FIH makes £1.9 million

26/06/2008 Robert Tyerman

International services group and oil play Falkland Islands Holdings made £1.91 million pre-tax in the year to March.

The diversified AIM-quoted group, whose interests include retail and fishing in the Falkland Islands, Portsmouth Harbour Ferry, leading fine art handler Momart and 16.3 per cent of Atlantic explorer Falkland Oil & Gas, increased turnover 10.1 per cent to £17.2 million in 2007-08. Pre-tax profits showed a modest fall from the previous year’s, which had been swollen by a £490,000 investment sale gain; ‘underlying’ profits, before tax, goodwill amortisation and exceptional items, rose 17.6 per cent to £1.94 million.

Local Falkland Islands turnover rose 2.8 per cent to £12.6 million, helped by a good Illex squid catch, and Portsmouth Harbour Ferry increased revenues five per cent to £3.5 million. The company bought Momart for £10.3 million close to the end of its financial year, but still derived £1 million revenue from the acquisition.

What investors are chiefly waiting for is drilling results from Falkland Oil & Gas (FOGL), which agreed a farm-in deal with mining giant BHP Billiton in October. The company says exploration drilling is expected to start before the end of 2009.

Recommended by Growth Company Investor at 400p in April, Falkland Island shares have now reached 447.5p, valuing the company at £40.8 million. Hold on.

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