SUNBIZ

FHL Records High Profit

  Fijian Holdings Limited is partnering with two companies to build a 152-room hotel project soon. FHL group chief executive Nouzab Fareed confirmed the planned project. “We are also looking
25 Aug 2018 10:00
FHL Records High Profit
A property of Fijian Holdings Limited, Standard Concrete Industries Limited Nasinu Quarry, on August 23, 2018. Photo: Ronald Kumar.

 

Fijian Holdings Limited is partnering with two companies to build a 152-room hotel project soon.

FHL group chief executive Nouzab Fareed confirmed the planned project.

Fijian Holdings Limited chief executive officer Nouzab Fareed

Fijian Holdings Limited chief executive officer Nouzab Fareed

“We are also looking at one or two hotels, there is one hotel we are looking to close in on but we will make an announcement

“We are partnering with another two com­panies to build a 152-room hotel which is project number one.”

The company also released its annual fi­nancial report.

“The 12 months ending June, 2018 is one of the best years for FHL.

“Our total assets of the Group have reached $572 million compared to last year’s $525 million.

“Our total shareholders fund has touched $277m. This is a company that started prob­ably 40 years ago, with just $30m.

“For the last 12 months we have done very well, our total consolidated revenue is $311 m which is basically one per cent growth from the last year.

“But our profit after tax has reached $35,709m representing 11 per cent growth, so we are extremely happy with what has happened.

“Basically, FHL has achieved increased revenue because of RB Patel, Basic Indus­tries, Fiji TV and South Seas Cruises.

“We also have been successful reducing our expenses especially with South Seas Cruises and the other companies.”

For the first time in Fiji, FHL has made a big decision to adopt the new International Financial Reporting Standards, or IFRS.

“Even in Australia most countries compa­nies but with FHL’s best finance team in this country and with assistance from KPMG in Fiji and Australia, FHL has adopted IFRS 9, 15 and 16 the three standards.

“IFRS is supposed to be implemented after or late 2019 but we decided to be the first company to adopt it in Fiji.

“Going forward for this year our biggest fi­nancial growth basically like last year came from RB Patel and Basic Industries.

“The significant impact in the building and construction sector is making a posi­tive impact on FHL and we are very happy its doing well.

“Malamala alone has taken alone more than 25,000 passengers for the first 12 months so it’s a biggest achievement.

“I wish again to categorically say tourism: South Sea Cruises, retailing like RB Patel, building and construction Basic Industries and Pacific Cement and Fiji TV, Fund Man­agement, Properties, Stockbroking or Capi­tal Markets they have all have done well.

He highlighted that revenue growth throughout the group have gone up except for Pacific Cement.

“In terms of the overall group investments portfolio has grown ba­sically towards more than $300 mil­lion so we are very happy because our main business is investing.

“At the same time our total borrow­ings or loans have declined, which means we have done well.

“We wish to acknowledge the sup­port given by the current govern­ment because they have set the stage right for a business like us to perform.

“We are very positive that the trend is going to continue to grow even though there are few things to be improved.

“At the last AGM we were seriously looking at share splitting so that FHL shares become affordable.

Right now its $6 so right now to buy 600 shares you need $600 so it is not affordable at this stage.

“We are seriously looking at listing B-class shares without any impact so that the market capitalisation of FHL goes up.

“We also getting an international risk management company to undertake the risk profile of FHL group.

“We do it every five years, the last one was in 2013 so we are yet to do 2018 so it will be done in 2019.

We want to do a risk assessment of the group.

FHL Tower

“Within the next few months we will see the FHL Tower coming up which is a $70 million project with 17 floors.

“If all goes well, we will invite the Prime Minister to do the ground­breaking in late September or early October.

The contractor for the project is an Asian company.

“We are also planning to take over Government Printing and we have paid a deposit but there is still some things to be cleared.”

Feedback: maraia.vula@fijisun.com.fj

 

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