Interim Results

Falkland Islands Holdings PLC
15 December 2000


                   Falkland Islands Holdings plc
                                 
    Interim Results for the six months ended 30 September 2000
                                 
                       Chairman's Statement


Financial Summary

The  interim  results for the six month period ended 30  September
2000  were  lower than those for the same period of  the  previous
year.   A  vessel, which would normally have sailed in  September,
was  delayed  until  October to accommodate specific  cargoes  for
infrastructure projects.  This delay has had an adverse impact  on
the first half results but conversely will improve the results for
the  second  half of the year.  In addition, as mentioned  in  the
2000  Annual  Report, the activity of the fishing agency  did  not
match the exceptional levels of the previous year.

Turnover  of  £4.6  million  (1999:  £5.2  million)  generated  an
operating  profit  of  £270,000 (1999:  £560,000).   Profit  after
interest  and  tax  was  £172,000  (1999:  £369,000)  yielding  an
earnings per share of 2.8p (1999: 6.0p).  Net assets increased  to
£2.9 million from £2.7 million on 31 March 2000.

Bank debt remained at £1.25 million offset by cash and deposits of
a similar amount.

The  directors are not recommending an interim dividend.  However,
if  the  full  year  results are in line with expectations  it  is
anticipated  that  a final dividend of not less than  last  year's
will be proposed.

Review of Activities

Operating activity in the first half of the year which covers  the
South Atlantic winter period is normally quiet.  This year it  has
been even more so.

As reported previously, the year 2000 squid fishing season did not
reach  the  exceptional levels of last year, effectively  reducing
the turnover on fishing related activities for the Company.

Also  as mentioned in the Annual Report, hotel operations suffered
significantly due to the very quiet winter period in the Islands.

Turnover  in the retailing and distribution sector was similar  to
last  year with encouraging improvements in the contributions from
the building supplies and hardware sector.

Management  services secured a further contract from the  Falkland
Islands Government to manage the port facility in Stanley.

The  contribution from the shipping and export activity  was,  for
reasons  explained earlier, down this year against last year.   It
is expected to reverse itself in the second half of the year.




Current Trading Prospects

Initial  indications are that a slightly higher number of  fishing
licences will be offered for the coming season commencing early in
the  new  year 2001.  Amongst the applications there has been a 
greater number  from our clients in the Far East.  Activity in  the
early part of the season is expected to be in line with the last 
season.

The  Company has a new retail outlet under construction  dedicated
to  the tourist traffic both ex vessel and land based.  A range of
company   own  label  tourist  gifts/souvenirs  is  currently   in
production  with  early supplies already  on  sale.   Cruise  ship
visits  during the austral summer period are predicted to increase
over  last  year and it is anticipated that over 30,000 passengers
will visit the Islands from vessels this year.

Further  seismic  work on behalf of the oil exploration  companies
will  commence towards the end of this year with the first  vessel
arriving  in  December.  From January 2001  The  Falkland  Islands
Government will begin an open door licensing policy for  companies
to search for hydrocarbons offshore of the Falkland Islands.

With  the  onset  of Spring a fresh programme of  onshore  mineral
exploration  has  commenced with our partners FIMD  and  Cambridge
Mineral  Resources  plc.  Discussions are under  way  to  consider
undertaking an aerial Magnetic Survey over East and West Falkland.

As  in the previous year, the Company's shipping operation, Darwin
Shipping  Limited,  expects  to  complete  five  voyages  in   the
financial  year, heavily weighted to the second half of the  year,
with early indications of high levels of project cargo available.

Discussions  with  HR Holdings regarding the  integration  of  our
respective shipping operations continue but progress remains slow.

The  Falkland Islands Government finances remain healthy,  with  a
commitment   to   an  extensive  capital  project   programme   of
infrastructure  development and improvement and  your  Company  is
well positioned to take advantage of this.

