FIH GROUP PLC

Interim / Quarterly Report • Dec 19, 2024

National Storage Mechanism | Additional information

RNS Number : 6655Q

FIH Group PLC

19 December 2024

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

19 December 2024

FIH group plc

("FIH" or the "Group")

Results for the Six Months Ended 30 September 2024

FIH, the AIM quoted international specialist services group with businesses in the Falkland Islands and the UK, announces its unaudited results for the six months ended 30 September 2024 ("the period"). Comparisons shown below are for the respective six months in 2023 unless otherwise stated.

Challenges in FIC Construction Division and Consistent Performance Elsewhere

Headlines

·      Revenue down 32% to £18.2 million (2023: £26.7 million) due mainly to a combination of factors which have severely impacted the trading performance of Falkland Building Services ("FBS"), the construction division of Falkland Islands Company ("FIC").

·      Underlying pre-tax loss of £5.9 million (2023: £0.6 million profit) for largely the same reason.

·      Momart and Portsmouth Harbour Ferry Company ("PHFC") performance in line with or slightly above prior year.

·     Cash position of £8.5 million as at 30 September 2024 (2023: £9.2 million) within net debt before lease liabilities of £3.3 million (2023: £3.6 million).

·     Interim dividend maintained at 1.25 pence per share (2023: 1.25 pence per share) reflecting confidence in the longer-term trading outlook.

Outlook

·     Action plans are being progressed in FIC to address the challenges in FBS but these challenges are expected to continue to significantly impact the performance of the division for the remainder of the year, albeit within the Group's existing resources.

·      The market continues to be challenging for Momart, but the strong order book in Museum Exhibitions, coupled with a series of proactive business development initiatives, should improve the position over the remainder of the year.

·     In PHFC, opportunities to maximise secondary revenues continue to be targeted and costs and fare pricing will continue to be carefully managed.

·      Whilst the Group is currently navigating a challenging period, the longer-term trading outlook remains positive.

Stuart Munro Chief Executive, said:

"The last six months has been a challenging period for the Group and whilst most of our businesses have performed in line with or ahead of last year, the difficulties experienced in the construction division of FIC have had a significant adverse impact on our results.  There is more work ahead of us to address these issues, however demand for accommodation in the Falklands Islands remains strong and the longer-term trading outlook for the Group remains positive."

Enquiries:

FIH group plc Stuart Munro, Chief Executive Reuben Shamu, Chief Financial Officer	Tel: 01279 461630
Zeus - NOMAD and Broker to FIH Chris Fielding / James Bavister	Tel: 020 3829 5000
Novella Communications Tim Robertson / Chris Marsh	Tel: 020 3151 7008

The person responsible for arranging the release of this announcement on behalf of the Company is Stuart Munro Chief Executive of the Company.

Chairman's Statement

Despite the majority of the businesses in the Group performing consistently with prior year, the significant challenges experienced in the construction division of FIC have resulted in a disappointing overall Group result for the first half of the year.

We are firmly focused on the work ahead of us to address these issues, but the fundamentals of all of our businesses remain strong and the longer-term trading outlook for the Group remains positive.

Dividend

The interim dividend is maintained at 1.25 pence per share (2023: 1.25 pence per share) reflecting confidence in the longer-term trading outlook. This will be paid on 14 February 2025 to shareholders on the register at the close of business on 3 January 2025.

The Group has a Dividend Reinvestment Plan ("the Plan") that allows shareholders to reinvest dividends to purchase additional shares in the Group. For shareholders to apply the proceeds of this and future dividends to the Plan, application forms must be received by the Group's Registrars by no later than 17 January 2025*

Nick Henry

Chairman

19 December 2024

* Existing participants in the Plan will automatically have the interim dividend reinvested. Details on the Plan can be obtained from Link Group on 0371 664 0381 or at www.signalshares.com. Calls are charged at the standard geographic rate and will vary by provider. If you are outside the United Kingdom, please call +44 371 664 0381. Calls outside the United Kingdom will be charged at the applicable international rate. The lines are open from 9.00am to 5.30pm, Monday to Friday excluding public holidays in England and Wales.

Chief Executive's Review

Overview

Revenue of £18.2 million for the six months ended 30 September 2024 was £8.5 million behind the same period last year. Progress in Momart and PHFC was overshadowed by a significant reduction in FIC, with most of the reduction in FBS, FIC's housing and construction division.

