REG - FIH Group PLC - Results for the Six Months Ended 30 September 2023
24/11/2023 07:00
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RNS Number : 5317U FIH Group PLC 24 November 2023
24 November 2023
FIH group plc
("FIH" or the "Group")
Results for the Six Months Ended 30 September 2023
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 2023 ("the period"). Comparisons shown
below are for the same period in 2022 unless otherwise stated.
Consistent Performance and a Strong Foundation for the Second Half of the Year
Highlights
· Revenue up 17% to £26.7 million (2022: £22.9 million) with
improvement in all three businesses.
· Underlying pre-tax profit of £0.6 million (2022: £0.6 million)
reflecting inflationary pressures across all businesses and investment in key
people to drive future growth in Momart.
· Strong cash position of £9.2 million as at 30 September 2023
(2022: £7.6 million).
· An interim dividend to be paid of 1.25 pence per share (2022: 1.2
pence per share).
Outlook
· Momart and Portsmouth Harbour Ferry Company ("PHFC") performing
in line with expectations.
· Falkland Islands Company ("FIC") performance in the second half
should benefit from the Falkland Islands tourist season and increased
construction activity in the more productive spring and summer months.
Stuart Munro Chief Executive, said:
"Despite the inflationary pressures experienced in all areas of the business,
the Group delivered an underlying pre-tax profit of £0.6 million, which was
consistent with the prior year. The UK businesses are delivering as expected,
with Momart on track to deliver a much stronger second half. In FIC, the
second half of the year should benefit from increased construction activity in
the traditionally more productive austral spring and summer months. This is
also the start of the tourist season, which should boost both direct and
indirect revenues in a number of FIC business sectors, including Retail and
Penguin Travel in Support Services."
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 / James Bavister 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
Revenue growth in all three businesses and an underlying pre-tax profit of
£0.6 million, which was consistent with the prior year despite continuing
global economic pressures, demonstrate the Group's resilience and provide a
solid base for the traditionally stronger second half of the year.
Our people are crucial to the Group's success and I would like to thank each
and every one of them for their skill, dedication and hard work, which is
evident across the businesses and very much appreciated.
Dividend
I am pleased to announce an interim dividend of 1.25 pence per share (2022:
1.25 pence per share) which will be paid on 12 January 2024 to shareholders on
the register at the close of business on 1 December 2023.
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 15 December 2023*.
Board and Governance
On 1 June 2023, Holger Schröder was appointed as a non-executive director of
the Group.
As announced on 24 February 2023, Robin Williams stepped down from the Board
at the AGM on 28 September 2023 and I was appointed the non-executive Chairman
of the Group. On behalf of the Board, I would like to thank Robin for his
extensive contribution to the Group in his six years as Chairman and look
forward to working with the rest of the Board to drive the Group forward.
Nick Henry
Chairman
24 November 2023
* 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 £26.7 million for the six months ended 30 September 2023 was £3.8
million ahead of the same period last year, with improvements in all three
businesses and in the majority of their constituent business sectors.
Group underlying pre-tax profit of £0.6 million remained in line with the
same period last year due to a number of factors, including inflationary
pressures which impacted all businesses and FIC Retail in particular, and
investment in staff in Momart to deliver future growth.
Group Trading Results for the Six Months Ended 30 September 2023
Group revenues 2023 2022 Change
Six months ended 30 September £m £m %
Falkland Islands Company 15.2 12.3 23.6
Momart 9.3 8.6 8.1
Portsmouth Harbour Ferry 2.2 2.0 10.0
Total revenue 26.7 22.9 16.6
Group underlying pre-tax profit / (loss)*
Falkland Islands Company** 0.2 0.3 (33.3)
Momart** - (0.1) -
Portsmouth Harbour Ferry** 0.4 0.4 -
Total underlying pre-tax profit* 0.6 0.6 -
Non-trading items (see note 3)*** 0.2 1.7 (88.2)
Reported profit before tax 0.8 2.3 (65.2)
* 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.
*** As described in the basis of preparation, the comparative numbers were
restated to correct the accounting treatment of hedge accounting.
