Results for the Six Months Ended 30 September 2022

RNS Number : 9820G
FIH Group PLC
21 November 2022
 

21 November 2022

FIH group plc

("FIH" or the "Group")

Results for the Six Months Ended 30 September 2022

FIH, the AIM quoted international specialist services group with businesses in the Falkland Islands and the UK, is pleased to announce its unaudited results for the six months ended 30 September 2022 ("the period"). Comparisons shown below are for the same period in 2021 unless otherwise stated.


Trading Improvement Continues

 

Highlights

 

· Revenue increased by £5.5 million (32%) to £22.8 million (2021: £17.3 million) with improvement in all three businesses.

· Pre-tax profit of £0.6 million (2021: £0.4 million) despite COVID-related government support reducing to £0.1 million (2021: £0.3 million) with improvements in Momart and Portsmouth Harbour Ferry Company ("PHFC") offsetting reduced profits in the Falkland Islands Company ("FIC").

· Passenger numbers continued to rise for PHFC.

· Strong cash position of £7.6 million as at 30 September 2022.

· An interim dividend to be paid of 1.2 pence per share (2021: 1.0 pence per share).

 

Outlook

 

· Momart and PHFC performing in line with expectations.

· Return of tourists to the Falkland Islands in the second half of the year should boost retail sales in FIC.

· Strong construction order book in FIC expected to be delivered in the second half of the year.

· Balance sheet strength continues to underpin trading position and provide strategic flexibility.

 

Stuart Munro Chief Executive, said:

 

"The Group continues to recover from the impact of COVID-19, albeit the global economic crisis has provided additional challenge. It is therefore pleasing to see an overall step forward in pre-tax profit over the prior year, reflecting an ongoing focus on cost control and pricing and the geographical breadth and diversity of our operations. The progress demonstrated in the first half of the year is expected to continue as we move into the traditionally stronger second half."

 

Enquiries:

FIH group plc

Stuart Munro, Chief Executive

Reuben Shamu, Chief Financial Officer

 

 

Tel: 01279 461630

 

WH Ireland Ltd. - NOMAD and Broker to FIH

Chris Fielding / Megan Liddell

 

 

Tel: 0207 220 1666

 

Novella Communications

Tim Robertson / Chris Marsh

 

 

Tel: 020 3151 7008

 


 

Market Abuse Regulation (MAR) Disclosure

 

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

The person responsible for arranging the release of this announcement on behalf of the Company is Stuart Munro Chief Executive of the Company.

Chairman's Statement

 

The Group continues to build back from the effects of COVID-19 and made good progress in the first half of the year in the face of new challenges brought about by the current global economic crisis.

 

Despite inflationary pressures impacting both costs and consumer disposable income, and a reduction of £0.2 million in pandemic-related government funding, the Group delivered an underlying pre-tax profit of £0.6 million for the six months ended 30 September 2022 (2021: £0.4 million).

 

Our staff continue to show great resilience and dedication, applying considerable skill and devotion to the needs of our customers, so I would like to thank them on behalf of the Board for all their efforts which are very much appreciated.

 

Dividend

 

Following improved earnings per share for the six months to 30 September 2022 of 3.7 pence (2021: 1.3 pence loss), I am pleased to announce an interim dividend of 1.2 pence per share (2021: 1.0 pence per share) which will be paid on 13 January 2023 to shareholders on the register at the close of business on 2 December 2022.

 

The Group has a Dividend Reinvestment Plan ("the Plan") that allows shareholders to reinvest dividends to purchase additional shares in the Group. For shareholders to apply the proceeds of this and future dividends to the Plan, application forms must be received by the Group's Registrars by no later than 16 December 2022*.

 

Board and Governance

 

On 12 September 2022, Reuben Shamu was appointed as Chief Financial Officer replacing Stuart Munro who was appointed as Chief Executive on 14 April 2022, Reuben will work closely with Stuart to deliver the Group's growth strategy. Jeremy Brade stepped down from his position as non-executive director of the Group on 20 September 2022. The Board would like to thank Jeremy for the significant contribution he made during his tenure.

 

Outlook

 

The trading environment remains challenging, but the progress made to date, along with the benefits of a diverse portfolio of activities, a lower cost base following previous restructuring activity and a strong balance sheet provide a good foundation for the business to navigate through these conditions and deliver further profit improvement in the traditionally stronger second half of the year.