The Group underlying pre-tax loss of £5.9 million was below the £0.6 million profit for the same period last year, predominantly due to challenges in FBS.

Group Trading Results for the Six Months Ended 30 September 2024

Group revenues Six months ended 30 September		2024 £m	2023 £m	Change £m
Falkland Islands Company		6.2	15.2	(9.0)
Momart		9.7	9.3	0.4
Portsmouth Harbour Ferry		2.3	2.2	0.1
Total revenue		18.2	26.7	(8.5)
Group underlying pre-tax (loss) / profit*
Falkland Islands Company**		(6.4)	0.2	(6.6)
Momart**		0.1	-	0.1
Portsmouth Harbour Ferry**		0.4	0.4	-
Total underlying pre-tax (loss) / profit*		(5.9)	0.6	(6.5)
Non-trading items (see note 3)		(0.2)	0.2	(0.4)
Reported (loss)/ profit before tax		(6.1)	0.8	(6.9)

* Underlying pre-tax (loss) / profit is defined as, profit before tax, before non-trading items.

** As in prior years the profits reported for each operating company are stated after the allocation of head office

management and plc costs which have been applied to each subsidiary on a consistent basis.

Dividend

An interim dividend of 1.25 pence per share (2023: 1.25 pence per share) will be paid on 14 February 2025 to shareholders on the register at the close of business on 3 January 2025.

Group Operating Company Performance

Falkland Islands Company

Total revenue of £6.2 million was £9.0 million below the same period last year, due mainly to a £9.1 million reduction in FBS.

The majority of this variance related to the contract to build a total of 70 houses for the Falkland Islands Government ("FIG") and the Ministry of Defence ("MOD"). The programme of works was changed to address the disruption caused by the lack of power on the MOD Mount Pleasant Complex ("MPC"). As a consequence, the assessment of percentage of completion of the project was amended, resulting in a reduction to revenue recognised in previous periods. In addition, there was an increase in the forecast contract completion costs due to a combination of adverse weather conditions and the departure of FBS management and the challenges in replacing them.  

Other shortfalls in revenue in FBS were from a lack of work due to delayed and unsuccessful tenders.

The underlying operating loss of £6.4 million was £6.6 million below the same period last year. This was due mainly to the issues in FBS noted above, recognition of onerous contract provisions and other related costs of sourcing labour, circa £4.6 million of which is not expected to recur. The other divisions taken together, were broadly in line with the prior year.

FIC Operating Results Six months ended 30 September	2024 £m	2023 £m	Change £m
Revenues
Retail	4.6	4.7	(0.1)
FBS (housing and construction)	(1.8)	7.3	(9.1)
Falklands 4x4	1.5	1.2	0.3
Support Services	1.4	1.5	(0.1)
Property Rental	0.5	0.5	-
Total FIC revenue	6.2	15.2	(9.0)
FIC underlying operating (loss) / profit	(6.4)	0.2	(6.6)
Net interest expense	-	-	-
FIC underlying (loss) / profit before tax	(6.4)	0.2	(6.6)

Momart

Revenue of £9.7 million for the six months to 30 September 2024 was £0.4 million ahead of the prior year, with an improvement in Museum Exhibitions compensating for small reductions in Gallery Services and Storage.

The underlying operating profit of £0.3 million was £0.1 million ahead of the same period last year, although the current year result was suppressed slightly by recruitment costs.

Momart Operating Results Six months ended 30 September	2024 £m	2023 £m	Change £m
Revenues
Museum Exhibitions	5.2	4.6	0.6
Gallery Services	3.1	3.2	(0.1)
Storage	1.4	1.5	(0.1)
Total Momart revenue	9.7	9.3	0.4
Momart underlying operating profit	0.3	0.2	0.1
Net interest expense	(0.2)	(0.2)	-
Momart underlying profit before tax	0.1	-	0.1

Portsmouth Harbour Ferry Company

Passenger numbers for the first half of the year were 2% down against the same period last year. However, a combination of inflationary fare rises last year and other income of £0.1m meant overall revenue increased by £0.1 million to £2.3 million.

Underlying operating profit of £0.5 million was in line with prior year.

