AGM Trading Statement

RNS Number : 7875Q

Falkland Islands Holdings PLC

04 September 2014

 



4 September 2014

Falkland Islands Holdings plc

AGM Trading Statement

Falkland Islands Holdings plc ("FIH" or the "Group"), the international services group which owns essential services businesses focused on transport and logistics and which has a 2.4% shareholding in Falkland Oil & Gas Limited ("FOGL"), is holding its Annual General Meeting ("AGM") at the offices of FTI Consulting at 200 Aldersgate, London EC1A 4HD at 2pm today.

At the meeting, the Chairman David Hudd, will make the following statement:

"The Group has started the year well and the results for the first five months of the financial period show a substantial improvement over the quiet start seen last year.

"This improved group performance is attributable mainly to an increased contribution from the Falkland Islands Company ("FIC") where record squid catches and increased economic activity have led to a substantial increase in profit compared to the same period last year.  The fishing agency's contribution increased and FIC's other support services businesses benefitted in the run up to the 2015 drilling programme. FIC's retail and house building businesses also delivered increased profits.

"At Momart, whilst activity in the early part of the financial year has shown an improvement compared to last year, the exceptional mix of overseas and UK exhibitions business seen in the second half of 2013-14 is not expected to be repeated.  

"At Portsmouth Harbour Ferry Company, passenger numbers in the 22 weeks to date show a small decline of 2.0% but, following fare rises in June 2014, the overall contribution to date is  similar to last year. The new ferry, Harbour Spirit, remains on schedule for delivery in Q1 2015.

"In the Falkland Islands, economic activity continues to build as contracts are awarded by Noble Energy and Premier Oil for onshore support for their 2015 drilling campaigns. FIC remains in a strong position to benefit from this increased activity. However, further and dramatic growth of the Falkland's economy is dependent on Premier Oil proceeding with the Sea Lion field, or Noble Energy and their partner FOGL making a commercial discovery in the South Falkland basin.

"The Group has a strong liquidity position with cash balances of £4.1m and bank borrowings of £0.7m at 31 August 2014.Capital investment is continuing in the Falkland's with further development of retail, warehousing and office assets. The Group's shareholding in FOGL is unchanged at 12.8 million shares, which had a market value at the close of business on 3 September 2014 of £4.1m.

"Subject to approval by shareholders at today's AGM, the final dividend of 7.5p per FIH share will be paid on 19 September 2014 to shareholders on the register at the close of business on 29 August 2014.

"Another encouraging result is expected for the full year, driven by an increased contribution from FIC which we expect to offset the expected return to more normal trading levels at Momart."

- Ends -

Enquiries:

Falkland Islands Holdings plc
David Hudd, Chairman	Tel: [phone]
John Foster, Managing Director	Tel: [phone]
WH Ireland Ltd. - NOMAD and Broker to FIH	Tel: [phone]
Adrian Hadden / Nick Field
FTI Consulting
Edward Westropp / Georgina Goodhew	Tel: [phone]

 

END

 

 

AGMUOANRSNAKRAR