AGM Statement

13 Sep 2006 12:19

Falkland Islands Holdings PLC13 September 2006 Falkland Islands Holdings plc("FIH", "the Company" or "the Group") AGM Statement and Trading update The following comments were made by Falkland Islands Holdings Chairman, DavidHudd, at the Company's Annual General Meeting, held at 11.15 am today: "The Group's operations in the Falklands Islands have continued to producesatisfactory results. Fishing support services made a stronger start to the yearfollowing improved catches of Illex squid in April and May whilst insurancebroking and property rentals, have continued to make progress. A programme ofrefurbishment has been undertaken at the Upland Goose Hotel to enhance itscustomer appeal in readiness for the Austral summer. Retailing operations haveperformed satisfactorily during the winter period. The Group's DIY business hassuffered from a slowdown in building activity in the Islands and has also beenfaced by stronger local competition. However, the shortfalls seen in DIY saleshave been offset by encouraging growth in sales at the West Store supermarketwhich continues to expand its product range and at the end of August overallretail sales were marginally ahead of 2005. The Portsmouth Harbour Ferry Company is performing well and after adjusting forthe boost provided to last year by the maritime festivals, passenger numbers arein line with our expectations and prior year levels. In the absence of thefestivals, revenues from leisure cruising has declined and these loss makingactivities are being discontinued to release capacity which will allow theextension and improvement of ferry services. The exploration activities of Falkland Oil and Gas ("FOGL") and Falkland Goldand Minerals ("FGML"), in which the Group has a 16.3% and 14.4% shareholdingrespectively, have continued to make good progress. FOGL has completed its second 2D seismic programme and has now recorded 22,450km of seismic, mapping over 100 prospects and leads. A programme of ControlledSource Electro-Magnetic surveys and infill 2D seismic is now planned to gradeand reduce the risk profile of the prospect inventory, in preparation for theselection of drilling locations. Concurrently, discussions with potential thirdparty participants and exploration partners are being progressed. FOGL'sobjective is to commence drilling in 2008 and a number of potential rig optionsare being evaluated. FGML is now well into its second year of exploration on the Islands. Its workprogramme which involves ground magnetic, sampling and trenching and drillinghas continued through the winter and is likely to continue well into 2007. Theprogramme will be funded from FGML's existing cash resources. Your Board is confident that the level of underlying profitability will bemaintained in the current year." 13 September 2006 Enquiries: Falkland Islands HoldingsDavid Hudd, Chairman Tel: 07771 893 267John Foster Managing Director Tel: 07710 764 556 College Hill Tel: 020 7457 2020Nick Elwes www.fihplc.com This information is provided by RNS The company news service from the London Stock Exchange