MercoPress. South Atlantic News Agency
Falkland Islands Holdings PLC enjoy improved prosperity.
Once the Falkland Islands Company (FIC) owned almost 50% of all the farmland in the Falklands, and more than half a million sheep; now they own just 22 small uninhabited Islands and 300-400 acres of land in the capital, Stanley.
During the farming revolution of the late 1970's and early 1980's the FIC was 'persuaded' like most absentee landlords to sell its farmland to the Falkland Islands Government. With falling wool prices, and the cost of production rising, the shareholders had little hesitation in taking their decision. The Government subsequently sub-divided the land which enabled private ownership, and resulted in more than 80 Islanders owning their own farms. The FIC sold 600,000 acres of land at Darwin, North Arm and Fitzroy, to the Government for £6 millions.
But since the appointment of David Hudd as Chairman of F.I. Holdings plc, (the FIC's parent company) turnover has increased to £12 millions annually, and the share price rose dramatically overnight from £1.00 to £2.35, although now steadying a little at £1.90.
The FIC has had a chequered career on the stock market. Its previous parent company Coalite was bought out by the smaller Anglo United for £500 millions, which subsequently went bust owning £250 millions. 6000 shareholders lost their money at the time.
Mr. Hudd's appointment in March 2002 was an inspired move given his successful record as a partner with Price Waterhouse, the renowned accountancy firm, and his directorships with well-known concerns such as the Cutty Sark Trust, Playboy Club and various Casinos.
Now instead of the risky business of exporting wool back to Britain in a declining market, the FIC searches for gold and diamonds in a joint venture mineral exploration deal, along with Cambridge Resources and Global Petroleum Australia. Each outfit owns one third of the Venture.
Gold has already been discovered in the very places where thousands of sheep have grazed since 1852 when the Company was first established. Additionally they own the West Store - the Islands largest super-market - the newly built Capstan Gift Shop, the Upland Goose hotel, and operate a Shipping Agency, Port Services, Property rental, Car Hire and Insurance.
Mr. Hudd needed no second thoughts when accepting an invitation from a friend, who happened to be the Company's largest share-holder, to accept the Chairmanship of F.I. Holdings. He said, ?The Company has a long and successful history in the Islands, has a stock-market listing and it seemed like an interesting opportunity'.F.I. Holdings is also investing in Oil, owning 20% of a consortium, which involves Hardman Resources 30% and Global Petroleum Australia 50%. ?We are buying seismic, which will be analyzed in Australia, for 57,000 square kilometers of unexplored areas to the south-east of the Falklands. Its frontier acreage in tough conditions but we have good partners?..'
Looking at internal operations within Stanley, Mr. Hudd expressed his satisfaction with the various businesses that operate under the supervision of the Stanley Manager, Roger Spink. ?We are extending our housing development market, aiming to build more properties, and regularly updating our retail sites. (The West Store is currently being extended). Our Fishing, Automotive, Insurance and Travel sections are progressing rapidly with a happy team involved in each operation'.
There are surprisingly few local share-holders ? only 20-30 ? but all employees of the Company do have an opportunity to buy into a special Save As You Earn (SAYE) scheme. This enables them to purchase shares at a rate which is set now. If the Company share price increases over the next 3 years, they will enjoy considerable benefits.
?We have a progressive dividend policy, paying 5p per share last year, but we are not relaxing, and would like to add other activities outside of the Falklands, to our present strong solid business which we have in the Islands', said David Hudd.
Patrick Watts (MP) Stanley
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