TIDMFKL
RNS Number : 2236G
Falkland Islands Holdings PLC
19 November 2015
19 November 2015
Falkland Islands Holdings plc
("FIH" or the "Group")
Results for the six months ended 30 September 2015
FIH, the AIM quoted group that owns essential services
businesses in the Falkland Islands and the UK, is pleased to
announce its unaudited results for the six months ended 30
September 2015 ("the period"). Comparisons shown below are for the
same period in 2014 unless otherwise stated.
Group Financial Highlights
-- Group revenue GBP17.73 million (2014: GBP18.24 million)
-- Profit Before Tax GBP1.4 million (2014: GBP1.2 million)
-- Underlying Profit Before Tax* GBP1.10 million (2014: GBP1.30 million)
-- Diluted earnings per share based on underlying earnings were 6.8p (2014: 8.0p)
-- Bank borrowings at 30 September 2015 were GBP3.5 million (31 March 2015: GBP0.7 million)
-- Group cash balances of GBP10.8 million at 30 September 2015 (31 March 2015: GBP7.4 million)
-- In line with its new policy of reinvestment, no Interim dividend declared.
* Underlying Profit Before Tax is shown after the allocation of
central overheads and related financing costs and excludes
non-trading items and non-cash charges for the amortisation of
intangible assets.
Operating Highlights
Falkland Islands Company ("FIC") - Good trading performance
-- Increased general activity caused by the presence of the Eirik Raude rig:
o Sharp improvement in rental income from FIC's property
portfolio via corporate lets
o 2.4% increase in revenue at FIC's flagship West Store,
Stanley, and 4.5% rise in sales at the Capstan gift shop
-- Overall revenue down by 6.9% to GBP7.89 million from record
level comparable period (2014: GBP8.48 million)
-- Profit Before Tax and amortisation ("PBTa") up 31.2% to
GBP0.73 million (2014: GBP0.55 million).
Portsmouth Harbour Ferry Company ("PHFC") - Sustained
performance and increased profitability
-- Satisfactory trading with a small decline of 1.5% in revenue
to GBP2.26 million (2014: GBP2.29 million)
-- Profitability after the allocation of Group overheads and
financing charges (PBTa), improved to GBP0.39 million (2014:
GBP0.35 million)
-- New ferry, Harbour Spirit, with its enhanced facilities is now fully operational.
Momart - Stable revenue & investment in business development
& marketing
-- Revenue increased 1.4% to GBP7.58 million (2014: GBP7.47 million)
-- Contribution (PBTa) down GBP0.4 million following investment
in marketing, business development and IT
-- High-profile museum exhibitions included: Ai Weiwei at the
Royal Academy; The World goes Pop and Agnes Martin at Tate Modern;
Jackson Pollock at Tate Liverpool; and What is Luxury at the
V&A
-- Storage revenue increased 7.5% on prior year, with 100% effective capacity utilisation:
o Completed fit-out of an additional 4,500 sq. ft. of ambient
storage facilities at Edmonton
o Dedicated storage space at the Royal Academy fully
operational
-- Increased investment in marketing, business development, IT and finance.
Falkland Oil & Gas Limited ("FOGL")
-- Realisation of investment in FOGL completed with sale of
residual 5 million shares for GBP1.4 million, generating a profit
of GBP0.4 million for the Group
-- Proceeds used to further modernise the infrastructure of the Group's core businesses
Edmund Rowland, Chairman of FIH, said:
"This has been a satisfactory period of trading for the Group,
with a good trading performance in the Falklands, coupled with
increased profitability from the PHFC and further strengthening at
Momart, our market leading art logistics and storage business.
"The outlook for the Group remains positive and we remain
confident that the diverse range of high quality, niche service
businesses supplemented by strategic acquisitions to increase the
Group's scale and earnings potential, will produce sustainable long
term returns for shareholders."
- Ends -
Enquiries:
Falkland Islands Holdings
plc Tel: 0207 087
Edmund Rowland, Chairman 7970
John Foster, Managing Director Tel: 01279 461
630
-------------------------------- -----------------
WH Ireland Ltd. - NOMAD and
Broker to FIH Tel: 0207 220
Adrian Hadden / Mark Leonard 1666
-------------------------------- -----------------
FTI Consulting Tel: 0203 727
Edward Westropp / Eleanor 1000
Purdon
-------------------------------- -----------------
Copies of the Interim Report will be available on the Company's
website www.fihplc.com
Chairman's and Managing Director's Review
Group overview
The Group's trading results for the six months to 30 September
2015 were satisfactory with revenues slightly down on the prior
year at GBP17.7 million and Profit Before Tax ahead by GBP0.18
million at GBP1.41 million (2014: GBP1.23 million). At a trading
level, after excluding the GBP0.4 million gain on the sale of
shares in Falkland Oil and Gas Limited ("FOGL"), underlying profit
before tax was GBP1.10 million, down GBP0.2 million from the
GBP1.30 million seen last year.
