REG - Fisher (James) - Full Year Trading Update

James Fisher And SonsAnnouncement

08/02/2024 07:15

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RNS Number : 4068C  Fisher (James) & Sons plc  08 February 2024

8 February 2024

James Fisher and Sons plc

Full Year Trading Update

James Fisher and Sons plc (FSJ.L) ('James Fisher', 'the Group') today provides
an update on trading for the year ended 31 December 2023, ahead of its Full
Year Results.

Overview

Overall underlying trading in the second half was resilient and in line with
market expectations. The Group has continued to make further early progress
with its transformation during the period, focusing on operational
improvements and simplification.

 

Divisional performance

 

Performance trends across all divisions through the second half were generally
consistent with the first half. Energy market conditions remained largely
supportive, underpinning strong performance in a number of divisional
businesses, albeit North Sea IRM (inspection, repair and maintenance) and
decommissioning conditions continued to be challenging. While revenue from
larger project orders within Defence was lower than anticipated in the year,
as procurement timelines were extended by customers, the division retains a
solid pipeline and is still expected to deliver an improved year-on-year
performance in 2023, underpinned by a focus on efficiency and effectiveness.
The Maritime Transport division performed well with Tankships maintaining high
tanker utilisation and stable day rates continuing for spot charter while
Fendercare benefitted from increased operations in Brazil.

Transformation progress

 

The Group made further strategic progress in the second half to simplify and
focus its portfolio, while improving overall financial performance. In
December 2023, the Group ceased operations at Subtech Europe, which generated
c.£40m of revenue in 2023. This business was incurring losses over a number
of years because of increased competition and lower utilisation given the
seasonality of the North Sea operations.

Further progress has been made on the Group's transformation projects that
will strengthen organisational and operational capabilities. Ongoing costs of
restructuring and refinancing together with costs of business closures mean
that non-underlying cash costs for the second half are likely to be at a
similar level to those reported in H1.

Financial position

 

The Group reduced its borrowings in the second half with pre-IFRS 16 net debt
at 31 December 2023 reducing to £140m, from £147m at 30 June 2023 (£133m at
31 December 2022). The increase in net borrowing from 31 December 2022
reflects the additional financing and restructuring costs incurred in the
year.

 

Jean Vernet, Chief Executive Officer, commented:

 

"With the steps we have taken to improve our operational and financial
performance, I am encouraged by the progress across the three divisions.  We
are building the foundations for recovery and are seeing the benefits of the
operational improvements being implemented. We remain fully committed to our
ongoing portfolio simplification, which should further strengthen our balance
sheet, as well as the investment in capability that will provide a platform
for sustainable growth."

 

- Ends -

 

For further information:

 James Fisher and Sons plc  Jean Vernet          Chief Executive Officer   020 7614 9503

                            Karen Hayzen-Smith   Chief Financial Officer
 FTI Consulting             Richard Mountain                               0203 727 1340

                            Susanne Yule

 

 

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