PHFC Operating Results Six months ended 30 September	2024 £m	2023 £m	Change £m
Revenues
Ferry fares	2.2	2.2	-
Other income	0.1	-	0.1
Total PHFC revenue	2.3	2.2	0.1
PHFC underlying operating profit	0.5	0.5	-
Pontoon lease liability & vessel loan expense	(0.1)	(0.1)	-
PHFC underlying profit before tax	0.4	0.4	-

Trading Outlook

PHFC and Momart are performing in line with or slightly above the prior year. 

Whilst the market continues to be challenging for Momart, given the global economic situation , the strong order book in Museum Exhibitions, coupled with a series of proactive business development initiatives, should improve the position over the remainder of the year, albeit within the Group's existing  resources.

In PHFC, opportunities to maximise secondary revenues continue to be targeted and costs and fare pricing will continue to be carefully managed.

In FIC, action plans are being progressed to address the challenges in FBS, but these challenges are expected to continue to significantly impact the performance of the division for the remainder of the year. In contrast, the second half of the year benefits from the tourist season, which should boost both direct and indirect revenues in a number of FIC business sectors, including Retail and Penguin Travel in Support Services.

Demand for accommodation in the Falkland Islands continues to be strong, with a shortage of suitable housing units for both local residents and contractors on upcoming projects and potential new business ventures. These provide FIC with opportunities to grow by securing additional infrastructure projects, expanding on retail and travel services to the tourism market and investing further in the rental accommodation portfolio. In addition, the breadth and depth of capabilities within FIC puts the business in prime position to offer its services to those seeking to develop or enhance both existing and new activities (including the potential development of oil reserves) in the Falkland Islands.

Whilst the Group is currently navigating a challenging period, particularly in the Falkland Islands, where discussions with the client on the resolution of the power issue at MPC are still ongoing, the longer-term trading outlook remains positive.

Group Strategy

The Group is also evaluating strategic options to maximise shareholder value for all divisions.

Stuart Munro

Chief Executive

19 December 2024

Chief Financial Officer's Review

Financial Review

Revenue

Group revenue decreased by £8.5 million (32%) to £18.2 million (2023: £26.7 million) with a reduction of £9.0 million in FIC, partially offset by improvements of £0.4 million in Momart and £0.1 million in PHFC.  

Operating Loss

An operating loss of £5.6 million was £6.5 million below the prior year profit of £0.9 million, with small improvements from revenue growth in Momart and PHFC offset by the results of FBS in FIC.

Net Financing Costs

The Group's net financing costs of £0.5 million were £0.4 million higher than the prior year due mainly to the movement in the fair value of the derivative instrument. The net underlying finance expense of £0.3 million was in line with prior year.

Reported Pre-tax Result

The reported pre-tax result for the six months ended 30 September 2024 was a loss of £6.1 million (2023: £0.8 million profit). The underlying pre-tax loss was £5.9 million (2023: £0.6 million profit).

Taxation

Taxation charges on the period results for both the six months ended 30 September 2024 and 30 September 2023 have been estimated on the basis of 25% and 26% of profits arising in the UK and the Falkland Islands respectively, resulting in a tax credit of £1.7 million (2023: charge of £0.2 million).

Earnings per Share

Diluted Earnings per Share ("EPS") derived from reported losses was negative 34.9 pence (2023: positive +4.9 pence).

Balance Sheet and Cash Flow

The Group's balance sheet remained strong with total net assets of £40.8 million, down on the balances at 31 March 2024 of £45.1 million and 30 September 2023 of £44.8 million.

Net Debt
		30 September 2024			30 September 2023		31 March 2024
		£m			£m		£m
Bank loans*		(11.8)			(12.8)		(12.3)
Cash and cash equivalents		8.5			9.2		9.7
Net debt		(3.3)			(3.6)		(2.6)
Lease liabilities		(5.9)			(6.2)		(6.1)
Net debt after lease liabilities		(9.2)			(9.8)		(8.7)

*Includes a mortgage of £11.3 million on the Group's freehold premises in Leyton (31 March 2024: £11.6 million).

Bank loans reduced to £11.8 million (31 March 2024: £12.3 million) following scheduled loan repayments of £0.5 million.

The Group's cash balance reduced by £1.2 million to £8.5 million (31 March 2024: £9.7 million) reflecting scheduled interest, loan and lease repayments of £1.1 million, capital expenditure of £0.9 million and a £0.8 million net cash inflow from operating activities.