An analysis by business is shown below:
Revenue
Six months ended 30 September 2015 2014 Change
GBP million GBP million %
Falkland Islands Company 7.89 8.48 -6.9
Portsmouth Harbour Ferry 2.26 2.29 -1.5
Momart 7.58 7.47 1.4
------------------------------- ------------- ------------- -------
Total Revenue 17.73 18.24 -2.8
------------------------------- ------------- ------------- -------
Underlying Profit Before 2015 2014
Tax* GBP million GBP million Change
Six months ended 30 September %
Falkland Islands Company 0.73 0.55 31.2
Portsmouth Harbour Ferry 0.39 0.35 10.3
Momart (0.02) 0.40 -104.0
-------------------------------- -------------- -------------- -------
Total Underlying Profit Before
Tax 1.10 1.30 -15.9
-------------------------------- -------------- -------------- -------
Amortisation (0.07) (0.07) -
-------------------------------- -------------- -------------- -------
Profit on sale of FOGL shares 0.38 -
-------------------------------- -------------- -------------- -------
Profit Before Tax 1.41 1.23 14.7
================================ ============== ============== =======
Profits in the Group's Falklands' business, FIC, rose by 31%
boosted by increased business activity connected to the offshore
drilling programme which commenced in March 2015, while at PHFC the
contribution from ferry operations was marginally up on the prior
year following a reduction in central costs. Profits at the Group's
art handling business, Momart, were lower by GBP0.4 million
reflecting increased investment in marketing and business
development.
Diluted earnings per share (EPS) based on reported earnings were
9.5p (2014: 7.5p) and based on underlying earnings, diluted EPS
were 6.8p (2014: 8.0p).
At 30 September 2015, the Group had cash balances of GBP10.8
million (31 March 2015: GBP7.4 million) and bank borrowings of
GBP3.5 million (31 March 2015: GBP0.7 million).
* Underlying Profit Before Tax is shown after the allocation of
central overheads and related financing costs and excludes
non-trading items and non- cash charges for the amortisation of
intangible assets.
Operating Review
Falkland Islands Company (FIC)
Despite increased general activity caused by the presence of the
Eirik Raude drilling rig, lower service revenues from FIC's Fishing
Agency, the absence of oil related pre-drilling construction
activity, reduced southbound freight and timing differences in 4x4
vehicle sales, saw overall revenue fall back by 6.9% to GBP7.89
million from the record level in the first half of 2014-15 (2014:
GBP8.48 million).
However Profit Before Tax and amortisation ("PBTa") increased to
GBP0.73 million, up 31.2% on the prior period (2014: GBP0.55
million), as net income from FIC's higher margin retail, property
and support services were boosted by the presence of onshore oil
support workers.
FIC : Revenue Analysis 2015 2014 Change
Six months ended 30 September GBP GBP million %
million
Retail 4.34 4.39 -1.2
Falklands 4x4 1.25 1.49 -16.1
Freight & Port Services 0.41 0.62 -33.3
Support services 0.67 0.81 -17.7
Property Rental 0.27 0.14 90.2
FBS (construction) 0.95 1.03 -7.2
Total FIC revenue 7.89 8.48 -6.9
-------------------------------- --------- ------------- -------
Rental income from FIC's property portfolio improved sharply
over the period as corporate lets linked to the drilling program
saw an increase in both rental yields and occupancy.
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November 19, 2015 02:00 ET (07:00 GMT)
Underlying retail activity was generally ahead of the prior
year; revenue at FIC's flagship West Store, in the heart of
Stanley, increased by 2.4% and sales at the Capstan gift shop rose
by 4.5%. However a hiatus in government housing completions and
restricted customer access caused by further store development work
saw a sharp reduction in revenue from FIC's homecare business
causing overall retail sales to be lower by 1.2% (GBP0.05 million).
Overall contribution from FIC's retail operations was in line with
the prior year.
In the automotive business, Falklands 4x4, profits were higher
from vehicle car hire and servicing, but timing differences linked
to the delayed delivery of the final batch of Land-Rover Defender
vehicles ordered by government, saw vehicle sales fall from 43 to
34 in the current period and total revenue reduced by 16% to
GBP1.25 million (2014: GBP1.49 million). 4x4's overall contribution
however was in line with the prior year.