 

 

 

Robin Williams

Chairman

21 November 2022    

 

* Existing participants in the Plan will automatically have the interim dividend reinvested. Details on the Plan can be obtained from Link Group on 0371 664 0381 or at www.signalshares.com. Calls are charged at the standard geographic rate and will vary by provider. If you are outside the United Kingdom, please call +44 371 664 0381. Calls outside the United Kingdom will be charged at the applicable international rate. The lines are open from 9.00am to 5.30pm, Monday to Friday excluding public holidays in England and Wales.


Chief Executive's Review

 

Overview

 

Revenue of £22.8 million for the six months ended 30 September 2022 was £5.5 million ahead of the six months ended 30 September 2021, with the improvement arising across all three businesses. Encouragingly, this was also £3.4 million ahead of the six months ended 30 September 2019, which was the last comparable period before the pandemic. FIC and Momart were ahead of the six months ended 30 September 2019 by £3.1 million and £0.6 million respectively, and PHFC was £0.3 million behind, reflecting the current level of recovery in passenger numbers.

Difficult macro-economic conditions across the globe, including weakened consumer spending, high inflation and high energy costs, exerted margin pressure in all businesses. Despite these tough trading conditions and pandemic-related government funding reducing to £0.1 million (2021: £0.3 million), the Group returned an underlying pre-tax profit of £0.6 million in the period (2021: £0.4 million) with improvements in the UK businesses being partly offset by a reduction in FIC.

 

Group Trading Results for the Six Months Ended 30 September 2022

 

 

 

* Underlying pre-tax profit is defined as, profit before tax, before non-trading items.

** As in prior years the profits reported for each operating company are stated after the allocation of head office

management and plc costs which have been applied to each subsidiary on a consistent basis.

 

Dividend

An interim dividend of 1.2 pence per share (2021: 1.0 pence per share) will be paid on 13 January 2023 to shareholders on the register at the close of business on 2 December 2022.

 

Group Operating Company Performance

Falkland Islands Company

 

Total revenue of £12.2 million was £2.3 million ahead of the same period last year, driven by growth in Falkland Building Services ("FBS") due mainly to the £17.3 million contract to build a total of 70 Houses for the Falkland Islands Government ("FIG") and the Ministry of Defence ("MOD") secured in November 2021, which is progressing well. This offset reduced revenues in Retail, where continued inflationary cost pressures have necessitated price increases and trading volumes are down. Revenue for all other areas was broadly in line with the prior year.

 

The underlying operating profit of £0.3 million was £0.3 million below the same period last year, due mainly to reduced Retail revenues, FBS equipment repair costs ahead of a busy second half, reduced profitability on some FBS private house builds and the mix of work in FBS and Support Services.

 

 

FIC Operating Results

Six months ended 30 September

2022

£m

2021

£m

Change

%

Revenues

 



Retail

4.2

4.7

(10.6)

FBS (housing and construction)

4.3

1.8

138.9

Falklands 4x4

1.7

1.6

6.3

Support Services

1.5

1.4

7.1

Property Rental

0.5

0.4

25.0

Total FIC revenue

12.2

9.9

23.2

FIC underlying operating profit

0.3

0.6

(50.0)

 

 



Net interest expense

-

-

-

FIC underlying profit before tax

0.3

0.6

(50.0)

FIC underlying operating profit margin

2.5%

6.1%


 

 

Momart

 

Revenue of £8.6 million for the six months to 30 September 2022 was £2.7 million ahead of the prior year, with growth across all business areas. Museum Exhibitions saw the biggest improvement, due mainly to work for UK institutions which showed a strong recovery. The commercial art market remained buoyant with high levels of demand arising in Gallery Services from both art fairs and auction houses. Income from art storage also improved from a combination of volume and price increase.

 

The underlying operating profit of £0.1 million was £0.1 million ahead of the breakeven result for the same period last year and £0.4 million ahead excluding pandemic-related support received in the prior year of £0.3 million (2022: £nil).

 

 

Momart Operating Results

Six months ended 30 September

2022

£m

2021

£m

Change

%

Revenues

 



Museum Exhibitions

4.5

2.4

87.5

Gallery Services

2.8

2.3

21.7

Storage

1.3

1.2

8.3

Total Momart revenue

8.6

5.9

45.8

 

 



Momart underlying operating profit

0.1

-

-


 



Net interest expense

(0.2)

(0.2)

-

Momart underlying loss before tax

(0.1)

(0.2)

50.0

 

 

Portsmouth Harbour Ferry Company

Monthly passenger numbers continued to improve from the 76% of pre-pandemic levels recorded in March 2022, reaching circa 82% by 30 September 2022. This was below the peak of 86% achieved at the height of the holiday season in August 2022, indicating a faster recovery in leisure footfall than that for commuters.

