FIH group (AIM:FIH), the AIM-quoted specialist services group, has exchanged conditional contracts to sell Momart International, its fine art logistics arm, for £7.6 million in cash.
The buyer, Compagnie Générale du Roumois SAS, is ultimately owned by Horus Finance, a family-owned investment firm with existing holdings in art logistics and storage. Completion is targeted for 30 September, with cash payable in full at that point.
Momart, which handles transport, storage and installation for the fine art sector, generated an underlying pre-tax loss of £1.4 million in the year to 31 March, against net assets of £2.1 million.
The board said the sale price reflects fair value given challenging market conditions and Momart's recent trading, having tested the market to compare a sale against retaining the business.
Net proceeds are expected to fund a mix of shareholder returns and retention within the group, which will then be centred on its remaining division, Falkland Islands Company Limited.
"This is a positive transaction for the group, delivering cash consideration of circa £7.6 million before transaction costs", said chief executive Stuart Munro, adding that Momart's new owner brings "deep industry experience" to support its next stage of growth.
Because the disposal counts as a fundamental change of business under AIM rules, it requires shareholder approval by ordinary resolution at a general meeting set for 2:00 p.m. on 28 August. If shareholders reject the deal, Momart continues trading within the group as before.
News Intelligence what this means for the company
FIH group has agreed to sell loss-making art logistics subsidiary Momart to French-backed buyer Horus Finance for £7.6 million cash, with proceeds earmarked for shareholder returns and group retention. The sale requires shareholder approval at an 28 August general meeting and counts as a fundamental change of business under AIM rules; completion is targeted for 30 September. Momart generated a £1.4 million pre-tax loss in its last full year against net assets of £2.1 million, so the board is exiting a drag on group earnings while pivoting FIH toward its remaining Falkland Islands operations.
The disposal removes a loss-making division and unlocks £7.6 million in cash for shareholder returns, but leaves FIH as a much smaller, single-division group centred on Falkland Islands Company Limited. Whether this reshaping strengthens or weakens the investment case depends on the profitability and growth prospects of the remaining business—information not disclosed in this announcement.
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