11th Jun 2019 12:00
(Alliance News) - Falklands-focused retail and logistics firm FIH Group PLC boosted its annual dividend Tuesday as profit widened on lower costs despite revenue struggling.
For the year ended March, pretax profit widened 18% to GBP3.9 million from GBP3.3 million the year prior as costs subsided. This was despite revenue falling 3.0% to GBP42.5 million from GBP43.8 million the year before.
"It is a pleasure to report another encouraging year for FIH group, with a steady increase in underlying pretax profits, and resilient trading at all three operating businesses," FIH Chief Executive Officer John Foster said. "It has been a year of strategic investment to enhance the group's position for further growth whilst at the same time the group has maintained a strong cash position."
"In the Falkland Islands, the group took advantage of an expected and temporary hiatus in house building to develop its rental property portfolio whilst a stronger performance from Retail and Support Services helped FIC maintain a continuing increase in profits," Foster added.
"At PHFC, revenues were essentially unchanged but careful management helped mitigate local external challenges," Foster continued. "At Momart, increased demand for its own added value services resulting in a richer sales mix, helped strengthen margins further."
Its Falkland Islands Co business saw revenue fall 3.9% to GBP17.6 million on the year prior. Its art transport firm Momart also saw revenue decline 2.9% to GBP20.6 million. Meanwhile, its Portsmouth Harbour Ferry Co experienced a 0.4% revenue rise to GBP4.4 million as the decline in passenger numbers slowed.
FIH proposed a 3.35 pence per share final dividend, up 12% from 3.0p the year prior. For the full year, the dividend rose 11% to 5.0p from 4.5p the year before.
"With our strong cash position, we will focus on maximising growth opportunities within the group, while remaining open to suitable acquisition opportunities and we are confident that we are well-positioned for the year ahead."
Shares in FIH were up 1.0% at 316.22 pence on Tuesday.
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