TIDMFIH
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 GBP26.7 million (2022: GBP22.9 million)
with improvement in all three businesses.
-- Underlying pre-tax profit of GBP0.6 million (2022: GBP0.6
million) reflecting inflationary pressures across all businesses
and investment in key people to drive future growth in Momart.
-- Strong cash position of GBP9.2 million as at 30 September 2023 (2022: GBP7.6 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
GBP0.6 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 Tel: 01279 461630
Stuart Munro, Chief Executive
Reuben Shamu, Chief Financial Officer
WH Ireland Ltd. - NOMAD and Broker Tel: 0207 220 1666
to FIH
Chris Fielding / James Bavister
------------------------
Novella Communications Tel: 020 3151 7008
Tim Robertson / Chris Marsh
------------------------
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 GBP0.6 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 GBP26.7 million for the six months ended 30 September
2023 was GBP3.8 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 GBP0.6 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 GBPm GBPm %
---------------------------------- ------ ------ -------
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 GBP15.2 million was GBP2.9 million ahead of the
same period last year, largely driven by growth in Falkland
Building Services ("FBS"), due mainly to the GBP17.3 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 GBP0.5 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 GBP0.2 million was GBP0.1
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 GBPm GBPm %
---------------------------------- ------ ------ -------
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 GBP9.3 million for the six months to 30 September
2023 was GBP0.7 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 GBP0.1 million was GBP0.1
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 GBPm GBPm %
----------------------------------- ------ ------ -------
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) - (0.1) -
before tax
----------------------------------- ------ ------ -------
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
GBP0.2 million to GBP2.2 million.
Underlying operating profit of GBP0.5 million was in line with
the prior year, despite the latter including GBP0.1 million of
non-recurring support from Gosport Council.
PHFC Operating Results 2023 2022 Change
Six months ended 30 September GBPm GBPm %
----------------------------------- ------ ------ -------
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 GBP3.8 million (17%) to GBP26.7
million (2022: GBP22.9 million) with improvements of GBP2.9 million
in FIC, GBP0.7 million in Momart and GBP0.2 million in PHFC.
Operating Profit
Operating profit of GBP0.9 million was GBP0.1 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 GBP0.1 million were GBP1.3
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 GBP0.3 million was GBP0.1 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 GBP0.8 million (2022: GBP2.3 million
as restated per note 1). Underlying pre-tax profit was GBP0.6
million (2022: GBP0.6 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
GBP0.1 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 GBP44.8 million, reflecting an improvement on the balances at 31
March 2023 of GBP44.0 million and 30 September 2022 of GBP43.1
million (as restated per note 1) of GBP0.8 million and GBP1.7
million respectively. This was largely driven by the revaluation of
the Group's interest rate swap.
Net Debt
30 September 30 September 31 March
2023 2022 2023
GBPm GBPm GBPm
------------------------------------------- ------------------------ --------------- ---------
Bank loans* (12.8) (13.7) (13.3)
Cash and cash equivalents 9.2 7.6 12.8
------------------------------------------- ------------------------ --------------- ---------
Net debt (3.6) (6.1) (0.5)
Lease liabilities** (6.2) (6.2) (6.4)
Net debt after lease liabilities (9.8) (12.3) (6.9)
------------------------------------------- ------------------------ --------------- ---------
*Includes a mortgage of GBP11.9 million on the Group's freehold
premises in Leyton (31 March 2023: GBP12.1 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 GBP12.8 million (31 March 2023: GBP13.3
million) following scheduled loan repayments of GBP0.5 million.
The Group's cash balance reduced by GBP3.6 million to GBP9.2
million (31 March 2023: GBP12.8 million) reflecting scheduled
interest, loan and lease repayments of GBP1.1 million, capital
expenditure of GBP1.2 million and a GBP1.3 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 GBP6.2
million (31 March 2023: GBP6.5 million) with GBP4.5 million of the
balance (31 March 2023: GBP4.6 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 GBP3.6 million (31 March 2023:
GBP0.5 million).
