4th Mar 2019 09:42
LONDON (Alliance News) - Shares in FFI Holdings PLC fell two-fifths Monday after reporting its two largest units had experienced weaker performances in the second half, with the company now expecting annual profit to fall as much as half on the year prior.
Shares in FFI were 38% lower at 13.95 pence on Monday. FFI provides legal and monitoring services to the entertainment industry to help get films to screen, from production through to post-production.
The firm explained it has been experiencing a "significantly slower second half" performance for the year ending March for its largest Completion Contracts business. This had been "primarily" a result of "timing of closing current deals, a decrease in average production size, lack of larger production titles and reserves for possible claims, the details of which are still be worked out."
FFI added that its second biggest unit - Insurance Agency - was also impacted by a "delay in certain larger production titles." These were originally scheduled in the first quarter of calendar 2019 but are now anticipated in the second quarter of 2019.
For the six months ended September, Completion Contracts was its largest unit by revenue by contributing USD16.8 million - or 37% - of its total USD45.6 million revenue. Its Insurance Agency unit was its second largest, generating USD10.9 million or 24% of total revenue.
In total, this is expected to impact earnings before interest and tax by around USD6 million. For the year ending March, FFI now anticipates underlying Ebit between USD7.5 million and USD11.5 million. This is down between 55% to 31% from the USD16.6 million reported the year prior.
For the year ended March 2018, FFI reported pretax profit of USD5.3 million on revenue of USD58.9 million.
Related Shares:
FFI.L