FIH Group’s H1 2025: losses narrow, cash jumps, and a chunky special dividend
FIH Group has reported a much tidier first half to 30 September 2025. Revenue edged up 4% to £18.9 million, the underlying pre-tax loss shrank to £1.4 million, and cash on hand rose to £16.2 million. A sale and leaseback of Momart’s Leyton warehouses brought in £22.65 million, funded an £11.0 million mortgage repayment, and bankrolled a 70 pence per share special dividend (£8.8 million) paid on 31 October 2025.
There is progress, but it is uneven. Falkland Islands Company (FIC) recovered from last year’s construction woes, the ferry business held steady, while Momart’s trading softened and absorbed a £4.1 million impairment following the property sale.
Key numbers investors should know
| Metric | H1 2025 | H1 2024 |
|---|---|---|
| Revenue | £18.9 million | £18.2 million |
| Underlying pre-tax loss | £1.4 million | £5.9 million |
| Reported pre-tax loss | £2.5 million | £6.1 million |
| Cash | £16.2 million | £8.5 million |
| Net cash before lease liabilities | £16.1 million | Net debt £3.3 million |
| Lease liabilities | £23.6 million | £5.9 million |
| Diluted EPS | (15.2)p | (34.9)p |
“Underlying” here means profit before tax excluding non‑trading items such as the property sale gain, impairment, restructuring and derivative movements.
Sale and leaseback: why it matters
The group sold Momart’s 100,000 sq ft Leyton warehousing for £22.65 million and leased it back. Headline effects:
- Pre-tax gain of £3.4 million recognised.
- Mortgage of £11.0 million repaid, sharply reducing bank debt.
- Special dividend of 70 pence per share – £8.8 million returned to shareholders.
My view: this was a clean way to unlock value and simplify the balance sheet, but it swaps owned bricks-and-mortar for a long lease obligation. You can see that in lease liabilities jumping to £23.6 million. It boosts liquidity today, yet raises fixed costs tomorrow – worth keeping an eye on as Momart’s trading is soft.
How each division performed
Falkland Islands Company – construction bounce, losses narrow
FIC revenue rose to £8.8 million, up £2.6 million year-on-year, mainly from Falkland Building Services (FBS). Last year’s heavy drag – power outages at the MOD’s Mount Pleasant Complex, poor weather and staffing issues – has abated. FIH also agreed compensation for the power-related disruption and did not repeat onerous contract provisions taken last year.
- FIC underlying pre-tax loss: £0.9 million, an improvement of £5.5 million.
- Retail revenue dipped to £4.1 million, while property rental nudged up to £0.6 million.
Opinion: directionally positive. The big 70-house contract for the Falkland Islands Government and MOD remains important. Power was restored at MPC in September, which should help progress, but management still flags a thin tender pipeline. New MD and FD, appointed in July, now carry the turnaround baton.
Momart – art market slowdown bites
Momart’s revenue fell to £7.8 million from £9.7 million, with Museum Exhibitions at £3.9 million and Gallery Services at £2.4 million. Storage held up at £1.5 million. The division posted an underlying operating loss of £0.6 million and an underlying pre-tax loss of £0.9 million.
Alongside the property deal, FIH recorded a £4.1 million impairment of goodwill and intangible assets tied to the Art and Logistics cash-generating unit. Restructuring costs were £0.3 million.
Opinion: the market backdrop is tough and near-term visibility looks muted. Management is pushing client relationships, process efficiency and cost savings – good moves – but they say the full benefit will show next financial year.
Portsmouth Harbour Ferry Company – steady as she goes
Passenger numbers were 3% lower, but fare rises in April 2025, stronger secondary revenues, and tight cost control kept results flat.
- Revenue: £2.3 million, unchanged.
- Underlying operating profit: £0.5 million, unchanged.
- Underlying pre-tax profit: £0.4 million.
Opinion: a dependable, cash-generative asset within the group. Pricing discipline and ancillary income are doing the heavy lifting while volumes lag.
Cash, debt and the balance sheet
Cash and cash equivalents stood at £16.2 million, helped by the warehouse sale proceeds. Bank loans dropped to just £0.1 million outstanding at period end after repaying the £11.0 million mortgage. On the flip side, lease liabilities rose to £23.6 million because of the leaseback, leaving “net cash before lease liabilities” at £16.1 million but “net debt after leases” at £7.5 million.
Net assets were £36.1 million, down from £40.8 million a year ago, reflecting losses and the impairment. Net finance costs were £0.6 million. The tax line was a £0.6 million credit.
Dividends: special paid, interim maintained
- Special dividend: 70 pence per share – £8.8 million – paid 31 October 2025.
- Interim dividend: 1.25 pence per share, same as last year, to be paid on 13 February 2026. Ex-dividend date 8 January 2026, record date 9 January 2026.
Opinion: maintaining the interim while returning a large special suggests confidence in liquidity, even if trading is mixed. Sensible, provided cost actions at Momart deliver.
Outlook and what to watch next
- FIC – new leadership is in, power issues at MPC are resolved, and action plans are underway. The near-term headwind is a lack of tenders, so order book growth is the critical watch item.
- Momart – market demand remains weak. Track progress on cost savings and whether Storage can continue to underpin revenues. Keep an eye on lease costs post-leaseback.
- PHFC – management will keep optimising secondary revenues and fares while controlling costs. A stabilising passenger trend would be a bonus.
- Group strategy – the board is still evaluating options to maximise shareholder value across all divisions. The Leyton deal shows they are willing to act.
My take: a step forward, but not a victory lap
This is a cleaner half-year than 2024. The underlying loss narrowed markedly, cash is strong, and the special dividend is a welcome return. FIC’s recovery is encouraging, and PHFC remains solid. The weak spot is Momart, where the art market is soft and the impairment underlines a reset in asset values.
Overall, I see a more resilient balance sheet and operational plans that are moving the right way, but sustained profit improvement still depends on execution at FIC and a better trading environment – or deeper efficiencies – at Momart. For investors, the next two quarters are about delivery against those action plans and how the group leverages its improved liquidity without overburdening itself with lease costs.