Several  acquisition possibilities for expansion  of  the  Company
have been examined over the last few months but in the view of the
Board   they  did  not  represent  sufficiently  good  value   for
shareholders.   The  Board continues to seek  further  acquisition
opportunities for commercial expansion.

John Gainham                                      15 December 2000
CHAIRMAN
                                 
                                 

Enquiries:

Falkland Islands Holdings plc                        01279 461 630
John Gainham, Chairman

Square  Mile  Communications                         020 7601 1000
Kevin Smith/Anna Watson



FALKLAND ISLANDS HOLDINGS plc

UNAUDITED INTERIM CONSOLIDATED
PROFIT AND LOSS ACCOUNT

                        Unaudited    Unaudited    Audited
                      6 months to  6 months to    year to
                     30 September 30 September   31 March
                             2000         1999       2000
                            £'000        £'000      £'000

Turnover                   4,578        5,194     10,443
Cost of sales             (3,275)      (3,678)    (7,038)
____________________      _______       ______     ______

Gross profit               1,303        1,516      3,405
Administrative expenses   (1,199)      (1,141)    (2,428)
Other operating income       166          185        349
____________________      _______       ______     ______

Operating profit (note 1)    270          560      1,326
Net interest                 (15)         (13)       (33)
____________________      _______         _____    ______

Profit on ordinary 
  activities before 
  taxation                   255          547      1,293
Taxation on profit on 
  ordinary activities 
  (note 2)                   (83)        (178)      (355)
____________________      _______       ______     ______

Profit on ordinary 
  activities after 
  taxation                    172          369       938
Dividends                       -            -      (269)
____________________      _______       ______     ______

Retained profit for the 
  financial period            172          369       669
____________________      _______       ______     ______

Earnings per share 
  (note 3)                    2.8p         6.0p      15.4p
____________________      _______       ______     ______


Notes:

1. All  significant turnover, profits and net assets are generated
   from general trading in the Falkland Islands.

2. The taxation charge has been estimated 32.5%.

3. The calculation of the earnings per ordinary share is based  on
   a  profit  of £172,000 (1999: £369,000) and ordinary shares  of
   6,110,037  (1999: 6,110,037) being the weighted average  number
   of  shares  in  issue  during the period.   The  fully  diluted
   earnings  per share is not materially different from the  basic
   earnings per share disclosed.

4. The  interim  report  has been prepared on  the  basis  of  the
   accounting policies set out in the Group's 2000 Annual Report.

5. The  results for the year ended 31 March 2000 as shown  in  the
   statement  do  not  constitute statutory accounts  but  are  an
   abridged version of the Company's 2000 accounts which have been
   filed  with the Registrar of Companies and upon which the audit
   report was unqualified.


FALKLAND ISLANDS HOLDINGS plc

UNAUDITED CONSOLIDATED BALANCE SHEET

                        Unaudited    Unaudited    Audited
                     30 September 30 September   31 March
                             2000         1999       2000
                            £'000        £'000      £'000

Fixed assets
Tangible assets             3,003        2,990      3,010
Investments                    91            -         62
______________________    _______       ______     ______

                            3,094        2,990      3,072
______________________    _______       ______     ______

Current assets
Stocks                      2,132        2,780      2,441
Debtors                     1,470        1,429      1,789
Cash at bank and in hand    1,248        1,354      1,603
______________________     ______       ______     ______

                            4,850        5,563      5,833

Creditors: amounts falling 
  due within one year      (3,009)      (3,779)    (3,953)
______________________    _______       ______     ______

Net current assets          1,841        1,784      1,880
______________________    _______       ______     ______

Total assets less current 
  liabilities               4,935        4,774      4,952

Creditors: amounts falling due
  after more than one year (1,083)      (1,428)    (1,289)
Provisions for liabilities 
  and charges                (936)        (902)      (919)
______________________    _______       ______     ______

Net assets                  2,916        2,444      2,744
______________________    _______       ______     ______

