Interim Results

Falkland Islands Holdings PLC
12 December 2001


Embargoed until 0700                                           12 December 2001





                        Falkland Islands Holdings plc

          Interim Results for the six months ended 30 September 2001

                             Chairman's Statement

Financial Summary

The interim results for the six months to 30 September 2001 showed an
improvement over those achieved for the same period of the previous year.

Turnover at £5.3 million (2000: £4.6 million) generated an operating profit of
£381,000 (2000: £270,000). Profit after interest and tax was £235,000 (2000: 
£172,000) yielding an earnings per share of 3.8p (2000: 2.8p). Net assets at 
£2.8 million increased from £2.6 million at 31 March 2001.

Bank debt at £1.0 million was offset by cash and deposits of £0.9 million.

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

The period under review covers the winter in the South Atlantic. Although this
includes the end of the Illex squid fishing high season, it is normally a
quiet trading time for the majority of the Company's activities.

The 2000/2001 squid season continued at a reduced level and fishing agency
results were in line with last year.

Revenue from the new gift shop, which commenced operation in June, helped
turnover for the Company's retailing and distribution activities to improve by
9% over the previous year. However, start-up costs of this new operation
resulted in the contribution from retailing being slightly lower.

Improved turnover from management services was the result of significant
repair work undertaken on the floating port structure and increased
stevedoring.

The Company's shipping operation, Darwin Shipping Limited, completed three
voyages in the period, the same as in the previous year. However, this year's
freight volumes were higher than last year's.

Current Trading and Prospects

Current trading results indicate a continuing improvement over the same period
last year in most sectors of the business.

Fishing licences offered are expected to show a slight increase for the coming
season with indications of a full take-up from our Far Eastern clients.

Retailing results are expected to remain strong with firm contributions from
the gift shop, building supplies and the office and stationery outlet, which
has a contract to supply the Falkland Islands Government.

Activity in the automotive sector is expected to be higher than last year but
with reduced margins.

Prospects for tourism in the coming season remain good and we are expecting to
generate some improvement in the hotel operation as a result.

The contribution from management services is expected to be broadly similar to
that achieved in the previous year.

Darwin Shipping Limited, is expected to complete a further three voyages in
the second half of the financial period, compared to two voyages last year.
The Ministry of Defence are inviting tenders for operation of the Falkland
Islands re-supply service for shipments from the United Kingdom to the
Falkland Islands military base. This may present an opportunity for the
expansion of the Company's shipping interests. The award of tender is not
expected to be announced until May 2002 and will not impact on the Company's
results in this financial period.

The Falkland Islands Government infrastructure development projects planned
for the next financial period include the completion of the junior school
extension, further additional housing plots and the commencement of the new
police station/prison complex. These projects, as they occur, will provide
supply and shipping opportunities for the Company.

Onshore mineral development continues with further geological work restarting
in the austral summer period. Discussions are taking place with potential
partners to expand the activity for the next phase of exploration. This phase
is likely to include an aero-magnetic survey and experimental drilling.

With regard to the off shore oil exploration, negotiations continue between
the Falkland Islands Government and a group in which the Company has a 10%
interest.

                                   - Ends -


Enquiries:

Falkland Islands Holdings plc                                      01279 461630

John Gainham, Chairman
Weber Shandwick Square Mile                                       020 7601 1000

Kevin Smith






                        Falkland Islands Holdings plc

          Interim Results for the six months ended 30 September 2001

            Unaudited Interim Consolidated Profit And Loss Account

                                              Unaudited   Unaudited  Audited
                                            6 months to 6 months to     Year
                                                                       ended
                                                     30          30 31 March
                                              September   September
                                                   2001        2000     2001
                                                  £'000       £'000    £'000

Turnover                                          5,289       4,578    9,984
Cost of sales                                   (3,759)     (3,275)  (6,861)
________________________________               ________   _________ ________
Gross profit                                      1,530       1,303    3,123
Administrative expenses                         (1,294)     (1,199)  (3,071)
Other operating income                              145         166      340
________________________________               ________   _________ ________
Operating profit (note 1)                           381         270      392
Net interest                                       (25)        (15)     (37)
________________________________               ________   _________  _______
Profit on ordinary activities before                356         255      355
taxation
Taxation on profit on ordinary activities         (121)        (83)    (263)
(note2)
________________________________              _________   _________ ________
Profit on ordinary activities after                 235         172       92
taxation
Dividends                                             -           -    (279)
________________________________              _________   _________ ________
Retained profit for the financial period            235         172    (187)
________________________________              _________   _________ ________
Earnings per share (note 3)                        3.8p        2.8p     1.5p



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 at 32.5%.
 3. The calculation of the earnings per ordinary share is based on a profit of
    £235,000 (2000: £172,000) and ordinary shares of 6,117,469 (2000:
    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 2001 Annual Report, with the exception of
    the adoption of FRS 19 - Accounting for Deferred Taxation. The
    comparatives for the year ended 31 March 2001 have been restated
    accordingly.
 5. The results for the year ended 31 March 2001 as shown in the statement do
    not constitute statutory accounts but are an abridged version of the
    Company's 2001 accounts which have been filed with the Registrar of
    Companies and upon which the audit report was unqualified.