 

Increased passenger numbers, combined with fare rises in April 2022, resulted in a £0.5 million improvement in revenue over the previous half year. Continued focus on cost control resulted in underlying operating profit increasing by £0.4 million to £0.5 million (2021: £0.1 million).  

 

 

PHFC Operating Results

Six months ended 30 September

2022

£m

2021

£m

Change

%

Revenues

 



Ferry fares

2.0

1.5

33.3

Total PHFC revenue

2.0

1.5

33.3

 

 



PHFC underlying operating profit

0.5

0.1

400.0

 

 



Pontoon lease liability & vessel loan expense

(0.1)

(0.1)

-

PHFC underlying profit before tax

0.4

-

-

 

Trading Outlook

Performance in the first half of the year at both Momart and PHFC was in line with expectations, whilst FIC had a slower than expected start due mainly to timing differences on project delivery in FBS combined with reduced retail revenues.

 

In FIC, the impact of project phasing in FBS is expected to reverse in the second half of the year, which includes the traditionally more productive austral spring and summer months. The return of tourists to the Falkland Islands in the second half of the year should improve retail revenues, both via direct tourist spend and by generating tourist-related earnings for Falkland Islands residents.

 

The trading outlook for the Group remains positive. The UK businesses are delivering as expected and whilst there are headwinds facing Retail in FIC, these should be mitigated by the strong order book in FBS and the potential for further work with the Falkland Islands Government. The progress demonstrated in the first half of the year is therefore expected to continue in the traditionally stronger second half .

   

 

Stuart Munro

Chief Executive

21 November 2022


 

Chief Financial Officer's Review

 

Financial Review

 

Revenue

 

Group revenue increased by £5.5 million (32%) to £22.8 million (2021: £17.3 million) with improvements of £2.7 million in Momart, £2.3 million in FIC and £0.5 million in PHFC. 

 

Underlying Operating Profit

 

Underlying operating profit before non-trading items and net finance costs increased to £1.0 million (2021: £0.8 million) despite lower pandemic related support of £0.1 million (2021: £0.3 million) reflecting the revenue improvements noted above.  

 

Net Financing Costs

 

The Group's net financing costs remained broadly flat at £0.4 million (2021: £0.4 million).

 

Reported Pre-tax Profit

 

The reported pre-tax result for the six months ended 30 September 2022 was a profit of £0.6 million (2021: £0.4 million).

 

Taxation

 

Taxation charges on the period results for both the six months ended 30 September 2022 and 30 September 2021 have been estimated on the basis of 19% and 26% of profits arising in the UK and the Falkland Islands respectively, resulting in a current tax charge of £0.1 million for each period.

 

In addition, an increase in the UK corporation tax rate from 19% to 25% (effective 1 April 2023) was substantively enacted on 24 May 2021. This increased the deferred tax liability of the Group and the tax charge for the six months ended 30 September 2021 by an estimated £0.4 million, resulting in an overall tax charge of £0.5 million.

 

Earnings per Share

 

Diluted Earnings per Share ("EPS") derived from reported profits was 3.7 pence (2021: 1.3 pence loss).

 

Balance Sheet and Cash Flow

 

The Group's balance sheet remained strong with total net assets of £42.9 million, reflecting an improvement on the balances at 31 March 2022 of £40.7 million and 30 September 2021 of £38.7 million of £2.2 million and £4.2 million respectively. This was largely driven by the revaluation of the Group's interest rate swap and a decrease in the liability for FIC's defined benefit pension scheme.

 

Net Debt





30 September 2022

31 March 2022

Change


£m

£m

£m


 


 

Bank loans

(13.7)

(14.2)

0.5

Cash and cash equivalents

7.6

9.6

(2.0)

Bank loans net of cash and cash equivalents

(6.1)

(4.6)

(1.5)

Lease liabilities

(6.8)

(7.1)

0.3

Net debt

(12.9)

(11.7)

(1.2)

 

Bank loans reduced to £13.7 million (31 March 2022: £14.2 million) following scheduled loan repayments of £0.5 million. £12.4 million of the balance was in respect of the long-term mortgage secured on the Group's freehold premises in Leyton (31 March 2022: £12.7 million).

 

The Group's cash balances reduced by £2.0 million to £7.6 million (31 March 2022: £9.6 million) reflecting scheduled interest, loan and lease repayments of £1.2 million, capital expenditure of £0.9 million (£0.5 million on vehicles, £0.2 million on property improvements and £0.2 million on plant and equipment) and a broadly neutral net cash flow from operations. The latter included a £2.3 million increase in working capital which largely arose in FIC. £0.7 million was due to an increase in stock held for resale in anticipation of tourists returning to the Falkland Islands and the build-up to Christmas. The remaining increase was largely due to the phasing of FBS construction projects.