Capital and reserves
Called up share capital       611          611        611
Other reserves                703          703        703
Profit and loss account     1,602        1,130      1,430
______________________    _______       ______     ______

                            2,916        2,444      2,744
______________________    _______       ______     ______


FALKLAND ISLANDS HOLDINGS plc

UNAUDITED CONSOLIDATED CASH FLOW
for the six months ended 30 September 2000



                              Unaudited          Unaudited           Audited
                            6 months to        6 months to           year to
                           30 September       30 September          31 March
                                  2000                1999              2000
                                           
                         £'000     £'000   £'000     £'000     £'000   £'000
                                    
Notes                                                                  

                                                                      
(ii) Cash flow from                                                   
       operating 
       activities          121              677              1,384
       
                                                                      
     Returns on investment      
      and servicing of
      finance
     Interest received      38                44                 73      
     Interest paid         (24)              (59)               (93)    
     ___________________  _____        14  ______      (15)   ______      (20)
                                                                      
     Taxation                                                         
     UK Corporation tax                       
       paid                  -                 -                (25)   
     Overseas taxation                                              
       paid               (360)             (375)              (375)          
     __________________   _____            ______             ______          
     
                                    (360)            (375)            (400)
                                    
                                                                      
     Capital expenditure                                              
       Purchase of tangible 
       fixed assets       (101)            (150)              (275)    
                                                  
     Disposal of fixed                                          
       assets                 -                13                17
    ___________________  ______     (101)  ______    (137)   ______    (258)
                                    
                                                                      
     Acquisitions                                                     
                                                                      
     Investments in                                                   
       unincorporated                                                 
       joint venture                 (29)               -                 (62)
                                                                      
     Equity dividends              
       paid                         -                   -                (244)
 
    ___________________          ______              ______             ______
                                       
     Cash(outflow)/inflow         
       before financing            (355)              150                 400 
                                                                      
     Financing                                                        
     Repayment of                                                 
       secured loan                   -              (500)               (500)
                                 _______            ______              ______
              
     (Decrease) in cash            (355)             (350)               (100)
                                 _______            ______              ______
  
                                                                      

FALKLAND ISLANDS HOLDINGS plc

NOTES TO THE UNAUDITED CONSOLIDATED CASH FLOW STATEMENT



                                   Unaudited    Unaudited     
                                 6 months to  6 months to     Audited 
30 September                    30 September     31 March     Year to         
                                        2000         1999        2000
                                       £'000        £'000       £'000

(i) Reconciliation of net cash flow 
      to movement in net debt
   (Decrease) in cash in the period    (355)    (350)       (100)
   Cash outflow from decrease in debt     -      500         500
   ________________________________    _____    _____       _____

   Movement in net debt in period      (355)      150         400
   Net debt at start of period          353       (47)        (47)
   ________________________________    _____    _____       _____

   Net (debt)/cash at 30 September       (2)      103         353
   ________________________________    _____    _____       _____

(ii) Reconciliation of operating profit 
       to operating cash flows
   Operating profit                     270       560      1,326
   Depreciation charges                 108        95        196
   Decrease/(increase) in stocks        309     (117)        222
   Decrease/(increase) in debtors       318       226       (134)
   (Decrease) in creditors and 
     provisions                        (884)     (87)       (226)
   ________________________________    _____    _____       _____

   Net cash inflow from operating 
     activities                         121      677        1,384
   ________________________________    _____    _____       _____

(iii) Analysis of change in net debt

                                       As at                   As at
                                    31 March     Cash   30 September
                                       2000     flows           2000
                                      £'000     £'000          £'000

   Cash at bank and in hand           1,603      (355)         1,248
   Debt due within one year            (250)         -          (250)
   Debt due after one year           (1,000)         -        (1,000)
   ____________________              _______    _______        _______

   Total                                353       (355)           (2)
   ____________________              _______    _______        _______