Annual Report and Accounts 2023
HARNESSING THE
BLUE ECONOMY
Energy • Defence • Maritime Transport
Building foundations for the future
In this Report, we outline progress made in 2023 on our journey
to returning to sustainable, profitable growth.
ENHANCING
ENERGY
Supporting the energy transition
through responsible energy provision
and innovative renewable energy
solutions
Read more on page 20
PROTECTING
DEFENCE
Protecting lives and assets on
and under the oceans, in the
most sensitive and challenging
environments
Read more on page 24
CONNECTING
MARITIME TRANSPORT
Leading the way in targeted coastal
maritime shipping and global oil and
natural gas ship-to-ship transfers
Read more on page 28
OUR PURPOSE IS TO
PIONEER SAFE, TRUSTED
SOLUTIONS FOR COMPLEX
PROBLEMS, IN HARSH
ENVIRONMENTS WITH A
FOCUS ON THREE CORE
MARKETS
Supporting
28
of the world’s
navies
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
CONTENTS
STRATEGIC REPORT
At a glance 02
Chairman’s review 04
Business model and strategy 06
Why invest in James Fisher? 08
Interview with our CFO 10
Key performance indicators 12
Our markets 13
Chief Executive’s statement 14
Operational and market highlights 17
Business Excellence 18
Our Divisions 20
Sustainability 32
– Strategy and governance 34
– Engaging for value 36
– Focus areas 38
Non-financial KPIs 48
Financial review 50
Principal risks and uncertainties 56
Viability statement 67
Non-financial and sustainability
information statement 68
GOVERNANCE
Governance at a glance 70
Chairman’s introduction to
corporate governance 72
Governance framework 74
Board of Directors 77
Corporate governance report 80
Nominations Committee report 84
Audit Committee report 87
Directors’ remuneration report 92
Directors’ report 110
Statement of Directors’ responsibilities 115
FINANCIAL STATEMENTS
Independent auditor’s report 116
Consolidated income statement 125
Consolidated statement of other
comprehensive income 126
Consolidated and Company statement
of financial position 127
Consolidated and Company cash
flow statement 128
Consolidated statement of changes
in equity 129
Company statement of changes
in equity 130
Notes to the financial statements 131
Subsidiaries and associated
undertakings 196
Group financial record 200
Investor information 201
OUR 2023 REPORTING SUITE
Sustainability Report
Our website
Please visit www.james-fisher.com
for further information.
Managed
7.9 GW
of offshore wind
throughout 2023
Harnessing
175+
years' of marine
experience
Supporting
28
of the world’s
navies
CONTENTS
STRATEGIC REPORT
At a glance 02
Chairman’s review 04
Business model and strategy 06
Why invest in James Fisher? 08
Interview with our CFO 10
Key performance indicators 12
Our markets 13
Chief Executive’s statement 14
Operational and market highlights 17
Business Excellence 18
Our Divisions 20
Sustainability 32
– Strategy and governance 34
– Engaging for value 36
– Focus areas 38
Non-financial KPIs 48
Financial review 50
Principal risks and uncertainties 56
Viability statement 67
Non-financial and sustainability
information statement 68
GOVERNANCE
Governance at a glance 70
Chairman’s introduction to
corporate governance 72
Governance framework 74
Board of Directors 77
Corporate governance report 80
Nominations Committee report 84
Audit Committee report 87
Directors’ remuneration report 92
Directors’ report 110
Statement of Directors’ responsibilities 115
FINANCIAL STATEMENTS
Independent auditor’s report 116
Consolidated income statement 125
Consolidated statement of other
comprehensive income 126
Consolidated and Company statement
of financial position 127
Consolidated and Company cash
flow statement 128
Consolidated statement of changes
in equity 129
Company statement of changes
in equity 130
Notes to the financial statements 131
Subsidiaries and associated
undertakings 196
Group financial record 200
Investor information 201
01
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
AT A GLANCE
WHO WE ARE
We are a global engineering services
company. From our origins as a ship
owner and operator, we’ve evolved to
provide the expertise and innovative
technology our customers need in
the harshest of environments across
Energy, Defence and Maritime
Transport.
GUIDED BY OUR VALUES
Pioneering spirit
We respond innovatively to our
customers’ current and future needs.
We think creatively and challenge
conventional thinking.
Integrity
We do the right thing. We treat others
as we’d like to be treated, listening
respectfully and speaking honestly.
We build relationships based on trust
and fairness.
Energy
We love what we do and take pride
in our work – delivering exceptional
results for our stakeholders. We
are empowered to take the right
decisions quickly.
Resilience
We are accountable and courageous,
facing into difficult situations. We are
tenacious, seeking feedback to learn
and develop.
Organisation in transformation
1 james fisher
Committed to portfolio simplification
3 markets
Countries worldwide
~25
Employees
2,041
WHAT WE DO
Our vision
To harness the international, blue economy space, providing technically
advanced solutions that enhance, protect and connect.
Our purpose
Pioneering safe, trusted and sustainable solutions for complex problems,
in harsh environments.
Our mission
Provide innovative marine solutions to our customers in Energy, Defence and
Maritime Transport.
02
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
OUR DIVISIONS SERVICES PRODUCT LINES
ENERGY
• Well testing and
intervention
• Production
optimisation
• Inspection, repair
and maintenance
• Renewables
• Decommissioning
and abandonment
• Digital efficiency
solutions
• Scantech
• RMSpumptools
• JF Subtech
• JF Renewables
• EDS HV
• JF Decommissioning
• JF AIS
DEFENCE
• Submarine Rescue
• Submarine
Platforms
• Special Operations
• Commercial diving
• Defence diving
• JFD
MARITIME
TRANSPORT
• Fleet management
• Berthing and marine
services
• Oil ship-to-ship
services
• Liquefied Natural
Gas ship-to-ship
services
• Mooring and safety
products
• James Fisher
Tankships
• Cattedown
Wharves
• JF Fendercare
• Martek Marine
OUR HEADLINE FIGURES
Revenue –
continuing operations (£m)
£496.2m
2022: £478.1m
Underlying operating profit –
continuing operations* (£m)
£29.6m
2022: £26.4m
Profit/(loss) before tax –
continuing operations (£m)
£(39.9)m
2022: £14.5m
Cash from operating
activities (£m)
£37.8m
2022: £44.5m
Net borrowings (£m)
£201.1m
2022: £185.8m
Read more on our key performance
indicators on page 12
* Excludes adjusting items.
