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RNS
FIH Group PLC  -  FIH   

Interim Results

Released 07:00 28-Nov-2017

RNS Number : 6591X
FIH Group PLC
28 November 2017
 

28 November 2017

 

FIH group plc

 

 ("FIH" or the "Group")

 

Results for the six months ended 30 September 2017

 

FIH, the AIM quoted group that owns essential services businesses in the UK and Falkland Islands, is pleased to announce its unaudited results for the six months ended 30 September 2017 ("the period"). Comparisons shown below are for the same period in 2016 unless otherwise stated.

 

Group Financial Highlights

Record H1 revenues, profits ahead by 38%

·      Record Group revenue at £20.6 million (2016: £19.8 million)

·      Profit Before Tax up 38% at £1.4 million (2016: £1.0 million)

·      Diluted earnings per share 8.7p (2016: 6.5p)

·      Bank borrowings at 30 September 2017 £3.6 million (31 March 2017: £3.8 million)

·      Cash balances up by £2.5 million at £15.0 million at 30 September 2017 (30 September 2016: £12.5 million).

 

 

Operating Highlights

 

Falkland Islands Company ("FIC") - Solid profits despite absence of oil activity

·      Revenue remained broadly flat at £8.58 million (2016: £8.56 million) despite challenging comparatives and absence of oil spend

·      Profit before Tax rose 10.9% to £0.58 million (2016: £0.52 million)

·      FBS (Construction) up 27.9% with favourable timing of kit home completions

·      Retail & Falklands 4x4 sales lower as expected

·      Support services up 11.7%

·      Normal, stronger second half trading anticipated

·      Longer term growth potential linked to oil and land-based tourism.

 

Portsmouth Harbour Ferry Company ("PHFC") - Stable core revenues boosted by strong summer cruising & parts sales mitigating external challenges

·      Total Ferry revenue increased 6.8% to £2.44 million (2016: £2.28 million) reflecting stable core revenues, additional cruising sales and one-off income from sale of ferry parts

·      Slower passenger volume decline more than offset by annual fare increases

·      Profit Before Tax increased by £0.18 million to £0.54 million (2016: £0.36 million) with tight cost control. Ferry passenger volumes volatile with continued appeal of inexpensive car travel and subsidised Park & Ride, but decline slowed by the completion of construction works at Portsmouth passenger interchange and the arrival of the Royal Navy's new flagship in August 2017

·      Stable H2 outlook with normal quieter winter trading.

 

Momart - Continuing progress despite competitive global art market

·      Positive momentum maintained, with unique expertise in complex work contributing to revenues increasing 7.4% to £9.59 million (2016: £8.93 million)

·      Record sales in Museums & Exhibitions, with 10.6% growth in Commercial Galleries and Auction Houses and 11.9% growth in Art Storage

·      Doubling of Profit Before Tax to £0.28 million despite drag of start-up losses at newly opened Leyton art storage facility

·      Notable activity included: "Matisse at Work" at the Royal Academy; "Abstract Expressionism" in Guggenheim Bilbao; "Scythian Nomads" at the British Museum; "Plywood" and "Balenciaga" at the V&A; and "Soul of a Nation" and "Giacometti" at Tate Modern

·      Progress in filling the new warehouse should contribute to satisfactory second half results despite intense market competition.

 

 

 

Robin Williams, Chairman of FIH, said:

 

Having been appointed as your Group's Chairman on 11 September 2017, it is a pleasure to present my first report to shareholders, on the FIH group's Interim results for the 6 months ended 30 September 2017.

 

A detailed commentary on the results is provided in the Chief Executive's Review below but I am pleased to report an encouraging first half's trading with Group revenues up by 4.2% to £20.6 million and Profit Before Tax increased by 38% to £1.4 million (2016: £1.0 million). Earnings per share have also moved ahead, from 6.3 pence to 8.7 pence per share, and the board is pleased to confirm the payment of an interim dividend of 1.5 pence per share which will be paid on 26 January 2018 to shareholders on the register at the close of business on 29 December 2017.

 

At 30 September 2017 the group had cash on hand of £15.0 million, an increase of £2.5 million on the prior year (2016: £12.5 million).

 

I would also like to take the opportunity to say how pleased I am to take on the role of Chairman of such a well-established, unique, and consistently profitable group and I look forward to working with my colleagues on the board to deliver a sustained improvement in shareholder value over the coming years. I have enjoyed meeting our UK operating management and look forward to visiting the team in the Falkland Islands in March 2018. We continue to consider acquisition opportunities and I look forward to hearing shareholders' views over the next few months about how they would like to see the Group develop.

