.”

  Six months ended 30 September  
Turnover 19,585 20,544 -4.7
Underlying operating profit 1,564 1,560 0.3
Share of Joint Venture underlying results - 20 -100.0
Net interest expense incl. pension costs (211) (238) -11.3%
Gain on sale of fixed assets - 61 -100.0
Reported profit before tax 1,353 1,403 -3.6%
Diluted earnings per share before non-trading items 8.3 8.7 -4.4
Diluted weighted average shares in issue 12,563,255 12,453,705 0.9

Group Financial Highlights

Underlying profits maintained despite pressures on turnover

  • Group revenue reduced by 5% as anticipated to £19.6 million (2017: £20.5 million), mainly due to phasing of construction activity
  • Profit before tax flat at £1.35 million (2017: £1.40 million)
  • Underlying profit before tax excluding non-trading income £1.35 million (2017: £1.34 million)
  • Diluted earnings per share: 8.3p (2017: 8.7p)
  • Bank borrowings at 30 September 2018: £3.1 million (31 March 2018: £3.3 million)
  • Cash balances at 30 September 2018: £15.6 million (30 September 2017: £15.0 million)
  • Interim dividend increased by 10% to 1.65 pence per share (2017: 1.5 pence per share)

Operating Highlights

  • Revenue 7% lower at £7.97 million (2017: £8.58 million) due to reduction in construction activity
  • Profit before tax marginally reduced at £0.45 million (2017: £0.50 million)
  • FBS (Construction) revenue reduced by £1.0 million due to delays in release of land for new housing, and focus on expanding FIC’s own property portfolio
  • Retail sales encouraging at £4.2m (up 5.6%) and Falklands 4x4 sales (up 12.0%). Support services revenue ahead following improved squid catch
  • Tenders for onshore oil support facilities expected in the second half of the year
  • Confirmation of hoped for second flight from South America still awaited
  • Longer term growth remains linked to oil and land based tourism
  • Positive momentum maintained particularly in competitive commercial market
  • Overall revenues reduced by 3.3% at £9.28 million (2017: £9.58 million) but margins improved on better sales mix
  • Museums and Exhibitions revenues reduced by £0.7 million to £4.6 million as expected following record first half last year, but stronger sales mix saw contribution maintained
  • Strong growth of 15.4% in Gallery Services revenues
  • Art Storage revenues lower as expected at £1.0 million (2017: £1.1 million) following customer relocation in early 2018
  • Company continues to target filling of spare capacity
  • Profit before tax increased by 65% to £0.39 million
  • Notable exhibition activity included: “Rodin Art of Antiquity” at the British Museum; “Jameel Prize 5” and “Video Games” at the V&A; “Course of Empire” at the National Gallery and “Picasso 1932” at Tate Modern
  • Total Ferry revenue decreased 1.6% to £2.34 million (2017: £2.38 million) reflecting 4% decline in passenger numbers offsetting 3% increase in fares
  • New aircraft carrier’s absence from port, contributed to decline in naval personnel using ferry in the half year
  • Continued promotion of subsidised Park & Ride scheme by Portsmouth Council affects passenger volumes generally
  • Tight cost control maintained
  • Profit before tax lower at £0.51 million (2017: £0.60 million)
  • Continued review of potential acquisitions for a high quality business to strengthen the Group and further increase its appeal to investors.
  • The outlook for an early development of the Sea Lion oil field in the Falklands looks increasingly positive. A final decision is expected from operator Premier Oil in the first half of 2019.
  • With a strong balance sheet and a supportive house bank and shareholder base, the board looks forward to the steady delivery of attractive investment returns as it executes its strategy of investment and growth.
  • The company will renew its focus on identifying complementary value enhancing acquisitions, on the basis of sensible purchase prices, clear synergies and a pathway to sustainable growth.

Operating Companies