 

The Group's outstanding lease liabilities totalled £6.8 million (31 March 2022: £7.1 million) with £5.2 million of the balance (31 March 2022: £5.2 million) relating to the leases from Gosport Borough Council to PHFC for the Gosport Pontoon and associated ground rent, which run until June 2061.

 

Overall, net debt increased to £12.9 million (31 March 2022: £11.7 million).

 

 

 

Reuben Shamu

Chief Financial Officer

21 November 2022



 

Consolidated Income Statement

For the Six Months Ended 30 September 2022

 

Notes

Unaudited

Six Months to

30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000

 

 

 

 



 

2

Revenue

22,822

17,267

40,319

 

 


 



 

 

Cost of sales

(14,004)

(10,064)

(23,405)

 

 

Gross profit

8,818

7,203

16,914

 

 


 



 

Operating expenses

(7,824)

(6,375)

(13,834)

 

 


 



 

 

Operating profit before non-trading items

994

828

3,080

 

 


 



 

3

Non-trading items

-

(44)

(300)

 

 

Operating profit

994

784

2,780

 

 


 



 

4

Finance expense

(403)

(421)

(796)

 

 


 



 

 

Profit before tax

591

363

1,984

 

 


 



 

5

Taxation

(132)

(523)

(1,037)

 

 


 



 


Profit / (loss) attributable to equity holders of the Company

459

(160)

947

 

 

 

 



 

6

Earnings per share

 



 

 


 



 

 

Basic

3.7p

(1.3p)

7.6p

 

 


 



 

 

Diluted

3.7p

(1.3p)

7.6p

 

 

See note 6 for an analysis of earnings per share on underlying profit (defined as profit after tax before non-trading items).


 

Consolidated Balance Sheet 

At 30 September 2022

 

 

 

  Notes

Unaudited

30 September

2022

£'000

Unaudited

30 September

2021

£'000

Audited

31 March

2022

£'000

 

Non-current assets




 

Intangible assets

4,580

4,167

4,229

 

Property, plant and equipment

38,215

39,552

39,080

 

Investment properties

8,465

7,794

8,164

 

Investment in joint venture

259

259

259

 

Debtors due in more than one year

-

88

44

 

Hire purchase lease receivables

751

605

725

 

Deferred tax assets

490

739

666

 

Derivative financial instruments

2,350

-

644

 

Total non-current assets

55,110

53,204

53,811

 

Current assets

 



 

Inventories

7,791

6,878

6,740

 

Trade and other receivables

8,042

6,114

7,947

 

Hire purchase lease receivables

370

647

511

8

Cash and cash equivalents

7,554

7,976

9,572

 

Total current assets

23,757

21,615

24,770

 

Total assets

78,867

74,819

78,581

 

Current liabilities

 



 

Trade and other payables

(8,895)

(6,777)

(9,970)

9

Interest bearing loans and borrowings

(1,422)

(1,403)

(1,536)

 

Corporation tax payable

(361)

(237)

(229)

 

Total current liabilities

(10,678)

(8,417)

(11,735)

 

Non-current liabilities

 



9

Interest bearing loans and borrowings

(19,034)

(21,046)

(19,713)

 

Derivative financial instruments

-

(234)

-

 

Deferred tax liabilities

(4,340)

(3,559)

(3,914)

 

Employee benefits

(1,870)

(2,828)

(2,562)

 

Total non-current liabilities

(25,244)

(27,667)

(26,189)

 

Total liabilities

(35,922)

(36,084)

(37,924)

 

Net assets

42,945

38,735

40,657

 

 

 



 

Capital and reserves

 



 

Equity share capital

1,251

1,251

1,251

 

Share premium account

17,590

17,590

17,590

 

Other reserves

703

703

703

 

Retained earnings

21,254

19,423

20,672

 

Hedging reserve

2,147

(232)

441

 

Total equity

42,945

38,735

40,657

 



 

Consolidated Cash Flow Statement

For the Six Months Ended 30 September 2022

  Notes

Unaudited

Six Months to

30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000


Cash flows from operating activities

 




Profit / (loss) for the period after taxation

459

(160)

947


Adjusted for:

 




(i) Non-cash items:

 




Amortisation

27

16

21


Depreciation: Property, plant and equipment

1,124

1,101

2,216


Depreciation: Investment properties

71

98

197


Gain on disposal of fixed assets

-

-

(9)


Interest cost on pension scheme liabilities

35

35

56


Equity-settled share-based payment expenses

48

10

45


Non-cash items adjustment

1,305

1,260

2,526


(ii) Other items:





