Falk IS. Hldgs Share Discussion Threads

[7kiwi] 19/4/2008 00:08

Starting to surge again on the back of FOGL's move up.

[grgkecer] 13/4/2008 09:38

The art of team work holds Momart conglomerate together
By Richard Rivlin
Last Updated: 1:13am BST 13/04/2008



This is the last week that readers will be able to see From Russia, the exhibition of art masterpieces on show at the Royal Academy of Arts in London. When these great works from the Pushkin and Hermitage Museums were transported to the UK, it was Momart, a specialist transport and logistics firm for the art world, that ensured there were no diplomatic incidents.

Other blue-chip clients of this specialist firm include the Henry Moore Foundation, the National Gallery and the Royal Collection. Until March, Momart had been a private business, but it was then acquired by a mini-conglomerate for £10.27m.

The purchaser was Falkland Islands Holdings, which is listed on Aim and includes a harbour ferry business in Portsmouth and a collection of assets in the Falkland Islands.

Investors have been allergic to conglomerates for the past decade. But in what has been a difficult year for smaller companies, FIH has defied the trend and seen shares rise from 240p to 375p in the past 12 months. This values the stock at £34.19m.

So what do investors get for their money?

A seemingly unconnected mix of businesses that includes a Land Rover dealership, a hotel, an insurance broker and a bus tour company in the Falkland Islands. Then there is a 16.2 per cent stake in an oil and gas exploration business that is valued at about 130p a share. As with all oil prospects, it promises to yield a misty-eye-making return for investors, if only it can find the black stuff.

This is all well and good in the land of what might be.

But it is the UK assets - Momart and the Portsmouth Harbour Ferry Company - that have captured the attention of investors who recognise the underlying strength of these two businesses. Additionally, what goes on in the southern hemisphere is a nice extra that might one day be worth something.

The Portsmouth Harbour Ferry Company has operated for 125 years between Gosport and Portsmouth. It will provide 3.7m passenger journeys in 2008 and enjoys an effective monopoly.

Momart does not have as easy a time of it. There are a handful of specialist competitors but it enjoys a healthy share of the market and is beginning to expand into China, Russia, India and the Middle East. David Hudd, the ebullient chairman of FIH, says: "Momart is very exciting. London is the museum capital of the world and this reputation and the quality of its work has enabled it to expand overseas."

Hudd was trained by James Hanson, one of the great buccaneers who cared little what sector a business was in, so long as he felt he could strip out cost and grow it by acquisition. It is no wonder that he has a penchant for conglomerates.

Hudd claims that having a spread of businesses in the company must be good for shareholders as "we can deliver superior returns over the long term during these difficult times".

Hudd says: "We met the people at Momart and from the first day, it was a good cultural fit. Our offer may not have been the highest, but we were certainly their preferred partner."

There is no common thread between the businesses, but does there actually need to be one? Aim today is filled with smaller companies that have followed the advice of investors and analysts and taken a laser-like approach to being focused. To what good?

If there is any common ground between the three businesses within FIH, it is that the staff that work for each of the portfolio businesses share a passionate zeal for the organisations in which they work. They have a moral sense of ownership even if the equity is held by FIH investors rather than the management team.


Richard Rivlin is managing director of Bladonmore

[honestjim2] 26/3/2008 19:17

Rated as a speculative buy in The Momentum Investor newsletter which arrived today. This could generate some buying interest over the next few days.

[grgkecer] 13/3/2008 17:41

Falklands rig options ranked

Thursday, March 13, 2008


Rig options are being considered for drilling in the South Atlantic and prospect site surveys are due to take place later this year.

Licence holder Falkland Oil and Gas says it is poised to start drilling on its targets in the South and East of the Falkland Islands soon while farm-in partner BHP Billiton looks at rig options.

"FOGL is now within touching distance of realising the potential of what is probably one of the most exciting high impact exploration projects currently being undertaken anywhere in the world," said Tim Bushell, chief executive of Falkland Oil and Gas, as the company published its preliminary results for 2007.

BHP Billiton farmed into FOGL's South Atlantic acreage late last year, paying US $12.75 and will fund 68% of the costs of two exploration wells.

Prospect site surveys are expected to take place in the second half of this year, BHP Billiton is evaluating options for rigs in order to put together a drilling programme, and enhanced processing of Controlled Source Electro-Magnetic survey data is nearing completion, FOGL has indicated.

