Business
Results for the six months to 30 September 2020
Results for the six months to 30 September 2020.
About this update from Fih Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0545F\n FIH Group PLC\n 12 November 2020\n \n \n \n 12 November 2020\n FIH group plc\n (\"FIH\" or the \"Group\")\n Results for the six months ended 30 September 2020\n FIH, the AIM quoted Group that owns essential services businesses in the UK and Falkland Islands, is pleased to announce its unaudited results for the six months ended 30 September 2020 (\"the period\"). Comparisons shown below are for the same period in 2019 unless otherwise stated.\n \n Resilient performance despite impact of Covid-19\n \n \n Financial Highlights\n \n · Group revenue reduced by £5.0 million to £14.4 million (2019: £19.4 million) due to the impact of Covid-19 on our UK businesses (the Falkland Islands have been Covid-19 free);\n \n · Pre-tax loss limited to £0.2 million (2019: profit before tax of £1.3 million) after including initial restructuring costs of £0.1 million from the cost reduction programme in the UK;\n \n · Falkland Islands Company (\"FIC\") operations saw revenue growth and increased profitability;\n \n · UK businesses were adversely affected by Covid-19 but moved back into profit by late summer;\n \n · H1 restructuring costs were £0.1 million and further £0.4 million incurred to date in H2; Total cost reductions from restructuring expected to generate ongoing annual savings of £1.6 million from November 2020;\n \n · Bank borrowings at 30 September 2020: £20.6 million (31 March 2019: £15.7 million) including an interest free £5.0 million CBILS loan, drawn down in June 2020 to provide additional insurance and a £13.5 million commercial mortgage on a freehold property at Leyton;\n \n · Positive net cash flow from operations of £0.3 million, despite pre-tax losses;\n \n · Closing cash balance at 30 September 2020: £14.4 million (31 March 2020: £9.1 million);\n \n · Dividend temporarily suspended until sufficient profitability restored.\n \n \n \n Outlook\n \n · UK lock-down will hit short term revenue but restructuring actions already taken will help to minimise impact;\n \n · FIC profitability set to continue as Islands remain virus free;\n \n · Newly imposed lock-down will reverse progress in short term and see a return to losses in H2;\n \n · Cash resources give Group resilience and strategic flexibility;\n \n · UK businesses remain fundamentally sound and are expected to return to ...