 

As independent non-executive Chairman I will also take on responsibilities for chairing the group's Nominations Committee. My colleague Jeremy Brade will be chair of the Audit Committee and Rob Johnston has agreed to become chair of the Group's Remuneration Committee

 

Robin Williams

 

28 November 2017

 

 

Enquiries:

 

FIH group plc

Robin Williams, Chairman

John Foster, Chief Executive

 

 

Tel: 01279 461630

Tel: 01279 461630

 

WH Ireland Ltd. - NOMAD and Broker to FIH

Adrian Hadden / Jessica Cave / Alex Bond

 

 

Tel: 0207 220 1666

FTI Consulting

Edward Westropp / Eleanor Purdon

 

Tel: 020 3727 1000

 

 

 

- Ends -

 

 

Chief Executive's Review       

 

Group overview

 

The Group's trading results for the six months to 30 September 2017 were encouraging with Profit Before Tax rising 38% to £1.4 million (2016: £1.0 million) and first half revenues exceeding £20 million for the first time in the Group's history. It was also pleasing to see all three of the group's operating businesses showing increased profitability compared to the prior year, with Momart in particular continuing to improve, posting sales and profit growth.

 

The Group's balance sheet remained strong with £15.0 million of cash on hand at 30 September 2017, only £0.1 million lower than in March 2017 despite normal seasonal increases in working capital and the resumption of dividends which saw a payment of £0.5 million to shareholders in late September 2017. The Group's cash balances of £15.0 million were £2.5 million higher than at 30 September 2016 and at the half year bank borrowings had been reduced by £0.2 million to £3.6 million compared to the year-end position (31 March 2017: £3.8 million).

 

Group revenues grew by 4.2% (+£0.8 million) to reach a record £20.6 million (2016: £19.8 million ) helped by revenues up 6.8% at Portsmouth Harbour Ferry Company ("PHFC"), buoyant revenues at Momart, which were £0.7 million up on the prior year (+7.4%) at £9.6 million (2016: £8.9 million) and stable overall activity levels in the Falkland Island Company ("FIC").

 

 

An analysis by business is shown below:

 

 

Revenue

 

 

 

Six months ended 30 September

 

2017

£ million

2016

£ million

Change

%

 

 

 

 

Falkland Islands Company

8.58

8.56

0.2

Portsmouth Harbour Ferry

2.44

2.28

6.8

Momart

9.59

8.93

7.4

Total Revenue

20.61

19.77

4.2

           

 

 

Profit Before Tax Six months ended 30 September

 

 

 

2017

£ million

 

 

2016

£ million

Change

%

 

 

 

 

Falkland Islands Company

0.58

0.52

10.9

Portsmouth Harbour Ferry

0.54

0.36

51.0

Momart

0.28

0.14

108.1

Profit Before Tax

1.40

1.02

38.1

 

With oil exploration activity in Falklands waters on hold for the time being and therefore no oil stimulus to the Falklands economy, FIC delivered a solid performance in the face of tough H1 comparatives in 2016. FIC's Profit before Tax increased by £0.06 million (+10.9%) to £0.58 million (2016: £0.52 million).

 

At the Group's passenger ferry business, PHFC, revenues were ahead by 6.8%, helped by a slowing in the rate of attrition of passenger volumes, stronger summer cruising sales and by one-off asset disposals. With tight cost control the ferry's contribution before tax increased by £0.18 million in the traditionally stronger summer period.

 

At Momart, the Group's art handling business, encouraging sales growth saw H1 profitability continuing to improve despite the expected drag on profits created by start-up losses in Momart's new art storage warehouse in Leyton. With careful control of overheads Momart's H1 contribution before tax doubled to reach £0.28 million.

 

With the process of write down of intangible assets now complete and intangibles stated at, at least their economically recoverable amount, in the 6 month period to 30 September 2017 there was no further amortisation of intangible assets. There were also no non-trading items in the period.

 

With a blended corporation tax rate estimated at 23% the Group's Profit Before Tax of £1.4 million gave Profits After Tax of £1.08 million (2016: £0.78 million) and diluted earnings per share (EPS) up 38% at 8.7 pence (2016: 6.3 pence)

 

Maintaining its renewed dividend policy and a dividend cover of at least three times, the board is pleased to confirm that an interim dividend of 1.5 pence per share will be paid on January 26 2018.

 

 

 

Operating Review

 

Falkland Islands Company (FIC)

 

With the departure of the Eirik Raude oil rig in July 2016 oil exploration activity in the Islands came to a halt for the time being and the current year has not seen any benefit from the boost to local demand brought by oil in previous periods. Trading in 2017-18 therefore reflects the sustainable non-oil related base level of activity enjoyed by the company and demonstrates the solid level of profits that continue to be generated from the Group's 166 year old Falkland's business.

 

Overall revenues were in line with the prior year at £8.58 million (2016: £8.56 million) and Profit before tax, before the Group's share of joint venture results, was higher by £0.06 million at £0.56 million (2016: £0.5 million).

