FIH Group PLC – Final Results

FIH, the AIM quoted international services group that owns essential services businesses in the Falkland Islands and the UK, is pleased to announce its final results for the year ended 31 March 2019. A copy of the Group’s results is also available on the Company’s website. 

Group Financial Highlights 

Profitable growth with satisfactory trading across each operating business

• Group revenue at £42.5 million (2018: £43.8 million)
• Pre-tax profits up 17.1% to £3.86 million (2018: £3.30 million)
• Underlying pre-tax profits up 19.3% to £3.86 million (2018: £3.24 million)
• Diluted earnings per share increased by 20.1% to 24.1 pence (2018: 20.1 pence)
• Diluted EPS on underlying profits rose by 22.5% to 24.1 pence (2018: 19.7 pence)
• Cash balances of £6.2 million (2018: £17.0 million)
• Bank borrowings of £12.8 million (2018: £3.3 million) following acquisition of Momart storage freehold
• The Board is recommending a final dividend of 3.35 pence per share (2018: 3.0 pence) to give a full year dividend of 5.0 pence per share (2018: 4.5 pence per share), an increase of 11%. 

Operating Highlights

Falkland Islands Company (“FIC”)

• Good overall performance, with further growth in retail and local support services, despite temporary dip in house sales
• Pre-tax profits up 12.5% to £1.51 million (2018: £1.34 million)

Momart

• Strong profit growth helped by release of prior year provision of £0.2 million, and improved margins
• Pre-tax profit up 51.3% to £1.57 million (2018: £1.04 million)

Portsmouth Harbour Ferry Company (“PHFC”)

• Solid performance and healthy cash flow with slowing rate of decline in passenger volumes
• Pre-tax profits down £0.08 million at £0.78 million (2018: £0.86 million)  

Outlook – Well-positioned for steady returns from careful execution of strategy, and enhanced growth prospects for the Group in medium and long term

• Further scope for steady growth at Momart, and enhanced medium term growth prospects in the Falklands linked to government infrastructure spending plans in addition to potential from oil development and land-based tourism
• Further strengthening of operational management teams to support future growth
• Following strategic review of growth opportunities, focus on maximising the growth in the Falkland Islands and Momart, reducing the time and resource previously committed to proactively seeking out opportunities for strategic acquisitions
• With a healthy balance sheet and improved prospects for growth not dependent solely on the development of oil in the Falklands, the board looks forward to delivering a steady and sustainable growth in earnings and shareholder value over the medium term.  

John Foster, Chief Executive said:

“It is a pleasure to report another encouraging year for FIH group, with a steady increase in underlying pre-tax profits, and resilient trading at all three operating businesses.  

“It has been a year of strategic investment to enhance the Group’s position for further growth whilst at the same time the Group has maintained a strong cash position.  

“In the Falkland Islands, the Group took advantage of an expected and temporary hiatus in house building to develop its rental property portfolio whilst a stronger performance from Retail and Support Services helped FIC maintain a continuing increase in profits.

“At PHFC, revenues were essentially unchanged but careful management helped mitigate local external challenges. At Momart, increased demand for its own added value services resulting in a richer sales mix, helped strengthen margins further.

“With our strong cash position, we will focus on maximising growth opportunities within the Group, while remaining open to suitable acquisition opportunities and we are confident that we are well-positioned for the year ahead.”