The global COVID-19 pandemic has had catastrophic effect on the performance of subsidiaries of Fijian Holdings Limited (FHL) Group, with the half yearly report as at December last year noting a 34 per cent drop in revenue.
Total revenue recorded for six months was $119.09m compared to $179.47m for the same period reported in the prior year.
In its review released by the South Pacific Stock Exchange (SPX) today, FHL announced that the Group total net assets $288.66m as at December 31, 2020; compared to $290.40m as at June 2020.
The company said the present half year report incorporated effects of COVID-19, which was not present in the six months’ accounts for the period ended December 31, 2019.
The Group profits reported on December 31, 2020, was $0.58m compared to $17.18 for the same period last year.
The holding company profit before tax was $2.65m as of December 2020 compared to $7.14m reported for the same period last year.
The company said the effects of COVID-19 had resulted in complete shut downs of the tourism industry, and subsequent trickle-down effect on other sectors in the economy.
“… As well as substantially affecting the FHL conglomerate. Closure of the international border and resumptions of flight services continue to be a greater concern for the tourism industry.”
“Significant decline in FHL Group revenue were the result of shortfall in performance of South Sea Cruises Limited (SSC), Basic Industries Limited (BIL) and Fiji Television Ltd (FTV),” the Group stated.
“Stalling of major projects in construction sector during this unprecedented times has put immense pressure on BIL sales.
“Similarly major customers resorted to limit their advertising with FTV, which saw a major drop in FTV advertising revenue. All major sporting events were either cancelled or deferred which further decreased sponsorship revenue for the business.”
But the Group noted that its associate companies with the likes of Golden Manufacturers, New World, Marsh, Pernix, R B Patel and Merchant Finance Ltd relatively contributed well towards FHL bottom-line despite the tough business environment, and to some extent offset the losses incurred by non-performing entities.