 

 

FIC

Six months ended 30 September

 

2017

£ million

2016

£ million

Change

%

Revenue

 

 

 

Retail

3.99

4.26

-6.5

FBS (construction)

1.88

1.46

27.9

Falklands 4x4

1.37

1.52

-9.9

Freight & Port Services

0.52

0.57

-8.0

Support services

0.60

0.54

11.7

Property Rental

0.22

0.21

6.3

Total FIC revenue

8.58

8.56

0.2

 

 

 

 

Trading profit

0.50

0.43

19.1

Consumer Finance income

0.11

0.12

-12.2

Net Finance charge (pensions)

(0.05)

(0.05)

8.0

 

 

 

 

Profit before tax, before share of joint venture

0.56

0.50

12.5

Share of results of Joint venture

0.02

0.02

-20.0

 

Profit Before Tax

0.58

0.52

10.9

 

In the first half of 2017-18, trading conditions for FIC's retail business were challenging. General demand was weakened by the absence of oil money and FIC's flagship supermarket the "West Store" faced broader based competition following the 33% expansion of its principal local competitor in November 2016 (which meant tough H1 comparatives). Overall retail revenue declined by 6.5% but with an active refreshing of its range and keen pricing, the West Store maintained its strong market position and sales declined by only 2.6%. Elsewhere, the absence of oil related consumer spending on gifts and clothing led to a decline in sales and in Home Living and Home Builder, activity was affected by a gap in government house completions, which had boosted sales in H1 2016. Notwithstanding this pressure on revenue, earlier action to trim FIC's retail cost base and focussed steps to enrich the margin mix saw the contribution from FIC's retail business increase modestly in the first half.

 

At Falklands Building Services (FBS), kit homes construction on government subsidised plots at Sappers Hill in central Stanley increased with the completion of 13 new homes compared to 9 in the same period last year. Helped by the favourable timing of completions in H1, FBS turnover rose by 27.9% to £1.88 million up £0.42 million from the £1.46 million sales seen in H1 2016. This favourable timing difference is expected to unwind in the second half as the underlying level of building work remains fairly consistent between years.

 

At Falklands 4x4, revenues held up well, falling by only 9.9% despite the lack of run-out "Defender" sales which occurred in H1 2016. Whilst vehicle sales were impacted, down 26%, to 34 vehicles (H1 2016: 46), 4x4's corporate leasing business picked up markedly and with its servicing and maintenance business also ahead, contribution from Falklands 4x4 increased over the same period in the prior year.

 

Freight and Port Services revenues dropped back by 8.0% reflecting the absence of northbound oil related freight traffic in the prior period but Support Services saw healthy overall growth despite a modest illex squid catch, with good progress from FIC's Fishing Agency, Insurance brokerage and Penguin Travel. Income from FICs rental portfolio of 51 investment properties increased by 6.3% despite the departure of premium corporate oil related lets in early 2016 although necessary remedial repair work saw the net contribution from property slip back.

 

 

Portsmouth Harbour Ferry Company

Revenues from core ferry activities increased by 2.4% to £2.22 million in the first half as fare increases in June 2017 more than offset a continuing decline in passenger numbers, albeit the rate of attrition in H1 2017-18 slowed to 2.4% compared to the 4.7% decline seen in H1 last year.

 

The completion of construction works on the Hard passenger interchange at Portsmouth Harbour was a positive factor in slowing the rate of passenger decline, as was the arrival of the Royal Navy's new flagship HMS Queen Elizabeth in August 2017, but passenger volumes remained volatile over the 6 months and although there were periodic like for like increases in passenger traffic, these proved short lived as the attractions of inexpensive car travel and a heavily subsidised Park & Ride scheme in Portsmouth continued to weigh on the business.

 

With additional cruising sales and one off income from the sale of old ferry spares seeing "Other Income" rise by £0.10 million to £0.22 million, total ferry revenues increased by 6.8% (+£0.16 million) to £2.44 million (2016: £2.28 million).

 

 

 

PHFC :

Six months ended 30 September

 

2017

£ million

2016

£ million

Change

%

Revenue

 

 

 

Ferry fares

2.22

2.16

2.4

Cruising and Other income

0.22

0.12

86.0

 

Total Ferry Revenue

2.44

2.28

6.8

 

 

Profit Before Tax

0.54

0.36

51.0

 

Ferry overheads were kept tightly under control despite an increase in fuel prices and with the benefit of one-off profits from parts sales, the ferry's pre-tax contribution increased by £0.18 million to £0.54 million (2016: £0.36 million).

 

 

 

 

Momart

Momart, the Group's art handling and logistics business saw its recent positive momentum continue with revenue increases of 7.4%. H1 sales were up by £0.66 million from £8.93 million last year to £9.59 million and Pre Tax Profit doubled from £0.14 million to £0.28 million. These results were achieved despite a £0.1 million drag on profits caused by start-up losses at Momart's newly opened state of the art storage facility in Leyton which did not impact last year's H1 trading.

 

Momart :

Six months ended 30 September

 

2017

£ million

2016

£ million

Change

%

Revenue

 

 

 

Museums & Exhibitions

5.30

5.06

4.8

Commercial Galleries and Auction Houses

3.18

2.88

10.6

Art Storage

1.11

0.99

11.9

Total Revenue

9.59

8.93

7.4

 

 

 

 

Profit Before Tax

0.28

0.14

108.1

 

Despite strong comparatives and a fiercely competitive market, Museum & Exhibition sales grew by 4.8% (+£0.24 million) to a new H1 record of £5.3 million (2016: £5.06 million). Pressure on museum budgets remained but Momart's unique skill set and ability to handle complex technically demanding work allowed it to focus on higher added value contracts with intrinsically higher margins which in turn helped the Exhibitions' divisional contribution lift towards more satisfactory levels.

