FIH Group PLC New debt facilities agreed & new commercial flight (0017F)
July 10 2019 - 2:00AM
UK Regulatory
TIDMFIH
RNS Number : 0017F
FIH Group PLC
10 July 2019
10 July 2019
FIH group plc
("FIH" or the "Group")
New debt facilities agreed and new commercial flight to the
Falkland Islands
FIH group plc ("FIH"), the AIM quoted international group which
owns essential services businesses focused on retail, transport and
logistics, is pleased to provide an update on recent
developments.
New Long-Term Commercial Mortgage
FIH has refinanced a short-term temporary bank facility of GBP10
million that was used to assist with the GBP19.6 million purchase
of the 100,000sq ft art storage warehouse in Leyton as announced on
5 December 2018. With effect from 30 June 2019 the Group has drawn
down a GBP13.9 million long-term mortgage, which has increased
overall bank borrowings by GBP3.9 million and boosted the Group's
cash reserves by GBP3.9 million. Net borrowings are unaffected. The
loan has a 20-year repayment profile and following the draw down
the Group has entered into an interest rate Swap which will fix the
cost of borrowing for the loan at 3.0% p.a. for 10 years.
New Commercial Air link to the Falkland Islands from Brazil
On Friday 5 July 2019, the Falkland Islands Government issued a
press release to confirm that a new commercial air link has been
agreed that will connect the Falkland Islands to the international
hub airport in Sao Paulo, Brazil. This will greatly improve
accessibility to the Islands and will offer much greater
opportunity for tourists to visit the Islands and experience its
unique culture and environmental heritage. In addition the Falkland
Islands Government has plans for a new port and air terminal, to
support long term economic growth in the islands.
The text of the government press release issued on Friday 5 July
is included in full further below.
John Foster FIH Group CEO said: "With the draw-down of new
long-term bank facilities, the Group has strengthened its cash
reserves and locked in funding at historically low rates. With the
Group's finances on a solid long-term footing FIH remains well
placed over the medium-term to take advantage of opportunities
across the Group and the exciting developments emerging in the
Falklands."
Enquiries:
FIH group plc
John Foster, Chief Executive Tel: 01279 461 630
WH Ireland Ltd. - NOMAD and Broker
to FIH
Adrian Hadden / Jessica Cave Tel: 020 7220 1666
FTI Consulting - Communications adviser
to FIH
Alex Beagley / Eleanor Purdon Tel: 020 3727 1000
Agreement reached for historic commercial flight between the
Falkland Islands and Brazil
"An agreement has been finalised with LATAM Airlines Brazil to
introduce a second international commercial air link to the
Falkland Islands with a weekly service from São Paulo/Guarulhos
(with a monthly stop in Cordoba, Argentina), complementing the
existing weekly flight to Santiago, Chile.
This significant achievement comes following the successful
conclusion of a formal commercial process which identified LATAM as
the preferred operator last year.
LATAM is Latin America's leading airline group, serving over 140
destinations in 27 countries worldwide. The new route will allow
passengers to make onward connections to multiple destinations in
South and North America and Europe, and once a month it will
transit in both directions via Cordoba in Argentina.
The inaugural flight has been scheduled for Wednesday 6 November
2019 with further details regarding ticket sales and itinerary to
be communicated in the coming weeks.
The process of establishing the flight has followed the
principles set out in the 14 July 1999 Joint Statement and Exchange
of Letters, later supported through the signing of the 2016 Joint
Communiqué, between Britain and Argentina where it was agreed to
make further progress in establishing additional air links between
the Falkland Islands and third party countries.
The Government is working in partnership with the Ministry of
Defence to ensure that interim arrangements will be in place to
accommodate this new flight at Mount Pleasant International Airport
in November. Plans for a new permanent terminal development are
being progressed.
Speaking of this historic event, MLA Barry Elsby, Portfolio Lead
said: "We have made no secret of our determination to build better
air links between the Falkland Islands and the rest of the world,
and I am certain that this latest development will be
successful.
"This new flight, together with our plans for a new port and air
terminal, will support long term economic growth in the islands and
will result in significant growth for our tourist industry in
particular."
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END
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