                        Falkland Islands Holdings plc

          Interim Results for the six months ended 30 September 2001

                     Unaudited Consolidated Balance Sheet


                                             Unaudited   Unaudited   Audited

                                                    30          30  31 March
                                             September   September
                                                                        
                                                  2001        2000      2001
                                                                       
                                                 £'000       £'000     £'000

Fixed assets
Tangible assets                                  3,146       3,003     3,125
Investments                                          -          91         -
________________________________            __________  __________ _________
                                                 3,146       3,094     3,125
________________________________            __________  __________ _________
Current assets
Stocks                                           2,786       2,132     2,629
Debtors                                          1,440       1,470     1,566
Cash at bank and in hand                           930       1,248       646
________________________________            __________  __________ _________
                                                 5,156       4,850     4,841

Creditors: amounts falling due within one      (3,603)     (3,009)   (3,664)
year
________________________________            __________  __________ _________
Net current assets                               1,553       1,841     1,177
________________________________            __________  __________ _________
Total assets less current liabilities            4,699       4,935     4,302

Creditors: amounts falling due after more        (871)     (1,083)     (750)
than one year

Provisions for liabilities and charges           (963)       (873)     (932)
________________________________            __________   _________ _________
Net assets                                       2,865       2,979     2,620
________________________________            __________   _________ _________
Capital and Reserves
Called up share capital                            612         611       611
Other reserves                                     712         703       703
Profit and loss account                          1,541       1,665     1,306
________________________________            _________    _________ _________
                                                 2,865       2,979     2,620








                        Falkland Islands Holdings plc

          Interim Results for the six months ended 30 September 2001

                       Unaudited Consolidated Cash Flow


                                       Unaudited     Unaudited      Audited

                                      6 months to   6 months to     Year to

                                      30 September 30 September     31 March

                                          2001         2000           2001
Notes                                 £'000  £'000 £'000  £'000   £'000  £'000

(ii)  Cash flow from operating                 755           121            404
      activities
      Returns on investment and

      servicing of finance
      Interest received                    5           38             60
      Interest paid                     (34)         (24)          (107)
      ________________________        ______       ______         ______
                                              (29)            14           (47)
      Taxation
      UK Corporation tax paid              -            -           (43)
      Overseas taxation paid           (314)        (360)          (362)
      ________________________        ______       ______         ______
                                             (314)         (360)          (405)
      Capital expenditure
      Purchase of tangible fixed       (138)
      assets
                                                    (101)          (393)
      Disposal of fixed assets             -            -        64
      ________________________        ______       ______        ______
                                             (138)         (101)          (329)
      Acquisitions
      Investment in unincorporated               -          (29)           (64)
      joint venture
      Shares issued                             10             -              -
      Equity dividends paid                      -             -          (266)
      ________________________               _____        ______          _____

      Cash inflow/(outflow) before             284         (355)          (707)
      financing
      Financing
      Repayment of secured loan                  -             -          (250)
      ________________________               _____        ______         ______

      (Decrease)/increase in cash              284         (355)          (957)
                                             =====         =====            ===







                        Falkland Islands Holdings plc

          Interim Results for the six months ended 30 September 2001

           Notes To The Unaudited Consolidated Cash Flow Statement

                                               Unaudited   Unaudited    Audited

                                             6 months to 6 months to    Year to

                                            30 September 30 September   31 March
                                                         
                                                    2001        2000        2001
                                                                
Notes                                              £'000       £'000       £'000
                                                               

(i)      Reconciliation of net cash flow to
           movement in net debt (decrease)/          284       (355)      (957)
             increase in cash in the period
         Cash outflow from decrease in debt            -           -        250
              _____________________________ ____________ ___________ __________

             Movement in net debt in period          284       (355)      (707)
                Net debt at start of period        (354)         353        353
              _____________________________ ____________  __________ __________
            Net (debt)/cash at 30 September         (70)         (2)      (354)
            ===========================      =========== ==========  ==========

(ii)  Reconciliation of operating profit to
                       operating cash flows
                           Operating profit          381         270        392
                       Depreciation charges          117         108        214
              Decrease/(increase) in stocks        (157)         309      (188)
             Decrease/(increase) in debtors          129         318        220
       (Decrease)/increase in creditors and          285       (884)      (360)
                                 provisions
          Investment in mineral exploration            -           -        126
                                written off
             ______________________________ ____________ ___________ __________
             Net cash inflow from operating          755         121        404
                                 activities
           ============================      ===========  ==========  =========

(iii)        Analysis of change in net debt        As at        Cash      As at

                                                31 March       Flows         30
                                                                      September
                                                    2001                   2001
                                                                           
                                                   £'000        £'000     £'000
                                                                          

                   Cash at bank and in hand          646         284        930
                   Debt due within one year        (250)                  (250)
                    Debt due after one year        (750)                  (750)
               ____________________________ ____________ ___________ __________
                                      Total        (354)         284       (70)
             ==========================     ============  ==========  =========