James Fisher uses alternative performance measures
(APMs) to assess the underlying performance of the
business. An explanation of APMs is set out in Note
2 of the financial statements and explanation and
reconciliation.
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James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
CHAIRMAN’S REVIEW
Our commitment to safety,
people, good governance
and sustainability,
particularly carbon reduction,
is central to the future
success of James Fisher.
Angus Cockburn
Chairman
There is no argument with the fact that 2023 was a turbulent
year for James Fisher but it was also one that has begun
to reposition the Company’s future growth. In late 2022, we
began a transformation programme to build a stronger, more
sustainable business focused on improved operational and
financial performance. We have made good early progress
under the energetic leadership of our CEO, Jean Vernet,
centred around streamlining the portfolio, simplifying the
divisional structure and driving a culture of accountability and
results. This has sharpened the focus of the Company and
facilitated the launch of “One James Fisher”, which looks to
capture the customer and efficiency synergies that exist in
the business.
We are focusing the Company on businesses
where we have competitive advantage and
can deliver superior customer value through,
for example, digitalisation or innovation, while
exiting businesses where we cannot deliver
profit and growth.
To this end, we took the decision to close
Subtech Europe in December, given the scale
of its losses over the past few years. From a
capital allocation perspective, we believe that
focusing our investment on higher potential
areas of growth is the best route forward for
James Fisher in the long-term.
Addressing our debt
Our biggest challenge remains that we have
too much debt and our progress will continue
to be hampered while this is the case, due to
very high finance costs and the associated
restrictions on how we can operate. The
refinancing and ongoing management of our
banking group has taken a significant amount of
senior management time and remains a critical
short-term priority. We have demonstrated that
we can generate cash from operations and
carefully selected asset disposals as evidenced
by underlying net borrowings* reducing from
£203 million in 2019 to £149.8 million at the end
of 2023. However, the reduction in profitability
over that time has meant that our leverage*
remains too high. Generating strong cash
flow to reduce debt, while at the same time
improving profitability, will reduce leverage and
this remains our key priority as we enter 2024.
We remain grateful for the support of our banks
during this challenging period.
04
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
The first stage of any turnaround is stabilisation
and despite all the challenges, our underlying
financial performance improved slightly during
the year, with Underlying Operating Profit
(UOP)* growing from £26.4 million in 2022 to
£29.6 million in 2023. This, combined with the
small increase in underlying net borrowings
from £142.1 million at the end of 2022 to
£149.8 million at the end of 2023, means that
our leverage as measured by underlying net
borrowings divided by underlying operating
profit before interest, tax, depreciation and
amortisation, adjusted for impacts of IFRS
16*, remained relatively flat at 2.75x in 2023
(2022: 2.70x). That said, the recently announced
sale of RMSpumptools, due to complete in the
early second half of 2024, will help to reduce
our net borrowings further and move us closer
to our desired medium-term leverage range
of 1.0 to 1.5x.
Given our current financial position the
Board is unable to recommend paying a final
dividend for 2023. I recognise that this may be
disappointing, but the Board remains committed
to reintroducing a sustainable and progressive
dividend policy when appropriate.
Delivering our strategy
The turnaround strategy has three main
elements: Focus, Simplify and Deliver. We
are clearly still in the foothills of executing this
strategy, but we have made some good early
progress in terms of focusing and simplifying
our portfolio of businesses and laying the
foundations of operational performance
improvement. Building a strong leadership team
is key to this and the Board is pleased that the
Executive Committee Team is now in place,
combining existing James Fisher talent as well
as experienced new hires who bring a fresh
perspective. The job of this team is to position
James Fisher to take advantage of the potential
of operating in the “Blue Economy”.
Headline financial performance during the
year was disappointing with a high level of
“one-off” costs. We have had several years of
one-offs, which have had a material impact
on profitability and more importantly, cash.
These costs are the inevitable consequence
of any turnaround process amplified by a very
challenging refinancing process brought on by
our bank covenant challenges. The underlying
financial performance during 2023 was more
encouraging with revenue from continuing
operations, excluding the discontinued nuclear
business, growing by 3.8% from £478.1 million
to £496.2 million whilst UOP from continuing
operations rose by 12.1% from £26.4 million to
£29.6 million in 2023.
There was particularly encouraging progress
in the Energy Division where revenue grew
by 9.9% to £266.5 million with standout
performance in the well testing and intervention
and artificial lift Product Lines. By contrast,
performance in the North Sea Inspection Repair
and Maintenance and offshore oil businesses
remained challenging. Revenue in the Maritime
Transport Division fell by 6.0% but the focus
on efficiency together with mixed benefits, saw
the underlying operating profit grow by 23.9%
with both tankship and ship-to-ship transfer
services performing well. While the performance
of the Defence business improved in both
revenue and underlying operating profit terms,
extended procurement timelines meant that
the recovery in this business was slower than
expected. However, the potential of our Defence
Division remains encouraging, and the team is
focused on delivering the solutions needed for
customers in a number of diverse underwater
applications.
A key measure for any business is the profit that
is generated from its asset base. Hence the
importance of our Return on Capital Employed
(ROCE) measure*, which is a key incentive
metric for our Executive team. ROCE grew from
5.3% to 6.6% which is clearly still too low, and
a combination of careful capital allocation and
margin improvement is required to make this
number more respectable. Underlying operating
margin*, a key driver of ROCE, improved from
5.5% in 2022 to 6.0% in 2023.