Working capital for the Group reduced with most of that in FIC from decreased activity in the islands, with FBS in particular accounting for significant reduction in contract balances.

The Group's outstanding lease liabilities totalled £5.9 million (31 March 2024: £6.1 million) with £4.5 million of the balance (31 March 2024: £4.6 million) relating to the leases from Gosport Borough Council to PHFC for the Gosport Pontoon and associated ground rent, which run until June 2061.

Overall, net debt before lease liabilities increased to £3.3 million (31 March 2024: £2.6 million).

Reuben Shamu

Chief Financial Officer

19 December 2024

Consolidated Income Statement

For the Six Months Ended 30 September 2024

Notes		Unaudited Six Months to 30 September 2024 £'000	Restated Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
2	Revenue	18,153	26,689	52,460
	Cost of sales	(12,871)	(16,107)	(30,000)
	Gross profit	5,282	10,582	22,460
	Operating expenses	(10,819)	(9,677)	(18,444)
	Operating (loss) / profit before non-trading items	(5,537)	905	4,016
3	Non-trading items	(19)	(8)	(371)
	Operating (loss) / profit	(5,556)	897	3,645
4	Net finance expense*	(544)	(75)	(883)
	(Loss) / profit before tax	(6,100)	822	2,762
5	Taxation	1,727	(209)	(796)
	(Loss) / profit attributable to equity holders of the company	(4,373)	613	1,966
	* Finance expense includes a non-trading movement in the fair value of derivative financial instruments of £(221,000) (Six months ended 30 September 2023: £238,000; year ended 31 March 2024: (£244,000) .
2	Underlying (loss) / profit before tax	(5,860)	592	3,377

6	Earnings per share
	Basic	(34.9)p	4.9p	15.7p
	Diluted	(34.9)p	4.9p	15.7p

See note 6 for an analysis of earnings per share on underlying profit (defined as profit after tax before non-trading items).

Consolidated Balance Sheet                                                     

At 30 September 2024

Notes		Unaudited 30 September 2024 £'000	Unaudited 30 September 2023 £'000	Audited 31 March 2024 £'000
	Non-current assets
	Intangible assets	4,429	4,480	4,407
	Property, plant and equipment	38,270	38,725	38,664
	Investment properties	7,714	7,825	7,710
	Investment in joint venture	259	259	259
	Hire purchase lease receivables	497	493	557
	Deferred tax assets	2,071	459	428
	Derivative financial instruments	1,113	1,804	1,328
	Total non-current assets	54,353	54,045	53,353
	Current assets
	Inventories	5,815	6,851	6,698
	Trade and other receivables	4,632	10,084	10,987
	Hire purchase lease receivables	462	405	403
8	Cash and cash equivalents	8,480	9,184	9,650
	Total current assets	19,389	26,524	27,738
	Total assets	73,742	80,569	81,091
	Current liabilities
	Trade and other payables	(8,994)	(9,857)	(11,112)
9	Interest bearing loans and borrowings	(1,568)	(1,560)	(1,535)
	Corporation tax payable	-	(834)	(185)
	Total current liabilities	(10,562)	(12,251)	(12,832)
	Non-current liabilities
9	Interest bearing loans and borrowings	(16,110)	(17,465)	(16,847)
	Deferred tax liabilities	(4,677)	(4,215)	(4,679)
	Employee benefits	(1,631)	(1,873)	(1,647)
	Total non-current liabilities	(22,418)	(23,553)	(23,173)
	Total liabilities	(32,980)	(35,804)	(36,005)
	Net assets	40,762	44,765	45,086
	Capital and reserves
	Equity share capital	1,251	1,251	1,251
	Share premium account	17,590	17,590	17,590
	Other reserves	703	703	703
	Retained earnings	21,283	25,298	25,613
	Hedging reserve	(65)	(77)	(71)
	Total equity	40,762	44,765	45,086

