Falkland Islands Holdings

Falkland Islands Holding PLC
Public limited company
Traded as LSE: FKL
Industry Conglomerate Holding Company
Founded 1851
Headquarters Bishops Stortford, England
Area served
 England and Falkland Islands
Key people
  • Edmund Rowland (Group CEO/Chairman)
    Roger Spink (FIC CEO)
Revenue £18.24 Million (2014)
£3.57 Million (2014)
£2.63 Million (2014)
Total assets £57.07 Million (2014)
Total equity £35.38 Million (2014)
Number of employees
 306
Subsidiaries List of assets owned by Falkland islands holdings
Website www.fihplc.com

Falkland Islands Holdings plc (LSE: FKL) or FIH is a British conglomerate which plays a key role in the economy of the Falkland Islands through the Falklands Islands Company. Its other main businesses are the Portsmouth Harbour Ferry Company, which operates the Gosport Ferry in the south of England, and a London-based art storage and transport company called Momart.

Financial information

FIH shares have traded on the Alternative Investment Market (AIM) in London since 13 January 2003. In July 2010, FIH's market value was around £36m. It made a pretax profit of £5.669m in the year ended 31 March 2010 on revenue of £29.224m. £3.3m came from the sale of shares in Falkland Oil and Gas in November 2009.[1][2]

History

Falkland Islands Company's historical building in Stanley, Falkland Islands

1851

The Falkland Islands Company (FIC) was incorporated in 1851 and received its Royal Charter on 10 January 1852. Established with an authorised capital of £100,000 its purpose was to engage in agricultural and general trading activities including establishing a shipping link with the UK.

1888

FIC purchased J M Dean & Sons for shares. J M Dean acted as agent for farmers, and operated the West Store in the capital Stanley. The company was also a Lloyds Agent and owned a hotel and other property assets in the Islands.

1913

Regular shipping service commenced to Montevideo.

to 1945

FIC continued to acquire farm property in the Falklands with the result that the total agricultural land holdings reaches 1.2m acres with some 300,000 sheep.

1962

FIC shares listed on The London Stock Exchange.

1972

FIC acquired by The Dundee Perth and London Shipping Company Limited which is itself purchased by Coalite Group PLC.

1982

Argentina invades the Falkland Islands and occupies the islands for 74 days.

1986

Falklands Conservation Zone established and offshore fishing becomes the most important source of revenue for the Government.

1989

FIC's owners, Coalite acquired by Anglo United plc in a leveraged buy out.

1991

FIC's agricultural land holdings sold to the Falkland Islands Government following the Shackleton report.

1997

Anglo United which has an unsustainable amount of debt undergoes a capital reconstruction and distributes shares in Falkland Islands Holdings plc to its shareholders. For every 300 Anglo United shares shareholders receive 1 share in FIH.

1998

January - FIH shares are listed on London Stock Exchange, with £2m of debt the issue price of 100p. The Company is capitalised at £6 million.

2003

January - The FIH share listing is moved to the AIM market.

2004

February - Falkland Gold and Minerals Limited (FGML) established with financing to carry out an aero magnetic survey of the Falklands to exploit its exploration licence covering the whole of the Island.

June - Falkland Oil and Gas Limited (FOGL) established with financing to carry out a 2D seismic survey over its 33,000 sq km offshore licence to the South and East of the Falklands.

October - FOGL raises £12m and shares admitted to AIM, capitalising the Company at £32m.

December - FGML raises £10m and shares admitted to AIM.

December - FOGL is granted an exploration licence over a further 50,000 sq km to the South and East of the Islands.

December - FIH acquires Portsmouth Harbour Ferry Company for £7.5m.

2005

June - FOGL raises £10 million through an Institutional placing. FIH subscribes £2m increasing its share holding to 18.3%.

2006

February - FIH sells 1.8m shares in (FOGL), realising £2.4m and reducing its holding back to 16.3%.

December - FOGL raises an £8m convertible loan to fund its ongoing exploration programme.

2007

January - FIH sells 100% of its holding in FGML for 6p per share to RAB Capital.

October - FOGL announces farm in deal with BHP Billiton to fund drilling programme in South Atlantic.

2008

March - FIH acquires 100% of Momart for £10.27m, a UK market leader in the handling and storage of fine art and antiquities.

2009

November - FIH sold 3 million shares in FOGL after the placing earlier in the month generating proceeds of £3.6 million and a profit of £3.0 million at a price of 119 pence per share. This reduced FIH's holding to 12.0 million shares (8.2%).

2012

January - FIH participated in the placing of new shares by FOGL by subscribing for 2 million new shares at a cost of £0.86 million (43 pence per share). FIH's holding in FOGL shares was increased to 14 million shares (4.4%).

July £10.0m equity capital raising FIH raised £10.0 million gross from a share issue at 320p per share. £8.0 million was subscribed by Blackfish Capital and £2.0 million has been raised from an Open Offer to the existing shareholders. The proceeds from the share issue will be used to develop the Group's assets in the Falkland Islands in anticipation of the economic growth that the Board believe will follow.

July - FIH sold 1.2 million shares in FOGL for £1.01 million (86 pence per share), generating a profit of £0.77 million and reducing its holding to 12.8 million shares (4.0%).

2015

March - FIH sold 7.825 million shares in FOGL for £1.6 million (29 pence per share), generating a profit of £0.7 million and reducing its holding to 5.0 million shares (0.9%).

Businesses

Falkland Islands Company Limited[3] (100%). FIC accounts for about two-fifths of the parent company's turnover and income. It made operating profits of £1.38m in 2009-10 on revenues of £12.43m. FIC's operations are small by the standards of a large country, but in the Falkland Islands, which have a population of around 3,000, they are crucial.

Portsmouth Harbour Ferry Company plc (100%)
This company operates a ferry service between Portsmouth and Gosport, two large towns on the south coast of England which lie on adjacent peninsulas. It carries around 3.5m passengers a year. Underlying operating profit in 2009-2010 was £790,000

Momart (100%)
Momart's clients include the Saatchi Gallery, National Gallery, Tate Modern, Tate Britain and Buckingham Palace. The company received considerable media attention in 2004 when a fire spread to one of their warehouses from an adjacent unit, destroying the works in it, including works by Young British Artists such as Tracey Emin and Damien Hirst, with the most notable work lost being Emin's 1995 piece Everyone I Have Ever Slept With 1963–1995.

Falkland Oil and Gas Limited (1%)
For many years there has been speculation that the waters around the islands may contain large reserves of oil and gas. Falkland Oil and Gas is carrying out seismic surveys across thousands of square miles of seabed, mainly to the south and east of the islands.

In November 2009 Falklands Islands Holdings sold 3 million shares in FOGL for £3.6 million making a profit after tax of £3.1 million.

In March 2015 the group sold 7.825 million shares for £2.3 million, generating a profit of £0.7 million.[4]

See also

References

  1. ↑ http://www.londonstockexchange.com/exchange/prices-and-news/stocks/summary/company-summary.html?fourWayKey=GB0001861599GBGBXAIMI
  2. ↑ http://www.fihplc.com/support/upload/FIH_AR10.pdf
  3. ↑ http://www.the-falkland-islands-co.com/
  4. ↑ http://tools.morningstar.co.uk/uk/stockreport/default.aspx?tab=3&vw=story&SecurityToken=0P00007OAE%5d3%5d0%5dE0WWE%24%24ALL&Id=0P00007OAE&ClientFund=0&CurrencyId=GBP&story=364539644416341

External links