FIH Group narrows loss as Falkland profit offsets Momart struggles

FIH Group PLC on Friday reported a narrowed annual pretax loss driven by its Falkland Islands 70 House Contract.

FIH operates businesses in the Falkland Islands and the UK, including construction, ferries, and art storage.

Pretax loss was £300,000 for the financial year ended March 31, narrowed from £6.7 million a year earlier.

Underlying profit at FIH's Falkland Islands operation swung to £900,000, from a £7.4 million loss a year earlier. FIH said this was due "mainly to the in-year progress on the 70 House Contract" and the "substantial profit reduction recognised on this contract in the prior year."

The 70 House Contract is a £17.3 million construction project FIH won in 2021 to build 70 houses in the Falkland Islands.

Revenue was £37.4 million, up 2.2% from £36.6 million a year earlier. The increase reflected a £900,000 profit from the Falkland Islands operation, partly offset by a £600,000 loss at Momart.

The Falkland Islands government and the UK Ministry of Defence agreed on a resolution to the site's power supply issues, improving operational delivery. This allowed FIH to accelerate the 70 House Contract and recognise revenue from the project, following the substantial profit reduction recognised on the contract a year earlier, FIH said.

Meanwhile, Momart suffered "another challenging year for the fine art market", driven by conflict in the Middle East and mounting cost pressures. This resulted in lower museum, gallery and art fair activity, which had an "adverse impact on Momart's sales activity", FIH said.

FIH recommended a final dividend of 5.5p, unchanged from a year earlier.

Looking forward, FIH said 2026 had been "another challenging year across all divisions of FIC."

FIH said challenging trading conditions persisted at Momart, "but are being mitigated by a continued focus on client relationships and business development, as well as on process efficiency."

The company said its three-pronged strategy is to build a group at greater scale by "building profits of the existing businesses, investing in developing existing businesses and exploring potential for strategic acquisitions."

Chief Executive Stuart Munro said: "The board believes that the consideration for the proposed disposal of Momart provides fair shareholder value, given the current challenging market conditions in which it operates, and recent trading performance."

Shares were down 4.1% at 175.00 pence on Friday morning in London.

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