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FFI lowers expectations as film business remains subdued

The number of completion contracts signed rose in the half year to September but they were lower budget productions and fees fell
Fewer big budget productions wanted insurance in the first half

FFI Holdings Plc (LON:FFI) lowered its full-year profit expectations after a below-par performance in its core film insurance business.

While the number of completion contracts signed rose in the half year to September, they were lower budget productions and fees fell.

READ: FFI Holdings needs next release to be a hit to start recovery process

Completion contracts are tailored insurance policies to make sure films get finished and claims on its policies had also risen, said FFI.

Revenues from FFI’s first piece of original content, a documentary about Pandas, have also disappointed.

A spate of acquisitions over the past year helped interim revenues rise by 91% to US$45.6mln, but underlying profits [EBIT] dropped to US$6mln from US$7.1mln.

Steven Ransohoff, chief executive, said: “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.

FFI added the board was disappointed by the company's poor share price performance since it joined AIM last year and is committed exploring the options to address this issue.

Liberum, the company’s house broker, now expects underlying profits will match or slightly beat last year’s, while it expects net cash of US$10mln at the year-end.


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