07 September 2022
James Fisher and Sons plc half year results for the six months ended 30 June 2022
James Fisher and Sons plc (FSJ.L) ('James Fisher', 'the Group'), the leading marine service provider, announces its unaudited results for the six months ended 30 June 2022 ('the period').
|H1 2022||H1 2021||% change|
|Underlying operating profit margin||4.0%||5.7%||(170)bps|
|Return on capital employed||2.7%||5.4%||(270)bps|
|Underlying operating profit*||£9.5m||£13.3m||(28.6)%|
|Underlying profit before tax*||£4.8m||£9.2m||(47.8)%|
|Underlying diluted earnings per share**||6.7p||12.8p||(47.7)%|
|Statutory operating profit||£7.9m||£12.2m||(35.2)%|
|Statutory profit before tax||£3.2m||£8.1m||(60.5)%|
|Statutory diluted earnings per share||3.7p||26.8p||(86.2)%|
|Interim dividend per share||Nil||Nil|
* excludes separately disclosed items of £1.6m loss (2021: £1.1m loss) (note 5)
** excludes separately disclosed items of £1.4m loss (2021: £7.1m profit) (note 5)
- Revenue growth of 2.0% but business mix held back operating profit
- Strong growth in Offshore Oil and Tankships offset by lower contribution from Specialist Technical, as expected, and subdued ship-to-ship transfer activities in Marine Support
- Net debt at 30 June 2022 of £172.4m (30 June 2021: £189.2m)
Turnaround activities continue:
- Restructuring activities expected to deliver c.£3m in annualised savings
- Operational and commercial excellence programmes to be expanded to additional businesses by year end
- Ongoing programme to rationalise the portfolio
H2 anticipated to be materially stronger than H1
- July and August trading was in line with expectations
- Strong order books in Offshore Oil and Marine Contracting
- Tankships expected to continue trading well
- Encouraging pipeline of potential projects in Specialist Technical, albeit timing remains subject to risk
Given the limited visibility on the timing of new contracts in Specialist Technical, the Group's full year underlying operating profit is now expected to be broadly in line with 2021
Seasonally driven operational cash flows are expected to lead to reduced year end net debt and leverage, which would be further decreased by any portfolio disposals in H2
Although the ongoing geopolitical and economic climate is likely to remain uncertain, the Board is confident that it is taking the right steps to stabilise the business and create a platform for sustained recovery
Commenting, Angus Cockburn, Chairman said:
"The first half saw an increase in Group revenue but a decrease in profit, due to portfolio mix. Offshore Oil and Tankships produced strong revenue growth and improved profitability and Marine Contracting continued its turnaround. However, Fendercare's markets remained subdued and the cyclical nature of project work in Specialist Technical was reflected in its performance.
The Board and management team are taking decisive actions to address the ongoing issues affecting the Group's performance, including rolling out an operational excellence programme across the Group; continuing to explore ways to rationalise the portfolio; and restructuring the Fendercare and JFD businesses. More strategic actions will be completed in the second half.
Trading and order intake in the busy summer months of July and August were in line with expectations. H2 is anticipated to be materially stronger than H1. We expect to see continued strong demand within the Offshore Oil and Tankships divisions throughout the rest of the year. Order book coverage in Marine Contracting is good. Whilst Specialist Technical's sales pipeline remains strong, the timing of new, significant, long-term project wins is uncertain. As a result, full year underlying operating profit is now expected to be broadly in line with 2021.
The seasonality of working capital and collection of one JFD project milestone are expected to deliver a reduction in net debt by the end of the year. The debt position could be further improved by our ongoing portfolio rationalisation activities, which aim to reduce net debt and simplify and focus the Group.
Although the ongoing geopolitical and economic climate is likely to remain uncertain, the Board is confident that it is taking the right steps to stabilise the business and create a platform for sustained recovery."