Consolidated Cash Flow Statement

For the Six Months Ended 30 September 2024

Notes		Unaudited Six Months to 30 September 2024 £'000	Restated Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
	Cash flows from operating activities
	(Loss) / Profit for the period after taxation	(4,373)	613	1,966
	Adjusted for:
	Non-cash items:
	Amortisation	16	8	20
	Depreciation: Property, plant and equipment	1,230	1,121	2,337
	Depreciation: Investment properties	18	102	219
	Interest cost on pension scheme liabilities	36	46	87
	Equity-settled share-based payment expenses	42	96	(93)
	Fair value movement in derivative financial instrument	221	(238)	244
	Loss / (gain) on disposal of fixed assets	3	18	35
	Exchange (gains) / losses	-	-	19
	Bank interest payable	193	208	403
	Lease liability finance expense	133	137	274
	Decrease in hire purchase leases receivable	1	180	118
	Corporation and deferred tax (credit) / expense	(1,727)	209	796
	Non-cash items	166	1,887	4,334
	Operating cash flow before changes in working capital	(4,207)	2,500	6,300
	Decrease in trade and other receivables	6,355	105	(709)
	Decrease in inventories	883	25	178
	Decrease in trade and other payables	(2,117)	(3,861)	(2,606)
	Changes in working capital	5,121	(3,731)	(3,137)
	Cash generated from operations	914	(1,231)	3,163
	Payments to pensioners	(52)	(51)	(319)
	Corporation taxes (paid) / received	(103)	24	(835)
	Net cash flow from operating activities	759	(1,258)	2,009
	Cash flows from investing activities
	Purchase of property, plant and equipment	(840)	(1,118)	(2,154)
	Purchase of intangibles	(37)	(112)	(51)
	Purchase of investment properties	(22)	(5)	(7)
	Proceeds from the sale of property, plant and equipment	-	49	53
	Net cash flow from investing activities	(899)	(1,186)	(2,159)

Continued on next page.

	Consolidated Cash Flow Statement (continued) For the Six Months Ended 30 September 2024	Unaudited Six Months to 30 September 2024 £'000	Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
Notes
	Cash flows from financing activities
	Repayment of bank loans	(503)	(459)	(929)
	Bank interest paid	(193)	(208)	(403)
	Repayment of lease liabilities principal	(201)	(368)	(681)
	Lease liabilities interest paid	(133)	(137)	(274)
	Dividends paid	-	-	(819)
	Net cash flow from financing activities	(1,030)	(1,172)	(3,106)
	Net decrease in cash and cash equivalents	(1,170)	(3,616)	(3,131)
	Cash and cash equivalents at start of year	9,650	12,800	12,800
	Exchange losses on cash balances	-	-	(19)
8	Cash and cash equivalents at end of year	8,480	9,184	9,650

Consolidated Statement of Comprehensive Income

For the Six Months Ended 30 September 2024

		Unaudited Six Months to  30 September 2024 £'000	Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
	(Loss) / profit for the period	(4,373)	613	1,966
	Amortisation of hedge reserve	6	7	13
	Deferred tax on share options and other financial liabilities	-	-	(28)
	Items that are or may be reclassified subsequently to profit or loss	6	7	(15)
	Re-measurement of the FIC defined benefit pension scheme	-	100	99
	Movement on deferred tax asset relating to the pension scheme	-	(25)	(26)
	Items which will not ultimately be recycled to the income statement	-	75	73
	Total other comprehensive income	6	82	58
	Total comprehensive (expense) / income	(4,367)	695	2,024

Condensed Consolidated Statement of Changes in Shareholders' Equity

For the Six Months Ended 30 September 2024

	Unaudited Six Months to  30 September 2024 £'000	Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
Shareholders' funds at beginning of period	45,086	43,974	43,974
(Loss) / profit for the period	(4,373)	613	1,966
Amortisation of hedge reserve	6	7	13
Deferred tax on share options and other financial liabilities	-	-	(28)
Re-measurement of the defined benefit pension liability, net of tax	-	75	73
Total comprehensive (expense) / income	(4,367)	695	2,024
Transactions with owners in their capacity as owners:
Share-based payments	43	96	(93)
Dividends paid	-	-	(819)
Total transactions with owners	43	96	(912)
Shareholders' funds at end of period	40,762	44,765	45,086

Notes to the Unaudited Interim Statements

1. Basis of Preparation

This interim financial statement comprises the condensed consolidated balance sheets at 30 September 2024, 30 September 2023 and 31 March 2024 and condensed consolidated statements of income, comprehensive income, cash flows and changes in shareholders' equity for the periods then ended and related notes of FIH group plc (hereinafter 'the interim financial information').

