LONDON (Alliance News) - Falkland Island Holdings PLC Monday said its pretax profit increased slightly in its first half as increased sales at the company's London-based Momart operations offset increased costs at its Falkland operations.
The international services group, which focuses on transport and logistics, said its pretax profit increased 9.1% to GBP1.2 million for the six months ended September 30 from GBP1.1 million the previous year.
The company said its sales increased 4.4% to GBP17.2 million from GBP16.5 million, as Falkland saw a 12% increase in sales at its London-based art storage and transport company Momart to GBP8.2 million, but much of this was offset by a 2.7% decline in sales to GBP6.8 million from GBP6.9 million at the company's flagship Falkland Islands retailing, property and transport services organisation, Falkland Islands Company.
The company said its administrative expenses increased 11% to GBP6.0 million from GBP5.4 million as trading inventories increased to support the company's housebuilding in Stanley, increased vehicle sales, and strong sales growth at builders merchant Home Builder.
Falkland Island Holdings has a 4.0% holding in Falkland Oil & Gas Limited and said that FOGL's joint venture with Desire Petroleum PLC in the North Falkland Basin should have a positive impact on profitability. Falkland noted it will have exposure to a five-well drilling programme expected to commence in late 2014.
The company said it expects near-term growth prospects to be slow until onshore oil services activity gains momentum but that medium- to long-term growth prospects remain exceptional.
Falkland held its interim dividend unchanged at 4.0 pence per share.
Falkland Island Holdings shares were down 0.4% to 366.00 pence in early trading Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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