 

Notable museum exhibitions in the period included the installation of "Matisse at Work" at the Royal Academy and the return of loans from "Abstract Expressionism" in Guggenheim Bilbao, "Scythian Nomads" at the British Museum, "Plywood" and "Balenciaga" at the V&A and "Soul of a Nation" and "Giacometti" at Tate Modern.

 

After an encouraging first half of trading, Momart's large exhibition order book remains strong with over £4.0 million of firm orders for work over the next 12 months, £1.4 million ahead of the prior year position, giving a solid platform for continued progress in Exhibitions in H2.

 

Revenue from commercial galleries and auction houses (Gallery Services) continued to grow despite fierce competition, with the GS division building on the 6.8% rise in revenue seen in H1 last year, with even stronger growth of 10.6% in H1 2017-18; revenues increasing by £0.3 million to £3.18 million. Auction House activity recovered from the more uncertain start seen last year as hammer prices rose and confidence returned to the global art market. With the commercial art market more buoyant, Momart's technical expertise was drawn on increasingly by auction houses and their clients demanding the reassurance of unmatched art handling skills and customer service.

 

Revenues from private clients and from corporate collectors both increased in the period and Momart enjoyed its busiest ever Frieze art Fair in London in Autumn 2017.

 

With revenues ahead by 10.6% and gross margins holding, Gallery Services increased its contribution to Momart's overall profitability delivering a similar level of profits to that of Momart's Museum Exhibition business.

 

Revenues from art storage increased by 11.9% to £1.1 million as capacity constraints were removed by the completion of the new unit 14 facility at Leyton which was finally commissioned in March 2017. This new facility with its enhanced client amenities and flexible, dedicated space increased Momart's storage space by 33% and to date progress in filling the new warehouse has been in line with budgeted expectations. At 30 September 2017 the unit had filled to 40% of its capacity but with fixed costs for rent rates and depreciation, it was still loss making, creating a drag on profits of £0.09 million in the first half. During the 6 months to 30 September 2017 storage revenues in unit 14 increased steadily each month reaching an annualised level of £0.3 million at the period end, albeit still some £0.1 million below cash break-even (53% fill). Further progress in filling unit 14 remains a key priority for Momart in the second half of the year where a run rate of revenue sufficient to cover cash costs and depreciation (£0.5 million, 2/3rd fill) is being pursued.

 

Elsewhere in Momart's extensive leased property portfolio, the recent revision and uplift in business rates in Spring 2017, saw the company experiencing material rises in property costs during the first half. However, these cost increases were largely offset through focussed savings in discretionary marketing spend and improved management and collection of debtors.

 

With a general increase in revenues, incrementally improving gross margins and overheads under tight control, Momart was able to deliver an encouraging £0.14 million increase in its Pre-Tax contribution in the period even after absorbing the inevitable start-up losses from its new storage facilities. Further progress will be pursued in the second half.

 

 

Balance Sheet and Cash Flow

 

During the six months to 30 September 2017, with Operating profits of £1.6 million up by £0.4 million and depreciation of £0.8 million (some £0.4 million greater than the Group's capital expenditure) the Group enjoyed a first half Operating cash flow before changes in working capital of £2.5 million, an increase of £0.41 million on the prior year.

 

In the first 6 months of the new financial year, total inventories increased by £0.5 million to £5.9 million from their 31 March 2017 starting point but remained £0.2 million lower than in September 2016. Debtor collection was strong with receivables being reduced by £1.4 million and despite significant reductions in trade creditors as the company shifted towards more sustainable credit terms with key suppliers, the seasonal increase in working capital was relatively modest with an outflow of £1.0 million compared to the £2.2 million outflow seen in H1 in the prior year.

 

As a result the net cash flow from Operating activities was £1.6 million better than the prior year with a positive inflow of £1.3 million.

 

After total capital expenditure amounting to £0.38 million, spread broadly evenly between the Group's 3 businesses, Hire purchase and bank loan repayments of £0.4 million and dividends payments of £0.5 million the Group was cash flow neutral in the first half, a £1.5 million improvement on the prior year.

 

In addition to the Group's cash balances of £15.0 million, and closing bank borrowings of £3.6 million at 30 September 2017 the Group also had hire purchase liabilities of £0.2 million (31 March 2017: £0.2 million) and long term finance lease liabilities in respect of the Gosport Pontoon of £4.8 million (31 March 2017: £4.8 million).

 

 

 

Outlook

 

After an encouraging first half's trading, with profits ahead of the prior year in all three of the Group's trading subsidiaries, the Group is well placed to deliver another solid set of results in the traditionally stronger second half.

