FKL.L Share News (FKL)

Falkland Islands Holdings, the AIM-quoted retail, transport and logistics services group with an 8.2% stake in Falkland Oil and Gas Ltd, says that trading in the year ended 31 March has been ahead of expectations, and underlying pre-tax profits will be around £2.7m, a similar level to the previous year."I am pleased to report a good overall performance from the group," said chairman David Hudd.Its Falklands business activities - conducted by the Falkland Islands Company (FIC) - have seen retail sales jump 21% to a record result, despite increased shipping costs and lower profits from property disposals, as the performance was boosted by the "economic benefits of oil exploration activity in the Falkland Islands".Increased fares and cost control meant that its ferry operating division, Portsmouth Harbour Ferry, could offset a 2.7% decline in passenger numbers. However, its fine art and antique business Momart has seen revenues and margins fall at its UK Exhibitions division as a result of challenging market conditions."Looking forward, FIC will continue to benefit from oil exploration around the Islands which should compensate for the more testing economic conditions impacting our UK businesses," Hudd said.The group does not expect the total dividend to be less than the 9p per share paid previously.---bc