FIH Group PLC AGM Statement (2084Z)
17 Settembre 2020 - 8:00AM
UK Regulatory
TIDMFIH
RNS Number : 2084Z
FIH Group PLC
17 September 2020
17 September 2020
FIH group plc
AGM Statement
FIH group plc ("FIH", "the Company" or the "group"), the AIM
quoted international services group that owns essential services
businesses in the Falkland Islands and the UK, is holding its
Annual General Meeting ("AGM") at its offices at Kenburgh Court,
133-137 South Street, Bishop's Stortford, Hertfordshire CM23 3HX at
2.00 p.m. today.
At the meeting, Chairman, Robin Williams, will make the
following statement:
"On behalf of the board, I am pleased to welcome shareholders to
the FIH group AGM which due to the coronavirus restrictions is
being held virtually.
The group's results for the year to 31 March 2020 were published
in late June and showed a satisfactory underlying trading
performance. In the Falklands, FIC produced record profits, up 37%
compared to 2019, and in the UK both the group's businesses
delivered solid profits despite the impact of Covid-19 in the last
weeks of the financial year. Liquidity remained strong and the
group ended the year with healthy closing cash balances of
GBP9.1million.
Cash Position
Since 31 March 2020, the group has maintained an active focus on
cash management and the group's liquidity position remains strong.
On 30 June, GBP5.0 million was drawn-down from the government's
Coronavirus Business Interruption Loan Scheme to add to our cash
reserves and at the end of August 2020 the Group had GBP14.1
million of cash.
Trading
From the start of the current financial year, trading has been
adversely affected by the impact of Covid-19 with a significant
loss of revenue in both UK businesses. At our ferry business, PHFC,
passenger traffic dwindled to a small number of essential workers
and at the Group's fine art handling business, Momart, although
storage revenues held up well, art handling revenue dried up to
virtually zero as the commercial art market and museums both at
home and abroad closed down for several months.
With the gradual easing of lockdown restrictions, revenue in
both businesses is steadily recovering but remains well below prior
year levels. Timely cost cutting actions have mitigated the effects
of lost revenue and full use has been made of the UK government's
excellent furlough scheme, but nonetheless, significant losses have
arisen in the UK businesses in the first 5 months of the new
financial year. At Momart which saw almost no new client
commissions in the first quarter and where the prospects for a
rapid recovery look uncertain, a programme of redundancies over the
summer has reduced the company's headcount by 25% down to 100
staff.
At PHFC the ferry service was maintained throughout the lockdown
and in July the company was successful in securing limited but
welcome grant assistance from local government.
Reflecting reduced demand, and to save costs the company has
ceased operating its second peak period vessel. However, passenger
numbers have been recovering steadily since Lock-down and by August
had reached 50% of prior year levels. With the return of children
to school in September and a wider return to work in local
businesses we hope to see further growth in volumes that will move
the company back to profitability. The position is being kept under
close review as financial support from central government's
furlough scheme reduces and finally ceases at the end of October.
If losses do not recede, further restructuring at the ferry cannot
be ruled out.
In contrast in the Falklands where initial infections were
brought quickly under control, profitable trading has been
maintained. Retail sales have remained strong and house building
has continued after a brief hiatus but these positive developments
have been largely offset by a poor illex squid catch and weaker
demand for local support services. The cessation of commercial air
services to and from the Islands and the necessary quarantine
measures that have been put in place to protect the local community
mean the prospects of the normal seasonal uplift for the Falklands
economy from tourism in the austral summer now look unlikely. With
the fall in oil prices brought about by the pandemic, on 20 August
Premier Oil announced that further development of Sea Lion would be
temporarily suspended and as a result prospects for the imminent
development of oil in the Falklands have receded. Taken together,
we still expect the Falklands to make a profitable contribution to
the Group for the year but it is unlikely to reach previous
levels.
Dividend
As previously announced, the final dividend for the year to 31
March 2020 was cancelled and the board is not proposing an interim
dividend for the current year.
Outlook
We still expect to record a loss for the financial year, though,
before the costs of redundancies, at a lower underlying level than
when we reported to shareholders in June. In the second half, with
recovering revenues we hope to see the UK operations reduce losses
and move back steadily towards monthly profitability. However, the
rate of progress is hard to predict not least because of the
potential for second spikes in the virus and further lock-downs or
the arrival of a vaccine. At this juncture, the outlook for the
financial year remains necessarily uncertain although the Group's
UK businesses are secure and absent further setbacks are steadily
recovering. We hope to be able to give shareholders a clearer
picture when the group's Interim results for the 6 months to 30
September are published in mid-November.
- Ends -
Enquiries:
FIH group plc
John Foster, Chief Executive Tel: 01279 461630
WH Ireland Ltd. - NOMAD and Broker
to FIH Tel: 0207 220 1666
Adrian Hadden / Jessica Cave
--------------------------
Novella Communications
Tim Robertson / Chris Marsh Tel: 020 3151 7008
--------------------------
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