REG - Fisher (James) - Full Year Trading Update and Notice of Results

James Fisher And SonsAnnouncement

05/02/2025 07:00

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RNS Number : 9197V  Fisher (James) & Sons plc  05 February 2025

5 February 2025

James Fisher and Sons plc

Full Year Trading Update and Notice of Results

Turnaround progressing as planned with solid second half results

 

James Fisher and Sons plc (FSJ.L) ('James Fisher', 'the Group'), a leading
marine services company providing innovative solutions across energy, defence
and maritime service, today provides an update on trading for the year ended
31 December 2024 ("FY24"), ahead of its full year results on 20 March 2025.

 

·      Solid overall trading performance through the second half
supported by end markets

·      Good execution, together with a contribution from several
specific non-recurring items, will result in Group underlying operating profit
of c.£29m, ahead of current market expectations

·      Net debt expected to be within target range of 1.0-1.5x

·      Strategic progress continuing as planned; business turnaround
strategy, including portfolio simplification progressing well; facilities
refinanced in September 2024

·      Continued investment across all Divisions to drive future growth

 

Jean Vernet, Chief Executive Officer, commented:

"I am encouraged by our 2024 performance which will show underlying profit
ahead of expectations together with an improved cash position.  We ended the
year in a stronger position having continued to execute on our turnaround
strategy, including undertaking disposals and refinancing our debt facilities.
As a result, we are now beginning to see the benefits of our transformation
programme coming through.''

FY24 Trading update

 

Our key end markets, particularly within the energy sector, remained
supportive through the second half enabling the Group to deliver encouraging
year-on-year revenue performance in 2024. James Fisher's strategic turnaround
initiatives have continued to deliver incremental improvements in
profitability which, together with a contribution from several specific
non-recurring items in the year, mean that the Board now expects the Group's
underlying operating profit for FY24 of c.£29m, ahead of current market
expectations.

 

Within the Energy Division, growth was driven by good performances in
compressor rentals (both Well Testing services in Africa and the Middle East)
and in Bubble Curtains to support offshore windfarm construction in North
America. In addition, the Division benefited from the sale of "Life of Field"
assets and successfully progressed its contract in Mozambique for the
development of a new Liquified Natural Gas (LNG) plant (which will conclude in
Q1 2025).

 

Whilst procurement decisions for a number of significant programmes continued
to progress slowly, the Defence Division delivered a stronger fourth quarter,
securing notable contract wins in Australia, India and other parts of Asia. As
a result, the division carries forward a growing orderbook, with c.60% of 2025
revenue secured from long term contracts.

 

In Maritime Transport, we completed the planned sale of the Raleigh Fisher, in
December 2024, for c.£10m. However, continued high LNG inventory levels have
impacted the market for ship-to-ship transfers in 2024, resulting in a weaker
than expected performance in Fendercare.

 

In support of the Group's key organic growth initiatives, capital investment
in 2024 was c.£31m. Approximately half of the investment was made in the
Energy Division, including spend on a new fleet of compressors, as well as
upgrades to existing compressors to support growth opportunities which have
been identified. The remaining expenditure was largely focused on the Maritime
Transport division, continuing the Tankships fleet replacement programme and
in Defence we continued to invest in future product development.

 

Business turnaround and strengthening the balance sheet

 

We have completed the first chapter of our business turnaround and made good
progress in FY24 to focus and simplify the portfolio, building a more
resilient financial foundation for growth.

 

The Group strengthened its balance sheet, significantly reducing debt through
the sale of non-core businesses, notably RMSpumptools in July and Martek
Marine in September, alongside improved cash management. Net debt at year end
is expected to be less than £60m, with Net Debt to EBITDA within the
company's target range of 1.0 - 1.5x.

 

In September 2024, James Fisher refinanced and secured a single committed
facility of £95m, consisting of a three years £75m Revolving Credit Facility
and a £20m term loan for five years. It was agreed on improved terms, with
increased flexibility to operate the business, while significantly reducing
overall maintenance costs associated with the previous facility.

 

Outlook for the year ending 31 December 2025

 

Whilst conditions in key end markets are expected to remain supportive in
2025, underpinned by structural drivers, the Group remains mindful of the
continued near term political and economic uncertainty.

 

Against this backdrop, the focus remains on delivering against the turnaround
plan, with the next phase of initiatives now underway. The Board sees
opportunities to build on progress made to date and drive the business further
towards its medium-term target of 10% underlying operating profit margin.

 

Trading in the early part of the new year has been in line with expectations
and the Board remains confident in delivering further progress in 2025.

 

Full year results

 

James Fisher expects to announce its full year results for the year ended 31
December 2024 on 20 March 2025.

 

- Ends -

 

For further information:

 James Fisher and Sons plc                     020 7614 9503

 Jean Vernet, Chief Executive Officer

 Karen Hayzen-Smith, Chief Financial Officer

 FTI Consulting                                020 3727 1340

 Richard Mountain / Susanne Yule

 Alma Strategic Communications                 020 3405 0205

 Justine James / Rebecca Sanders-Hewett /      jamesfisher@almastrategic.com (mailto:jamesfisher@almastrategic.com)

 Sam Modlin / Will Ellis-Hancock

 

Notes to editors

James Fisher and Sons plc is a leading provider of unique marine solutions in
Energy, Defence and Maritime Transport. The Group pioneers safe, innovative
solutions that solve complex customer challenges for industries and
governments around the world.

 

For more information visit  www.james-fisher.com
(http://www.james-fisher.com)

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation. The person responsible for arranging the release
of this announcement on behalf of James Fisher is Victoria Hames, Company
Secretary.

 

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