Dividend
An interim dividend of 1.25 pence per share (2022: 1.2 pence per share) will
be paid on 12 January 2024 to shareholders on the register at the close of
business on 1 December 2023.
Group Operating Company Performance
Falkland Islands Company
Total revenue of £15.2 million was £2.9 million ahead of the same period
last year, largely 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").
Revenue recognised on this contract also included circa £0.5 million from
variation orders. Retail revenue also improved, although the level of
inflation put pressure on the resultant margin. These increases were partly
offset by revenue reductions in Falkland 4x4, which experienced difficulties
with sourcing both used and new vehicles, and Support Services, where a
short-term arrangement to run a nursery service ended in the second half of
the prior year.
The underlying operating profit of £0.2 million was £0.1 million below the
same period last year. This was mainly due to reduced margins in Retail due to
high energy costs and other inflationary pressures, together with reduced
vehicle sales in Falkland 4x4 and less activity in Support Services.
FIC Operating Results 2023 2022 Change
Six months ended 30 September £m £m %
Revenues
Retail 4.7 4.2 11.9
FBS (housing and construction) 7.3 4.3 69.8
Falklands 4x4 1.2 1.7 (29.4)
Support Services 1.5 1.6 (6.3)
Property Rental 0.5 0.5 -
Total FIC revenue 15.2 12.3 23.6
FIC underlying operating profit 0.2 0.3 (33.3)
Net interest expense - - -
FIC underlying profit before tax 0.2 0.3 (33.3)
FIC underlying operating profit margin 1.3% 2.4%
Momart
Revenue of £9.3 million for the six months to 30 September 2023 was £0.7
million ahead of the prior year, with improvements across all sectors of the
business.
The majority of the growth arose in Gallery Services, driven by a strong
commercial market in both the gallery and art fair sectors and increased
trading with both existing and new clients. The growth in Exhibitions was less
pronounced, but the strength of its order book is expected to result in a
stronger second half performance.
The underlying operating profit of £0.1 million was £0.1 million ahead of
the same period last year, although this was suppressed slightly by investment
in additional headcount and associated recruitment costs necessary to deliver
future growth.
Momart Operating Results 2023 2022 Change
Six months ended 30 September £m £m %
Revenues
Museum Exhibitions 4.6 4.5 2.2
Gallery Services 3.2 2.8 14.3
Storage 1.5 1.3 15.4
Total Momart revenue 9.3 8.6 8.1
Momart underlying operating profit 0.2 0.1 100.0
Net interest expense (0.2) (0.2) -
Momart underlying profit / (loss) before tax - (0.1) -
Portsmouth Harbour Ferry Company
Passenger numbers for the first half of the year were broadly in line with the
same period last year, with inflationary fare rises in April 2023 being
largely responsible for revenue increasing by £0.2 million to £2.2 million.
Underlying operating profit of £0.5 million was in line with the prior year,
despite the latter including £0.1 million of non-recurring support from
Gosport Council.
PHFC Operating Results 2023 2022 Change
Six months ended 30 September £m £m %
Revenues
Ferry fares 2.2 2.0 10.0
Total PHFC revenue 2.2 2.0 10.0
PHFC underlying operating profit 0.5 0.5 -
Pontoon lease liability & vessel loan expense (0.1) (0.1) -
PHFC underlying profit before tax 0.4 0.4 -
Trading Outlook
The trading outlook for the Group remains positive. PHFC continues to
perform as expected and in Momart, the strong order book in Exhibitions,
continued growth in the Gallery Services business and a trading cycle which is
skewed towards the latter half of the year, should result in a stronger second
half performance. In FIC, activity in FBS is expected to accelerate in the
second half of the year, which includes the traditionally more productive
austral spring and summer months. The second half of the year also benefits
from the tourist season, which should boost both direct and indirect revenues
in a number of FIC business sectors, including Retail and Penguin Travel in
Support Services.
Stuart Munro
Chief Executive
24 November 2023
Chief Financial Officer's Review
Financial Review
Restatements
As detailed in the basis of preparation, the comparative numbers were restated
to correct the accounting treatment of some right of use assets and the
application of hedge accounting.
