FKL.L Share News (FKL)

(ShareCast News) - Shares in Falkland Islands Holdings sank to their lowest in more than a decade after it set out plans to increase its UK focus due to the effect of low oil prices on its eponymous business, and warned annual profits would be at least 10% lower than the previous year due to investment in its fine art arm.Anticipating quieter trading in the Falklands due to the impact of low oil prices, the AIM-listed company said it planned to use some of its £10m net cash and "untapped borrowing capacity" to swing its focus on its UK businesses in the short-term and perhaps make some "high quality acquisitions".Management said the strategy was "aimed at creating a larger quoted entity with a wider appeal to investors that will in turn enhance shareholder liquidity and the Group's rating".But for the current operations in the year to 31 March, the second half was lower compared to the prior year in line with undemanding expectations.Underlying profit before tax for the full year was said to be likely to fall 10-15% from the previous year to around £3.0-£3.2m.This profits decline was principally blamed on the reduced contribution from the UK art transport and storage business Momart, where investment in marketing and sales infrastructure has mingled with continuing competitive pressure in a slowing global art market.Also in the UK, the Portsmouth Harbour Ferry Company saw 3.3% lower passenger numbers, described at "broadly satisfactory".The Falkland Islands Company, a provider of services on the South Atlantic islands ranging from retailing to walking tours, however made a record contribution but is expected to tail off in light of a lower squid catch, increased retail competition and a reversion to the more normal "pre-oil" levels seen in prior years."In the Falklands, we remain confident about FIC's exceptional long term potential following a recovery in the oil price and in the near term we have a healthy profitable business that has little immediate need for heavy further investment," said chairman Edmund Rowland."In the UK, the group continues to benefit from its two established specialist services businesses, Momart and PHFC, and beyond this solid base we see further opportunities to develop the scale of the group's activities through selective, focused acquisitions and organic growth. I look forward to updating the market on our growth strategy as the year progresses, as we seek out opportunities that will create an enhanced platform for sustainable long term growth."FKL shares dropped 10% to 184.95p, their lowest since 2003, allowing for the 1-100 consolidation in August 2013.