TIDMFIH
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 GBP5.5 million (32%) to GBP22.8 million
(2021: GBP17.3 million) with improvement in all three
businesses.
-- Pre-tax profit of GBP0.6 million (2021: GBP0.4 million)
despite COVID-related government support reducing to GBP0.1 million
(2021: GBP0.3 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 GBP7.6 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 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 / Megan Liddell
------------------------
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
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 GBP0.2 million in
pandemic-related government funding, the Group delivered an
underlying pre-tax profit of GBP0.6 million for the six months
ended 30 September 2022 (2021: GBP0.4 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 GBP22.8 million for the six months ended 30 September
2022 was GBP5.5 million ahead of the six months ended 30 September
2021, with the improvement arising across all three businesses.
Encouragingly, this was also GBP3.4 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 GBP3.1 million and GBP0.6 million
respectively, and PHFC was GBP0.3 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 GBP0.1 million (2021: GBP0.3 million), the Group returned an
underlying pre-tax profit of GBP0.6 million in the period (2021:
GBP0.4 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 GBPm GBPm %
---------------------------------- ------ ------ -------
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 GBP12.2 million was GBP2.3 million ahead of the
same period last year, 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") 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 GBP0.3 million was GBP0.3
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 GBPm GBPm %
---------------------------------- ------ ------ -------
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 GBP8.6 million for the six months to 30 September
2022 was GBP2.7 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 GBP0.1 million was GBP0.1
million ahead of the breakeven result for the same period last year
and GBP0.4 million ahead excluding pandemic-related support
received in the prior year of GBP0.3 million (2022: GBPnil).
Momart Operating Results 2022 2021 Change
Six months ended 30 September GBPm GBPm %
-------------------------------- ------ ------ -------
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 0.1 - -
profit
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 GBP0.5 million improvement in revenue over the
previous half year. Continued focus on cost control resulted in
underlying operating profit increasing by GBP0.4 million to GBP0.5
million (2021: GBP0.1 million).
PHFC Operating Results 2022 2021 Change
Six months ended 30 September GBPm GBPm %
----------------------------------- ------ ------ -------
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 GBP5.5 million (32%) to GBP22.8
million (2021: GBP17.3 million) with improvements of GBP2.7 million
in Momart, GBP2.3 million in FIC and GBP0.5 million in PHFC.
Underlying Operating Profit
Underlying operating profit before non-trading items and net
finance costs increased to GBP1.0 million (2021: GBP0.8 million)
despite lower pandemic related support of GBP0.1 million (2021:
GBP0.3 million) reflecting the revenue improvements noted
above.
Net Financing Costs
The Group's net financing costs remained broadly flat at GBP0.4
million (2021: GBP0.4 million).
Reported Pre-tax Profit
The reported pre-tax result for the six months ended 30
September 2022 was a profit of GBP0.6 million (2021: GBP0.4
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
GBP0.1 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 GBP0.4 million, resulting in an overall tax charge of
GBP0.5 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 GBP42.9 million, reflecting an improvement on the balances at 31
March 2022 of GBP40.7 million and 30 September 2021 of GBP38.7
million of GBP2.2 million and GBP4.2 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 31 March Change
2022 2022
GBPm GBPm GBPm
--------------------------------- -------------------- --------- -------
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 GBP13.7 million (31 March 2022: GBP14.2
million) following scheduled loan repayments of GBP0.5 million.
GBP12.4 million of the balance was in respect of the long-term
mortgage secured on the Group's freehold premises in Leyton (31
March 2022: GBP12.7 million).
The Group's cash balances reduced by GBP2.0 million to GBP7.6
million (31 March 2022: GBP9.6 million) reflecting scheduled
interest, loan and lease repayments of GBP1.2 million, capital
expenditure of GBP0.9 million (GBP0.5 million on vehicles, GBP0.2
million on property improvements and GBP0.2 million on plant and
equipment) and a broadly neutral net cash flow from operations. The
latter included a GBP2.3 million increase in working capital which
largely arose in FIC. GBP0.7 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 GBP6.8
million (31 March 2022: GBP7.1 million) with GBP5.2 million of the
balance (31 March 2022: GBP5.2 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 GBP12.9 million (31 March 2022:
GBP11.7 million).
Reuben Shamu
Chief Financial Officer
21 November 2022
Consolidated Income Statement
For the Six Months Ended 30 September 2022
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2022 2021 2022
Notes GBP'000 GBP'000 GBP'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 GBP'000 GBP'000 GBP'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
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2022 2021 2022
Notes GBP'000 GBP'000 GBP'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
Consolidated Cash Flow Statement (continued) Six Months Six Months Audited
For the Six Months Ended 30 September to to Year Ended
2022 30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'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)
----------------------------------------------- -------------- -------------- ------------
Cash and cash equivalents at end of
8 year 7,554 7,976 9,572
----------------------------------------------- -------------- -------------- ------------
Consolidated Statement of Comprehensive Income
For the Six Months Ended 30 September 2022
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'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
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'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
Unaudite d - Six Months Ended 30 September 2022
General
Trading Art Logistics
(Falkland Ferry Services and Storage
Islands) (Portsmouth) (UK) Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'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)
before tax 299 352 (60) - 591
---------------------------------- ----------- --------------- -------------- ------------ ---------
2. Segmental Revenue and Profit Analysis (Continued)
Unaudite d - Six Months Ended 30 September 2021
General
Trading Art Logistics
(Falkland Ferry Services and Storage
Islands) (Portsmouth) (UK) Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'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)
before tax 616 (29) (180) - 407
---------------------------------- ----------- --------------- -------------- ------------ ---------
2. Segmental Revenue and Profit Analysis (Continued)
Year Ended 31 March 2022
General
Trading Art Logistics
(Falkland Ferry Services and Storage
Islands) (Portsmouth) (UK) Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'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)
before tax 1,779 (121) 626 - 2,284
---------------------------------- ----------- --------------- -------------- ------------ ---------
3. Non-trading Items
Unaudited
Unaudited Six Months Audited
Six Months to to Year Ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'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
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'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
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'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 GBP446,000. For the year ended 31 March 2022,
the calculation was updated, resulting in a GBP523,000 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
Six Months Six Months Audited
to 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
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'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 GBP1,870,000 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
GBP'000 GBP'000 GBP'000
---------------------------------- -------------- -------------- ----------
Cash and cash equivalents in the
balance sheet 7,554 7,976 9,572
---------------------------------- -------------- -------------- ----------
8. Cash and Cash Equivalents (Continued)
Unaudited Unaudited
Six Months Six Months Audited
to to Year Ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'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
GBP'000 GBP'000 GBP'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
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.
At 30 September 2021, the Group had capital commitments of
GBP1,061,000 which had not been provided for in the financial
statements, comprising GBP635,000 in FIC and GBP426,000 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 The Portsmouth Harbour Momart Limited
Company Ferry Company
Clive Lane, Director Alison Jordan, Director
Kevin Ironside, 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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END
IR FEWFDSEESELF
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November 21, 2022 02:00 ET (07:00 GMT)
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