Revenue
Group revenue increased by £3.8 million (17%) to £26.7 million (2022: £22.9
million) with improvements of £2.9 million in FIC, £0.7 million in Momart
and £0.2 million in PHFC.
Operating Profit
Operating profit of £0.9 million was £0.1 million below the prior year, with
improvements from revenue growth offset by a number of factors, as described
in the Chief Executive's review.
Net Financing Costs
The Group's net financing costs of £0.1 million were £1.3 million lower than
the prior year due mainly to the movement in the fair value of the derivative
instrument. The net underlying finance expense of £0.3 million was £0.1
million lower than the previous year because of higher interest rates on cash
on deposit.
Reported Pre-tax Profit
The reported pre-tax result for the six months ended 30 September 2026 was a
profit of £0.8 million (2022: £2.3 million as restated per note 1).
Underlying pre-tax profit was £0.6 million (2022: £0.6 million).
Taxation
Taxation charges on the period results for both the six months ended 30
September 2023 and 30 September 2022 have been estimated on the basis of 25%
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.
Earnings per Share
Diluted Earnings per Share ("EPS") derived from reported profits was 4.9 pence
(2022: 13.8 pence). The movement is explained by the movement in the fair
value of the derivative instrument. Underlying diluted EPS was 3.5p (2022:
3.7p).
Balance Sheet and Cash Flow
The Group's balance sheet remained strong with total net assets of £44.8
million, reflecting an improvement on the balances at 31 March 2023 of £44.0
million and 30 September 2022 of £43.1 million (as restated per note 1) of
£0.8 million and £1.7 million respectively. This was largely driven by the
revaluation of the Group's interest rate swap.
Net Debt
30 September 2023 30 September 2022 31 March 2023
£m £m £m
Bank loans* (12.8) (13.7) (13.3)
Cash and cash equivalents 9.2 7.6 12.8
Net debt (3.6) (0.5)
(6.1)
Lease liabilities** (6.2) (6.2) (6.4)
Net debt after lease liabilities (9.8) (12.3) (6.9)
*Includes a mortgage of £11.9 million on the Group's freehold premises in
Leyton (31 March 2023: £12.1 million).
**As detailed in the basis of preparation, the comparative numbers were
restated to correct the accounting treatment of some right of use assets.
Bank loans reduced to £12.8 million (31 March 2023: £13.3 million) following
scheduled loan repayments of £0.5 million.
The Group's cash balance reduced by £3.6 million to £9.2 million (31 March
2023: £12.8 million) reflecting scheduled interest, loan and lease repayments
of £1.1 million, capital expenditure of £1.2 million and a £1.3 million net
cash outflow from operating activities. The usual seasonality of activity in
FIC and Momart resulted in an increase in working capital in the first six
months, which should improve in the busier second half of the year. In
addition to this, a small number of large creditor balances were settled after
31 March 2023.
The Group's outstanding lease liabilities totalled £6.2 million (31 March
2023: £6.5 million) with £4.5 million of the balance (31 March 2023: £4.6
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 £3.6 million (31 March 2023: £0.5 million).
Reuben Shamu
Chief Financial Officer
24 November 2023
Consolidated Income Statement
For the Six Months Ended 30 September 2023
Notes Unaudited Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
2 Revenue 26,689 22,890 52,712
Cost of sales (16,107) (14,004) (31,588)
Gross profit 10,582 8,886 21,124
Operating expenses (9,677) (7,892) (17,111)
Operating profit before non-trading items 905 994 4,013
3 Non-trading items (8) - (79)
Operating profit 897 994 3,934
4 Net finance (expense)/income* (75) 1,296 112
Profit before tax 822 2,290 4,046
5 Taxation (209) (559) (924)
Profit attributable to equity holders of the Company 613 1,731 3,122
* Finance (expense)/income includes a non-trading movement in the fair value
of derivative financial instruments of £238,000 (Six months ended 30
September 2022: £1,699,000; year ended 31 March 2023: £907,000).
