FHL GROUP NET ASSETS GROW BY THREE PERCENT

Fijian Holdings Limited (FHL) Group recorded a steady growth of three per cent in its group net assets.

Most of the group companies contributed positively with challenges faced in the Lending, Tourism and Construction sector.

Total operating revenue for the first six months of FY20 was reported at $184.97m compared to $187.92m for the same period last year.

FHL group recorded net profit before tax of $21.31m compared to $25.59m for the same period last year.

The shortfall in performance by

16.74 per cent is largely attributed to the performance of Basic Industries Pte Limited (BIL), Merchant Finance Pte Limited (MFL) and Serendib Investment Pte Limited (SIL).

The constructions sector remained weak, evident with drop in cement sales and the stalling of large construction projects with ongoing transportation setbacks.

There was also a significant reduction in new and second-hand vehicle registration adding pressure on the performance of MFL as motor vehicle financing remains its core business.

Adverse weather condition in the months leading up to and following Cyclone Sarai also affected performance of approximately four days of peak business in December largely affecting the tourism and retails sector.

The printing sector being the new addition to the group portfolio continued with its strategic investment in new plant and machinery and expects to deliver positive returns in the next financial year.

The Acting Chairman Yogesh Karan said that the integrated economic activities were well-balanced with the diversified investment portfolios of FHL.

The reported results were expected with general slowdown in the global economy.

He also mentioned that board and management will continue to work on strategies to obtain the desired result for the next six months and envisaged a better profit.

As at December 31, 2019, Group Assets stands at $672.47m while the shareholder’s funds have reached $320.04m.