 

At Momart, despite an intensely competitive art market the company's excellent reputation and technical ability should allow it to make further progress in improving margins. This together with continued progress in filling the new unit 14 art warehouse should contribute towards another satisfactory set of results in the second half.

 

At PHFC, we can expect to see the normal slower trading in the quieter winter months on the Ferry. In the absence of profits from the one-off asset sales seen in the first half, the outlook for any further growth in profits remains challenging, without a slowing and eventual reversal in the rate of decline in ferry passenger numbers.

 

In the Falklands, the combination of the austral summer and a seasonal boost from consumer spending at Christmas should underpin a traditionally solid second half's trading. In the longer term there remains significant growth potential linked to oil and/or an accelerated development of land based tourism.

 

With its strong balance sheet, and diverse portfolio of three profitable and well established, niche businesses the Group is well positioned on a sustainable footing and with its healthy cash reserves the board will continue its search for value enhancing acquisitions to further underpin shareholder value over the long term.

 

 

 

John Foster

Chief Executive

 

 

                                                                                                

28 November 2017

 

 

 

Condensed Interim Consolidated Income Statement

FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2017

 

Notes

Unaudited

6 months to

30 September

2017

£'000

Unaudited

6 months to

30 September

2016

£'000

Audited

Year ended

31 March

2017

£'000

 

 

 

 

 

2

Revenue

20,605

19,771

40,494

 

 

 

 

 

 

Cost of sales

(11,601)

(11,232)

(24,861)

 

Gross profit

9,004

8,539

15,633

 

 

 

 

 

 

Other administrative expenses

(7,491)

(7,401)

(13,064)

 

Takeover bid costs

-

-

(530)

 

Consumer Finance income

108

123

236

 

Gain on sale of vessel

 

-

76

 

Amortisation of intangible assets

-

(36)

(136)

 

 

 

 

 

 

Administrative expenses

(7,383)

(7,314)

(13,418)

 

 

 

 

 

 

Operating profit

1,621

1,225

2,215

 

Share of result of joint venture

20

25

105

 

Profit before finance income and expense

1,641

1,250

2,320

 

 

 

 

 

 

Finance income

6

13

21

 

Finance expense

(244)

(247)

(454)

 

 

 

 

 

3

Net financing costs

(238)

(234)

 (433)

 

 

 

 

 

 

Profit before tax

 1,403

1,016

1,887

 

 

 

 

 

4

Taxation

(323)

(234)

(460)

 

 

 

 

 

 

Profit attributable to equity holders of the Company

1,080

782

1,427

 

 

 

 

 

5

Earnings per share

 

 

 

 

 

 

 

 

 

Basic

8.7p

6.3p

11.5p

 

 

 

 

 

 

Diluted

8.7p

6.3p

11.5p

 

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 2017

Notes

Unaudited

30 September

2017

£'000

Unaudited

30 September

2016

£'000

Audited

31 March

2017

£'000

 

Non-current assets

 

 

 

 

Intangible assets

11,820

11,972

11,846

 

Property, plant and equipment

19,731

20,084

20,147

 

Investment properties

3,655

3,596

3,723

 

Investment in joint venture

261

161

241

 

Hire purchase debtors

725

707

763

 

Deferred tax assets

776

687

776

 

Total non-current assets

36,968

37,207

37,496

 

 

 

 

 

 

Current assets

 

 

 

 

Inventories

5,887

6,120

5,356

 

Trade and other receivables

6,137

6,340

7,498

 

Hire purchase debtors

623

902

799

 

Cash and cash equivalents

15,027

12,503

15,079

 

Total current assets

27,674

25,865

28,732

 

 

 

 

 

 

TOTAL ASSETS

64,642

63,072

66,228

 

 

 

 

 

 

Current liabilities

 

 

 

 

Interest bearing loans and borrowings

(610)

(538)

(615)

 

Income tax payable

(527)

(313)

(182)

 

Trade and other payables

(10,036)

(10,538)

(12,286)

 

Total current liabilities

(11,173)

(11,389)

(13,083)

 

 

Non-current liabilities

 

 

 

 

Interest bearing loans and liabilities

(7,925)

(7,610)

(8,224)

 

Employee benefits

(2,994)

(2,655)

(2,985)

 

Deferred tax liabilities

(2,191)

(2,069)

(2,191)

 

Total non-current liabilities

(13,110)

(12,334)

(13,400)

 

TOTAL LIABILITIES

(24,283)

(23,723)

(26,483)

 

 

 

 

 

 

Net assets

40,359

39,349

39,745

 

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

20,541

19,600

19,960

 

Hedging reserve

(34)

(103)

(67)

 

Total equity

40,359

39,349

39,745

 

 

Condensed Consolidated Cash Flow Statement

FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2017

Notes

Unaudited

6 months to

30 September

2017

£'000

Unaudited

6 months to

30 September

2016

£'000

Audited

Year ended

31 March

2017

£'000

 

Profit for the period

1,080

782

1,427

 

Adjusted for (i) Non-cash items:

 

 

 

 

Depreciation and amortisation

812

791

1,587

 

Professional fees incurred for Takeover bid and defence

-

-

530

 

Loss on disposal of fixed assets

 

-

(76)

 

Share of joint venture profit

(20)

(25)

(105)

 

Equity-settled share-based payment expenses

18

26

15

 

Non-cash items adjustment

810

792

1,951

 

(ii) Other items:

 

 

 

 

Net financing costs

238

234

433

 

Income tax expense

323

234

460

 

Other adjustments

561

468

893

 

Operating cash flow before changes in working capital and provisions

2,451

2,042

4,271

 

 

 

 

 

 

Decrease / (increase) in trade and other receivables

1,426

(1,487)

(2,645)

 

Decrease / (increase) in hire purchase debtors

214

(163)

3

 

(Increase) / decrease in trading inventories

(521)

199

971

 

(Decrease) / increase in trade and other payables

(2,050)

(727)

686

 

Decrease in provisions and employee benefits

(51)

(49)

(113)

 

Changes in working capital and provisions

(982)

(2,227)

(1,098)

 

 

 

 

 

 

Cash generated from operations

1,469

(185)

3,173

 

Cash outflow on exercise of options

(20)

(7)

(10)

 

Professional fees paid for Takeover bid and defence

(165)

-

(365)

 

 

Corporation taxes paid

22

(112)

(336)

 

Net cash from operating activities

1,306

(304)

2,462

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of property, plant and equipment

(377)

(922)

(1,790)

 

Proceeds from disposal of property, plant & equipment

-

-

76

 

Cash inflow on loans from joint venture

-

-

200

 

Bank interest received

6

13

21

 

Net cash flows from investing activities

(371)

(909)

(1,493)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Repayment of secured loans

(421)

(278)

(829)

 

Bank and hire purchase interest paid

(69)

(68)

(126)

 

Proceeds from new loans (including HP)

-

25

1,028

 

Dividends paid

(497)

-

-

 

Net cash flows from financing activities

(987)

(321)

73

 

Net (decrease) / increase in cash and cash equivalents

(52)

(1,534)

1,042

 

Cash and cash equivalents at start of year

15,079

14,037

14,037

 

Cash and cash equivalents at end of year

15,027

12,503

15,079

           

 

Condensed Consolidated Statement of Comprehensive Income

FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2017

 

Notes

Unaudited

6 months to

 30 September

2017

£'000

Unaudited

6 months to

30 September

2016

£'000

Audited

Year ended

31 March

2017

£'000

 

 

 

 

 

Cash flow hedges - effective portion of changes in fair value

33

(21)

15

 

 

 

 

 

 

 

 

 

 

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

33

(21)

15

 

 

 

 

 

 

Actuarial gain on pension schemes net of tax

-

-

(271)

 

Items which will not ultimately be recycled to the income statement

33

(21)

(271)

 

 

 

 

 

 

Other comprehensive expense

33

(21)

(256)

 

Profit for the period

1,080

782

1,427

 

Total comprehensive income

1,113

761

1,171

 

 

Condensed Consolidated Statement of Changes in Shareholders' Equity

FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2017

 

 

 

 

 

 

Unaudited

6 months to

30 September

2017

£'000

Unaudited

6 months to

30 September

2016

£'000

Audited

Year ended

31 March

2017

£'000

 

 

 

 

Shareholders' funds at beginning of period

39,745

38,569

38,569

 

 

 

 

Profit for the period

1,080

782

1,427

Cash flow hedges - effective portion of changes in fair value

33

(21)

15

Net actuarial gain on pension schemes net of tax

-

-

(271)

Dividends paid

(497)

-

-

 

 

 

 

Total comprehensive income

616

761

1,171

 

 

 

 

Share-based payments granted to employees

18

26

15

Employee options vested in the period

(20)

(7)

(10)

 

 

 

 

Shareholders' funds at end of period

40,359

39,349

39,745

                                                                                                                 

 

 

 

Notes to the Unaudited Interim Statements

 

1. Basis of preparation

This interim financial information comprises the condensed consolidated balance sheets at 30 September 2017, 30 September 2016 and 31 March 2017 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').

 

The interim financial information has been prepared in accordance with the accounting policies set out in the Group's 2017 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 2018 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 2018.

 

The Interim Report was approved by the Board on 28 November 2017.