FIC's construction business continued to make good progress,
with the completion and sale of eight kit homes vs five in the
prior period. However this was largely offset by the absence of the
subcontracted work in H1 last year related to installation by oil
companies of a new temporary dock in Stanley Harbour. As a result
overall construction revenue was slightly lower than in H1 2014
albeit cost savings in site development costs incurred last year
saw the overall contribution from construction increase.
SAtCO, the construction Joint Venture with Trant Engineering,
continued to benefit from oil related spending on-shore, with the
crane rental to Premier Oil and local construction contracts,
leading to an increase in the JV's after tax contribution from
GBP77,000 to GBP106,000.
FIC's Fishing Agency had a quieter period without the launch
hire income seen in the prior year related to the construction of
the floating dock. The Group's insurance brokerage business
continued to make progress, but its gains were largely offset by
reduced profits from Port services and third party freight, as
cargo shipped to the Islands returned to more normal levels
following the surge in oil related construction activity seen in H1
last year.
Profit Before Tax from FIC in H1 increased to GBP0.73 million
(2014: GBP0.55 million) and with the drilling programme now set to
extend until the end of February 2016, activity in the Falklands is
expected to remain buoyant for the remainder of the financial
year.
Portsmouth Harbour Ferry Company
PHFC continued to trade satisfactorily with a small decline of
1.5% in revenue to GBP2.26 million (2014: GBP2.29 million) Fare
increases in June 2015 were balanced by promotional discounts over
the summer to stimulate increased ferry usage. However cheaper
petrol prices made car travel relatively more attractive and this
together with the continued promotion and subsidy by Portsmouth
Council of its Park & Ride scheme (offering commuters and
shoppers a combined bus and car parking ticket for only GBP2) saw
passenger numbers reduce by 3.3%.
Ferry operating expenses were tightly controlled with lower
vessel maintenance, fuel bills and professional costs. This was
combined with a reduction in head office costs following management
changes at FIH earlier in the year and these overall cost savings
were sufficient to offset increased interest charges linked to new
ferry loans of GBP3.6 million and the small reduction in ferry
revenue.
Profitability after the allocation of Group overheads and
financing charges (PBTa), improved to GBP0.39 million (2014:
GBP0.35 million).
In July 2015, PHFC's new ferry, Harbour Spirit with its enhanced
facilities, including a larger cycle deck and more enclosed
passenger seating, was formally commissioned. Harbour Spirit's
arrival takes the number of modern vessels operated by PHFC to
three and her presence will allow the retirement of one of the
company's older 1966 vintage vessels later in the year.
Momart
Momart, the Group's art handling and logistics business saw
revenues of GBP7.58 million, an increase of 1.4% on the prior year
(2014: GBP7.47 million), with sales growth seen in the Commercial
Galleries and Art Storage divisions.
Momart : Revenue Analysis 2015 2014 Change
Six months ended 30 September GBP GBP million %
million
Museums & Exhibitions 3.90 4.01 -2.6
Commercial Galleries and
Auction Houses 2.70 2.55 5.6
Art Storage 0.98 0.91 7.5
-------------------------------- --------- ------------- -------
Total 7.58 7.47 1.4
-------------------------------- --------- ------------- -------
Underlying PBTa fell to an operating loss of GBP0.02 million
compared to a profit of GBP0.40 million in H1 2014-15. Although
buoyant, the art market has become increasingly competitive,
restricting sales growth particularly for Museum Exhibition work
where market pressure has been exacerbated by government budget
cuts which have placed further strain on gross margins. This
together with an increased investment in marketing and business
development, which saw overheads increase by GBP0.28 million, led
to the GBP0.4 million decline in Momart's Profit Before Tax.
Museum Exhibition revenues were down 2.6% at GBP3.90 million
(2014: GBP4.01 million). This was expected, given the reduction in
the order book at 31 March 2015, which was down 16% compared to the
prior year and although this shortfall was largely reversed over
the period, with sales down only 2.6%, this was achieved at the
expense of gross margin dilution. An increased order book up 11% at
30 September 2015 will provide a stronger platform for trading in
the second half although pressure on margins is expected to
continue.
Notable museum exhibitions delivered for UK clients in the
period included: "Ai Weiwei" at the Royal Academy. "The World goes
Pop"& "Agnes Martin" at Tate Modern, "Jackson Pollock" at Tate
Liverpool, "Audrey Hepburn" at National Portrait Gallery and "What
is Luxury" at the V&A.
Revenues from commercial galleries and auction houses (Gallery
Services) increased 5.6% to GBP2.70 million (2014: GBP2.55 million)
helped by a buoyant art market and the increased focus on marketing
and business development which led to a broadening and deepening of
Momart's commercial client base. Margins too showed some
improvement and this stronger performance from Gallery Services
went some way to minimising the decline in the gross profitability
of Momart's Museum Exhibition business.
