FKL.L Share News (FKL)

FKL.L Information

There is currently no data for FKL

Falkland Island Holdings tumbles after profit warning and strategy shift

Tue, 12th Apr 2016 10:25

(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.

More News

25 Nov 2013 07:59

AIM IN BRIEF: UBC Media Confirms Agreement To Acquire 7digital

4 Oct 2013 11:42

DIRECTOR DEALINGS: Falkland Islands Director's Holding Shares Reduced As His Children Turn 18

24 Sep 2013 12:42

DIRECTOR DEALINGS: Falkland Island Holdings Non-Executive Director Buys shares

20 Aug 2013 08:26

Tuesday broker round-up UPDATE

AMEC: Liberum Capital cuts target price from 1135p to 1120p and reiterates a hold recommendation. BAE Systems: Investec increases target price from 370p to 450p upgrading from hold to add. Bovis Homes Group: Deutsche Bank shifts target price from 900p to 901p and keeps a buy recommendation. Citi r

10 Jun 2013 10:35

Ice Age Art helps drive revenue rise at Falkland Islands

Group revenue rose 4.4 per cent to 35.6m pounds at AIM-listed international services group Falkland Islands in the year ended March 31st, underpinned in part by strong activity in the group's art-focussed business division. In its final results for the year, the group - which owns essential service

17 Apr 2013 10:32

STOCKS NEWS EUROPE-UK small caps off 0.2 pct at mid-session

UK small caps fall 0.2 percent, faring slightly better than their mid-cap and blue-chip counterparts, both off 0.5 percent. Shares in JD Sport Fashion fall 4.3 percent as the British retailer post a 20 percent fall in full-year profit, hit by operating losses from its Blacks Leisure acquis

17 Apr 2013 10:23

Falkland Islands Holdings to report fall in annual profits

Falkland Islands Holdings, a British conglomerate which owns logistics, warehouses and retail outlets on the islands, expects to report a fall in annual profits. The company anticipates pre-tax profit of £3.0m for the year to March 31st 2013, compared to £3.2m a year earlier. The group said tradin

17 Apr 2013 07:20

Wednesday broker round-up UPDATE

African Barrick Gold: Deutsche Bank cuts target price from 230p to 173p, while its hold recommendation is reiterated. Ashmore Group: Morgan Stanley raises target price from 395p to 444p and maintains an equal-weight rating. Ashtead Group: Jefferies increases target price from 615p to 690o and reit

10 Dec 2012 16:25

Chamberlin Chairman invests 75k

Castings and engineering group Chamberlin announced on Monday that its Chairman has topped up his stake in the company twice over the couple of weeks. Keith Butler-Wheelhouse acquired a total of 44,500 Chamberlin ordinary shares through his family trust, BW Family Limited (BWFL), representing 0.56%

6 Dec 2012 14:07

Falkland Islands Holdings rises on oil hopes

Falkland Islands Holdings has risen despite producing uninspiring interims, with both revenues and profits virtually flat year-on-year. For the six months ended September 30th revenues were virtually unchanged at £16.5m, with pre-tax profits marginally up at £1.08m (2011: £0.99m). Divisionally, F

6 Jul 2012 15:59

ReThink Group CFO buys 1.4m shares

Steve Wright, the Chief Financial Officer of ReThink Group, has purchased more than 1.4m shares in the recruitment and technology services firm. Wright purchased the shares at 7.00p each and for a total of £100,000. The company's share price has fallen over 25% in the last year, equal to 2.62p.

14 Jun 2012 13:13

Falkland Islands Holdings raises funds

Falkland Islands Holdings, the AIM quoted international services group, has raised eight million pounds following a subscription for shares by Blackfish Capital, an investment fund. In addition, the company is making an open offer under which the company's existing shareholder can buy one open offe

6 Jun 2012 12:56

Profits rise at Falkland Islands but growth expected to slow

Falkland Islands, an international services group, offset news of a rise in both revenue and profits with warnings of a slowdown in growth. Underlying pre-tax profits for the year rose 18.7% from £2.73m to £3.24m, slightly higher than expectations of £3.0m, despite higher financing costs this tim

4 Apr 2012 08:50

Falkland Islands Holdings on a high

Shares in Falkland Islands Holdings were up on Wednesday after the firm said trading for the year was ahead of market expectations. The AIM-traded group which, amongst other things, operates a ferry service across the mouth of Portsmouth harbour, expects its total dividend payment to be at least 10

13 Jan 2012 10:04

Falkland Oil slides after discounted placing

Falkland Oil and Gas (FOGL), one of the firms hoping to discover substantial oil resources around the Falkland Islands, saw its share price sink after placing shares at a steep discount. The company has raised £48.5m through the placing of 112.8m shares at 43p per share, more than 7p below the mid-

Latest Share Chat

FKL.L Share News (FKL)

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Falkland Island Holdings tumbles after profit warning and strategy shift

Login to your account

Quickpicks are a member only feature

Login to your account