LONDON (ShareCast) - Falkland Islands Holdings, a British conglomerate which owns logistics, warehouses and retail outlets on the islands, expects to report a fall in annual profits.

The company anticipates pre-tax profit of 3.0m for the year to March 31st 2013, compared to 3.2m a year earlier.

The group said trading was satisfactory at its division Falkland Islands Company (FIC), which provides services to retail, distribution, port services, shipping, hotels and mineral exploration.

Retail sales experienced growth while tourist activity declined with fewer cruise ship visits.

Preparations to ramp up activity at the Sea Lion discovery continued, including preliminary work on planning for related infrastructure projects.

"As a result, although turnover increased on the record levels seen last year, FIC's contribution is expected to be slightly lower," the company said.

Momart, the fine art and antiques shipping and storage company, delivered record revenues on the back of growth in large exhibitions and the global commercial art market.

Revenues at the Portsmouth Harbour Ferry Company were little changed on lower passenger numbers. Profits are expected to fall at the ferry company as a result of an increase in costs.

The Falkland Oil and Gas (Other OTC: FLKOF - news) arm's drilling campaign proved a working hydrocarbon system in the South and East Falklands Basins. An extensive 3D seismic campaign is now underway to de-risk further the prospectivity and identify the next prospects for drilling.

The group ended the period with cash balances of 11.5m and bank borrowings of 2.0m.

Read more:

Falkland Islands Holdings to report fall in annual profits