9 September 2021        
 

FIH group plc

("FIH" or the "Group")

AGM Statement

FIH, 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") today.

At the meeting, Chairman, Robin Williams, will make the following statement and trading update covering the period 1 April 2021 to 31 August 2021:

"Despite the adverse effects of Covid-19, particularly upon our UK businesses, a resilient trading performance in the Falkland's allowed the Group to record a small pre-tax profit for the full year to 31 March 2021.

Cash flow remained positive and the Group retained significant cash balances at year end of £14.6m and £9.6m at 30 June 2021 following the repayment of the £5m Government CBILS Loan. With a continuing focus on cash management, the Group's cash reserves remain strong.

With the gradual easing of UK lockdown restrictions, trading in the Group's UK businesses in the first 5 months of the new financial year has seen a gradual improvement and the Falkland Islands Company ("FIC") has continued to trade profitably in the traditionally quieter months of the austral winter.

At the Group's ferry business, the Portsmouth Harbour Ferry Company ("PHFC"), passenger volumes have steadily improved over the summer. In April, passenger numbers were still only at 45% of pre-Covid levels but by August, numbers had risen to over 75%, enabling a return to modest profitability. As public confidence continues to grow and workers return to their offices, we expect to see further improvement.

At Momart, the Group's fine art handling business, art fairs scheduled for late spring and the summer have been deferred until the early autumn whilst UK new museum exhibitions have been cut back due to ongoing restrictions on visitor numbers and a continuing absence of tourists. However, there has been increasing activity in the commercial art market supported by online trading from auction houses and virtual shows by galleries. In overall terms we expect to see an improving picture in Momart's traditionally stronger second half.

A stronger illex squid catch in April and May and ongoing construction contract work from the Falkland Islands Government has helped support trading at FIC despite the continuing quarantining of the Islands and absence of commercial flights and cruise ships to enable tourism. These restrictions are expected to remain in place until at least Spring 2022, but once lifted, with increasing government spending and the steady development of tourism, we are confident of the trading future for FIC.

In overall terms, current trading for the Group is in line with the Board's expectations. Initial losses in the UK in the early months of the new financial year due to the effects of lockdown will restrict recovery in the first half. However, as confidence levels continue to improve, this and the normal seasonal weighting of both FIC and Momart, together with the benefits from having significantly reduced our cost base, should see an accelerating recovery in the second half, albeit we do not anticipate a return to pre-Covid levels of trading until well into 2022."

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