Key pillars of future success
Our commitment to safety, people, good
governance and sustainability, particularly
carbon reduction, is central to the future success
of James Fisher. The focus on safety may not
have delivered the year-on-year improvement
that we were hoping for but the sharpened
emphasis and training on safety will make the
workplace safer for our employees in years to
come. This is particularly important given the
challenging environments in which we work.
Employee engagement remained flat on the
previous year in what is an unprecedented
period of change for the Company. We will
continue to address areas of concern for our
employees and in particular focus on improving
communication and talent development across
the business.
Our sustainability commitment remains front
and centre with carbon emission reduction at
the heart of our strategy. Maritime Transport
accounts for nearly 70% of our emissions and it
was with great pleasure that we commissioned
the first two dual-fuel vessels, and with orders
for a further two placed during the year, our fleet
replacement programme is well underway.
One James Fisher
In the meantime, we need to continue to put
a strong foundation in place. Our One James
Fisher programme, which is a key element
of transformation, will play a pivotal role in
improving all aspects of our business, helping
it become both more agile in terms of our
customer interaction and more efficient in all
our other processes. Like any transformation
programme, progress will at times be
frustratingly slow, but I am convinced that this
will help position the Company for growth once
we overcome our current financial challenges.
Central to our success is our management
team. To this end, I am delighted to welcome
Karen Hayzen-Smith to the Board in the role
of Chief Financial Officer. Karen has tremendous
experience, and I am sure she will play a vital
role in our turnaround in the years to come.
I would also like to take this opportunity to pay
tribute to the efforts of her predecessor, Duncan
Kennedy, who joined at the same time as me
in 2021 and has had to face some of the most
severe challenges that any company could
face. This he did with both energy and good
humour. I also welcome as an Independent
Non-Executive Director, Shian Jastram, who
brings invaluable international experience in
the renewables sector, and I thank outgoing
Independent Non-Executive Director, Aedamar
Comiskey, for her stand-out service in that
role. The last few years have been challenging
and the Board and I will miss Aedamar’s wise
counsel and support.
James Fisher has its heritage in the shipyards
of Scotland and the North of England, and I
am proud that we continue to be a significant
employer in these and other areas, such as East
Anglia, where economic conditions have been
difficult in recent years. Many of our employees
work in harsh environments and I pay tribute to
their courage and dedication. Indeed, I would
like to thank everyone across the organisation
for their hard work and commitment in 2023.
Outlook
Having laid the foundations for transformation
over the last twelve months, our efforts will
continue this year. Business turnaround is a
complex process, always taking longer than you
expect, but the Board has confidence in the
long-term potential of James Fisher and despite
the ongoing financial challenges, believe that
we are making some early progress in achieving
the vision of One James Fisher. This will enable
us to play a role in realising the potential of the
Blue Economy and hopefully, in time, reward the
patience of our investors.
Angus Cockburn
Chairman
* Alternative Performance Measures (APMs) are defined in
Note 2 of the financial statements.
05
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
Our transformation roadmap positions the Company for a stronger, more sustainable future.
This is delivered through our Focus, Simplify and Deliver ambition.
BUSINESS MODEL AND STRATEGY
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06
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
STRATEGY
Journey to transformation
Our strategy is centred around the One James Fisher ambition. We are building a stronger,
more cohesive company operating in the Blue Economy. The execution of this strategy
is delivered through Focus, Simplify and Deliver underpinned by three enablers for growth.
FOCUS
Regroup around our core as an engineering service company operating in the Blue Economy.
SIMPLIFY
Restructure around three Divisions, aligned to the customer market verticals of Energy, Defence and
Maritime Transport, with an emphasis on streamlined structures, standardisation and optimisation of
resources in pursuit of operational leverage.
DELIVER
Drive delivery through Business Excellence and a culture of accountability, with Product Lines in charge
of meeting their financial and operational targets.
Future growth
Our future strategic growth will be achieved by:
• Developing our global talent and specialist competencies, alongside our commitment to stronger
employee engagement
• Prioritising our regional growth based on the key components of market drivers and customer needs
• Investing in the right technology and innovation, including new product development that will
differentiate us from the competition
DELIVERING IMPROVED PERFORMANCE
Our goal is to enable a return to top quartile sustainable profitable growth.
Our focus on operational excellence requires that our businesses achieve the following targets:
• are cash-generative
• have operating margins in excess of 10%
• provide returns on capital employed in excess of 15%
CUSTOMERS
AND SUPPLIERS
SHAREHOLDERS
LOCAL
COMMUNITIES
EMPLOYEES
THE
ENVIRONMENT
OUR STAKEHOLDERS
We have five core stakeholders:
shareholders, employees,
customers and suppliers,
local communities, and the
environment. They inform our
company purpose, direction and
decision-making and are intrinsic
to our Sustainability Strategy.
07
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
WHY INVEST IN JAMES FISHER?
We are seeking to deliver sustainable value for our
shareholders by implementing a strategy focused on
simplifying and focusing the Group. By establishing
stronger foundations, we are delivering growth,
improved margins and enhanced ROCE.
GROWING DEMAND
Within each of our core markets there are substantial
opportunities for growth.
The ongoing geopolitical and environmental backdrop continues to
drive the focus on energy security, decarbonisation and investment
in defence. Our breadth of established capabilities mean we are well
positioned to play a key role:
• Traditional and new energy markets
• Transportation of critical supplies to smaller, regional hubs
• Growing demand for maritime and special operations expertise
• Opportunity to expand into less mature markets
TRUSTED, INNOVATIVE PARTNER
Throughout our 175 years, we have demonstrated
an ability to solve difficult problems in the harshest of
environments, helping our customers navigate seismic
shifts in economic and political contexts.
We combine subject matter expertise and a deep practical
understanding of the reality of working in our chosen markets.
In 2023 this included a number of key innovations:
• Bubble curtain technology for marine protection
• Trial of refuelling-at-sea for the Royal Navy
• Launch of Shadow Seal tactical diving vehicle
08
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
To find out more, please scan the QR code
or visit www.james-fisher.com/investors.
ESTABLISHED SPECIALISMS
Our focus on solving difficult problems in specialist
business segments sets us apart from potential
competitors.
