FIH underlying pre-tax profits to be 20-25% down

FIH group has warned that full-year underlying pre-tax profits were likely to be 20-25% lower than last time and in the range of £2.3m-£2.5m.

It said this was principally due to the reduced contribution from the group's Falklands operations.

The group said that as outlined in its update of 14 March, trading in the second half was stronger than originally anticipated, although, as expected, profitability was still significantly lower than in H2 last year due to the quieter trading in the Falklands.

The group said its cash flow during the year was strong.

After capital investment of over £1.6 million, principally to support long term expansion at Momart, FIH ended the year with record cash balances of £15.1 million, an increase of over £1 million compared to 31 March 2016 (£14.0 million).

Chairman Edmund Rowland said: "The group has delivered a satisfactory trading performance, reflecting the much quieter trading conditions which were expected in the Falklands and the solid performance of the group's UK businesses, which both saw improved profits compared to the prior year.

"With record cash balances of £15.1 million and net cash of £11.3 million, giving net cash per FIH share of 90 pence per share, the Group's financial position and prospects remain strong.

"As Chairman, I remain committed to delivering sustainable long term growth in shareholder value by investing in the strong niche businesses the Group already has and by delivering on our promise of securing high quality selective acquisitions.

"In line with this commitment, the Board will be consulting over the coming period with shareholders as to the benefits of a potential return of excess capital and details of our proposals will be made public in the coming weeks, prior to the announcement of the Group's full year results on Tuesday 13th June.

"In the meantime we will immediately commence a process to appoint an experienced independent Non-Executive Director to further strengthen the Board.

"I look forward to updating the market on our growth strategy as the year progresses, as we seek out opportunities that will create an enhanced platform for sustainable long term growth."

At 9:55am: (LON:FIH) FIH Group Plc share price was 0p at 307p