LONDON (Alliance News) - Falkland Island Holdings PLC Monday said profits in its recently completed financial year were driven by good revenue growth, and a record year of trading for its art storage business.
The AIM-quoted group that provides essential business services in the Falkland Islands and the UK, said it remains confident of its growth prospects for its business in the medium term, supported by a further reduction in bank borrowings and an increase in cash on hand.
"Together with significant further borrowing capacity, the group has significant capacity to exploit opportunities over the medium term," the company said in a statement.
Falkland Island Holdings posted a pretax profit of GBP3.4 million for the year ended March 31, compared with a pretax profit of GBP2.8 million the prior year, which it said was boosted by a 7.5% increase in revenues to GBP38.3 million, up from GBP35.6 million a year earlier.
The group said revenues were up 4.3% at The Falkland Islands Co, although profits were down on last year within the division due to the absence of an offshore drilling campaign.
The Falkland Islands Co's business activities include retailing, property, insurance, hotels shipping and fishing agency services.
Revenues and profits at Falkland Island Holding's fine art and antiquities handling and storage business Momart saw strong growth in the year, supported by a strong roster of exhibitions and high capacity levels. The group acquired Momart in March 2008.
"Momart delivered a record year as it benefited from the strength of the international art market, supporting prestigious exhibitions and utilising a high level of capacity in gallery services and storage," the company said in a statement.
In the UK, the group operates a passenger ferry service across the mouth of Portsmouth harbour, Portsmouth Harbour Ferry Co. Falkland Islands said that the trading performance of the business was boosted by a significant improvement in the underlying trend of passenger numbers. It also said that construction is now well advanced on a third modern ferry vessel, to be called Harbour Spirit, which is due to enter service in early 2015.
The company, which also owns a 2.4% stake in Falkland Oil & Gas Ltd, said the market value of its investment in the business was broadly unchanged at GBP3.3 million at March 31. Falkland Oil & Gas is embarking on a 2015 drilling campaign, which includes five well in which it holds an interest.
"Falkland Oil & Gas already has funding for the campaign which has the potential to transform the value of the company," the company said.
Falkland Island Holdings shares were down 0.7% at 350.00 pence per share Monday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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