Preliminary Results

Falkland Islands Holdings PLC
11 September 2000


                 Falkland Islands Holdings plc
                               
     Preliminary Results for the year ended 31 March 2000
                               
                     Chairman's Statement
                               
Financial Summary
The  financial  performance for the  year  was  in  line  with
expectations with earnings per share increasing to 15.4  pence
(1999:  14.1  pence).  Turnover at £10.4 million (1999:  £10.9
million) produced an operating profit of £1.33 million  (1999:
£1.35  million).   Profit before taxation  was  £1.29  million
compared with £1.25 million last year.

The  Directors  are  recommending an  increase  in  the  final
dividend to 4.4 pence per share (1999: 4.0 pence) payable on 8
November  2000 to shareholders on the register on  13  October
2000.   The  dividend will absorb £0.27 million leaving  £0.67
million to be added to reserves.

Review of Activities
During  the  1999 fishing season a high level of  catches  was
achieved  of  Illex  squid  species resulting  in  encouraging
levels  of  activity for our fishing agency support operation.
The  Company  expanded the number of Far Eastern  clients  who
were operating in the Falkland waters during this season.

Development  of  infrastructure projects  and  house  building
activity continued and contributions from retailing of  goods,
services and vehicles were all ahead of the previous year.

Following  the  completion  of the  first  phase  of  the  oil
exploration activities, Darwin Shipping completed five voyages
from  the  UK  to the Islands during the year,  compared  with
seven  in  the  previous year. The Company's port,  hotel  and
accommodation services also suffered a slight downturn for the
same  reason.  The current situation regarding oil exploration
is covered in more detail below.

Current Trading and Prospects
Overall  performance in the current year to date  is  somewhat
lower than that of the previous year.

Activity  in  the  fishing agency so far is not  matching  the
exceptional levels achieved last season and hotel occupancy is
also  lower.  However, all other areas of activity are trading
satisfactorily.

The  Company's shipping agency business is seeking  to  expand
its representation of cruise vessels and the range of services
it  can  offer  passengers on these visits through  its  other
activities.   The  ever-increasing  number  of  cruise  vessel
visits  will  enable the Company to develop this area  of  the
business  significantly.  Tourist numbers from cruise  vessels
are expected to grow by more than 10% per annum.

To  take full advantage of this and other tourist traffic  the
Company  is  planning  a new dedicated  retail  outlet.   This
development  will  strengthen and add  value  to  the  Group's
existing   retail  site  and  hotel  as  the  town's   central
attraction  to visitors.  It will provide the Company  with  a
prime water frontage property, enhanced parking facilities and
improved access for the main store.

The commencement of the second phase of housing development in
Stanley  will  release  a further 50 housing  plots  onto  the
market  over  the coming year.  The Government  currently  has
building  projects amounting to almost £6 million as  compared
with  only  some £400,000 in its last financial  year.   These
include  an  abattoir,  new defence  force  buildings,  school
extensions  and  modifications to the  Town  Hall  which  will
generate  continuing requirements for the  Company's  shipping
and  support  activities and will give added  impetus  to  the
retail activities.

Export  opportunities  are being explored  and  now  that  the
Falkland  Islands Government has commissioned the erection  of
an  abattoir  to  EEC standards, the commencement  of  a  meat
export trade should emerge within the next two years.

The  Falkland Islands Government is committed to reducing  the
public  sector by the privatisation of certain activities  and
this  could  provide  the Company with  opportunities  in  the
coming year.

Discussions  with  HR  Holdings  Limited  ('HRH')   have   now
restarted  after  delays caused by major changes  to  the  HRH
Board  of  Directors and are now focused on its  shipping  and
associated  operations.  We hope to report  progress  on  this
matter at the Annual General Meeting.

The  Company's mineral development joint venture has  to  date
identified  the  presence  of gold, Ti-Leucoxene  (high  grade
Titanium  Ore),  mineral sands (rutile,  zircon,  garnet)  and
potential kimberlite indicator materials (kimberlites can host
diamonds).  All of these minerals have been discovered on both
the  East  and  West Falklands.  However, the nature  of  this
operation makes it a long term investment.

With  the  recent increases in world oil prices, oil companies
continue  to  demonstrate interest in the  waters  around  the
Falklands.   Results of exploration activity to date  indicate
that  a  rich  organic  source rock is present  in  the  North
Falkland Basin which is a necessary component for any  oil  to
be  formed.  The Falkland Islands Government will be assisting
oil  companies with their future drilling plans by encouraging
new  companies to farm in to existing licences.  The prospects
continue to look encouraging for future wells to be drilled in
the next few years.

The   Falkland  Islands  economy  remains  buoyant  with   an
estimated expenditure by the Government in the coming year  of
£45 million against a budgeted income of £44 million.