Cash flow forecasts for the Group have been prepared covering the going concern period and the directors have considered downside scenarios to the base case forecasts to reflect emerging risks and uncertainties as a result of global economic conditions. The base case and sensitised forecasts indicate that the business will comply with its covenants and have sufficient funds to meet its liabilities as they fall due throughout the going concern period.

Consequently, the directors are confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of issue of these interim financial statements and the interim financial statements have therefore been prepared on a going concern basis.

The interim financial information has been prepared in accordance with the accounting policies set out in the Group's 2024 annual financial statements. As permitted, these interim financial statements have been prepared in accordance with AIM rules and not in accordance with IAS34 'Interim Financial Reporting'.

Section 245 Statement

The comparative figures for the financial year ended 31 March 2024 are not the Company's full statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditor was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.

2. Segmental Revenue and Profit Analysis

Unaudite d - Six Months Ended 30 September 2024

	General Trading (Falkland Islands)	Ferry Services (UK)	Art Logistics and Storage (UK)	Unallocated	Total
	£'000	£'000	£'000	£'000	£'000
Revenue	6,114	2,324	9,715	-	18,153
Segment operating (loss) / profit before net financing costs	(6,312)	547	228	-	(5,537)
Non-trading items	-	-	(19)	-	(19)
(Loss) / profit before net financing costs	(6,312)	547	209	-	(5,556)
Finance income	12	12	16	-	40
Finance expense	(37)	(122)	(204)	(221)	(584)
Segment (loss) / profit before tax	(6,337)	437	21	(221)	(6,100)
Assets and liabilities
Segment assets	27,499	8,953	31,782	5,506	73,740
Segment liabilities	(8,741)	(6,483)	(16,899)	(855)	(32,978)
Segment net assets	18,758	2,470	14,883	4,651	40,762
Other segment information
Capital expenditure:
Property, plant and equipment	360	58	450	-	868
Investment properties	22	-	-	-	22
Computer software	25	-	12	-	37
Total capital expenditure	407	58	462	-	927
Depreciation and amortisation:
Property, plant and equipment	599	236	395	-	1,230
Investment properties	18	-	-	-	18
Computer software	-	-	16	-	16
Total depreciation and amortisation	617	236	411	-	1,264
Underlying profit / (loss)
Segment operating (loss) / profit before non-trading items	(6,312)	547	228	-	(5,537)
Finance income	12	12	16	-	40
Finance expense	(37)	(122)	(204)	-	(363)
Underlying (loss) / profit before tax	(6,337)	437	40	-	(5,860)

2. Segmental Revenue and Profit Analysis (Continued)

Unaudite d - Six Months Ended 30 September 2023

	General Trading (Falkland Islands)	Ferry Services (UK)	Art Logistics and Storage (UK)		Total
	£'000	£'000	£'000	£'000	£'000
Revenue	15,172	2,231	9,286	-	26,689
Segment operating profit before net financing costs	253	511	141	-	905
Non-trading items	-	(8)	-	-	(8)
Profit before net financing costs	253	503	141	-	897
Finance income	23	23	32	238	316
Finance expense	(46)	(130)	(215)	-	(391)
Segment profit / (loss) before tax	230	396	(42)	238	822
Assets and liabilities
Segment assets	34,862	9,321	31,355	5,031	80,569
Segment liabilities	(10,563)	(7,123)	(17,672)	(446)	(35,804)
Segment net assets	24,299	2,198	13,683	4,585	44,765
Other segment information
Capital expenditure:
Property, plant and equipment	706	176	236	-	1,118
Investment properties	5	-	-	-	5
Computer software	59	-	53	-	112
Total capital expenditure	770	176	289	-	1,235
Depreciation and amortisation:
Property, plant and equipment	421	225	475	-	1,121
Investment properties	102	-	-	-	102
Computer software	-	-	8	-	8
Total depreciation and amortisation	523	225	483	-	1,231
Underlying profit/(loss)
Segment operating profit before non-trading items	253	511	141	-	905
Finance income	23	23	32	-	78
Finance expense	(46)	(130)	(215)	-	(391)
Underlying profit / (loss) before tax	230	404	(42)	-	592

