FIH Group plc · LSE:FIH
FIH — Falkland Islands Holdings — FY2005 Earnings Presentation
18 slides from FIH's earnings presentation, July 2005
Slide 1: Falkland Islands Holdings plc
Falkland Islands Holdings plc David Hudd - Chairman John Foster - Managing Director Results for the 12 months ended 31 March 2005
Slide 2: Falkland Islands Holdings – Investor presentation
Falkland Islands Holdings – Investor presentation Results to 31 March 2005 Page Overview - FIH Group 3 Results – Group Profitability 4 - FIH 5-6 - PHFC 7-9 - Balance Sheet, Cash Flow 10 -12 - Liquidity 13 Associated Companies - Falkland Oil and Gas 14-15 - Falkland Gold and Minerals 16 Strategy 17 O
Slide 3: FIH – Key Achievements of Transformational year
FIH – Key Achievements of Transformational year • Purchase UK Ferry business - PHFC – – Attractive price – cost £7.5m .Historic PER 10.0x – New ferry in service – strong cash flow • Float Falklands Oil & Gas ( FOGL ) - raised £12m Oct 2004 , +£10m in June 2005 – Operations expanded & funded through
Slide 4: FIH Group Profitability
FIH Group Profitability Year to Year to 31 March 2005 31 March 2004 Change £000 £000 +/- Turnover 12,754 11,082 +15.1% Trading Profit 1,490 1,143 + 30.3% Head Office costs (533) (283) Goodwill amortisation (65) -- Operating Profit 892 860 +3.7% Interest 6 (13) Profit Before Tax 898 847 + 6.0% EPS -
Slide 5: Falklands Ops Only – Comparative Performance
Falklands Ops Only – Comparative Performance Fklds Fklds PHFC Ops Ops (Post Acq) 2005 2004 Change 2005 Year to 31 March £000 £000 £000 £000 Turnover 12,754 1,286 11,468 11,082 +3.5% PBITa 1,490 203 1,287 1,143 +12.6% Goodwill amortisation (65) (65) -- -- -- Head Office costs ( 533) - ( 533) (283) (
Slide 6: FIH Only - Operating Review - Y/e 31 March 2005
FIH Only - Operating Review - Y/e 31 March 2005 • Ahead £144k (+12.6%) at trading level – before UK Head Office costs • Retailing – strong performance – 2/3 of FIH revenues - increased sales and contribution with full year of new West Store extension. • Management Services – Increase in insurance co
Slide 7: Portsmouth Harbour Ferry Company- PHFC
Portsmouth Harbour Ferry Company- PHFC • FIH acquired control after hostile bid - 9 Dec 2004 • NTA £3.3m – Goodwill £4.2m –w/o over 20 years – w/o will end with IFRS • Company established 1883 • c4. Million Passenger journeys pa (£1.60 return fare ) • Issues : – Mgmt walked out day1 - New GM and FD
Slide 8: PHFC financial history - £’000
PHFC financial history - £’000 Years ended 31 December Turnover (Ferry Services) Group profit before tax and exceptionals 2,760 2,789 2,853 2,920 955 966 903 804 2,057 534 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 July 05 8
Slide 9: PHFC – Risks & Opportunities
PHFC – Risks & Opportunities • Risks: • (SHRT) - Rapid Transit Tram under harbour via tunnel (£150m cost ) – Rejected by govt July 2004 - Last ditch resubmission June 2005 – BUT Tram without tunnel linking to ferry is potentially a big upside. • Car parking charges – introduced by Gosport council No
Slide 10: FIH Balance Sheet
31 March 2005 31 March 2004 Change FIH Balance Sheet £000 £000 £000 Tangible Fixed Assets 8,501 3,552 4,949 Goodwill 4,136 -- 4,136 Exploration Assets * 900 278 622 Total Fixed Assets and Investments 13,537 3,830 9,707 Working Capital - Net (286) (91) (195) Cash 914 1,183 (269) Bank Loans (1,346) (2
Slide 11: FIH Only – Investment Property Assets in Falklands
FIH Only – Investment Property Assets in Falklands • Income producing – rent £172,000 pa – 17 houses and 5 flats in Stanley – 3 buildings let as offices in Stanley – 1 small retail complex at Mount Pleasant military base • Development Land – 4 sites in central Stanley zoned for Housing 20 units – 92
Slide 12: FIH Group -Cash flow
FIH Group -Cash flow 31 March 2005 31 March 2004 £000 £000 Operating profit 892 860 Depreciation 291 226 Amortisation goodwill 65 --- Working capital (524) 658 Interest / Tax / Dividends (586) (656) Net Cash Flow before investment 138 1,088 Capital expenditure (1,099) (503) Purchase of PHFC (5,673)
Slide 13: FIH Group – Net Borrowings and liquidity
FIH Group –Net Borrowings and liquidity 31 March 2005 31 March 2004 £000 £000 Bank Loans due within 1 year (515) (250) Bank loans due after I year (746) Unsecured Loan Notes (85) --- (1,346) (250) Cash 914 1,183 Net ( Borrowings ) / Cash (432) 933 Capital Gearing ( vs NTA £6.8m ) 6.3% Na Unutilised
Slide 14: Falkland Oil and Gas (FOGL)
Falkland Oil and Gas (FOGL) • Listed on AIM 14 October 2004 having raised £12m • Held as long term investment • Licences over 83,700 sq km – equivalent to 329 North Sea blocks – 33,700 with Hardman Resources (22.5%) – 50,000 100% interest awarded 7 December 2004 • FIH Shareholding 18.1% - – Book val
Slide 15: FOGL Regional Setting
FOGL Regional Setting July 05 15
Slide 16: Falkland Gold and Minerals (FGML)
Falkland Gold and Minerals (FGML) • Listed on AIM 9 December having raised £10m • David Hudd - deputy Chairman • Held as long term investment • FIH Shareholding 14.4% - 11,250,000 shares – Book value £0.2m – Value at 31 March £4.2m ( 37.75p per share ) – Value at 10 June £3.4m ( 30.0p per share ) •
Slide 17: FIH strategy
FIH strategy • Maximise profits from Falklands – MoD shipping opportunity – Property development – Insurance broking – Benefits of exploration activity on all activities • PHFC – Stabilise management- Done- New GM and FD recruited – Instigate profit improvement plan – Seek other related acquisitions
Slide 18: FIH Outlook
FIH Outlook • Falklands profits continue to be impacted by level of fishing catches which are likely to disappoint in 2005/6 • Benefit of exploration activity will be experienced progressively in Islands • PHFC acquisition will have positive impact on cash flow and earnings per share • PHFC likely t
Falkland Islands Holdings — FY2005 Earnings Presentation on 6ix