2 Underlying profit before tax 592 591 3,218
6 Earnings per share
Basic 4.9p 13.8p 24.9p
Diluted 4.9p 13.8p 24.9p
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 2023
Unaudited Restated Audited
30 September Unaudited 31 March
2023 30 September 2023
Notes £'000 2022 £'000
£'000
Non-current assets
Intangible assets 4,480 4,580 4,376
Property, plant and equipment 38,725 37,853 38,677
Investment properties 7,825 8,465 7,922
Investment in joint venture 259 259 259
Hire purchase lease receivables 493 751 681
Deferred tax assets 459 490 482
Derivative financial instruments 1,804 2,350 1,559
Total non-current assets 54,045 54,748 53,956
Current assets
Inventories 6,851 7,791 6,876
Trade and other receivables 10,084 8,042 10,189
Hire purchase lease receivables 405 370 397
8 Cash and cash equivalents 9,184 7,554 12,800
Total current assets 26,524 23,757 30,262
Total assets 80,569 78,505 84,218
Current liabilities
Trade and other payables (9,857) (8,895) (13,718)
9 Interest bearing loans and borrowings (1,560) (1,422) (1,520)
Corporation tax payable (834) (788) (599)
Total current liabilities (12,251) (11,105) (15,837)
Non-current liabilities
9 Interest bearing loans and borrowings (17,465) (18,504) (18,214)
Deferred tax liabilities (4,215) (3,913) (4,215)
Employee benefits (1,873) (1,870) (1,978)
Total non-current liabilities (23,553) (24,287) (24,407)
Total liabilities (35,804) (35,392) (40,244)
Net assets 44,765 43,113 43,974
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 25,298 23,659 24,514
Hedging reserve (77) (90) (84)
Total equity 44,765 43,113 43,974
Consolidated Cash Flow Statement
For the Six Months Ended 30 September 2023
Notes Unaudited Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Cash flows from operating activities
Profit for the period after taxation 613 1,731 3,122
Adjusted for:
Non-cash items:
Amortisation 8 27 10
Depreciation: Property, plant and equipment 1,121 1,124 2,420
Depreciation: Investment properties 102 71 210
Interest cost on pension scheme liabilities 46 35 70
Equity-settled share-based payment expenses 96 48 41
Fair value movement in derivative financial instrument (238) (1,699) (907)
Loss /(gain) on disposal of fixed assets 18 - (337)
Exchange (gains) / losses - (31) 26
Bank interest payable 208 209 424
Lease liability finance expense 137 159 304
Decrease in hire purchase leases receivable 180 115 158
Corporation and deferred tax expense 209 559 924
Non-cash items 1,887 617 3,343
Operating cash flow before changes in working capital 2,500 2,348 6,465
Decrease / (increase) in trade and other receivables 105 (51) (2,198)
Decrease / (increase) in inventories 25 (1,051) (136)
(Decrease) / increase in trade and other payables (3,861) (1,162) 3,748
Changes in working capital (3,731) (2,264) 1,414
Cash generated from operations (1,231) 84 7,879
Payments to pensioners (51) (49) (101)
Corporation taxes received / (paid) 24 - (243)
Net cash flow from operating activities (1,258) 35 7,535
Cash flows from investing activities
Purchase of property, plant and equipment (1,118) (847) (1,859)
Purchase of intangibles (112) (37) (115)
Purchase of investment properties (5) (39) (10)
Proceeds from the sale of property, plant and equipment 49 - 378
Net cash flow from investing activities (1,186) (923) (1,606)
Continued on next page.
