REG - Fisher (James) - Half year trading update

James Fisher And SonsAnnouncement

17/07/2023 07:00

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RNS Number : 1487G  Fisher (James) & Sons plc  17 July 2023

17 July 2023

James Fisher and Sons plc

Half year trading update

 

James Fisher and Sons plc (FSJ.L) ("James Fisher" or the "Group"), today
provides an update on trading for the six months ended 30 June 2023 ("the
period"), ahead of the publication of its Half Year results on 21 September
2023.

 

Trading summary

The Board is pleased to report that the encouraging start to the year was
maintained through the second quarter. Group revenue from continuing
operations in the period is expected to be c.£250m, representing growth of
c.16% compared to the same period in 2022. Underlying operating profit and
operating profit margin from continuing operations are both expected to show
modest growth compared to the same period in 2022, with the revenue uplift
more than offsetting increased investment to strengthen core capabilities
within the Group, including the formation of our Business Excellence team.

 

All three divisions delivered revenue and profit growth compared to the same
period in 2022, with the Energy division performing particularly well
following strong market demand for well-testing, bubble curtain and artificial
lift products and services. Defence is expected to report a modest profit for
the period compared to a modest loss in 2022. Within the Maritime Transport
division, Tankships has maintained its good performance, with high tanker
utilisation and solid day rates for spot charters. Fendercare's ship-to-ship
transfer business has stabilised at levels in line with H2 2022.

 

Financial position

Net bank borrowings at 30 June 2023 were c.£147m, compared to £133m at 31
December 2022. The normal seasonality of the business, unwind of working
capital balances and costs associated with the £210m new revolving credit
facility have led to a cash outflow in the first half of the year despite
asset sales generating net proceeds of c.£20m in the period. The Group
continues to expect net bank borrowings to reduce by the end of the 2023
financial year, in line with its usual trading profile.

 

Outlook

The Group enters the second half of the year mindful of heightened
macro-economic uncertainty, however the Group's markets remain resilient and
the Board's expectations for the full year remain unchanged.

 

Jean Vernet, Chief Executive Officer, commented:

"I am pleased with the Group's first half performance, with all three
divisions contributing to revenue growth of 16%, alongside a modest
improvement in margins. We are starting to see the benefits of the operational
improvements being implemented throughout James Fisher. These, combined with
the previously announced business and asset disposals and the refinancing
concluded in June, provide us with a stronger platform for the future. Despite
uncertainty in the macro-economic environment, the Group's markets remain
resilient and the Board's outlook for the full year remains unchanged."

 

For further information:

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

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

                            Susanne Yule

 

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