Customers value our specialist assets, capabilities and skills of our
global network of businesses.
• Primary UK fleet operator for the delivery of petrol, diesel and
heating fuels
• Leading positions across several markets and geographies
• Ship-to-ship transfers
• Submarine rescue
• High-voltage engineering for offshore wind
PERFORMANCE FOCUSED
We are focused on actively managing our portfolio,
reducing leverage and deploying a balanced capital
allocation process, improving and scaling commercial
and contracting capabilities and striving for a world-class
safety, risk and project management culture.
In 2024 we intend to continue this focus:
• Sale of non-core businesses
• Expansion of Lean Six Sigma training programme
• Launch of Exceptional Safety commitment
• Launch of Project Management pilots
09
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
INTERVIEW
WITH OUR CFO
In December 2023, Karen
Hayzen-Smith joined James
Fisher as Chief Financial
Officer. With a strong
background in Energy
and Defence, we asked
Karen what attracted her
to the Company, her initial
reflections and more about
the key financial priorities
for the year ahead - that
will enable the business
turnaround.
10
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
James Fisher and Sons plc – Annual Report and Accounts 2023
Q: What attracted you to
James Fisher?
A: I was initially attracted by the uniqueness
of the Company, with its long engineering
heritage that is evident through its specialised
and differentiated products, services and
capabilities, such as shipping, submarine
rescue and diving. We have some great
offerings.
I could see the future value reflected through a
first-rate customer base and geographic reach
as well as innovative expertise, and the ability
to adapt to new developing markets.
James Fisher has all the relevant ingredients
and with the right mix, has the ability to deliver
a successful suite of services. Of course, any
business turnaround is challenging and can
take time to achieve, but the potential is there.
In addition, my early conversations with the
Board showed that they shared a common
vision and determination to make the Group
successful and since joining, I have seen that
commitment across the business. Our people
have real pride in the work they do.
Q: What are your initial reflections
on the first few months?
A: I see a Group that has a passion for its
products and services and is eager for the
strategy to be realised. I’ve been encouraged
by the amount of work already achieved or
underway. I think that’s testament to the
people and culture at James Fisher; there’s a
common purpose to deliver across the Group.
I’d go further by saying there’s a sense of
team spirit and resilience, which is obviously
really important when you’re navigating
through bumpy times.
The groundwork around our strategy to focus,
simplify and deliver is underway. It’s about
harnessing the potential of our people to
complete the foundation work we’ve started,
and to deliver our future growth potential
through strong customer delivery, technology,
innovation and geographical expansion.
There is huge scope and efficiency potential
in simply getting the basics right first time,
across the Group, from enabling services
such as finance through to customer-facing
operations. The Group has the opportunity
to develop further by shared learning and
operating as One James Fisher. We should
expect exponential improvements as the
initiatives filtrate across the Group.
Q: What are your priorities for the
year ahead?
A: Deleveraging – The top priority is to
stabilise the Group and that means reducing
current debt levels. We aim to strengthen our
balance sheet and deleverage to be within
a 1.0 to 1.5x net debt/EBITDA range. This
will de-risk our current borrowing position,
reduce financing costs, free up management
resources and provide a stable platform to
deliver the Company’s full transformation. We
need to achieve this priority above all others.
Establishing a platform for growth and
scale – It’s important that we continue
to perform while we transform. We will
build the foundations in key areas such as
commercial and contracting, while tightening
our governance process in areas such as
investment decision-making. There are
also areas where building capabilities are
important too to improve contract discipline,
cost control and project management. We
need to ensure we bid at the optimum rates
to win new contracts and manage delivery
to retain profitability and be able to convert
profits to cash. Getting the basics right will go
a long way to improving our performance and
will make it easier to scale.
Achieving 10% underlying operating
profit – Our margins are currently lower than
I would expect or like, however there are
many opportunities to improve in order to
reach our target. This includes better supply
chain management, elimination of duplication,
increased use of shared services and the
potential for increased digitalisation and
automation. The opportunities are there, we
just need to prioritise and implement them in
order to deliver short-term results.
Q: How will you achieve
these ambitions?
A: If we reduce the debt and stabilise the
base, we will have earned the right to start or
accelerate the actions required to grow the
business. The One James Fisher model is an
enabler, as we assess our ways of working
as a Group, harness expertise across the
business to focus on customer delivery, while
simplifying the way we operate and avoiding
unnecessary duplication. I have no doubt in
the ability for change to take place and to
add value with immediate impact. We need
to focus on those projects that will really
make a difference.
Karen Hayzen-Smith
Chief Financial Officer
RECENT CAREER SUMMARY
2020 – 2023: Johnson Matthey
Various financial roles including Director
of Group Finance
2016 – 2020: Babcock
International Group
Finance Director – Aviation Sector and
Finance Director – Defence and Security
2008 – 2016: Amec Foster Wheeler
Various financial roles including AMEA
and Southern Europe Finance Director
2005 – 2008: Heidelberg Materials
Deputy Head of Tax
Getting the basics
right will go a long
way to improving
our performance
and will make it
easier to scale.
11
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
Operating (loss)/profit – continuing operations (£m)
£(18.6)m
The Group’s 2022 and 2021 operating profit results exclude operating
losses from discontinued operations (2022: £4.2m; 2021: £nil).
Underlying operating profit* –
continuing operations (£m)
£29.6m
2023 £29.6m
2022 £26.4m
2021 £28.0m
2020 £40.5m
2019 £66.3m
The Group’s 2022 and 2021 underlying operating profit excludes
operating losses from discontinued operations. The inclusion of
discontinued operations would worsen the results to £19.1m in
2022 and £28.0m in 2021.
Underlying operating margin* –
continuing operations (%)
6.0%
2023 6.0%
2022 5.5%
2021 6.3%
2020 7.8%
2019 10.7%
Underlying operating profit including discontinued operations was
3.7% in 2022 and 5.7% in 2021.
