FFI Holdings warns on earnings despite swinging to first-half profit
Source - SMW
Entertainment company FFI Holdings swung to a first-half profit Wednesday but warned underlying earnings would fall short of expectations amid delays in the timing of revenues in both its completion content businesses. 'It is disappointing to report that underlying earnings (EBIT) for the group for the full year is expected to be below previous expectations because of the impact of delays in the timing of revenues from certain larger budget titles within the Completion Contracts business and of revenues associated with the Pandas Documentary within the Content Distribution business,' the company said. For the six months ended 30 September, the company swung to a profit of $4.7m from a loss of $2.1m a year earlier, and revenue rose 91% to $45.6m.
Muted performance in the completion contracts segment took some shine off strong performance in the equipment rental, insurance, technical services and content divisions, the company said.
The company expressed disappointment in the performance of its share price since IPO and vowed to explore options to address the issue.
'The businesses we acquired since the IPO have performed in accordance with and in some cases beyond our expectations, said Steven Ransohoff, CEO of FFI.
'Equipment Rental, Insurance, Technical Services and Content have all performed very well and are expected to grow into the future. Whilst Completion Contracts continue to be an important part of our business, performance has been muted.'
'H1 numbers have begun to reflect the broadening of our sales mix, with material revenue contributions seen from our equipment rental, insurance agency and content distribution verticals, and we remain focused on continuing to grow these diversified business segments which have been performing at or above expectations.'
'As has been historically the case, we expect a busy second half to our fiscal year, as we are seeing a strong completion contracts and entertainment insurance agency pipeline.' At 8:48am: (LON:FFI) FFI Holdings Plc share price was -0.5p at 30.5p