Exchange (gains) / losses

(31)

-

13


Bank interest payable

209

217

436


Lease liability finance expense

159

169

304


Decrease / (increase) in hire purchase leases receivable

115

(104)

(88)


Corporation and deferred tax expense/(income)

132

523

1,037


Other adjustments

584

805

1,702


Operating cash flow before changes in working capital

2,348

1,905

5,175


Increase in trade and other receivables

(51)

(246)

(2,035)


Increase in inventories

(1,051)

(963)

(869)


(Decrease) / increase in trade and other payables

(1,162)

2

3,195


Changes in working capital

(2,264)

(1,207)

291


Cash generated from operations

84

698

5,466


Payments to pensioners

(49)

(49)

(99)


Corporation taxes received / (paid)

-

47

(256)


Net cash flow from operating activities

35

696

5,111


 

 




Cash flows from investing activities

 




Purchase of property, plant and equipment

(886)

(336)

(1,333)


Purchase of intangibles

(37)

-

(67)


Purchase of investment properties

-

(769)

(1,238)


Proceeds from the sale of property, plant and equipment

-

-

76


Net cash flow from investing activities

(923)

(1,105)

(2,562)

 

Continued on next page.


 

Consolidated Cash Flow Statement (continued)

For the Six Months Ended 30 September 2022

 

 

 

 

 

 

 

Unaudited

Six Months to

30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000

Notes

 

 




Net cash flow from investing activities

(923)

(1,105)

(2,562)


 

 




Cash flows from financing activities

 




Repayment of bank loans

(472)

(5,468)

(5,927)


Bank interest paid

(209)

(217)

(436)


Repayment of lease liabilities principal

(321)

(306)

(716)


Lease liabilities interest paid

(159)

(169)

(304)


Cash outflow on nil cost option exercise

-

(11)

(12)


Dividends paid

-

-

(125)


Net cash flow from financing activities

(1,161)

(6,171)

(7,520)


 

 




Net decrease in cash and cash equivalents

(2,049)

(6,580)

(4,971)


Cash and cash equivalents at start of year

9,572

14,556

14,556


Exchange gains / (losses) on cash balances

31

-

(13)

8

Cash and cash equivalents at end of year

7,554

7,976

9,572



Consolidated Statement of Comprehensive Income

For the Six Months Ended 30 September 2022


Unaudited

Six Months to

 30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000





 

Profit / (loss) for the period

459

(160)

947

 


 



 

Cash flow hedges - effective portion of changes in fair value

1,706

-

878

 

Deferred tax on other financial liabilities

-

-

58

 

Deferred tax on effective portion of changes in fair value

(427)

-

(205)

 

 

 



 

Items that are or may be reclassified subsequently to profit or loss

1,279

-

731

 

 

 


 

 

Re-measurement of the FIC defined benefit pension scheme

678

-

237

 

Movement on deferred tax asset relating to the pension scheme

(176)

-

(62)



 




Items which will not ultimately be recycled to the income statement

502

-

175


1,781

-

906


2,240

(160)

1,853

 

 

Condensed Consolidated Statement of Changes in Shareholders' Equity

For the Six Months Ended 30 September 2022

 

 

 

 

 

 

Unaudited

Six Months to

 30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000


 



Shareholders' funds at beginning of period

40,657

38,896

38,896


 



Profit / (loss) for the period

459

(160)

947

Cash flow hedges - effective portion of changes in fair value

1,706

-

878

Deferred tax on effective portion of changes in fair value

(427)

-

(205)

Deferred tax on other financial liabilities

-

-

58

Re-measurement of the defined benefit pension liability, net of tax

502

-

175

Total comprehensive income / (loss)

2,240

(160)

1,853

Transactions with owners in their capacity as owners:

 



Share-based payments

48

10

45

Share option exercise

-

(11)

(12)

Dividends paid

-

-

(125)

Total transactions with owners

48

(1)

(92)

Shareholders' funds at end of period

42,945

38,735

40,657

 

Notes to the Unaudited Interim Statements

 

1. Basis of Preparation

 

This interim financial statement comprises the condensed consolidated balance sheets at 30 September 2022, 30 September 2021 and 31 March 2022 and condensed consolidated statements of income, comprehensive income, cash flows and changes in shareholders' equity for the periods then ended and related notes of FIH group plc (hereinafter 'the interim financial information').

 

Cash flow forecasts for the Group have been prepared covering the going concern period and the directors have considered downside scenarios to the base case forecasts to reflect emerging risks and uncertainties as a result of global economic conditions. The base case and sensitised forecasts indicate that the business will be cash generative over this period and that the Group will comply with its covenants and have sufficient funds to meet its liabilities as they fall due throughout the going concern period.