Return on operating capital employed* (%)
6.6%
2023 6.6%
2022 5.3%
2021 3.6%
2020 6.7%
2019 11.3%
Cash flow from operating activities (£m)
£37.8m
2023 £37.8m
2022 £44.5m
2021 £55.0m
2020 £88.0m
2019 £58.1m
Leverage* (times)
2.8 times
2023 2.8
2022 2.7
2021 2.9
2020 2.8
2019 2.7
2022
2023
2021
£(43.5)m 2020
2019 £55.6m
£24.7m
£(20.7)m
KEY PERFORMANCE INDICATORS
Non-financial KPIs are set out in the Sustainability Report by
reference to our focus areas. For any focus area not currently
including a non-financial KPI, metrics and targets are under
development.
Read more about our non-financial KPIs on page 48
* Underlying operating profit, Underlying operating profit margin, return
on operating capital employed and leverage are Alternative Performance
Measures (APMs) that are reconciled and defined in Note 2 to the financial
statements.
£(18.6)m
12
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
OUR MARKETS
E
n
e
r
g
y
D
e
f
e
n
c
e
M
a
r
i
t
i
m
e
T
r
a
n
s
p
o
r
t
We deliver safe, efficient operations for our customers,
in ~25 countries worldwide – centred around our key regions.
This ensures we have the right people, technology and supply
chain in place to realise our commitments.
GLOBAL REACH THROUGH LOCAL PRESENCE
Asia Pacific
Australia
MENA & KSA
North America
South America
UK/Europe
Key
Oil & Gas
Renewable Energy
Maritime Transport
Defence
James Fisher presence
13
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
CHIEF EXECUTIVE’S STATEMENT
The Company has
growth potential, but our
focus needs to remain
centred on delivering
against our turnaround
commitments.
Jean Vernet
Chief Executive Officer
A year ago, we launched a transformation programme
that would move James Fisher from a portfolio of
individual businesses to a stronger, more cohesive
company. This turnaround is expected to take
between two to three years and be driven by three
themes: Focus, Simplify and Deliver.
To achieve focus, we have regrouped around our core
as an engineering service company operating in the
Blue Economy.
To simplify the business, we have reorganised James
Fisher around three Divisions, aligned to the customer
market verticals of Energy, Defence and Maritime Transport
led by the new Executive Team. Each Divisional Head
has been given the responsibility to streamline reporting
structures, standardise processes and practices and
share Group resources. Divisions are now divided into
Product Lines (PLs) and positioned as experts in their
particular domain.
Our delivery is driven by a culture of accountability, with
PLs in charge of meeting their Underlying Operating Profit
(UOP) and Return on Capital Employed (ROCE) targets.
Each business must earn its cost of capital, either by fixing
the business model if they currently underperform, or by
accelerating profitable growth if they are already above
hurdle rates.
We established a Business Excellence Function and
have driven standardisation across the Group, deployed
through the common language of Lean Six Sigma and
applied change management to deliver our 2023 priorities.
These were to improve our safety, forecasting (through the
deployment of project management), cash collection and
employee engagement.
With much of this important work underway, it is clear that
the Company has growth potential, but our focus needs
to remain centred on delivering against our turnaround
commitments.
14
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
Lessons learned and
strengthening our platform
Despite the potential in the business and the
significant changes we have accomplished,
the Group continued to face challenges in
2023. This included the complex divestiture
of our nuclear business, which impacted the
refinancing of our bank debt during the first
quarter. Whilst this was the right strategic
decision, it had a significant short-term impact
on James Fisher in terms of resources,
distraction, and costs.
These challenges led us to implement a more
robust risk management and governance
framework, delivered through a strengthened
Legal Function with expert talent integrated
across Group and Divisions. Our Functions
are improving in both Finance and Human
Resources (HR), and we are taking steps to
integrate our business systems. Therefore, we
are still in the “back-to-basics” phase of our
journey in these two areas.
With the arrival of Karen Hayzen-Smith
as our new Chief Financial Officer, I look
forward to an accelerated strengthening of
the team, and the upgrade of our control
and risk management processes. This is a
pre-requisite to the Company delivering on
its strategic objectives.
In HR, we appointed experienced Business
Partners in each Division and established
clear Functional oversight. We implemented
a more systematic performance review and
succession planning process, and launched
recruitment and development initiatives,
such as the James Fisher Academy. We
see the Academy as an engine to increase
the expertise of our customer-facing service
colleagues and to reduce our dependence on
third-party contractors.
One James Fisher
In 2023 we adopted the “One James Fisher”
model and brought together our collective
strength to achieve greater synergies for the
business and its customers. We are already
achieving good traction, particularly within
the Energy Division across oil and gas, and
offshore wind, as well as Defence and Maritime
Transport, which share common customers.
Over time, the One James Fisher model will
also drive greater efficiency and effectiveness.
For over 175 years, James Fisher has been
innovative and responsive to its customers’
needs. From coastal shipping, submarine
rescue and saturation diving, through to
bubble curtains, the Company has been
first-to-market with innovative solutions. We
recognise the importance of preserving our
entrepreneurial character.
At heart, we are an asset-light engineering
service company that thrives by bringing
together innovative solutions that resolve
complex problems. Our strategic growth will
be driven through the expertise of our people,
underpinned by applied technology, and
amplified by expanding where the demand
is - across our geographic markets.
We are confident that fostering this new
model, will enable us to:
• Leverage talent acquisition, career
development, and knowledge sharing to
become the employer of choice
• Establish a new product development
process that will enhance our differentiation,
with streamlined manufacturing and supply
chain activities to significantly enhance
productivity
• Pool our mobile assets and field operators
globally, in a service delivery model,
anywhere in the world
• Drive standardisation and automation, with
the potential realised through shared services
• Above all, prioritise our safety
Progress in a year of challenge
2023 was a mixed year, where we made
good progress in building our leadership
team, implementing our new operating model,
and deploying our focus and simplification
agenda. However, we faced some unexpected
challenges that impacted progress, both
financial and operational, including the
difficult decision to close one of our non-core
businesses.
As a service company, our people define
us, and building a new Executive Team has
allowed us to lead the transformation with one
voice. Our senior leaders are the enablers of
our Focus, Simplify and Deliver ambitions.