Altogether FOGL has estimated that its prospects could contain as much as 10 Bn boe on a mean, unrisked basis.

Last year over 750 km of CSEM data was acquired covering 12 prospects delivering and an additional 9,950 kms of 2D seismic data was acquired to aid definition of
key prospects.

"We have brought in a credible partner with the resources and experience to undertake the drilling programme. The rewards for success could be substantial given the large resource volumes of the prospects being targeted," Bushell stated.

[7kiwi] 04/3/2008 23:18

gf, yes.

And don't forget the FI property portfolio.

[7kiwi] 04/3/2008 23:17

CURRYPASTY, could you update the header with the current shares in issue and the news about the Momart deal please.

[greedfear] 04/3/2008 23:06

I thought FKL was rising because people became aware of the fact that FKL would benefit from increased economic activities due to drilling campaigns. Investors were not aware of any acquisition plans until 28-2 (when FKL stated they were in advanced negotiations etc.etc.).

[pjackson64] 04/3/2008 22:34

I think the way this was rising people were expecting them to buy something connected with the drilling campaign about to start this year.This may drop initially tomoz.

[greedfear] 04/3/2008 22:18

Don't like the deal. What does FIH management know about this business? What are we going to buy next: a gumball machine producer or a Bozo the clown nose manufacturer? Are we really going to pay 8.5 x pre tax profit for a company with next to nothing net assets? That's not cheap ...

[7kiwi] 04/3/2008 17:38

But why no EGM to approve this?

[7kiwi] 04/3/2008 17:38

Agnostic.

Bit concerned about management focus: I would want senior management to be focused on the opportunities arising from a drilling campaign, not integrating a new aquisition at the moment.

But on the plus side it gives more strength to the underlying business in the event of no success in the oil explo.

And the Falkland Islanders might be buying rather a lot of fine art in the event of success.

I bet the next aquisition is a fine wine merchant, followed by a coin dealer!

[eburne1960] 04/3/2008 17:20

Neither was the ferry business, the point is if it significantly increases earnings and doesn't dilute existing shareholders too much then it's alright!
If the oil exploration goes pear shaped or the Argies invade again you might be a little bit happier.........

[gordon brown] 04/3/2008 16:57

Doesn't seem much of a fit does it?

[grgkecer] 04/3/2008 16:50

Do they have any Fine Art in the Falklands?

[grgkecer] 03/3/2008 10:41

Agreed. I can't see the Global shareholders selling their FOGL stake at a discount, anyway.

[whackford] 03/3/2008 09:48

Global Petroleum is an Aussie company, I think. Would think this a very unlikely target.

[gordon brown] 02/3/2008 16:42

I can see them taking over global Petroleum just to stop Global's shares falling into the wrong hands.

[grgkecer] 02/3/2008 13:31

Not so.
Global Petroleum sold a parcel of its FOGL shares during the quarter. As at 31 December 2007, the Company held approximately 13.1% of the issued shares of
FOGL.

Interestingly though, if FKL did take over GBP, it could now do so without having to bid for the whole of FOGL (although it's not clear what price they would have had to offer previously).

[gordon brown] 02/3/2008 12:14

If the took over Global petroleum (GBP) they get 17% of Falklands Oil and Gas thrown in.

[grgkecer] 02/3/2008 10:19

"a UK based company" could have activities anywhere - even in the Falklands.

[greedfear] 29/2/2008 13:15

I preferred investing in FKL in stead of a direct investment in FOGL because FKL has a lot of hidden value (landownership F) and because I thought that FKL would be the first to profit from any oil drilling activities in F. Now that's finally starting to work out I just hate to see dillution at this PPS. The new shareholders are going to participate in this hidden value. Offcourse a takeover can create possibilities but could also be a threat. I'ld rather see FKL stick to the F. Besides that I'm not at all impressed about how the takeover of the ferry co worked out. I too would hate to see that we used funds the wrong way and missed opportunities in the F.

[7kiwi] 29/2/2008 09:06

There is a good play with lots of oilies floating around the FI's - gearing to the retail and travcel businesses. But the main play is the property if any oil is found in commercial quantity - and the car dealerships - they might be upgrading from Land Rovers to Lambos!