 

Section 245 Statement

The comparative figures for the financial year ended 31 March 2017 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 2017

 

General

trading

(Falklands)

£'000

Ferry

services

(Portsmouth)

£'000

Arts

logistics &

storage

(UK)

£'000

 

 

 

Unallocated

£'000

Total

£'000

 

External revenue

8,576

2,440

9,589

-

20,605

 

 

 

 

 

 

Operating profit before amortisation and non-trading items

612

708

301

-

1,621

Share of results of joint venture

20

 -

 -

 -

20

Profit before finance income and expense

632

708

301

-

1,641

Finance income

6

-

-

-

6

Finance expense

(60)

(166)

(18)

-

(244)

 

 

 

 

 

 

Segment profit before tax

578

542

283

-

1,403

 

 

 

 

 

 

Assets and liabilities

 

 

 

 

 

Segment assets

30,430

17,172

17,033

7

64,642

Segment liabilities

(8,796)

(9,416)

(5,416)

(655)

(24,283)

Segment net assets

21,634

7,756

11,617

(648)

40,359

 

 

 

 

 

 

Other segment information

 

 

 

 

 

Capital expenditure

 

 

 

 

 

    Property, plant and equipment

139

73

165

-

377

Depreciation

313

225

274

-

812

 

 

 

 

 

 

 

 

2. Segmental revenue and profit analysis (continued)

 

Unaudited - Six months to 30 September 2016

 

General

trading

(Falklands)

£'000

Ferry

services

(Portsmouth)

£'000

Arts

logistics &

storage

(UK)

£'000

 

 

 

Unallocated

£'000

Total

£'000

 

External revenue

8,561

2,284

8,926

-

19,771

 

 

 

 

 

 

Segment operating profit

546

538

141

-

1,225

Share of results of joint venture

25

 -

25

Profit before finance income and expense

571

538

141

-

1,250

Finance income

13

-

-

-

13

Finance expense

(63)

(179)

(5)

-

(247)

 

 

 

 

 

 

Segment profit before tax

521

359

136

-

1,016

 

 

 

 

 

 

Assets and liabilities

 

 

 

 

 

Segment assets

30,096

16,800

16,168

8

63,072

Segment liabilities

(9,279)

(9,676)

(4,110)

(658)

(23,723)

Segment net assets

20,817

7,124

12,058

(650)

39,349

Other segment information

 

 

 

 

 

Capital expenditure

 

 

 

 

 

    Property, plant and equipment

149

112

661

-

922

Depreciation

312

244

199

-

755

Amortisation

-

-

36

-

36

 

 

 

 

 

 

 

 

 

2. Segmental revenue and profit analysis (continued)

 

Audited - Year to 31 March 2017

 

General

trading

(Falklands)

£'000

Ferry

services

(Portsmouth)

£'000

Arts

logistics &

storage

(UK)

£'000

 

 

 

Unallocated

£'000

Total

£'000

 

External revenue

17,828

4,286

18,380

-

40,494

 

 

 

 

 

 

Operating profit before amortisation and non-trading items

1,209

1,058

538

-

2,805

Restructuring costs

-

-

-

(530)

(530)

Gain on sale of vessel

-

76

-

-

76

Amortisation of intangible assets

-

-

(136)

-

(136)

Amortisation and non-trading items

-

76

(136)

(530)

(590)

Segment operating profit

1,209

1,134

402

(530)

2,215

Share of results of joint venture

24

 -

-

24

Gain on sale of Joint Venture fixed assets

81

 -

81

Profit before net finance expense

1,314

1,134

402

(530)

2,320

Finance income

14

4

3

-

21

Finance expense

(88)

(349)

(17)

-

(454)

Segment profit before tax

1,240

789

388

(530)

1,887

 

 

 

 

 

 

Assets and liabilities

 

 

 

 

 

Segment assets

33,381

16,556

16,279

12

66,228

Segment liabilities

(11,419)

(9,359)

(4,956)

(749)

(26,483)

Segment net assets

21,962

7,197

11,323

(737)

39,745

Other segment information

 

 

 

 

 

Capital expenditure

 

 

 

 

 

    Property, plant and equipment

578

241

971

-

1,790

Depreciation

564

447

440

-

1,451

Amortisation

-

 

136

-

136

 

 

 

 

 

 

 

 

 

3. Finance income and expense

 

 

Unaudited

6 months to

30 September

2017

£'000

Unaudited

6 months to

30 September

2016

£'000

Audited

Year ended

31 March

2017

£'000

 

 

 

 

Bank interest receivable

6

13

21

Total finance income

6

13

21

 

 

 

 

Interest payable on bank loans

(67)

(68)

(127)

Interest cost on pension scheme liabilities

(60)

(60)

(88)

Finance lease interest payable

(117)

(119)

(239)

Total finance expense

(244)

(247)

(454)

 

 

 

 

Net financing cost

(238)

(234)

(433)

 

4. Taxation

The taxation charge has been estimated to be 23.0% (2016: 23.0%).