In 2023 we adopted
the ‘One James Fisher’
model and brought
together our collective
strength to achieve
greater synergies for
the business and its
customers.
Focus
We divested non-core businesses and
sold non-productive assets, which allowed
us to begin the process of reducing our
indebtedness and concentrate investments
on our core portfolio.
To help align effort and resources across
the organisation, we established five
universal objectives to guide activity,
cut complexity and reduce duplication.
We implemented a comprehensive
upgrade of our health, safety, environment
standards. Our top priority remains
Exceptional Safety, deployed through a
company-wide programme that adopts
the highest standards from within our
industries. In 2023, despite missing
our overall target, two of our Divisions
met their objectives and there has been
a palpable, positive change with key
lessons learnt in the third.
Simplify
Through the creation of our three
Divisions, the One James Fisher culture
has begun to embed. I am encouraged
to see business units adopting similar
standards, as they work together to pool
assets, share resources and engage
customers in a more co-ordinated way.
Our Investment Committee is a key
control point and will provide discipline
and consistent decision-making in
matters such as large customer tenders
and capital allocation.
Deliver
Led by our Business Excellence
Function, all business owners
were trained in the Lean Six Sigma
methodology in 2023 and we achieved
38 Green Belts and 8 Black Belts – good
progress towards our 2024 objectives.
Through these collective efforts, we have
made progress towards our strategic
target to deliver 10% UOP margin. We
ended the year at 6.0% (2022: 5.5%).
15
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
In a period of considerable change, our
employee engagement score remained
level with last year (3.86 vs. 3.84 in 2022),
falling short of our ambitions. Our people are
integral to the services we provide, and this
makes employee engagement an extremely
important indicator for us. Nevertheless,
there was progress in some Divisions, which
showed the positive impact of our culture
initiative.
Completing our foundation work
As the new organisation has settled in, our
immediate priority is to ensure we have a
strong financial base and get closer to our
mid-term leverage targets of 1.0 to1.5x
Net Debt to EBITDA. This will provide a
sustainable platform to deliver growth.
We will continue to build on the change
management journey started in 2023,
through several programmes:
1. Exceptional Safety: is our number one
priority. We will expand our approach into
the supply chain and sub-contractors,
building a collective culture across the full
workforce
2. Employee Engagement: improve two-
way engagement with employees so we
can inform, equip and empower them to
deliver our Company’s full potential
3. Foundations for Growth: continue to
strengthen our financial, governance and
risk management foundations. Reinforce
UOP and ROCE as the North Star to
achieve financial improvement and build
a more resilient business for the future
4. Pipeline of Talent: attract, develop
and inspire our employees to reach their
full potential in a diverse and inclusive
environment. At the heart of this is our
five-year talent development framework
5. Strong Supply Chain: work with
employees, contractors and partners to
build a stronger supply chain framework.
This is centred around efficient execution
and delivery, including the pooling of both
assets and people
These priorities will underpin our customer
focus, as we continue to prepare for the
long-term strategic growth of James Fisher.
Positioning for growth
Against the backdrop of continued geopolitical
instability and security of energy supply, all
three Divisions should benefit from long-term,
structural demand tailwinds.
The Energy Division will support the energy
transition through its innovative offshore wind
solutions and help oil and gas customers to
become more efficient and less carbon intensive.
Our Defence Division will continue to lead the
industry in life support and lifesaving products
and services, which includes innovative
platforms to bridge defence gaps through close
collaboration with our partner nations.
In Maritime Transport, we will ensure
continuity of critical supply through coastal
shipping both in the UK and in new
geographical markets, and explore adjacent
markets relevant to our capabilities. We will
explore options in other regions, such as the
Caribbean, where we have proven value. In
ship-to-ship activities, we will lead in serving
liquefied natural gas (LNG) demand, while
providing world-class safety, reliability and
compliance in crude oil.
Across all these verticals, James Fisher will
be next to our customers, wherever they are
– across the North Sea, the Middle East, Asia
Pacific and the Americas.
Having hired our Chief Technology Officer, in
January 2024, we will harness the innovation
that I have witnessed across the Group and
will embed technology as a major part of our
growth plan. This includes a new product
and service development process, that will
accelerate the introduction of new offerings
to market.
As we reduce our financial leverage, we
will look to enrich our service offerings by
adding differentiated activities to our divisional
portfolio, either organically or through
acquisitions. Any future acquisition must
demonstrate some compelling contribution
to our strategic goals and continue to be
asset-light.
Outlook for the year ended
31 December 2024
In the current financial year to date, the
Group’s overall performance has been in line
with the Board’s expectations, building on our
early-stage progress in 2023. Looking forward,
we continue to see supportive end markets
in 2024 in the majority of our businesses and
would also expect to deliver further benefits
from our turnaround initiatives.
Our key focus for 2024 is to establish a robust
and sustainable financial platform, with lower
levels of debt as we work towards a mid-term
leverage range of 1.0 to 1.5x (Net Debt to
EBITDA). To achieve this we need to complete
the disposal of non-core assets during 2024
and refinance our debt facilities which mature
in March 2025. Delivering on this objective
will strengthen our balance sheet, reduce our
interest cost, make us a more resilient Group
and provide greater ability to take advantage
of growth opportunities.
Thanks
As I reflect on this year of transformation,
I would like to thank the Board, shareholders,
customers, and employees for their continued
support through this time of change.
As we head into 2024, I am proud of the
progress we have made in our journey of
transformation with a recognition there is
much more to be done. With a stronger
platform for growth, I am confident that
James Fisher will once again prosper thanks
to the people and innovation that is the
hallmark of this organisation.
Jean Vernet
Chief Executive Officer
CHIEF EXECUTIVE'S STATEMENT CONT.
16
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
OPERATIONAL AND MARKET HIGHLIGHTS
The Energy Division provides
safe, sustainable products
and services for two core
markets: oil and gas and
renewables.