 

Consequently, the directors are confident that the Group and Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of issue of these interim financial statements and the interim financial statements have therefore been prepared on a going concern basis.

 

The interim financial information has been prepared in accordance with the accounting policies set out in the Group's 2022 annual financial statements. As permitted, these interim financial statements have been prepared in accordance with AIM rules and not in accordance with IAS34 'Interim Financial Reporting'.

 

Section 245 Statement

 

The comparative figures for the financial year ended 31 March 2022 are not the Company's full statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditor was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.



 

2. Segmental Revenue and Profit Analysis

 

Unaudite d - Six Months Ended 30 September 2022

 



General Trading (Falkland Islands)

Ferry Services (Portsmouth)

Art Logistics and Storage

(UK)

Unallocated

Total

 


£'000

£'000

£'000

£'000

£'000

 

Revenue

12,217

2,039

8,566

-

22,822

 







 

Segment operating profit before net financing costs

334

498

162

-

994

 







 

Finance expense

(35)

(146)

(222)

-

(403)

 







 

Segment profit / (loss) before tax

299

352

(60)

-

591

 







 

Assets and liabilities






 

Segment assets

32,573

9,977

31,331

4,986

78,867

 

Segment liabilities

(9,022)

(7,843)

(17,917)

(1,140)

(35,922)

 

Segment net assets

23,551

2,134

13,414

3,846

42,945

 







 

Other segment information






 

Capital expenditure:






 

  Property, plant and equipment

322

133

472

5

932

 

  Investment properties

39

-

-

-

39

 

  Computer software

25

-

12

-

37

 

Total capital expenditure

386

133

484

5

1,008

 

  Capital expenditure: cash

386

48

484

5

923

 

  Capital expenditure: non-cash

-

85

-

-

85

 

Total capital expenditure

386

133

484

5

1,008

 

 

Depreciation and amortisation:






 

  Property, plant and equipment

443

201

480

-

1,124

 

  Investment properties

71

-

-

-

71

 

  Computer software

12

11

4

-

27

 

Total depreciation and amortisation

526

212

484

-

1,222

 

 

 

 

 

 

 

 

Underlying profit/(loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit before non-trading items

334

498

162

-

994

 

Finance expense

(35)

(146)

(222)

-

(403)

 

Underlying profit / (loss)

before tax

299

352

(60)

-

591

 



 

2. Segmental Revenue and Profit Analysis (Continued)

 

Unaudite d - Six Months Ended 30 September 2021

 

 



General Trading (Falkland Islands)

Ferry Services (Portsmouth)

Art Logistics and Storage

(UK)

Unallocated

Total

 


£'000

£'000

£'000

£'000

£'000

 

Revenue

9,895

1,496

5,876

-

17,267

 







 

Segment operating profit before non-trading items

651

123

54

-

828

 







 

Non-trading items

-

-

(44)

-

(44)

 







 

Segment operating profit before net financing costs

651

123

10

-

784

 







 

Finance expense

(35)

(152)

(234)

-

(421)

 







 

Segment profit / (loss) before tax

616

(29)

(224)

-

363

 







 

Assets and liabilities






 

Segment assets

30,474

10,644

25,642

8,059

74,819

 

Segment liabilities

(8,334)

(8,518)

(17,475)

(1,757)

(36,084)

 

Segment net assets

22,140

2,126

8,167

6,302

38,735

 







 

Other segment information






 

Capital expenditure:






 

  Property, plant and equipment

264

38

34

-

336

 

  Investment properties

769

-

-

-

769

 

Total capital expenditure

1,033

38

34

-

1,105

 

  Capital expenditure: cash

1,033

38

34

-

1,105

 

  Capital expenditure: non-cash

-

-

-

-

-

Total capital expenditure

1,033

38

34

-

1,105

 

 

Depreciation and amortisation:






 

  Property, plant and equipment

407

224

470

-

1,101

 

  Investment properties

98

-

-

-

98

 

  Computer software

-

-

16

-

16

 

Total depreciation and amortisation

505

224

486

-

1,215

 

 

 

 

 

 

 

 

Underlying profit/(loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit before non-trading items

651

123

54

-

828

 

Finance expense

(35)

(152)

(234)

-

(421)

 

Underlying profit / (loss)

before tax

616

(29)

(180)

-

407

 



 

2. Segmental Revenue and Profit Analysis (Continued)

 

Year Ended 31 March 2022

 



General Trading (Falkland Islands)

Ferry Services (Portsmouth)

Art Logistics and Storage

(UK)

