LONDON (Alliance News) - Falkland Islands Holdings PLC shares dropped on Friday after it said it would suspend its dividend payments until further notice, as the company said it expects a fall in underlying pretax profit for the year to the end of March, with a good performance in the second half for its Falkland Islands Company business but lower activity levels at its Momart art handling and logistics unit.
Falkland said it expects a small fall in underlying pretax profit for the year to March 31 and said it will suspend its dividend payments in order to take advantage of emerging opportunities for acquisitions.
The company said its Falkland Islands Co business was boosted in the 2015 financial year by an improved economy in the Falkland Islands. It expects to show good year-on-year growth and expects more growth to emerge in the coming financial year.
But at Momart, sale revenue and margins came under pressure amid a competitive UK and international market. The group has invested in marketing and management information systems this year and expects this to drive an improvement in the next financial year.
For its Portsmouth Harbour Ferry Co, passenger numbers were down around 2%, despite a general improvement in the local economy, with trading profit to fall as fare increases failed to offset the lower passenger volumes.
Shares in the company were down 9.5% to 255.55 pence in early trade, one of the worst performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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