Falkland Islands Holdings to report fall in annual profits

Falkland Islands Holdings, a British conglomerate which owns logistics, warehouses and retail outlets on the islands, expects to report a fall in annual profits.

Falkland Islands Holdings, a British conglomerate which owns logistics, warehouses and retail outlets on the islands, expects to report a fall in annual profits.

The company anticipates pre-tax profit of £3.0m for the year to March 31st 2013, compared to £3.2m a year earlier.

The group said trading was satisfactory at its division Falkland Islands Company (FIC), which provides services to retail, distribution, port services, shipping, hotels and mineral exploration.

Retail sales experienced growth while tourist activity declined with fewer cruise ship visits.

Preparations to ramp up activity at the Sea Lion discovery continued, including preliminary work on planning for related infrastructure projects.

"As a result, although turnover increased on the record levels seen last year, FIC's contribution is expected to be slightly lower," the company said.

Momart, the fine art and antiques shipping and storage company, delivered record revenues on the back of growth in large exhibitions and the global commercial art market.

Revenues at the Portsmouth Harbour Ferry Company were little changed on lower passenger numbers. Profits are expected to fall at the ferry company as a result of an increase in costs.

The Falkland Oil and Gas arm's drilling campaign proved a working hydrocarbon system in the South and East Falklands Basins. An extensive 3D seismic campaign is now underway to de-risk further the prospectivity and identify the next prospects for drilling.

The group ended the period with cash balances of £11.5m and bank borrowings of £2.0m.

"2012/13 was a particularly significant year for the group, as we raised an additional £10m of equity funds which will enable us to participate in the opportunities now emerging in the Falkland Islands," said Chairman David Hudd.

"We expect that there will be a quantum leap in the economy over the next decade and momentum is expected to build in 2014 as the development of Sea Lion commences. However in the short term conditions are expected to be quieter in the absence of drilling activity which has been a factor since 2010."

Shares fell 0.80% to 315p at 10:59 Wednesday.

RD

Recommended

Has the “jam tomorrow” bubble popped already?
Stockmarkets

Has the “jam tomorrow” bubble popped already?

Fund managers have had a good year so far. John Stepek looks at what to expect from markets until year end.
6 Dec 2021
Three stocks that should profit from the dash for digital growth
Share tips

Three stocks that should profit from the dash for digital growth

Professional investor Christopher Versace of the Digital Infrastructure and Connectivity UCITS ETF picks three digital growth stocks to buy now.
6 Dec 2021
JD Wetherspoon: why investors should head to the pub
Trading

JD Wetherspoon: why investors should head to the pub

Pub group JD Wetherspoon is a solid operator, and is due a bounce when the pandemic eases. Matthew Partridge picks the best way to play it.
6 Dec 2021
Share tips of the week – 3 December
Share tips

Share tips of the week – 3 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
3 Dec 2021

Most Popular

Three safe bets on the growing online gambling sector
Share tips

Three safe bets on the growing online gambling sector

Professional investor Aaron Fischer, creator of the Fischer Sports Betting and iGaming ETF, picks three of his favourite online gambling stocks.
29 Nov 2021
Making sense of the new minimum pension age rules
Pensions

Making sense of the new minimum pension age rules

The rules surrounding the minimum age at which you can start tapping into your retirement savings have been tweaked, but are still confusing. David Pr…
23 Nov 2021
Bubbles grow in global property markets as house prices continue to rise
Property

Bubbles grow in global property markets as house prices continue to rise

House prices grew by 6% in the year to mid-2021 in 25 global cities, with the German property market in particular showing signs of overheating.
3 Dec 2021