In  November  1999  Leonard Licht and Sir Harry  Solomon  were
appointed  non-executive directors.  A  further  non-executive
director,    Charles   Michael   Orsborn,   Deputy   Chairman,
Charterhouse  Securities Limited, was appointed recently.   We
welcome them to the Board and feel sure that they will make  a
positive  contribution  to  the  future  development  of   the
Company.

Alan  Brooks resigned in January 2000 and the Board would like
to  express  its gratitude for his conscientious and  valuable
efforts during his tenure as non-executive director.

On  behalf  of  the Directors I would also like to  thank  our
employees  for  the continued hard work and  dedication  shown
during the year.

                                                       
Enquiries

Falkland Islands Holdings plc                     01279 461630
John Gainham, Chairman

Square  Mile  Communications                      0207 601 1000
Kevin Smith


                 Falkland Islands Holdings plc
                               
    Consolidated Profit and Loss Account for the year ended
                         31 March 2000
                               
                                                   2000    1999
                                          Notes    £000    £000
                                           
                                                        
Turnover                                         10,443   10,941
Cost of sales                                    (7,038)  (7,589)
                                                -------  -------    
                                                        
Gross profit                                      3,405    3,352
                                                        
Administrative expenses                          (2,428)  (2,348)
                                                       
Other operating income                              349      352
                                                -------  -------              
                                             
Operating profit                                  1,326    1,356
                                                        
Interest payable and similar charges                (33)    (105)
                                                -------  -------              
                                             
Profit on ordinary activities before          
  taxation                                        1,293    1,251
                                                        
Taxation on profit on ordinary activities  2       (355)    (388)
                                                -------  -------              
                                             
Profit on ordinary activities after             
  taxation                                          938      863
                                                        
Dividend                                   3       (269)    (244)
                                                -------  -------              
                                             
Retained profit for the financial year              669      619
                                                -------  -------              
                                             
Earnings per share                         4       15.4p    14.1p
                                                        
                                                        
                                                        
All the above figures relate to continuing operations.
                               
                 Falkland Islands Holdings plc
                               
                  Consolidated Balance Sheet
                      As at 31 March 2000
                               
                                                  2000    1999
                                                  £000    £000
                                                       
Fixed assets                                           
Tangible assets                                  3,010   2,948
Investments                                         62       -
                                               -------  -------               
                                            
                                                 3,072   2,948
                                                       
Current assets                                         
Stock                                            2,441   2,663
Debtors                                          1,789   1,655
Cash at bank and in hand                         1,603   1,703
                                               -------  -------               
                                                      
                                                 5,833   6,021
                                                       
Creditor: amounts falling due within one year   (3,953) (4,153)
                                               -------  -------               
                                                      
Net current assets                               1,880   1,868
                                               -------  -------               
                                                      
Total assets less current liabilities            4,952   4,816
                                                       
Creditor: amounts falling due after more than  
  one year                                      (1,289) (1,857)
                                                       
Provisions for liabilities and charges            (919)   (884)
                                               -------  -------               
                                                      
Net assets                                       2,744   2,075
                                               -------  -------               
                                                      
Capital and reserves                                   
Called up share capital                            611     611
Other reserves                                     703     703
Profit and loss account                          1,430     761
                                               -------  -------               
                                                      
Equity shareholders' funds                       2,744   2,075
                                               -------  -------               
                              
Notes:
                               
   1    All significant turnover, profits and net assets are
        generated from general trading in the Falkland Islands.
                               
   2    The taxation charge based on the profit for the year
        comprises:
                                                2000      1999
                                                £000      £000
                                                      
UK corporation tax at 21.3% (1999: 22.7%)        275       284
Less double tax relief                          (212)     (253)
                                             -------   -------                
                                                    
                                                  63        31
Overseas tax                                     298       357
Prior year adjustment                             (6)        -
                                             -------   -------                
                                                      
                                                 355       388
                                             -------   -------                
                                                      
                               
3    The Directors recommend a dividend of 4.4 pence per share
     (1999: 4.0 pence) payable on 8 November 2000 to shareholders
     on the register at close of business on 13 October 2000.

4    The  calculation of earnings per ordinary share is  based
     on the profit after taxation of £938,000 (1999: £863,000) and
     ordinary shares of 6,110,037 (1999: 6,110,037) being  the
     weighted average number of shares in issue during the year.
     The share options do not have a dilutive effect.

5    The  profit  and loss account and balance  sheet  do  not
     constitute statutory accounts.  The audited accounts, which
     will be delivered to the Registrar of Companies after approval
     at the Annual General Meeting, contain an unqualified audit
     report.

6    Copies of Falkland Islands Holdings plc annual report and
     financial statements will be sent to shareholders shortly.