Falklands Island Holdings confident of "healthy" return

Services businesses holder Falkland Islands Holdings reported a £1.2m pre-tax profit in the six months ended 30 September.

The group, which has businesses in the UK as well as in the Falkland Islands, expects Falkland Island Co, which saw first half sales rise to £8.5m from £6.8m, to have a strong second half, with retail activity set to benefit from tourism over the southern hemisphere summer.

"Longer-term growth prospects remain exceptional, and they have been improved by the announcement that Premier Oil are going to move forward with a phased development of the Sea Lion field, with first oil production expected in 2019,” Falkland Island chairman David Hudd and managing director John Foster said in a joint statement.

“Any exploration success from the 2015 drilling programme will further enhance the outlook.

"In the current year we will continue to strengthen the infrastructure of our existing Falkland businesses and prepare for the transformation that will come from oil development.”

The firm added the outlook remained positive and Hudd said the group was confident of continuing to produce "healthy" returns for shareholders.

On Wednesday, Falkland Island Holdings shares closed 0.78% up at 325.00p.