Storage revenues increased 7.5% from the prior year, with the
Royal Academy's dedicated storage space now fully operational and
with the fit out of the additional 4,500 sq. ft. of ambient storage
facilities at the Edmonton site being competed in late June 2015.
This provided much needed space to cope with the storage containers
from China used in the Ai Weiwei exhibition which opened at the
Royal Academy in September. These results continue to reflect an
effective 100% capacity utilisation.
Although overheads were tightly controlled, there was a
significant increase in expenditure from the prior year due to the
investments in finance, IT and in marketing initiatives and
business development. Recent marketing activity included the VIP
sponsorship of Frieze, and a strategic agreement for Momart to
become a preferred European Partner of the new Christie's online
collection management portal, "Collectrium". Momart's involvement
with this Christie's sponsored cutting edge digital solution offers
significant long term potential growth prospects in the commercial
art market with increased access and exposure to private clients
and key international collectors.
The commercial art market continues to remain buoyant and Momart
has made further progress in developing its relationships with
leading galleries and auction houses.
Building of the new air conditioned warehouse at Momart's
existing Leyton site has now commenced, with completion expected in
mid-2016. This new warehouse building will have improved client
facilities, including private client viewing areas and will
increase Momart's storage capacity by 33%.
Falkland Oil and Gas Limited (FOGL)
In April 2015, the Group sold its residual 5 million shares held
in FOGL for GBP1.4 million, generating a profit of GBP0.4 million
for the Group. With the sale of these 5 million shares, FIH has
completed the realisation of its investment in FOGL.
Over the last 10 years since FOGL's flotation, FIH has generated
over GBP8 million in cash proceeds and GBP5 million in profits from
its highly successful investment in FOGL. As with previous
realisations these latest monies will be used to invest in and
modernise the infrastructure of the Group's core businesses, to
help deliver the board's vision of sustainable long term
growth.
Balance Sheet and Cash Flow
During the six months to 30 September 2015, total capital
expenditure amounted to GBP1.08 million, of which the major
commitment was to the Falklands, accounting for GBP0.8 million. The
Falklands investment has largely been incurred on the two projects;
the new warehouse/freezer facilities at Airport Road in East
Stanley, and the further development of the retail facilities at
Crozier Place, including an expanded builders' merchant and DIY
store, modern parking facilities for retail customers and a new
café.
At Momart, further investment of GBP0.2 million was made in
trucks and upgrading storage facilities and at PHFC GBP0.1 million
was spent on finalising the new vessel and on normal replacement
expenditure.
Total inventories decreased by GBP0.5 million to GBP6.3 million
(September 2014: GBP6.8 million) reflecting improvements in stock
control and the reduction in construction activity. Retail
inventories in Stanley remained in line with the prior year at
GBP4.1 million (September 2014: GBP4.2 million).
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Operating cash flow (Operating Profit plus amortisation &
depreciation) at GBP2.0 million fell GBP0.2 million from the prior
period (September 2014: GBP2.2 million) due to the reduction in
underlying profit before tax. The Group's cash balances increased
by GBP3.3 million to GBP10.8 million at 30 September 2015 following
the drawdown of GBP2.9 million of bank loans, to finance Harbour
Spirit at Gosport, and the GBP1.4 million proceeds received on the
sale of the FOGL shares, offset by capital investment of GBP1.1
million.
At 30 September 2015, the Group had cash balances of GBP10.8
million (31 March 2015: GBP7.4 million) and bank borrowings of
GBP3.5 million (31 March 2015: GBP0.7 million). In addition the
Group had hire purchase liabilities of GBP0.2 million (31 March
2015: GBP0.3 million) and long term finance lease liabilities in
respect of the Gosport Pontoon of GBP4.8 million (31 March 2015:
GBP4.9 million).
Outlook
A stronger second half for FIC is anticipated with activity
buoyed by a projected increase in cruise ship passengers and the
extended stay of the Eirik Raude rig which now appears likely to
remain in Falklands' waters until February 2016. Beyond the end of
the financial year longer term growth prospects in the Falklands
remain closely tied to the development of oil production in the
Islands, the timing of which in turn depends on the extent of any
further success in the remaining three exploration wells and in
particular to a recovery in the oil price. Nonetheless the Board
continues to believe that Sea Lion and other commercially
significant oil reserves will be developed in Falklands' waters,
and with the recent modernisation of its facilities and its strong
legacy property portfolio, FIC is well placed to take full
advantage of any growth which does arise.
At Momart, the market remains highly competitive with continuing
margin pressure expected in the Museums Exhibitions market.
