The FHL Group's financial performance for the six months ended 31st December 2025 reflected a challenging operating environment, with a general slowdown across its key sectors as well as increasing costs of doing business. Group revenue declined marginally by 1.5% to $207.5m compared to the same period last year. The Group's unaudited profit before tax decreased $34.3m from $37.3m in the comparative period, while the net assets of the Group closed at $429.5m, an increase of $21.7m compared to 30th June 2025. In line with the Group's growth strategy, total assets increased to $965.1m from $917.3m at balance date in June 2025, reflecting continued investment in strategic assets and portfolio growth despite the moderate earnings performance.
The half-year results indicate slower contributions from several core subsidiaries across retail, financial services, tourism and media segments, largely influenced by prevailing economic conditions, cautious consumer spending and sector-specific headwinds.
Despite the softer earnings outcome, the Group has achieved a number of important strategic milestones during the period. The official opening of the FHL Tower on 31st October 2025 marked a significant achievement for the Group. Progress on impact investment initiatives continues through Nawaibuta Holdings Pte Limited, which commenced groundbreaking in June and has advanced well since, reflecting the Group's focus on its core purpose.
Merchant Finance has continued to expand its lending portfolio into new market segments and underserved areas not traditionally serviced by financial institutions, supporting broader economic participation. Basic Industries has invested in a new concrete batching plant and is consolidating its production processes to enhance operational efficiency and cost management. Pacific Cement has progressed discussions to upgrade its existing mill, with vendor negotiations in process, positioning the business for improved productivity and capacity. South Sea Cruises continues to invest in its vessel fleet while actively pursuing opportunities for investment in tourist accommodation within the Yasawa and Mamanuca regions. Meanwhile, RB Patel Group has strengthened its platform for expansion following the successful issuance of its recent corporate bonds, providing additional capital to support future growth.
Looking ahead, uncertainties surrounding global trade, commodity price movements, inflationary pressures and domestic demand are expected to continue influencing business confidence and spending patterns. The Group remains focused on strengthening operational efficiency, disciplined cost management and advancing its automation and digital initiatives to enhance long-term resilience.
The FHL Board would like to thank the shareholders, management, staff, financiers, and other stakeholders who have contributed to the Group's performance and looks forward to their continued support, as the Group moves into the second half of the financial year with the focus of "Growing into new Frontiers in Pursuit of our Purpose".