Unallocated

Total

 


£'000

£'000

£'000

£'000

£'000

 

Revenue

21,655

3,066

15,598

-

40,319

 







 

Segment operating profit before non-trading items

1,835

155

1,090

-

3,080

 







 

Non-trading items

-

-

(41)

(259)

(300)

 







 

Segment operating profit / (loss) before net financing costs

1,835

155

1,049

(259)

2,780

 







 

Finance expense

(56)

(276)

(464)

-

(796)

 







 

Segment profit / (loss) before tax

1,779

(121)

585

(259)

1,984

 







 

Assets and liabilities






 

Segment assets

31,401

9,840

32,275

5,065

78,581

 

Segment liabilities

(9,582)

(8,318)

(19,045)

(979)

(37,924)

 

Segment net assets

21,819

1,522

13,230

4,086

40,657

 







 

Other segment information






 

Capital expenditure:






 

  Property, plant and equipment

1,129

52

258

-

1,439

 

  Investment properties

1,238

-

-

-

1,238

 

  Computer software

67

-

-

-

67

 

Total capital expenditure

2,434

52

258

-

2,744

 

  Capital expenditure: cash

2,434

52

152

-

2,638

 

  Capital expenditure: non-cash

-

-

106

-

106

 

Total capital expenditure

2,434

52

258

-

2,744

 

 

Depreciation and amortisation:






 

  Property, plant and equipment

834

316

423

-

1,573

 

  Investment properties

197

-

-

-

197

 

  Computer software

-

-

21

-

21

 

  Right of use assets

8

130

505

-

643

 

Total depreciation and amortisation

1,039

446

949

-

2,434

 

 

 

 

 

 

 

 

Underlying profit/(loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit before non-trading items

1,835

155

1,090

-

3,080

 

Finance expense

(56)

(276)

(464)

-

(796)

 

Underlying profit / (loss)

before tax

1,779

(121)

626

-

2,284

 

 



 

3. Non-trading Items


Unaudited

Six Months to

30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000


 



Profit before tax as reported

591

363

1,984

 

 



Restructuring costs

-

44

300

Underlying profit before tax

591

407

2,284

 

 

Restructuring costs comprise people-related costs including employee redundancies and compensation payable to the former Chief Executive.

 

4. Finance Expense


Unaudited

Six Months to

30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000


 



Interest payable on bank loans

209

217

436

Net interest cost on the FIC defined benefit pension scheme liability

35

35

56

Lease liabilities finance charge

159

169

304

Total finance expense

403

421

796


 


 

5. Taxation

 


Unaudited

Six Months to

30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000


 



Current tax charge

132

116

411

Prior year research and development tax credit

-

(39)

(39)

Deferred tax charge

-

446

665

Total tax expense

132

523

1,037

 

The current tax charge has been estimated on the basis of 19% and 26% of profits arising in the UK and the Falkland Islands respectively (September 2021: 19% and 26% of profits arising in the UK and the Falkland Islands respectively).

 

An increase in the UK corporation tax rate from 19% to 25% (effective 1 April 2023) was substantively enacted on 24 May 2021 and will increase the future tax charge for the Group. For the six months ended 30 September 2021, it was estimated that the impact of this rate change on the deferred tax liability of the Group and the tax charge would be £446,000. For the year ended 31 March 2022, the calculation was updated, resulting in a £523,000 charge for the year.



 

6. Earnings Per Share on Underlying Profit

 

To provide a comparison of earnings per share on underlying performance, the calculation below sets out basic and diluted earnings per share based on underlying profits.

 


Unaudited

Six Months to

30 September

2022

Number

Unaudited

Six Months to

30 September

2021

Number

Audited

Year Ended

31 March

2022

Number


 



Weighted average number of shares in issue

12,519,900

12,517,241

12,518,567

 

Maximum dilution with regards to share options

3,591

2,513

-

 

Diluted weighted average number of shares

12,523,491

12,519,754

12,518,567

 

 


Unaudited

Six Months to

30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000

Underlying profit before tax (note 3)

591

407

2,284

 

 

 

 

Underlying taxation

(132)

(531)

(1,094)

Underlying profit / (loss) after tax

459

(124)

1,190

Basic earnings per share on underlying profit / (loss)

3.7p

(1.0)p

9.5p

Diluted earnings per share on underlying profit / (loss)

3.7p

(1.0)p

9.5p

 

 

7.  Employee Benefits

 

The Group's pension obligation, the Falkland Islands Company Limited Pension Scheme, is unfunded and therefore not subject to valuation volatility as a result of stock market fluctuations.