However, the benefits of an increased marketing focus are expected
to emerge slowly over the next few months and with recent positive
trends in Gallery Services contract wins, the outlook for the
second half is more positive.
At PHFC, performance is expected to remain satisfactory, with
modest declines in passenger numbers in the near term being offset
by increased fares. With plans underway for the expansion of the
Portsmouth naval base from 2017 onwards, longer term growth
prospects appear encouraging.
The outlook for the Group remains positive and we remain
confident that the diverse range of high quality, niche service
businesses supplemented by strategic acquisitions to increase the
Group's scale and earnings potential, will produce sustainable long
term returns for shareholders.
Edmund Rowland John Foster
Chairman Managing Director
19 November 2015
Condensed Interim Consolidated Income Statement
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2015
Unaudited Unaudited
6 months 6 months Audited
to to Year ended
30 September 30 September 31 March
2015 2014 2015
Notes GBP'000 GBP'000 GBP'000
------------------------------- -------------- -------------- ------------
2 Revenue 17,727 18,242 38,560
Cost of sales (10,413) (10,786) (22,927)
--------------------------- -------------- -------------- ------------
Gross profit 7,314 7,456 15,633
Other administrative
expenses (6,200) (6,122) (12,050)
Board restructuring costs - - (234)
Amortisation of intangible
assets (72) (72) (142)
--------------------------- -------------- -------------- ------------
Administrative expenses (6,272) (6,194) (12,426)
Operating profit 1,042 1,262 3,207
Gain on sale of FOGL
shares 388 - 711
Share of result of joint
venture 106 77 180
--------------------------- -------------- -------------- ------------
Profit before finance
income and expense 1,536 1,339 4,098
Finance income 109 97 187
Finance expense (232) (204) (391)
--------------------------- -------------- -------------- ------------
3 Net financing costs (123) (107) (204)
Profit before tax 1,413 1,232 3,894
4 Taxation (236) (297) (750)
Profit attributable to
equity holders of the
Company 1,177 935 3,144
--------------------------- -------------- -------------- ------------
5 Earnings per share
Basic 9.5p 7.5p 25.4p
Diluted 9.5p 7.5p 25.3p
See note 5 for an analysis of earnings per share on underlying
profit (defined as profit after tax before amortisation and
non-trading items).
Condensed Consolidated Balance Sheet
AT 30 SEPTEMBER 2015
Unaudited Unaudited Audited
30 September 30 September 31 March
2015 2014 2015
Notes GBP'000 GBP'000 GBP'000
---------------------------------- -------------- -------------- ----------
Non-current assets
Intangible assets 12,128 12,243 12,226
Property, plant and equipment 19,907 17,759 19,621
Investment properties 3,666 3,366 3,693
Shares held in Falkland
6 Oil and Gas Limited - 3,623 1,500
Investment in joint venture 372 163 266
Loan to joint venture 378 378 378
Hire purchase debtors 553 396 458
Deferred tax assets 750 645 750
------------------------------ -------------- -------------- ----------
Total non-current assets 37,754 38,573 38,892
Current assets
Inventories 6,330 6,819 5,391
Trade and other receivables 5,510 5,482 5,308
Hire purchase debtors 689 619 647
Cash and cash equivalents 10,750 4,097 7,435
------------------------------ -------------- -------------- ----------
Total current assets 23,279 17,017 18,781
TOTAL ASSETS 61,033 55,590 57,673
Current liabilities
Interest bearing loans
and borrowings (533) (679) (293)
Income tax payable (94) (327) (27)
Trade and other payables (10,139) (9,618) (10,214)
------------------------------ -------------- -------------- ----------
Total current liabilities (10,766) (10,624) (10,534)
Non-current liabilities
Interest bearing loans
and liabilities (7,989) (5,061) (5,580)
7 Employee benefits (2,884) (2,480) (2,884)
Deferred tax liabilities (1,987) (1,639) (1,987)
------------------------------ -------------- -------------- ----------
Total non-current liabilities (12,860) (9,180) (10,451)
TOTAL LIABILITIES (23,626) (19,804) (20,985)
Net assets 37,407 35,786 36,688
------------------------------ -------------- -------------- ----------
Capital and reserves
Equity share capital 1,243 1,243 1,243
Share premium account 17,447 17,447 17,447
Other reserves 1,162 1,162 1,162
Retained earnings 17,555 14,895 16,344
Financial assets fair
value reserve - 1,039 492
Total equity 37,407 35,786 36,688
------------------------------ -------------- -------------- ----------
Condensed Consolidated Cash Flow Statement
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FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2015
Unaudited Unaudited
6 months 6 months Audited
to to Year ended
30 September 30 September 31 March
2015 2014 2015
Notes GBP'000 GBP'000 GBP'000
--------------------------------------- -------------- -------------- ------------
Profit for the period 1,177 935 3,144
Adjusted for (i) Non-cash items:
Depreciation 720 592 1,426
Amortisation 72 72 142
Loss on disposal of fixed assets - 143 -
Share of joint venture profit (106) (77) (180)
Amortisation of loan fees - 8 15
Interest cost on pension scheme
liabilities 60 60 107
