Full-year figures from support services group
Unfortunately, FOGL hasn't had the best of luck after an exploration well came up dry last November. But, more generally, exploration potential should deliver a boom for the islands. A Falkland Islands Government report, for example, believes the economy could grow sevenfold over the next five years once the Sea Lion field, owned by Rockhopper, is developed - to commence in mid-2014. That's good news for the group's Falkland Islands Company unit, which offers services ranging from retailing to property. Although, in the period, fewer cruise ships visits and less dock work meant profit here fell 12.5 per cent to £1.33m. Moreover, fare increases meant 8.9 per cent fewer passengers at the Portsmouth Harbour Ferry operation and profits there dropped 10 per cent to £0.98m. Still, more exhibitions and a strong art market helped Momart's profit rise 24 per cent to £1.19m.
Broker WH Ireland expects full-year pre-tax profit of £3.3m, giving EPS of 21.6p (from £3.2m and 26.2p in 2012).
|FALKLAND ISLANDS HOLDINGS (FKL)|
|ORD PRICE:||333p||MARKET VALUE:||£41m|
|TOUCH:||330-336p||12-MONTH HIGH:||420p||LOW: 300p|
|DIVIDEND YIELD:||3.5%||PE RATIO:||24|
|NET ASSET VALUE:||276p*||NET CASH:||£4.13m|
|Year to 31 Mar||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
Ex-div: 28 Aug
Payment: 18 Sep
*Includes intangible assets of £12.3m, or 99p a share
Exploration-driven growth means Falkland Islands boasts potential - but that's still a fairly distant prospect. In the meantime, and while the art business is doing well, performance elsewhere looks under pressure. That leaves a forward PE of 15 up with events for now. Hold.
Last IC view: Hold, 303p, 7 December 2012