FIH Expects Profit Materially Ahead Of Prior Year On Improved Trading

8th Mar 2018 10:23

LONDON (Alliance News) - Investment company FIH Group PLC said Thursday it expects full-year prodit ahead of market expectations after improved trading at its Falkland Islands business as well as at its art storage subsidiary.

For the ten months ended January, trading had been at a level which has led the company to expect underlying pretax profit to be higher than previously anticipated and "materially" ahead of the prior year's GBP2.4 million.

This was, FIH explained, ahead of market expectations and "follows improved second-half trading particularly at the group's fine art handling subsidiary, Momart, and in the Falkland Islands."

All three of FIH's trading businesses showed "encouraging" progress with increased margins and revenue. As well as Momart, FIH also owns the diversified business Falkland Islands Co Ltd and Gosport ferry operator Portsmouth Harbour Ferry Co Ltd.

FIH did caution, however, that UK-based Momart revenue had been impacted by the loss of two clients. Annual storage income of GBP300,000 was associated with these clients. As a result, Momart will start the new year in April in a similar place as in April 2017 with "significant" un-let space and fixed costs of GBP500,000.

"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," FIH added.

FIK maintained its outlook for the new financial year remains "positive".

"Recent progress has been 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 is adding to hopes of oil development in the Islands in the medium term," FIH explained.

Shares in FIH were 5.3% higher at 309.50 pence on Thursday.

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