FIH Group PLC’s share price (AIM: FIH) was down 8% today after the international specialist services group with operations in the Falkland Islands and the UK, announced its unaudited interim results for the six months ended 30 September 2024.
Key Financial Highlights
- Revenue: £18.2m, down 32% YoY (2023: £26.7m), primarily driven by underperformance in the Falkland Islands Company (FIC) construction division.
- Underlying Pre-Tax Loss: £5.9m (2023: £0.6m profit).
- Net Debt: £3.3m before lease liabilities, marginally improved from £3.6m in 2023.
- Interim Dividend: Maintained at 1.25p per share, reflecting confidence in long-term prospects.
Operational Highlights by Division
Falkland Islands Company (FIC)
- Revenue: £6.2m, down £9.0m YoY due to challenges in Falkland Building Services (FBS), which saw a £9.1m revenue drop.
- Issues include disruptions to major government contracts, adverse weather, and staffing challenges.
- Underlying Loss: £6.4m, driven by higher contract costs and onerous provisions, though £4.6m of costs are deemed non-recurring.
Momart (Art Logistics and Storage)
- Revenue: £9.7m, up £0.4m YoY, driven by Museum Exhibitions.
- Underlying Profit: £0.3m, a £0.1m improvement, though growth was offset by recruitment costs.
Portsmouth Harbour Ferry Company (PHFC)
- Revenue: £2.3m, up £0.1m YoY, aided by fare increases and secondary income.
- Underlying Profit: £0.5m, consistent with the prior year.
Strategic Outlook
- FIC: The construction division remains a challenge, with ongoing efforts to address issues. Strong demand for housing in the Falklands presents longer-term opportunities.
- Momart: Strong Museum Exhibitions order book and proactive business development initiatives are expected to support growth.
- PHFC: Focus on secondary revenue streams and cost management.
CEO Comment
Stuart Munro, Chief Executive, stated:
“While most of our divisions performed well, the construction issues in the Falklands significantly impacted the Group’s results. Despite current challenges, strong housing demand and opportunities in retail, travel, and infrastructure in the Falklands support a positive long-term outlook.”
Dividend
- Interim Dividend: 1.25p per share, payable on 14 February 2025 (record date: 3 January 2025).
- A Dividend Reinvestment Plan is available for shareholders.
Conclusion
While FIH Group faces near-term challenges, particularly in the Falklands, the company remains optimistic about its long-term prospects, supported by robust assets, strategic opportunities, and diversified operations.
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