Unaudited Restated Audited
Consolidated Cash Flow Statement (continued) Six Months to Unaudited Year Ended
For the Six Months Ended 30 September 2023 30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Notes
Cash flows from financing activities
Repayment of bank loans (459) (472) (928)
Bank interest paid (208) (209) (424)
Repayment of lease liabilities principal (368) (321) (618)
Lease liabilities interest paid (137) (159) (304)
Dividends paid - - (401)
Net cash flow from financing activities (1,172) (1,161) (2,675)
Net (decrease) / increase in cash and cash equivalents (3,616) (2,049) 3,254
Cash and cash equivalents at start of year 12,800 9,572 9,572
Exchange gains / (losses) on cash balances - 31 (26)
8 Cash and cash equivalents at end of year 9,184 7,554 12,800
Consolidated Statement of Comprehensive Income
For the Six Months Ended 30 September 2023
Unaudited Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Profit for the period 613 1,731 3,122
Amortisation of hedge reserve 7 7 13
Deferred tax on share options and other financial liabilities - - (3)
Items that are or may be reclassified subsequently to profit or loss 7 7 10
Re-measurement of the FIC defined benefit pension scheme 100 678 553
Movement on deferred tax asset relating to the pension scheme (25) (176) (176)
Items which will not ultimately be recycled to the income statement 75 502 377
Total other comprehensive income 82 509 387
Total comprehensive income / (loss) 695 2,240 3,509
Condensed Consolidated Statement of Changes in Shareholders' Equity
For the Six Months Ended 30 September 2023
Unaudited Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Shareholders' funds at beginning of period 43,974 40,825 40,825
Profit / (loss) for the period 613 1,731 3,122
Amortisation of hedge reserve 7 7 13
Deferred tax on share options and other financial liabilities - - (3)
Re-measurement of the defined benefit pension liability, net of tax 75 502 377
Total comprehensive income / (loss) 695 2,240 3,509
Transactions with owners in their capacity as owners:
Share-based payments 96 48 41
Dividends paid - - (401)
Total transactions with owners 96 48 (360)
Shareholders' funds at end of period 44,765 43,113 43,974
Notes to the Unaudited Interim Statements
1. Basis of Preparation
This interim financial statement comprises the condensed consolidated balance
sheets at 30 September 2023, 30 September 2022 and 31 March 2023 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 2023 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'.
Restatements
The prior period financial information for the following areas was restated as
set out below.
Right of use assets
The seabed lease in PHFC contains variable rental payments which are reset
every five years based on the revenue of the ferry business. This lease was
previously incorrectly accounted for as one 50-year lease with all future
expected payments over the period of the lease reflected in the measurement of
the liability. The liability has been restated as an element of the future
lease payments varies with the revenue of PHFC and should not have been
reflected in the measurement of the liability. The lease liability will be
remeasured in the future when variable payments become fixed. The impact at 30
September 2022 was an increase in retained earnings of £0.2 million and
reductions in property, plant and equipment and interest-bearing loans and
borrowings of £0.4 million and £0.6 million respectively. There was no
impact on profit for the period ended 30 September 2022.
Hedge accounting
Following a reassessment of the criteria for applying hedge accounting after
the benchmark change from LIBOR to SONIA, it was concluded that the hedging
criteria were no longer met. Hedge accounting was therefore discontinued from
1 January 2022. The impacts of this change were as follows:
· An increase in retained earnings of £0.5 million and reduction
in the hedging reserve in equity of £0.5 million as at 31 March 2022.
· A credit to the consolidated income statement of £1.3 million in
the period ending 30 September 2022 (comprising a £1.7 million credit to net
finance income and a £0.4 million charge to tax expense), which was
previously incorrectly accounted for in the hedging reserve. The impact on
both basic and diluted EPS in the period to 30 September 2022 was an increase
of 10.1p.
