REG - FIH Group PLC - Results for the Six Months Ended 30 September 2022
21/11/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221121:nRSU9820Ga&default-theme=true
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 Tel: 01279 461630
Reuben Shamu, Chief Financial Officer
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
Group revenues 2022 2021 Change
Six months ended 30 September £m £m %
Falkland Islands Company 12.2 9.9 23.2
Momart 8.6 5.9 45.8
Portsmouth Harbour Ferry 2.0 1.5 33.3
Total revenue 22.8 17.3 31.8
Group underlying pre-tax profit / (loss)*
Falkland Islands Company** 0.3 0.6 (50)
Momart** (0.1) (0.2) 50
Portsmouth Harbour Ferry** 0.4 -
Total underlying pre-tax profit* 0.6 0.4 50
Non-trading items (see note 3) - - -
Reported profit before tax 0.6 0.4 50
* 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 2022 2021 Change
Six months ended 30 September £m £m %
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 2022 2021 Change
Six months ended 30 September £m £m %
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 2022 2021 Change
Six months ended 30 September £m £m %
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 Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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
Unaudited Unaudited Audited
30 September 30 September 31 March
2022 2021 2022
Notes £'000 £'000 £'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 Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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.
Unaudited Unaudited Audited
Consolidated Cash Flow Statement (continued) Six Months to Six Months to Year Ended
For the Six Months Ended 30 September 2022 30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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 Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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
Total other comprehensive income 1,781 - 906
Total comprehensive income / (loss) 2,240 (160) 1,853
Condensed Consolidated Statement of Changes in Shareholders' Equity
For the Six Months Ended 30 September 2022
Unaudited Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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
Unaudited - Six Months Ended 30 September 2022
General Trading (Falkland Islands) Ferry Services (Portsmouth) Art Logistics and Storage Unallocated Total
(UK)
£'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) 299 352 (60) - 591
before tax
2. Segmental Revenue and Profit Analysis (Continued)
Unaudited - Six Months Ended 30 September 2021
General Trading (Falkland Islands) Ferry Services (Portsmouth) Art Logistics and Storage Unallocated Total
(UK)
£'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) 616 (29) (180) - 407
before tax
2. Segmental Revenue and Profit Analysis (Continued)
Year Ended 31 March 2022
General Trading (Falkland Islands) Ferry Services (Portsmouth) Art Logistics and Storage Unallocated Total
(UK)
£'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) 1,779 (121) 626 - 2,284
before tax
3. Non-trading Items
Unaudited Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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 Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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 Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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 Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
Number Number 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 Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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 Unaudited Audited
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'000
Cash and cash equivalents in the balance sheet 7,554 7,976 9,572
8. Cash and Cash Equivalents (Continued)
Unaudited Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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 Unaudited Audited
30 September 30 September 31 March
2022 2021 2022
£'000 £'000 £'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 The Portsmouth Harbour Ferry Company Momart Limited
Clive Lane, Director
Kevin Ironside, Director T: 02392 524551 Alison Jordan, Director
T: 00 500 27600 E: admin@gosportferry.co.uk T: 020 7426 3000
E: info@fic.co.fk (mailto:info@fic.co.fk) W: www.gosportferry.co.uk (http://www.gosportferry.co.uk) E: enquiries@momart.com
W: www.falklandislandscompany.com (http://www.falklandislandscompany.com) W: www.momart.com (http://www.momart.com)
www.fihplc.com
(file:///C%3A/Users/Iain/CloudStation/Desktop/06-Sep/Stat%20Accounts%20interims/1st%20draft%20from%20JLF%2001%20Nov/www.fihplc.com)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FEWFDSEESELFRecent news on FIH
See all newsREG - FIH Group PLC - Block listing Interim Review
AnnouncementREG - FIH Group PLC - Results for the Six Months Ended 30 September 2023
AnnouncementREG - FIH Group PLC - Results of Annual General Meeting
AnnouncementREG - FIH Group PLC - AGM Statement
AnnouncementREG - FIH Group PLC - Dividend Timetable
Announcement