Companies: FKL   

Falkland Islands Holdings, which runs trading companies in the South Atlantic islands, saw turnover slip 3% to £11.4m last year, which chairman David Hudd blamed on 'marginally lower economic activity in the islands'. However, the company succeeded in pushing earnings up 8% to 11.8p and proposes a 10% dividend lift to 5.5p. Falkland ended the year with £957,000 of net cash, compared with £6,000 net debt 12 months earlier, after capital spending of £396,000 and an oil exploration outlay of £63,000. Fishing is important to the Falklands and poor catches not only affected fishing operations directly, but also dampened consumer confidence. This hit the company's retailing side. Its 'Homecare' and building supplies division was also well down on the previous year. By contrast, the automotive and engineering divisions achieved 'good profits growth' though bulk cargo shipping volume fell. The Upland Goose Hotel in Port Stanley benefited from events marking the 20th anniversary of the Falklands War. The company has 20% of the Falkland Islands Hydrocarbon Consortium, which is looking for oil around the islands, and it is also seeking to exploit mineral opportunities. Meanwhile, Hudd says a recent recovery in fishing catches should make for an improvement in the current outlook. Falkland Islands Holdings came down from the Full List to Aim in January at 197.5p.