Section 245 Statement
The comparative figures for the financial year ended 31 March 2023 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 2023
General Trading (Falkland Islands) Ferry Services (UK) Art Logistics and Storage Total
(UK)
£'000 £'000 £'000 £'000 £'000
Revenue 15,172 2,231 9,286 - 26,689
Segment operating profit before net financing costs 253 511 141 - 905
Non-trading items - (8) - - (8)
Profit before net financing costs 253 503 141 - 897
Finance income 23 23 32 238 316
Finance expense (46) (130) (215) - (391)
Segment profit / (loss) before tax 230 396 (42) 238 822
Assets and liabilities
Segment assets 34,862 9,321 31,355 5,031 80,569
Segment liabilities (10,563) (7,123) (17,672) (446) (35,804)
Segment net assets 24,299 2,198 13,683 4,585 44,765
Other segment information
Capital expenditure:
Property, plant and equipment 706 176 236 - 1,118
Investment properties 5 - - - 5
Computer software 59 - 53 - 112
Total capital expenditure 770 176 289 - 1,235
Depreciation and amortisation:
Property, plant and equipment 421 225 475 - 1,121
Investment properties 102 - - - 102
Computer software - - 8 - 8
Total depreciation and amortisation 523 225 483 - 1,231
Underlying profit/(loss)
Segment operating profit before non-trading items 253 511 141 - 905
Finance income 23 23 32 - 78
Finance expense (46) (130) (215) - (391)
Underlying profit / (loss) 230 404 (42) - 592
before tax
2. Segmental Revenue and Profit Analysis (Continued)
Unaudited - Six Months Ended 30 September 2022
General Trading (Falkland Islands) Ferry Services (UK) Art Logistics and Storage Unallocated Total
(UK)
£'000 £'000 £'000 £'000 £'000
Revenue 12,285 2,039 8,566 - 22,890
Segment operating profit before net financing costs 334 498 162 - 994
Finance income - - - 1,699 1,699
Finance expense (35) (146) (222) - (403)
Segment profit / (loss) before tax 299 352 (60) 1,699 2,290
Assets and liabilities
Segment assets 32,573 9,615 31,331 4,986 78,505
Segment liabilities (9,022) (7,313) (17,917) (1,140) (35,392)
Segment net assets 23,551 2,302 13,414 3,846 43,113
Other segment information
Capital expenditure:
Property, plant and equipment 322 48 472 5 847
Investment properties 39 - - - 39
Computer software 25 - 12 - 37
Total capital expenditure 386 48 484 5 923
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)
Year Ended 31 March 2023
General Trading (Falkland Islands) Ferry Services (UK) Art Logistics and Storage Unallocated Total
(UK)
£'000 £'000 £'000 £'000 £'000
Revenue 29,383 3,817 19,512 0 52,712
Segment operating profit before net financing costs 1,955 608 1,450 0 4,013
Non-trading items 0 0 (79) 0 (79)
Profit before net financing costs 1,955 608 1,371 0 3,934
Finance income 0 0 3 907 910
Finance expense (70) (287) (441) 0 (798)
Segment profit / (loss) before tax 1,885 321 933 907 4,046
Assets and liabilities
Segment assets 35,933 9,519 33,889 4,877 84,218
Segment liabilities (12,954) (7,341) (19,364) (585) (40,244)
Segment net assets 22,979 2,178 14,525 4,292 43,974
Other segment information
Capital expenditure:
Property, plant and equipment 1,115 205 539 0 1,859
Investment properties 10 0 0 0 10
Computer software 81 0 34 0 115
Total capital expenditure 1,206 205 573 0 1,984
Depreciation and amortisation:
Property, plant and equipment 1,231 418 771 - 2,420
Investment properties 210 - - - 210
Computer software - - 10 - 10
Total depreciation and amortisation 1,441 418 781 - 2,640
Underlying profit/(loss)
Segment operating profit before non-trading items 1,955 608 1,450 - 4,013
Finance income - - 3 - 3
Finance expense (70) (287) (441) - (798)
Underlying profit / (loss) 1,885 321 1,012 - 3,218
before tax
3. Non-trading Items
Unaudited Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Profit before tax as reported 822 2,290 4,046
Restructuring costs 8 - 79
Movement in fair value of derivative financial instruments (238) (1,699) (907)
Non-trading items (230) (1,699) (828)
Underlying profit before tax 592 591 3,218
Restructuring costs relate to employee redundancies.
4. Finance Income and Expense
Unaudited Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Bank interest receivable 78 - 3
Underlying finance income 78 - 3
Movement in fair value of derivative financial instruments 238 1,699 907
Non-trading finance income 238 1,699 907
Total finance income 316 1,699 910
Interest payable on bank loans (208) (209) (424)
Net interest cost on the FIC defined benefit pension scheme liability (46) (35) (70)
Lease liabilities finance charge (137) (159) (304)
Total finance expense (391) (403) (798)
Net finance (expense) / income (75) 1,296 112
5. Taxation
Unaudited Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Current tax charge 209 559 579
Prior year research and development tax credit - - (99)
Deferred tax charge - - 444
Total tax expense 209 559 924
The current tax charge has been estimated on the basis of 25% and 26% of
profits arising in the UK and the Falkland Islands respectively (September
2022: 19% and 26% of profits arising in the UK and the Falkland Islands
respectively).
