20th Nov 2018 11:22
LONDON (Alliance News) - Falklands-focused retail and logistics firm FIH Group PLC hiked its interim dividend Tuesday, despite profit and revenue both falling amid weakness across its three main businesses.
For the six months ended September, pretax profit narrowed 3.6% to GBP1.35 million from GBP1.40 million the year prior. This was after revenue dipped 4.4% to GBP19.6 million from GBP20.5 million the year before.
"Overall, we are pleased with the first half performance of FIH, maintaining profits in a period where we have made investments to support future growth, and in which there have been external challenges to trading in the Falkland Islands and at PHFC offset by a continued improvement in trading at Momart," FIH Chief Executive Officer John Foster said.
Its Falkland Islands Co business saw revenue fall 7.1% to GBP8.0 million on the year prior. Meanwhile its Portsmouth Harbour Ferry Co also experienced a 1.6% revenue fall to GBP2.3 million as passenger numbers dropped 4% on the year before, being partly offset by a rise in prices. Its art transport firm Momart also saw revenue decline 3.3% to GBP9.3 million.
"The group's cash position remains strong, and in line with its strategy, the board continues to consider acquisition opportunities," Foster added.
Cash stood at GBP15.6 million, up 4.0% from GBP15.0 million the year prior.
"As part of making preparations for the potential production of oil in the Falklands, the group looks forward to participating in the tender for onshore facilities in the second half," Foster said. "A final investment decision on the development of Sea Lion from licence holder, Premier Oil, is expected by the middle of 2019."
FIH proposed a 1.65 pence per share interim dividend, up 10% from 1.5p the year prior.
"With overall profits on a par with the prior year, the group is well placed to deliver another satisfactory set of results in the traditionally stronger second half, and the board looks forward to the future with confidence."
Shares in FIH were 1.8% higher at 294.54 pence on Tuesday.
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