Reuben Shamu
Chief Financial Officer
24 November 2023
Consolidated Income Statement
For the Six Months Ended 30 September 2023
Restated
Unaudited Unaudited Audited
Six Months to Six Months to Year Ended
30 September 30 September 31 March
2023 2022 2023
Notes GBP'000 GBP'000 GBP'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 GBP238,000
(Six months ended 30 September 2022: GBP1,699,000; year ended 31
March 2023: GBP907,000) .
Underlying profit before
2 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
Restated
Unaudited Unaudited Audited
30 September 30 September 31 March
2023 2022 2023
Notes GBP'000 GBP'000 GBP'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
Restated
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2023 2022 2023
Notes GBP'000 GBP'000 GBP'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.
Restated
Consolidated Cash Flow Statement (continued) Unaudited Unaudited
For the Six Months Ended 30 September Six Months Six Months Audited
2023 to to Year Ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'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)
----------------------------------------------- -------------- -------------- ------------
Cash and cash equivalents at end of
8 year 9,184 7,554 12,800
----------------------------------------------- -------------- -------------- ------------
Consolidated Statement of Comprehensive Income
For the Six Months Ended 30 September 2023
Restated
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'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
Restated
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'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 GBP0.2 million and reductions in property, plant and
equipment and interest-bearing loans and borrowings of GBP0.4
million and GBP0.6 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 GBP0.5 million and
reduction in the hedging reserve in equity of GBP0.5 million as at
31 March 2022.
-- A credit to the consolidated income statement of GBP1.3
million in the period ending 30 September 2022 (comprising a GBP1.7
million credit to net finance income and a GBP0.4 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
Unaudite d - Six Months Ended 30 September 2023
General
Trading Art Logistics
(Falkland Ferry Services and Storage
Islands) (UK) (UK) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'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)
before tax 230 404 (42) - 592
---------------------------------- ----------- --------------- -------------- -------- ---------
2. Segmental Revenue and Profit Analysis (Continued)
Unaudite d - Six Months Ended 30 September 2022
General
Trading Art Logistics
(Falkland Ferry Services and Storage
Islands) (UK) (UK) Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'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)
before tax 299 352 (60) - 591
---------------------------------- ----------- --------------- -------------- ------------ ---------
2. Segmental Revenue and Profit Analysis (Continued)
Year Ended 31 March 2023
General
Trading Art Logistics
(Falkland Ferry Services and Storage
Islands) (UK) (UK) Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'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)
before tax 1,885 321 1,012 - 3,218
---------------------------------- ----------- --------------- -------------- ------------ ---------
3. Non-trading Items
Restated
Unaudited
Unaudited Six Months Audited
Six Months to to Year Ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'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
Restated
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'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
Restated
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'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.
Restated
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2023 2022 2023
Number 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.
Restated
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'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 GBP1.9 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
GBP'000 GBP'000 GBP'000
---------------------------------- -------------- -------------- ----------
Cash and cash equivalents in the
balance sheet 9,184 7,554 12,800
---------------------------------- -------------- -------------- ----------
Restated
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'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
Restated
Unaudited Unaudited Audited
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'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
GBP447,000 which had not been provided for in the financial
statements, comprising GBP408,000 in Momart and GBP39,000 in
PHFC.
At 30 September 2022, the Group had capital commitments of
GBP615,000 which had not been provided for in the financial
statements, comprising GBP482,000 in Momart, GBP107,000 in FIC and
GBP26,000 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 The Portsmouth Harbour Momart Limited
Company Ferry Company
Adam Brown, Director Alison Jordan, Director
Phil Smith, Director T: 02392 524551 T: 020 7426 3000
T: 00 500 27600 E: admin@gosportferry.co.uk E: enquiries@momart.com
E: info@fic.co.fk W: www.gosportferry.co.uk W: www.momart.com
W: www.falklandislandscompany.com
www.fihplc.com
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