2. Segmental Revenue and Profit Analysis (Continued)

Year Ended 31 March 2024

	General Trading (Falkland Islands)	Ferry Services (UK)	Art Logistics and Storage (UK)	Unallocated	Total
	£'000	£'000	£'000	£'000	£'000
Revenue	29,028	4,177	19,255	0	52,460
Segment operating profit before net financing costs	1,766	856	1,394	0	4,016
Non-trading items	(53)	(8)	(310)	0	(371)
Profit before net financing costs	1,713	848	1,084	0	3,645
Finance income	38	38	49	-	125
Finance expense	(87)	(255)	(422)	(244)	(1,008)
Segment profit / (loss) before tax	1,664	631	711	(244)	2,762
Assets and liabilities
Segment assets	35,959	9,602	31,533	3,997	81,091
Segment liabilities	(10,916)	(6,757)	(17,568)	(764)	(36,005)
Segment net assets	25,043	2,845	13,965	3,233	45,086
Other segment information
Capital expenditure:
Property, plant and equipment	1,333	364	715	-	2,412
Investment properties	7	-	-	-	7
Computer software	-	-	51	-	51
Total capital expenditure	1,340	364	766	-	2,470
Depreciation and amortisation:
Property, plant and equipment	854	499	747	237	2,337
Investment properties	219	-	-	-	219
Computer software	-	-	20	-	20
Total depreciation and amortisation	1,073	499	767	237	2,576
Underlying profit/(loss)
Segment operating profit before non-trading items	1,766	856	1,394	-	4,016
Finance income	38	38	49	-	125
Finance expense	(87)	(255)	(422)	-	(764)
Underlying profit before tax	1,717	639	1,021	-	3,377

3. Non-trading Items

	Unaudited Six Months to 30 September 2024 £'000	Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
(Loss) / profit before tax as reported	(6,100)	822	2,762
Restructuring costs	19	8	228
Release of old credit balances	-	-	(167)
Prior year PAYE and National Insurance tax liabilities	-	-	310
Movement in fair value of derivative financial instruments	221	(238)	244
Non-trading items	240	(230)	615
Underlying (loss) / profit before tax	(5,860)	592	3,377

Restructuring costs relate to employee redundancies.

4. Finance Income and Expense

	Unaudited Six Months to 30 September 2024 £'000	Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
Bank interest receivable	40	78	125
Underlying finance income	40	78	125
Movement in fair value of derivative financial instruments	-	238	-
Non-trading finance income	-	238	-
Total finance income	40	316	125
Interest payable on bank loans	(193)	(208)	(403)
Net interest cost on the FIC defined benefit pension scheme liability	(37)	(46)	(87)
Movement in fair value of derivative financial instruments	(221)	-	(244)
Lease liabilities finance charge	(133)	(137)	(274)
Total finance expense	(584)	(391)	(1,008)
Net finance expense	(544)	(75)	(883)

1. Taxation

	Unaudited Six Months to 30 September 2024 £'000	Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
Current tax (credit) / charge	(84)	209	534
Adjustments to prior years	-	-	(202)
Deferred tax (credit) / charge	(1,643)	-	464
Total tax (credit) / expense	(1,727)	209	796

The current tax credit has been estimated on the basis of 25% and 26% of profits arising in the UK and the Falkland Islands respectively (September 2023: 25% and 26% of profits arising in the UK and the Falkland Islands respectively).

6. Earnings Per Share on Underlying Profit

To provide a comparison of earnings per share on underlying performance, the calculation below sets out basic and diluted earnings per share based on underlying profits.

	Unaudited Six Months to 30 September 2024 Number	Unaudited Six Months to 30 September 2023 Number	Audited Year Ended 31 March 2024 Number
(Loss) / profit on ordinary activities after taxation	(4,373)	613	1,966
Average number of shares in issue	12,519,900	12,519,900	12,519,900
Diluted weighted average number of shares	12,519,900	12,519,900	12,519,900
Basic earnings per share	(34.9)p	4.9p	15.7p
Diluted earnings per share	(34.9)p	4.9p	15.7p

To provide a comparison of earnings per share on underlying performance, the calculation below sets out basic and diluted earnings per share based on underlying profits.

	Unaudited Six Months to 30 September 2024 £'000	Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
Underlying (loss) / profit before tax (note 3)	(5,860)	592	3,377
Underlying taxation	1,722	(152)	(949)
Underlying (loss) / profit after tax	(4,138)	440	2,428
Basic earnings per share on underlying (loss) / profit	(33.1)p	3.5p	19.4p
Diluted earnings per share on underlying (loss) / profit	(33.1)p	3.5p	19.4p

7.  Employee Benefits

The Group's pension obligation, the Falkland Islands Company Limited Pension Scheme, is unfunded and therefore not subject to valuation volatility as a result of stock market fluctuations.

