Financial Highlights

John Foster, CEO said:

“I am pleased to report on another year of profitable trading for the Group.

A less buoyant trading environment in the Falklands saw profits fall back as expected but both UK businesses made progress despite challenging market conditions. The Group’s balance sheet remains strong.

"We are actively seeking to strengthen our non-executive board and hope to appoint a permanent non-executive chairman for shareholders to approve at the Company’s Annual General Meeting on 31 August 2017. Further announcements will follow.

"The Board is also pleased to recommend the reinstatement of a dividend, at an affordable level, to provide an attractive running yield for shareholders as well as retaining the majority of profits to fund organic growth and help finance acquisitions.

"FIH group is well-positioned for the future, and remains committed to following its strategy to deliver long-term sustainable growth, through continued organic growth and enhancing value for shareholders through selective, well-priced acquisitions."


  Year ended 31 March  
  2017
£'000
2016
£'000
Change
%
Turnover 40,494 38,996 3.8%
Underlying operating profit 2,805 3,307 -15.2%
Share of Joint Venture underlying results 24 200 -88.0%
Interest(net) inc. pension costs -433 -429 0.9%
Underlying profit before tax 2,396 3,078 -22.2%
Takeover bid & defence costs -530 - -
Gain on sale of FOGL shares - 388 -
Restructuring costs - -261 -
Impairment of Joint Venture assets - -330 -
Amortisation of intangiables -136 -136 0.0%
Profit on sale of vessel 157 60 161.7%
Reported profit before tax 1,887 2,799 -32.6%
Diluted earnings per share on underlying profit 15.3p 19.2p -20.2%
Weighted average shares in issue 12,430,505 12,383,712 0.4%

Group Financial Highlights

  • Group revenue increased 3.8% to £40.5 million (2016: £39.0 million)
  • Underlying pre-tax profits at £2.4 million (2016: £3.1 million)
  • Reported diluted earnings per share at 11.5 pence (2016: 17.9 pence)
  • EPS on underlying profits : 15.3 pence ( 2016:19.2 pence)
  • Cash balances increased to £15.1 million (2016: £14.0 million)
  • Bank borrowings of £3.8 million (2016: £3.3 million)
  • Net assets per share 320p (2016 310p)
  • The Board is recommending a final dividend of 4 pence per share for the year ended 31 March 2017

Operating Highlights

  • £1.16 million pre-tax profits (2016: £1.94 million)
  • Lack of oil-related demand fed through to weakened demand for goods and services
  • Retail competition also increased with the expansion of FIC’s principle retail competitor
  • However, sales were up at the home-related businesses, Home Living, Home Builder, and Falkland Building Services, supported by the government’s subsidised home-ownership scheme
  • Increase in overall revenue to £18.4 million (2016: £16.3 million) with particularly strong performance in Museum Exhibitions (+19.9%)
  • Modest increase in Underlying Operating Profit to £0.54 million (2016: £0.46 million), limited by start-up costs from newly expanded storage facilities
  • Despite pressure on museum budgets in the sector, Momart delivered a range of notable UK exhibitions including: the installation of “Abstract Expressionism” at the Royal Academy; “Sunken Cities” at the British Museum; “Painters Paintings” and “Beyond Caravaggio” at the National Gallery; “Francis Bacon Invisible Rooms” at Tate Liverpool; “William Eggleston” and “Picasso” at the National Portrait Gallery; “You Say You Want a Revolution” at the V&A; and “The Radical Eye” at Tate Modern
  • Revenues steady at £4.29 million (2016: £4.24 million) reflecting increased yield from ferry fares despite a 4.1% decline in passenger numbers
  • Ferry fares increased by an average of 3% during June 2016, with increased customer interest in tickets such as the “Park and Float” and the discounted tickets for military personnel
  • Modest but profitable contribution from cruising income with 38 leisure cruises in the Solent area over the summer of 2016
  • For the year ahead, we anticipate a quieter period in the Falklands, with the absence of oil-exploration activity and continued competition in the retail sector
  • At PHFC, the company will continue to focus on tight cost control and maintaining excellent records of safety and reliability. A modest stimulus is expected for passenger volumes, with the completion of the disruptive construction works at the passenger interchange and the arrival of the new HMS Queen Elizabeth carrier
  • At Momart, we anticipate beneficial impacts from increased confidence in the global art market and growth in storage income from newly opened warehouse facility at Leyton
  • 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