In 2023, the Division increased revenue
c.10% to £266.5m with operating profit
increasing by c.13% to £15.7m. Highlights
included:
• Strong performance from well testing,
bubble curtain and artificial lift products
• Expanded artificial lift products and service
offerings from new manufacturing base in
Saudi Arabia
• Awarded UK “Innovation in
Decommissioning Award” for SEABASS
plug and abandonment solution
• Strong demand for our technologies,
secured our first US contract for bubble
curtains
• Joint collaboration agreement signed for
offshore wind operation and maintenance
(O&M) services in Japan to support
Northeast Asia geographical expansion
• Launch of James Fisher Academy to deliver
skills and competency for offshore wind
services
Against the backdrop of heightening focus on
energy security, demand for well testing and
production optimisation services remained
strong, particularly in the US, Middle East
and Latin America. This was demonstrated
through excellent performance in the well
testing and artificial lift Product Lines.
By contrast, the decommissioning market
remained challenging, and the business will
focus more on selective bidding, aligned
to margin delivery and stronger operational
performance. Renewable offshore wind
market conditions improved from 2022 to
2023 and the business returned to break-
even through a combination of selective
bidding, technology differentiation and
geographical expansion. Offshore wind
market conditions are expected to remain flat
in 2024 but are set to improve in 2025 and
the Division will focus its core strengths on
construction, operations and maintenance,
data management and digital solutions. This
includes geographic expansion through key
strategic partnerships and collaborations.
The Defence Division
provides underwater
systems and life support
capabilities for the defence
and commercial diving
markets.
In 2023, revenue increased by 6.3% to
£72.5m, with the Division returning to
profitability delivering underlying operating
profit of £1.5m. Highlights included:
• Successful transition of NATO submarine
rescue system contract
• Initial trial of Shadow Seal special
operations vehicle
• New General Manager appointed to drive
US business market growth
• Early momentum in international markets,
including services and training contracts in
India and South Korea
• Strong growth pipeline in Australia,
Singapore, Sweden, the US and
Netherlands
• Further investment in new product
development
As geopolitical and energy security trends
continue, the demand for subsea and special
operations capabilities is set to increase.
While the business delivered effectively on
its existing contract commitments, including
submarine rescue, some projects were
delayed by customer and government
approvals. The Division continues to build a
strong opportunity pipeline but order intake
was impacted by delays in the award of new
contracts. However, the commercial diving
business has performed well, aligned to
energy market conditions. Product innovation
and development is also set to drive further
growth, alongside the Shadow Seal special
operations vehicle that was trialled in 2023,
ahead of its delivery to customers in 2024.
Maritime Transport is a
leading provider of targeted
coastal shipping and global
oil and natural gas ship-to-
ship (STS) transfer services.
Although revenue declined by 6% in 2023,
to £157.2m, the Division was focused
on profitability and underlying operating
profit was up c.23% to £23.3m. Highlights
included:
• Delivery of two new, dual-fuel vessels,
the Sir John Fisher and Lady Maria Fisher
• Secured largest UK tankships contract
renewal with Phillips 66
• Strong LNG STS demand globally coupled
with strong demand for oil STS in Brazil
The Division continues to play a key role in the
critical supply of energy and petrochemicals,
alongside alternative fuels, including liquefied
natural gas (LNG). This resulted in a strong
performance during the year, with high
utilisation levels across tankships, alongside
a key contract extension with a major UK
customer. As part of the Company’s fleet
replacement programme, James Fisher
took delivery of two new, dual-fuel vessels,
which will underpin the Company’s ESG
commitments. The STS business maintained
its global market-leading position in STS
transfers and performed well in the first
half of the year, particularly in Brazil. There
is continued opportunity to integrate the
business further and identify synergies from
which to grow the customer base.
ENERGY DEFENCE MARITIME TRANSPORT
17
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
BUSINESS EXCELLENCE
Supporting and
Driving Transformation
The Business Excellence
Function was established
at the start of 2023 to
drive improvements and
standardisation across
the Group, reinforcing
the One James Fisher
culture, deploying a
common language of Lean
Six Sigma throughout
each Division in pursuit
of our financial and
operational targets. The
team champions business
transformation objectives,
and works across the
Group to leverage
synergies and share best
practice.
The team has been assembled
to include expertise from a range
of disciplines from both inside
and outside James Fisher. A clear
roadmap is in place with a phased
approach, priorities, objectives
and metrics mapped out.
BUSINESS EXCELLENCE HAS MADE
GOOD PROGRESS IN 2023 AND HAS
BUILT STRONG FOUNDATIONS FOR 2024
IMPROVED CUSTOMER
INSIGHTS
In the ship-to-ship business,
this project has developed
a structured approach to
capturing customer feedback
and improve our service
offering. By developing a more
aligned and robust process,
we can better understand
the customer needs and
continuously improve our
offering.
I’m really excited about the
potential of this project;
becoming more customer-
centric is vital to our
transformation and growth,
and this is one step in that
journey.
Ruth Harvey
Marketing Director and
recently certified Black Belt
MINIMISING RISK IN
ORDER FULFILLMENT
The outcome of this project
is to lower the number of
errors made during the
order fulfilment stage, for
safety marine products.
By evaluating an archive of
historic data and mapping
the order process value
stream, we identified 40 areas
of improvement that would
reduce order errors. A more
robust and efficient process
is now in place and we are
identifying other opportunities.
It has been interesting to
uncover just how much can
be gained through the Value
Stream Mapping sessions.
Adrian Hall
Continuous Improvement
Analyst
DRIVING EFFICIENCIES
IN OFFSHORE WIND
With a focus on offshore wind
inspection and maintenance
campaigns, this project uses
Lean techniques to drive
greater efficiencies. Through
the implementation of a new
digital tool, we are finding
ways to enhance data quality,
streamline decision-making
and reduce waste.
The project will reduce
administrative hours and
system touchpoints, allowing
for a leaner cost structure and
enhanced work planning.
Everyone is eager to make
positive transformations for
the business.