Equity-settled share-based payment
expenses 34 50 90
-------------------------------------- -------------- -------------- ------------
Non-cash items adjustment 780 848 1,600
(ii) Other items:
Bank interest receivable (11) (17) (15)
Bank interest payable 51 13 17
Finance lease interest payable 121 123 246
Gain on disposal of FOGL shares (388) - (711)
Income tax expense 236 297 750
-------------------------------------- -------------- -------------- ------------
Other adjustments 9 416 287
Operating cash flow before changes
in working capital and provisions 1,966 2,199 5,031
(Increase) / decrease in trade
and other receivables (202) 1,559 1,733
(Increase) / decrease in trading
inventories (809) (127) 1,406
(Decrease) / increase in trade
and other payables (80) (1,475) (879)
Decrease in provisions and employee
benefits (60) (60) (115)
-------------------------------------- -------------- -------------- ------------
Changes in working capital and
provisions (1,151) (103) 2,145
Cash generated from operations 815 2,096 7,176
Income taxes paid (169) (389) (792)
-------------------------------------- -------------- -------------- ------------
Net cash from operating activities 646 1,707 6,384
Cash flows from investing activities
Purchase of property, plant and
equipment (1,083) (1,809) (4,597)
Purchase of computer software - (51) (132)
Proceeds from disposal of property,
plant & equipment - 40 86
Proceeds received from the sale
of FOGL shares 1,396 - 2,287
Acquisition of a business - - (215)
Cash inflow on loans to joint
venture - 151 151
Interest received 11 17 15
-------------------------------------- -------------- -------------- ------------
Net cash from investing activities 324 (1,652) (2,405)
-------------------------------------- -------------- -------------- ------------
Condensed Consolidated Cash Flow
Statement (Continued)
FOR THE 6 MONTHS ENDED 30 SEPTEMBER
2015
Unaudited Unaudited Audited
6 months 6 months Year
to to ended
30 September 30 September 31 March
2015 2014 2015
GBP'000 GBP'000 GBP'000
Increase in hire purchase debtors (137) (170) (260)
Repayment of secured loans (362) (693) (1,391)
Interest paid (46) (13) (17)
Proceeds from new loans 2,890 132 701
Hire purchase loan drawn down - - 132
Dividends paid - (929) (1,424)
-------------------------------------- -------------- -------------- ----------
Net cash from financing activities 2,345 (1,673) (2,259)
Net decrease in cash and cash
equivalents 3,315 (1,618) 1,720
Cash and cash equivalents at
start of period 7,435 5,715 5,715
-------------------------------------- -------------- -------------- ----------
Cash and cash equivalents at
end of period 10,750 4,097 7,435
-------------------------------------- -------------- -------------- ----------
Condensed Consolidated Statement of Comprehensive Income
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2015
Unaudited Unaudited
6 months 6 months Audited
to to Year ended
30 September 30 September 31 March
2015 2014 2015
Notes GBP'000 GBP'000 GBP'000
------------------------------------- -------------- -------------- ------------
Gain in fair value of shares
6 in Falkland Oil and Gas Limited - 353 225
Transfer to the income statement
on sale of shares in Falkland
6 Oil and Gas Limited (492) - (419)
Items which will ultimately
be recycled to the income
statement (492) 353 (194)
Actuarial gain on pension
7 schemes net of tax - - (305)
--------------------------------- -------------- -------------- ------------
Items which will not ultimately
be recycled to the income
statement - - (305)
Other comprehensive (expense)
/ income (492) 353 (499)
Profit for the period 1,177 935 3,144
Total comprehensive income 685 1,288 2,645
--------------------------------- -------------- -------------- ------------
Condensed Consolidated Statement of Changes in Shareholders'
Equity
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2015
Unaudited Unaudited
6 months 6 months Audited
to to Year ended
30 September 30 September 31 March
2015 2014 2015
GBP'000 GBP'000 GBP'000
---------------------------------- -------------- -------------- ------------
Shareholders' funds at beginning
of period 36,688 35,377 35,377
Profit for the period 1,177 935 3,144
Gain in fair value of shares
in Falkland Oil and Gas Limited - 353 225
Transfer to the income statement
on sale of shares in Falkland
Oil and Gas Limited (492) - (419)
Net actuarial gain on pension
schemes net of tax - - (305)
Total comprehensive income 685 1,288 2,645
Dividends paid or approved
by shareholders - (929) (1,424)
Share-based payments granted
to employees 34 50 90
Shareholders' funds at end
of period 37,407 35,786 36,688
---------------------------------- -------------- -------------- ------------
Notes to the Unaudited Interim Statements
1. Basis of preparation
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This interim financial information comprises the condensed
consolidated balance sheets at 30 September 2015, 30 September 2014
and 31 March 2015 and condensed consolidated statements of income,
comprehensive income, cash flows and changes in shareholders'
equity for the periods then ended and related notes of Falkland
Islands Holdings plc (hereinafter 'the interim financial
information').