 

5. Earnings per share 

 

Earnings per share on underlying profit

To provide a comparison of earnings per share on underlying performance, the table below sets out basic and diluted earnings per share based on profits after tax before amortisation ('underlying profit after tax'): 

 

 

Unaudited

6 months to

30 September

2017

£'000

Unaudited

6 months to

30 September

2016

£'000

Audited

Year ended

31 March

2017

£'000

 

 

 

 

Weighted average number of shares in issue

12,417,726

12,431,623

12,431,715

Less: shares held under the ESOP

(19,894)

(25,677)

(24,849)

Average number of shares in issue excluding the ESOP and Treasury shares

12,397,832

12,405,946

12,406,866

Maximum dilution with regards to share options

55,873

10,526

23,639

Diluted weighted average number of shares

12,453,705

12,416,472

12,430,505

 

 

 

 

 

 

 

5. Earnings per share (continued)

 

 

Unaudited

6 months to

30 September

2017

£'000

Unaudited

6 months to

30 September

2016

£'000

Audited

Year ended

31 March

2017

£'000

Profit before tax

1,403

1,016

1,887

Restructuring costs

-

-

530

Gain on sale of vessel

-

-

(76)

Amortisation of intangible assets

-

36

136

Gain on sale of Joint Venture fixed assets

-

-

(81)

Underlying profit before tax

1,403

1,052

2,396

 

 

 

 

Tax thereon

(323)

(241)

(490)

Tax rate

23%

23%

21%

Underlying profit after tax

1,080

811

1,906

 

 

 

 

Basic earnings per share on underlying profit

8.7

6.5p

15.4p

Diluted earnings per share on underlying profit

8.7

6.5p

15.3p

 

 

 

 

Analysis of Taxation charge

 

 

 

Taxation on underlying profits

(323)

(241)

(490)

Taxation related to amortisation and non-trading items

-

7

30

Total taxation charge

(323)

(234)

(460)

 

6      Employee benefits

The Company has elected to follow precedent and decided not to revalue its pension obligations at the half-year. 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.

 

 

 

 

 

 

 

 

7      Analysis of cash, bank borrowings / HP and long term finance leases

 

 

As at 1

April

2017

£'000

Cash

flows

£'000

As at 30 September

2017

£'000

As at 30 September

2016

£'000

Cash at bank and in hand

15,079

(52)

15,027

12,503

 

 

 

 

 

Debt due within one year - Bank loans

(507)

(2)

(509)

(407)

Debt due within one year - Hire purchase

(75)

8

(67)

(99)

Debt due within one year - Pontoon Lease

(33)

(1)

(34)

(32)

Debt due after one year - Bank loans

(3,321)

248

(3,073)

(2,658)

Debt due after one year - Hire Purchase

(139)

34

(105)

(172)

Debt due after one year - Pontoon Lease

(4,764)

17

(4,747)

(4,780)

Cash less bank loans,  HP & long term finance leases 

6,240

252

6,492

4,355

 

 

 

 

 

Bank Debt

(3,828)

246

(3,582)

(3,065)

Cash

15,079

(52)

15,027

12,503

Cash less bank loans

11,251

194

11,445

9,438

 

 

 

 

 

Hire purchase and long term finance leases

 

 

 

 

Hire Purchase Leases

(214)

42

(172)

(271)

Pontoon Lease

(4,797)

16

(4,781)

(4,812)

Total Hire purchase and long term finance leases

(5,011)

58

(4,953)

(5,083)

 

 

 

 

 

Cash less bank loans, HP & long term finance leases 

6,240

252

6,492

4,355

 

 

 

 

 

 

 

9 Capital commitments

 

At 30 September 2017 the Group had no capital commitments, which have not been provided for in these financial statements. At 30 September 2016 the Group had capital commitments of £105,000 in respect of the new warehouse at Leyton and £22,000 in respect of the Portsea pontoon refurbishment
 

Directors and Corporate Information

 

Directors

 

 

 

Registered Office

Kenburgh Court,

133-137 South Street,

Bishop's Stortford,

Hertfordshire CM23 3HX

T: 01279 461630

F: 01279 461631

E: admin@fihplc.com

W: www.fihplc.com

 

Registered number 03416346

Robin Williams       

Non-executive Chairman

John Foster         

Chief Executive

Jeremy Brade         

Non-executive Director

Robert Johnston     

Non-executive Director

 

 

Company Secretary

 

Carol Bishop

 

       

 

 

Corporate Information

 

The Falkland Islands Company

Kevin Ironside, Managing Director

T: +500 27600

E: info@fic.co.fk

W: www.the-falkland-islands-co.com

 

Stockbroker and Nominated Adviser

W.H. Ireland Limited

24 Martin Lane,

London EC4R 0DR

 

 

 

The Portsmouth Harbour Ferry Company

Clive Lane, Director and General Manager

T: 02392 524551

E: admin@gosportferry.co.uk

W: www.gosportferry.co.uk

 

Solicitors

Bircham Dyson Bell LLP

50 Broadway,

Westminster,

London SW1H 0BL

 

 

Momart Limited

Kenneth Burgon, Chief Operating Officer

Alan Sloan, Sales & Marketing Director

T: 020 7426 3000

E: enquiries@momart.co.uk

W: www.momart.com

 

Auditor

KPMG LLP

St. Nicholas House, 31 Park Row,

Nottingham NG1 6FQ

 

 

 

Registrar

Link Asset Services

The Registry, 34 Beckenham Road,

Beckenham,

Kent BR3 4TU

 

 

 

Financial PR

FTI Consulting

200 Aldersgate,

London EC1A 4HD

 

       

 

 

 

 

 

www.fihplc.com

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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