TIDMFIH
RNS Number : 2589L
FIH Group PLC
05 September 2019
5 September 2019
FIH group plc
AGM Statement
FIH group plc ("FIH", "the Company" or the "group"), the AIM
quoted international services group that owns essential services
businesses in the Falkland Islands and the UK, is holding its
Annual General Meeting ("AGM") at the offices of FTI Consulting at
200 Aldersgate, London EC1A 4HD, at 2.00 p.m. today.
At the meeting, Chairman, Robin Williams, will make the
following statement:
"On behalf of the board, I am delighted to welcome shareholders
to the FIH group AGM. I am pleased to say that in the year to 31
March 2019 the group made further progress producing Profit Before
Tax of GBP3.9 million, an increase of 19% over the prior year. I
would also like to note that since the year end the group's
available cash reserves have been strengthened by the draw-down of
a long-term commercial mortgage on the group's freehold property at
Leyton, which boosted cash balances by GBP3.9 million.
Proposed Final Dividend
"As announced in the group's annual report issued on 11 June
2019, subject to approval by shareholders at today's AGM, a final
dividend of 3.35 pence per FIH share will be paid on 20 September
2019 to shareholders on the register at the close of business on 16
August 2019. This will take the total dividend paid for the year to
31 March 2019 to 5.0p per share, up 11.1% on the 4.5p dividend paid
last year. The full 2018-19 dividend, if approved by shareholders,
will be covered 4.8 times by the group's reported earnings per
share of 24.1p per share.
Update on Trading and Liquidity
"Trading at the group's fine art handling and storage company,
Momart, has started slowly with activity in both the commercial art
market and public sector being noticeably more subdued than normal.
In contrast, Momart's large Exhibitions order book for the
remainder of the financial year is ahead of the comparable period
last year and despite the slow start the board is confident that
Momart's performance will improve as the year progresses.
"At the Falklands Islands Company, ("FIC"), trading has started
the year in line with our expectations and the company has built up
a record order book for houses to be built in the current year.
"At Portsmouth, trading at the group's ferry business in
Portsmouth Harbour, has been satisfactory and broadly in line with
last year.
"The group's liquidity position has strengthened since the
beginning of the financial year and at 31 August 2019 the group's
cash reserves were GBP10.5 million (31 March 2019: GBP6.2 million).
Following the aforementioned mortgage draw down for the group's
Leyton property, bank borrowings at 31 August were GBP16.4 million
comprised of a new GBP13.9 million ten year commercial mortgage
with interest rates fixed at 3% and other long term loans of GBP2.5
million. Total bank borrowings of GBP16.4 million compare to
GBP12.8 million at 31 March 2019 giving net bank debt at 31 August
of GBP5.9 million (31 March 2019: GBP6.6million).
Developments in the Falklands
"Development of oil production in the Falklands remains
uncertain and has been adversely affected by the weaker outlook for
the price of oil, which has led to delays in the investment
decision by licence holder, Premier Oil, on whether to proceed with
development of the Sea Lion field.
"On a more positive note prospective government and military
infrastructure projects in the Falklands are still moving forward,
albeit slowly and in a highly competitive environment. Despite this
the group remains well placed to take advantage of the expected
flow of contracts over the medium term. At FIC's house building
division, Falklands Building Services, a record order book
including FIC's first government housing contract means a strong
recovery in house sales is expected in the current financial
year.
Impact of Brexit
"Uncertainty over Brexit has already negatively impacted trading
in the current financial year and may cause some further slow-down
in activity at least in the immediate autumn period, if there is
any physical disruption at ports of entry or any adverse changes in
UK / EU customs and taxation arrangements.
"Of the group's companies, Momart is the most exposed but with
careful planning we are seeking to mitigate potential disruption to
the movement of art works in and out of Europe however, it will not
be possible to ensure complete insulation from the expected
short-term negative impacts of a disorderly Brexit. The precise
extent of any problems (and potential opportunities) will become
clearer over the next 12 months as will the impact of possible
tariffs on Falklands-caught squid exported to the EU, which
although not directly involving FIC, is a key driver of the
Falklands economy.
"In overall terms we expect the impact of Brexit on the group's
current year's trading to be negative although the exact extent is
difficult to judge.
Outlook
"Investment in property assets and capital projects is
continuing in the Falklands with a further strengthening of the
team in Stanley to manage expected medium-term growth.
"At Momart, management energies are focussed on recovering the
shortfall experienced in the first five months of the year and in
continuing the sale of spare capacity at the company's art storage
facilities at Leyton. A further strengthening of the executive team
is also being put in place to underpin the company's long term
future.
"The long-term outlook for all the group's businesses remains
strong. However with the costs of strengthening the operational
management teams across the group, the absence of the one-off
credits reported last year, plus the uncertainty caused by Brexit
and wider geo-political instability, the near term outlook, in line
with analysts' forecasts, is for a consolidation of earnings in the
current year at a level below that seen in 2018-19.
"Once through the choppy waters we foresee in the near term,
with its strong balance sheet and embedded market positions across
its diverse trading companies, your board remains confident that
the group remains well placed to deliver growth over the
medium-term."
- Ends -
Enquiries:
FIH group plc
John Foster, Chief Executive Tel: 01279 461 630
WH Ireland Ltd. - NOMAD and Broker
to FIH
Adrian Hadden / Jessica Cave / Lydia Tel: 020 7220 1666
Zychowska
FTI Consulting - Communications adviser
to FIH
Alex Beagley / Eleanor Purdon Tel: 020 3727 1000
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGMBUGDCBUGBGCS
(END) Dow Jones Newswires
September 05, 2019 02:00 ET (06:00 GMT)
Fih (LSE:FIH)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Fih (LSE:FIH)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024