The interim financial information has been prepared in
accordance with the accounting policies set out in the Group's 2015
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'.
The adopted International Financial Reporting Standards ('IFRS')
that will be effective (or available for early adoption) in the
annual financial statements for the year ending 31 March 2016 are
still subject to change and to additional interpretations and
therefore cannot be determined with certainty. Accordingly, the
accounting policies for that annual period will be determined
finally only when the annual financial statements are prepared for
the year ending 31 March 2016.
The Interim Report was approved by the Board on 19 November
2015.
Section 245 Statement
The comparative figures for the financial year ended 31 March
2015 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
Unaudited - Six months to 30 September
2015
Arts
logistics
General Ferry &
trading services storage
(Falklands) (Portsmouth) (UK) Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External revenue 7,891 2,261 7,575 - 17,727
=============================== ============= ============== =========== ============= =========
Operating profit before
amortisation and non-trading
items 582 545 (13) - 1,114
Amortisation of intangible
assets - - (72) - (72)
------------------------------- ------------- -------------- ----------- ------------- ---------
Amortisation and non-trading
items - - (72) - (72)
Segment operating
profit 582 545 (85) - 1,042
Gain on sale of FOGL
shares - - - 388 388
Share of results of
joint venture 106 - - - 106
------------------------------- ------------- -------------- ----------- ------------- ---------
Profit before finance
income and expense 688 545 (85) 388 1,536
Finance income 109 - - - 109
Finance expense (69) (160) (3) - (232)
Segment profit before
tax 728 385 (88) 388 1,413
=============================== ============= ============== =========== ============= =========
Assets and liabilities
Segment assets 28,560 19,059 13,407 7 61,033
Segment liabilities (9,990) (9,864) (3,216) (556) (23,626)
Segment net assets 18,570 9,195 10,191 (549) 37,407
=============================== ============= ============== =========== ============= =========
Other segment information
Capital expenditure
Property, plant and
equipment 797 88 188 - 1,073
Investment properties 10 - - - 10
Computer Software - - - - -
Depreciation 342 212 166 - 720
Amortisation of non-trading
items - - 72 - 72
=============================== ============= ============== =========== ============= =========
Arts
Underlying profit logistics
before tax General Ferry &
trading services storage
(Falklands) (Portsmouth) (UK) Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment operating
profit before tax,
amortisation and non-trading
items 582 545 (13) - 1,114
Share of results of
Joint Venture 106 106
------------------------------- ------------- -------------- ----------- ------------- ---------
Profit before finance
income and expense 688 545 (13) - 1,220
Finance income 109 - - - 109
Finance expense (69) (160) (3) - (232)
------------------------------- ------------- -------------- ----------- ------------- ---------
Segment underlying
profit before tax 728 385 (16) - 1,097
------------------------------- ------------- -------------- ----------- ------------- ---------
2. Segmental revenue and profit analysis (continued)
Unaudited - Six months to 30 September
2014
Arts
logistics
General Ferry &
trading services storage
(Falklands) (Portsmouth) (UK) Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External revenue 8,478 2,295 7,469 - 18,242
=============================== ============== ================ =============== ============== =============
Operating profit before
amortisation and non-trading
items 441 469 424 - 1,334
Amortisation of intangible
assets - - (72) - (72)
------------------------------- -------------- ---------------- --------------- -------------- -------------
Amortisation and non-trading
items - - (72) - (72)
Segment operating
profit 441 469 352 - 1,262
Share of results of
joint venture 77 - - 77
------------------------------- -------------- ---------------- --------------- -------------- -------------
Profit before finance
income and expense 518 469 352 - 1,339
Finance income 97 - - - 97
Finance expense (60) (120) (24) - (204)
Segment profit before
tax 555 349 328 - 1,232
=============================== ============== ================ =============== ============== =============
Assets and liabilities
Segment assets 22,353 15,302 14,303 3,632 55,590
Segment liabilities (8,134) (6,531) (4,702) (437) (19,804)
Segment net assets 14,219 8,771 9,601 3,195 35,786
=============================== ============== ================ =============== ============== =============
Other segment information
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Capital expenditure