The Group's pension liability was recalculated under IAS 19 at 31 March 2024, using assumptions at that point in time. The movement in key inputs to the underlying calculation were immaterial in the interim period to 30 September 2024, and so the reported net liability remains the same, less payments made in the period.

8.  Cash and Cash Equivalents

	Unaudited 30 September 2024 £'000	Unaudited 30 September 2023 £'000	Audited 31 March 2024 £'000
Cash and cash equivalents in the balance sheet	8,480	9,184	9,650

	Unaudited Six Months to 30 September 2024 £'000	Unaudited Six Months to 30 September 2023 £'000	Audited Year Ended 31 March 2024 £'000
Net decrease in cash and cash equivalents	(1,170)	(3,616)	(3,131)
Exchange gains / (losses)	-	-	(19)
Net decrease in cash and cash equivalents after exchange losses	(1,170)	(3,616)	(3,150)
Bank loan repayments	503	459	929
Other non-cash changes	-	(118)	(258)
Lease liabilities repayments	201	368	681
Decrease in interest bearing loans and borrowings	704	709	1,352
Net increase in debt	(466)	(2,907)	(1,798)
Net debt brought forward	(8,732)	(6,934)	(6,934)
Net debt	(9,198)	(9,841)	(8,732)

Net debt

Cash balance	8,480	9,184	9,650
Less: Total interest-bearing loans and borrowings	(17,678)	(19,025)	(18,382)
Net debt	(9,198)	(9,841)	(8,732)

9.  Interest-bearing Loans and Borrowings

	Unaudited 30 September 2024 £'000	Unaudited 30 September 2023 £'000	Audited 31 March 2024 £'000
Non-current liabilities
Secured bank loans	10,846	11,796	11,363
Lease liabilities	5,264	5,669	5,484
Total non-current interest-bearing loans and lease liabilities	16,110	17,465	16,847
Current liabilities
Secured bank loans	979	1,001	963
Lease liabilities	589	559	572
Total current interest-bearing loans and lease liabilities	1,568	1,560	1,535
Total liabilities
Secured bank loans	11,825	12,797	12,326
Lease liabilities	5,853	6,228	6,056
Total interest-bearing loans and lease liabilities	17,678	19,025	18,382

10.  Capital Commitments

At 30 September 2024, the Group had capital commitments of £213,000 which had not been provided for in the financial statements, all within Momart.

At 30 September 2023, the Group had capital commitments of £447,000 which had not been provided for in the financial statements, comprising £408,000 in Momart and £39,000 in PHFC.

Directors					Registered Office
Nick Henry	Non-executive Chairman				Kenburgh Court
Stuart Munro	Chief Executive				133-137 South Street
Reuben Shamu	Chief Financial Officer				Bishop's Stortford
Rob Johnston	Non-executive Director				Hertfordshire CM23 3HX
Dominic Lavelle	Non-executive Director				E: admin@fihplc.com
Holger Schröder	Non-executive Director				W: www.fihplc.com
					Registered number 03416346
Company Secretary
AMBA Secretaries Limited
Corporate Information
Stockbroker and Nominated Adviser Zeus Capital Limited 24 Martin Lane, London EC4R 0DR
Solicitors Shoosmiths LLP 1 Bow Churchyard, London EC4M 9DQ
Auditor Grant Thornton UK LLP 103 Colmore Row, Birmingham, Birmingham B3 3AG
Registrar Link Group 10th Floor Central Square, 29 Wellington Street, Leeds LS1 4DL
Financial PR Novella Communications South Wing, Somerset House London WC2R 1LA
The Falkland Islands Company Stuart Munro, Director T: 00 500 27600 E: info@fic.co.fk W: www.falklandislandscompany.com			The Portsmouth Harbour Ferry Company Adam Brown, Director T: 02392 524551 E: admin@gosportferry.co.uk W: www.gosportferry.co.uk			Momart Limited Alison Jordan, Director T: 020 7426 3000 E: enquiries@momart.com W: www.momart.com

www.fihplc.com

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