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 Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
Number 2022 Number
Number
Profit on ordinary activities after taxation 613 1,731 3,122
Average number of shares in issue 12,519,900 12,519,900 12,519,900
Effect of share options - - -
Diluted weighted average number of shares 12,519,900 12,519,900 12,519,900
Basic earnings per share 4.9p 13.8p 24.9p
Diluted earnings per share 4.9p 13.8p 24.9p
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 Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Underlying profit before tax (note 3) 592 591 3,218
Underlying taxation (152) (132) (705)
Underlying profit / (loss) after tax 440 459 2,513
Basic earnings per share on underlying profit / (loss) 3.5p 3.7p 20.1p
Diluted earnings per share on underlying profit / (loss) 3.5p 3.7p 20.1p
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.
The Group's pension liability was recalculated under IAS 19 at 30 September
2023. The assumptions used were based on those for the year ended 31 March
2023, updated for changes in market rates. The resultant net liability reduced
to £1.9 million driven by an increase in the discount rate assumption.
8. Cash and Cash Equivalents
Unaudited Unaudited Audited
30 September 30 September 31 March
2023 2022 2023
£'000 £'000 £'000
Cash and cash equivalents in the balance sheet 9,184 7,554 12,800
Unaudited Restated Audited
Six Months to Unaudited Year Ended
30 September Six Months to 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Net decrease in cash and cash equivalents (3,616) (2,049) 3,254
Exchange gains / (losses) - 31 (26)
Net decrease in cash and cash equivalents after exchange losses (3,616) (2,018) 3,228
Bank loan repayments 459 472 928
Other non-cash changes (118) - (561)
Lease liabilities repayments 368 321 618
Decrease in interest bearing loans and borrowings 709 793 985
Net (increase) / decrease in debt (2,907) (1,225) 4,213
Net debt brought forward (6,934) (11,147) (11,147)
Net debt (9,841) (12,372) (6,934)
Net debt
Cash balance 9,184 7,554 12,800
Less: Total interest-bearing loans and borrowings (19,025) (19,926) (19,734)
Net debt (9,841) (12,372) (6,934)
9. Interest-bearing Loans and Borrowings
Unaudited Restated Audited
30 September Unaudited 31 March
2023 30 September 2023
£'000 2022 £'000
£'000
Non-current liabilities
Secured bank loans 11,796 12,759 12,316
Lease liabilities* 5,669 5,745 5,898
Total non-current interest-bearing loans and lease liabilities 17,465 18,504 18,214
Current liabilities
Secured bank loans 1,001 952 939
Lease liabilities* 559 470 581
Total current interest-bearing loans and lease liabilities 1,560 1,422 1,520
Total liabilities
Secured bank loans 12,797 13,711 13,255
Lease liabilities* 6,228 6,215 6,479
Total interest-bearing loans and lease liabilities 19,025 19,926 19,734
* As detailed in the basis of preparation, the comparative numbers were
restated to correct the accounting treatment of some right of use assets.
10. Capital Commitments
At 30 September 2023, the Group had capital commitments of £447,000 which had
not been provided for in the financial statements, comprising £408,000 in
Momart and £39,000 in PHFC.
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.
Directors Registered Office
Nick Henry 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
Holger Schröder Non-executive Director W: www.fihplc.com
Registered number 03416346
Company Secretary
AMBA Secretaries Limited
Corporate Information
Stockbroker and Nominated Adviser
W.H. Ireland Limited
24 Martin Lane,
London EC4R 0DR
Solicitors
Shoosmiths LLP
1 Bow Churchyard,
London EC4M 9DQ
Auditor
Grant Thornton UK LLP
103 Colmore Row,
Birmingham,
Birmingham B3 3AG
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
Adam Brown, Director
Phil Smith, 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 (http://www.fihplc.com)
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