REG - Fisher (James) - Corporate, Financing and Trading Update

James Fisher And SonsAnnouncement

24/03/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230324:nRSX0872Ua&default-theme=true

RNS Number : 0872U  Fisher (James) & Sons plc  24 March 2023

This announcement contains inside information

 

24 March 2023

 

James Fisher and Sons plc

 

Corporate, Financing and Trading Update

 

James Fisher and Sons plc (FSJ.L) ("James Fisher", the "Group" or the
"Company"), the leading provider of marine services is today providing a
corporate, financing and trading update, the highlights of which are as
follows:

 

·     Publication of FY 2022 financial results to be delayed from 28 March
2023 to 28 April 2023

 

·     This additional time provides an opportunity for the Group to
complete the previously announced discussions in relation to its existing debt
facilities

 

·     The Group is also required to resolve certain technical
restrictions, relating to the JFN Disposal, which have been waived through to
28 April 2023

 

·     Audit process ongoing for FY 2022 - as a result, underlying operating
profit from continuing operations now expected to be broadly in line with FY
2021

 

·     Trading in first two months of 2023 was in line with the Group's
expectations and ahead of the same period in the prior year

 

Corporate and Financing Update

 

As previously announced, the Group commenced discussions with its lending
banks earlier this year regarding its existing debt facilities, which have
maturity dates ranging from October 2023 to September 2024.

 

On 6 March 2023, the Group announced the sale of James Fisher Nuclear Holdings
Limited ("JFN") and related properties (the "JFN Disposal"). As per the 6
March 2023 announcement, under the terms of the JFN Disposal agreement,
several legacy parent company guarantees supporting the obligations of JFN
were retained by James Fisher (the "PCGs"). The retention of the PCGs required
consent under the Group's debt facilities prior to the sale of JFN, which was
not obtained at the time. Following discussions, all lenders under the debt
facilities have agreed waivers in respect of the PCGs until 28 April 2023.

 

The Group is grateful for the lenders' constructive approach and has
accelerated engagement with them to seek a permanent solution in relation to
the PCGs and to address its debt facilities by end of April 2023.

 

The Group intends to publish its financial results for FY 2022 on 28 April
2023.

 

FY 2022 results

 

The audit process for FY 2022 is well-advanced, but ongoing, and remains
subject to finalisation. At this stage, for the year ended 31 December 2022,
the Group is expecting to report revenue from continuing operations of
c.£475m (2021: £442.4m). Underlying operating profit from continuing
operations is expected to be broadly in line with FY 2021.

 

James Fisher made good strategic progress over the second half of 2022 and in
early 2023, divesting non-core businesses, as well as selling a significant
fixed asset. The three business sales completed in December 2022 generated
gross proceeds of c.£18.4m and net bank borrowings at 31 December 2022 were
c.£135m. The sale of the Swordfish Dive Support Vessel, which was announced
in December 2022, completed in January 2023, with cash proceeds of c.£20m now
received.

 

Important changes have been made at the senior management level across several
of our businesses. This will improve financial and performance accountability,
as well as promote energetic and disciplined leaders from inside the
organisation who have a demonstrable track record in achieving operational
targets. Additionally, in order to simplify the Group further, from 1 January
2023 the Company has been reorganised into three new divisions which reflect
our customer verticals, namely Energy, Defence and Maritime Transport.

 

Current trading update

 

The Group has made an encouraging start to 2023, with performance across
January and February (the "Period") demonstrating continued progress, in line
with the Board's expectations.

 

Group revenue in the Period saw strong year-on-year growth, with divisional
trends similar to those seen towards the end of 2022. On both a continuing
operations and total Group basis (including discontinued operations), James
Fisher generated a small underlying operating profit in the Period, compared
with a loss in the prior year.

 

The Group's net debt position is in line with management's expectations,
benefiting from the receipt of Swordfish proceeds, and the Board expects the
Group to continue to de-lever.

 

Whilst the economic climate more generally remains challenging, the Group has
made clear strategic and financial progress over the last few months. With the
benefit of a more focused portfolio and reinvigorated strategy, the Board is
confident that the Group can carry forward this momentum through 2023, driving
further financial and operational improvement.

 

 

 

For further information:

 James Fisher and Sons plc  Jean Vernet       Chief Executive Officer   01229 615400

                            Duncan Kennedy    Chief Financial Officer
 FTI Consulting             Richard Mountain                            0203 727 1340

                            Susanne Yule

 

The person responsible for making this announcement on behalf of the Company
is Jean-François Bauer, Group General Counsel

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSELEDDEDSEFD