SUNBIZ

FHL Group Net Assets Remains Stable

The Fijian Holdings Limited (FHL) Group revenue fell by 34 per cent. The FHL Group financial results was released yesterday by the South Pacific Stock Exchange (SPX). In a statement
17 Mar 2021 10:10
FHL Group Net Assets Remains Stable
From left: Fijian Holdings Limited (FHL) Group Acting Chairman Yogesh Karan, with new Group Chief Executive Officer, Jaoji Koroi on March 8, 2021. Photo: Maraia Vula.

The Fijian Holdings Limited (FHL) Group revenue fell by 34 per cent.

The FHL Group financial results was released yesterday by the South Pacific Stock Exchange (SPX).

In a statement SPX said: “FHL Group total net assets stood at $288.66m as at 31 December 2020 compared to $290.40m as at June 2020.

“The Group revenue fell by 34 per cent. Total revenue recorded for six months was $119.09m compared to $179.47m for the same period reported in the prior year.”

“It is important to note that current half year report incorporates effects of COVID-19 which was not present in six months’ accounts for the period ended 31 December 2019.”

“Group profits reported on 31st December 2020 was $0.58m compared to $17.18m for the same period last year.”

“The Holding Company profit before tax was $2.65m as of December 2020 compared to $7.14m reported for the same period last year.”

“COVID-19 continues its catastrophic effect on the Group completely shutting down the tourism industry which also sees a trickle-down effect on other sectors in the economy as well substantially affecting the FHL conglomerate.”

It further added that the closure of international borders and resumptions of flight services continue to be a greater concern for the tourism industry.

 

Performance
Significant decline in FHL Group revenue were the result of shortfall in performance of:
– South Sea Cruises Limited (SSC),
– Basic Industries Limited (BIL) and
– Fiji Television Limited (FTV).

“Stalling of major projects in construction sector during this unprecedented time has put immense pressure on BIL sales.”

“Similarly, major customers resorted to limit their advertising with FTV, which saw a major drop in FTV advertising revenue.”

“All major sporting events were either cancelled or deferred which further decreased sponsorship revenue for the business.”

“FHL associate companies with the likes of Golden Manufacturers, New World, Marsh and Pernix have relatively contributed well towards FHL bottom-line despite the tough business environment.”

“R B Patel Limited and Merchant Finance Limited have also positively added to Group profitability which has to some extent offset the losses incurred by non performing entities.”

FHL Board continues to closely monitor the economic environment and make decisions relative to long term sustainability and financial stability of the Group.

 

Feedback: maraia.vula@fijisun.com.fj



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