Fijian Holdings Group today announced its' audited financial results for the financial year ended 30 June 2007.

In making the announcement, the FHL Group Chairman Mr Josaia Mar said that "the FHL Group performance was credible given the challenging economic environment".

FHL Group consolidated earnings before tax declined by 10.7% from the previous year to $21.7 million. This was mainly due to increase in Group operating expenses of 13% stemming from increase in prices of raw materials and increase in Group finance costs, which more than doubled, due to the high interest rate environment. The increase in these costs more than off-set the increase in Group revenue of 4% to $97.6 million from 2006. Net assets for the FHL Group declined by 12%, largely driven by the decline in value of Fosters Group Pacific Limited shares on the South Pacific Stock Exchange as at 30 June 2007.

The Group Managing Director Mr. Sitiveni Weleilakeba said that these results reflected the contracting operating environment that the Group subsidaries faced in the second six months of the financial year after the events of December 2006.

The Group has been very vigilant in containing costs and protecting revenue lines during this period. "However, the outlook for the next financial year is weak and will improve if our economic fundamentals strengthen," Mr. Weleilakeba added.

"The FHL Group portfolio is very sensitive to uncertainties, and the challenge in the next financial year is to diversify into more stable sectors and to explore off-shore investment opportunities to ensure the sustainability of shareholders funds into the future", he concluded.

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