FIH Group shores up cash with fresh refinancing

Falkland Islands-focussed retail, transport and logistics company FIH Group updated the market on a number of developments on Wednesday, reporting that it has refinanced a short-term temporary bank facility of £10m that was used to assist with the £19.6m purchase of the 100,000 square foot art storage warehouse in Leyton, as it initially announced on 5 December.

The AIM-traded firm said that with effect from 30 June, the group had drawn down a £13.9m long-term mortgage, which had increased overall bank borrowings by £3.9m and boosted its cash reserves by £3.9m.

Net borrowings were unaffected.

The board said the loan had a 20-year repayment profile, and following the drawdown the group had entered into an interest rate swap which would fix the cost of borrowing for the loan at three percent per annum for 10 years.

FIH Group also reported that on 5 July, the Falkland Islands Government issued a press release to confirm that a new commercial air link had been agreed that would connect the Falkland Islands to the international hub airport in Sao Paulo, Brazil.

The board said it would “greatly improve” accessibility to the islands, and would offer “much greater opportunity” for tourists to visit the islands and experience its culture and environmental heritage.

In addition, the Falkland Islands Government said it had plans for a new port and air terminal, to support long-term economic growth in the islands.

“With the drawdown of new long-term bank facilities, the Group has strengthened its cash reserves and locked in funding at historically low rates,” said FIH Group chief executive officer John Foster.

“With the group's finances on a solid long-term footing FIH remains well placed over the medium-term to take advantage of opportunities across the group and the exciting developments emerging in the Falklands.”