 

At 30 September 2021, the Group elected to follow precedent and did not revalue its pension obligations. However, due to indications of a shift in market conditions, the Group's pension liability was recalculated under IAS 19 at 30 September 2022. The assumptions used were based on those for the year ended 31 March 2022, updated for changes in market rates. The resultant net liability reduced to £1,870,000 driven by an increase in the discount rate assumption.

 

 

8.  Cash and Cash Equivalents

 


Unaudited

30 September

2022

£'000

Unaudited

30 September

2021

£'000

Audited

31 March

2022

£'000

Cash and cash equivalents in the balance sheet

7,554

7,976

9,572

 



 

8.  Cash and Cash Equivalents (Continued)

 


Unaudited

Six Months to

30 September

2022

£'000

Unaudited

Six Months to

30 September

2021

£'000

Audited

Year Ended

31 March

2022

£'000

Net decrease in cash and cash equivalents

(2,049)

(6,580)

(4,971)

Exchange gains / (losses)

31

-

(13)

Net decrease in cash and cash equivalents after exchange losses

(2,018)

(6,580)

(4,984)

Bank loan repayments

472

5,468

5,927

Lease modifications: non-cash

-

-

331

Lease liabilities repayments

321

306

716

Decrease in interest bearing loans and borrowings

793

5,774

6,974


 



Net (increase) / decrease in debt

(1,225)

(806)

1,990

Net debt brought forward

(11,677)

(13,667)

(13,667)

Net debt

(12,902)

(14,473)

(11,677)

 

Net debt

Cash balance

7,554

7,976

9,572

Less: Total interest-bearing loans and borrowings

(20,456)

(22,449)

(21,249)

Net debt

(12,902)

(14,473)

(11,677)

 

9.  Interest-bearing Loans and Borrowings

 

 

Unaudited

30 September

2022

£'000

Unaudited

30 September

2021

£'000

Audited

31 March

2022

£'000

Non-current liabilities

 



Secured bank loans

12,759

13,702

13,235

Lease liabilities

6,275

7,344

6,478

Total non-current interest-bearing loans and lease liabilities

19,034

21,046

19,713

Current liabilities

 



Secured bank loans

952

940

948

Lease liabilities

470

463

588

Total current interest-bearing loans and lease liabilities

1,422

1,403

1,536

Total liabilities

 



Secured bank loans

13,711

14,642

14,183

Lease liabilities

6,745

7,807

7,066

Total interest-bearing loans and lease liabilities

20,456

22,449

21,249

 

 

10.  Capital Commitments

 

At 30 September 2022, the Group had capital commitments of £615,000 which had not been provided for in the financial statements, comprising £482,000 in Momart, £107,000 in FIC and £26,000 in PHFC.

 

At 30 September 2021, the Group had capital commitments of £1,061,000 which had not been provided for in the financial statements, comprising £635,000 in FIC and £426,000 in Momart.

Directors

 

Registered Office

Robin Williams

Non-executive Chairman

Kenburgh Court

Stuart Munro

Chief Executive

133-137 South Street

Reuben Shamu

Chief Financial Officer

Bishop's Stortford

Rob Johnston

Non-executive Director

Hertfordshire CM23 3HX

Dominic Lavelle

Non-executive Director

E: admin@fihplc.com


 

W: www.fihplc.com

 

 

Registered number 03416346

Company Secretary

 

 

Iain Harrison

 


 

 

 

 

 

 

Corporate Information

 

 

Stockbroker and Nominated Adviser

W.H. Ireland Limited

24 Martin Lane,

London EC4R 0DR

 

 

 

 

 

 

Solicitors

BDB Pitmans LLP

50 Broadway,

Westminster,

London SW1H 0BL

 

 

 

 

 

 

Auditor

KPMG LLP

St. Nicholas House,

Park Row,

Nottingham NG1 6FQ

 

 

 

 

 

 

Registrar

Link Group

10th Floor Central Square,

29 Wellington Street,

Leeds LS1 4DL

 

 

 

 

 

Financial PR

Novella Communications

South Wing, Somerset House

London

WC2R 1LA

 

 

 

 

 

The Falkland Islands Company

 

Kevin Ironside, Director

T: 00 500 27600

E: info@fic.co.fk

W: www.falklandislandscompany.com

 

The Portsmouth Harbour Ferry Company

Clive Lane, Director

T: 02392 524551

E: admin@gosportferry.co.uk

W: www.gosportferry.co.uk

 

Momart Limited

 

Alison Jordan, Director

T: 020 7426 3000

E: enquiries@momart.com

W: www.momart.com

 

www.fihplc.com

 

 

 

 

 

 

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