Improved second half sees FIH lift expectations

Falkland Islands-focussed specialist services group FIH updated the market on its expected trading performance for the year ending 31 March on Thursday, reporting that based on management results for the 10 months to January and on current levels of trading activity, it now expected overall underlying pre-tax profits would be higher than previously anticipated.

The AIM-traded firm said they would also be “materially ahead” of last year's results, which showed underlying pre-tax profit of £2.4m.

That would be ahead of market expectations, and followed improved second half trading, particularly at the group's fine art handling subsidiary Momart, and in its Falkland Islands business.

For the year as a whole, all three of the group's trading businesses were expected to show “encouraging progress” compared to the prior year, with increased revenues and margins.

The group said it also maintained its “strong” cash position, while continuing its search for strategic acquisitions, with a number of opportunities said to be under consideration.

“At Momart, annual storage revenues have been impacted recently by the loss of two clients responsible for annual storage income of £0.3m, and this now means the company will start the new financial year in a similar place to April last year, with significant un-let storage space and related fixed costs of £0.5m,” the board explained in its statement.

“However, with a continued buoyant art market, the prospects for attracting new storage clients remain good and success in filling these facilities will deliver a significant further improvement in Momart's underlying profitability.”

For the group as a whole, the outlook for the following year remained generally positive.

The board said recent progress was made towards securing a second air link to South America, boosting the longer-term prospects for tourism in the Falkland Islands, and the recovery in oil prices was adding to hopes of oil development in the islands in the medium term.

“In line with our normal practice, we will publish our annual report and accounts in mid-June.”