Property, plant and
equipment 1,115 384 162 - 1,661
Investment properties 148 - - - 148
Computer Software - - 51 - 51
Depreciation 268 169 155 - 592
Amortisation of non-trading
items - - 72 - 72
=============================== ============== ================ =============== ============== =============
Arts
Underlying profit logistics
before tax General Ferry &
trading services storage
(Falklands) (Portsmouth) (UK) Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment operating
profit before tax,
amortisation and non-trading
items 441 469 424 - 1,334
Share of results of
Joint Venture 77 - - - 77
------------------------------- -------------- ---------------- --------------- -------------- -------------
Profit before finance
income and expense 518 469 424 - 1,411
Finance income 97 - - - 97
Finance expense (60) (120) (24) - (204)
------------------------------- -------------- ---------------- --------------- -------------- -------------
Segment underlying
profit before tax 555 349 400 - 1,304
------------------------------- -------------- ---------------- --------------- -------------- -------------
2. Segmental revenue and profit analysis (continued)
Audited - Year ended 31
March 2015
Arts Unallocated
logistics GBP'000
General Ferry &
trading services storage
(Falklands) (Portsmouth) (UK) Total
GBP'000 GBP'000 GBP'000 GBP'000
External revenue 18,506 4,301 15,753 - 38,560
=============================== ============== =============== =========== ============= =========
Operating profit before
amortisation and non-trading
items 1,312 1,032 1,239 - 3,583
Board restructuring
costs - - - (234) (234)
Amortisation of intangible
assets - - (142) - (142)
------------------------------- -------------- --------------- ----------- ------------- ---------
Amortisation and non-trading
items - - (142) (234) (376)
Segment operating
profit 1,312 1,032 1,097 (234) 3,207
Gain on sale of FOGL
shares - - - 711 711
Share of results of
joint venture 180 - - - 180
------------------------------- -------------- --------------- ----------- ------------- ---------
Profit before finance
income and expense 1,492 1,032 1,097 477 4,098
Finance income 177 3 7 - 187
Finance expense (113) (239) (39) - (391)
Segment profit before
tax 1,556 796 1,065 477 3,894
=============================== ============== =============== =========== ============= =========
Assets and liabilities
Segment assets 26,439 15,937 13,785 1,512 57,673
Segment liabilities (9,737) (7,277) (3,452) (519) (20,985)
Segment net assets 16,702 8,660 10,333 993 36,688
=============================== ============== =============== =========== ============= =========
Other segment information
Capital expenditure
Property, plant and
equipment 2,090 1,483 516 - 4,089
Investment properties 508 - - - 508
Computer software - - 132 - 132
Depreciation 752 349 325 - 1,426
Amortisation of non-trading
items - - 142 - 142
=============================== ============== =============== =========== ============= =========
Arts Unallocated
Underlying profit General Ferry logistics GBP'000
before tax trading services & storage
(Falklands) (Portsmouth) (UK) Total
GBP'000 GBP'000 GBP'000 GBP'000
Segment operating
profit before tax,
amortisation and non-trading
items 1,312 1,032 1,239 - 3,583
Share of results of
Joint venture 180 - - - 180
------------------------------- -------------- --------------- ----------- ------------- ---------
Profit before finance
income and expense 1,492 1,032 1,239 - 3,763
Finance income 177 3 7 - 187
Finance expense (113) (239) (39) - (391)
------------------------------- -------------- --------------- ----------- ------------- ---------
Segment underlying
profit before tax 1,556 796 1,207 - 3,559
------------------------------- -------------- --------------- ----------- ------------- ---------
3. Finance income and expense
Unaudited Unaudited Audited
6 months 6 months Year
to to ended
30 September 30 September 31 March
2015 2014 2015
GBP'000 GBP'000 GBP'000
-------------------------- -------------- -------------- ----------
Bank interest receivable 11 17 15
Finance lease interest
receivable 98 80 172
Total finance income 109 97 187
-------------------------- -------------- -------------- ----------
Interest payable on bank
loans (46) (13) (17)
Interest cost on pension
scheme liabilities (60) (60) (107)
Amortisation of loan
fees - (8) (15)
Finance lease interest
payable (121) (123) (246)
Unwinding of deferred
consideration payable (5) - (6)
Total finance expense (232) (204) (391)
-------------------------- -------------- -------------- ----------
Net financing cost (123) (107) (204)
-------------------------- -------------- -------------- ----------
4. Taxation
The taxation charge has been estimated to be 23.0% (2014:
24.0%).
5. Earnings per share
Earnings per share on underlying profit
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