Ryan Calvert
Head of Product
Development for Renewables
FOCUS ON LEAN
38
38 GREEN BELTS AND 8 BLACK
BELTS TRAINED AND 30+
PROJECTS DELIVERED
ENGINEERING AND INNOVATION
NETWORK ESTABLISHED TO
BUILD A GROUP-WIDE TECHNICAL
COMMUNITY THAT PROMOTES
KNOWLEDGE SHARING AND
COLLABORATION AND INFORM
OUR TECHNICAL FRAMEWORKS
FOR THE FUTURE
18
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
Establish a central HSEQ
function, policies and
procedural framework to
align and improve the safety
culture with a unified One
James Fisher approach.
See Exceptional Safety
case study on page 39
Improve our financial
performances in terms
of forecasts accuracy,
disciplined delivery
and accurate cash
flow management by
establishing a strong
Lean and Project
Management Organisation
(PMO) culture across the
Group.
Ensure all we do is aligned
with our sustainability
agenda, creating value for
all our stakeholders.
Build a strong IT service
focused on maximising the
value of data management,
security, and digitalisation.
Create an improved
working environment
whereby people are at the
centre, waste is minimised
and everybody is working
at their best so that
engagement is maximised.
ACHIEVEMENTS
HSEQ
LAUNCHED:
EXCEPTIONAL SAFETY CAMPAIGN
HSEQ POLICIES
INTELEX ELECTRONIC SAFETY REPORTING TOOL
JAMES FISHER LIFE-SAVING RULES
3
400+
23
3,500
3,500 HOURS PMO/
LEAN ON CALL SUPPORT
TO PRODUCT LINES,
OVER 125HRS PER
WEEK
LAUNCHED PROJECT MANAGEMENT
SKILLS MATRIX AND PROCESSES FOR
RENEWABLES IMPROVING THE WAY WE
MANAGE ALL RENEWABLES PROJECTS
SUSTAINABILITY POLICY IMPLEMENTED BY THE
GROUP, COMMUNITY HUB LAUNCHED AND CLIMATE
TRANSITION GAP ANALYSIS STARTED
ENTERPRISE RESOURCE PLANNING (ERP)
SYSTEM IDENTIFIED FOR ENERGY DIVISION
38 GREEN BELT PROJECTS TARGETING REMOVAL
OF INEFFICIENCIES AND ENHANCING THE
ABILITY TO DELIVER BY REDUCING OVERLOAD
AND IMPROVING PEOPLE ENGAGEMENT
OVER 400
KAIZEN
FUNNEL
INITIATIVES
IN ACTION
THREE PROJECTS
LAUNCHED TO THREE
PRODUCT LINES. 15 DOCS
PUBLISHED
23 VALUE STREAM
MAPPING (VSM)
SESSIONS
KEY OBJECTIVES
100% OF ORGANISATION
NOW ON THE OFFICE 365
PLATFORM
100%
100% PRODUCT LINES AND PLC ACTIVE KAIZEN
FUNNELS AND STRATEGY DEPLOYMENT PLANS
100% OF PRODUCT LINES USING LEAN
100%
100%
ACTIVITIES TAKING PLACE ACROSS 3 PILLARS –
PEOPLE, PLANET AND PARTNERSHIPS
19
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report Governance Financial Statements
OUR DIVISIONS
2023 HIGHLIGHTS
Safety
10 years LTI free in Norway
6 years LTI free in Renewables
Performance
Outperformed in RMSpumptools
and Scantech
Offshore wind collaboration
agreement in NE Asia
Innovation
1
st
Bubble curtain delivery
in the US
1
st
Decommissioning project
in the US
SEABASS Innovation Award
ENERGY
20
James Fisher and Sons plc – Annual Report and Accounts 2023
Strategic Report
Following its successful launch in Europe and
Asia, we also secured our first project in the US
and see broader opportunity to leverage this
unique and innovative solution.
While we have made some progress, this is a
long-term journey. There is greater potential
around our digital solutions, including digital twin
technology to improve asset integrity and uptime.
Likewise in renewables, the introduction of Cable
Guardian for the offshore wind industry will
reduce costly downtime caused by cable failure.
However, our number one priority for 2024 and
beyond, must be safety. This year we launched
our Exceptional Safety commitment and
following some recent incidents in Energy, we
are building a collective culture of accountability,
supported by the right tools and training. We are
also focused on delivering stronger operational
and financial performance, aligned to our UOP
and ROCE targets. At times we will have to
make difficult decisions and this year was no
exception, including the closure of our Subtech
Europe business. I don’t underestimate the
impact on our employees and this is why we will
continue to engage openly and honestly.
We are committed to strengthening our
employee engagement, which includes the
opportunity to develop and progress a global
career. Our James Fisher Academy is one
example of how we’re doing this, trialling it for
the offshore wind industry with the potential for
it to expand beyond Energy (see case study on
page 22).
Together, we will deliver the long-term potential
of our Energy Division. This centres around
building a safe, sustainable, responsible and
efficient organisation that delivers impeccable
business execution – underpinned by the right
people, innovation and geographical footprint.
Neil Sims
Head of Energy
As an integrated Energy
Division, our focus has been
to align the organisation
behind a common mission –
a safe, sustainable transition
to the low-carbon future.
This is built around two core markets, oil and
gas and renewables. I’m encouraged by the
groundwork underway to reshape our portfolio
and align with our customers’ energy lifecycle
needs. This includes ongoing investment in
technology and innovation that will refine and
differentiate our product portfolio.
Security of energy supply remains critical
and 2023 saw robust demand for our well
testing, intervention and artificial lift services,
demonstrated by excellent performance in
these businesses. While decommissioning
remains challenging, we did expand beyond the
UK to deliver our first project in the US Gulf of
Mexico. Our SEABASS plug and abandonment
technology also won the “Innovation in
Decommissioning Award” at a UK industry
event, which recognised the potential 25% time
saving when compared to competing systems.
Offshore Wind remains an important growth
area for James Fisher and while 2023-24
market conditions remain difficult, 2025 is set to
improve and we will centre our expertise around
installation, commissioning and Operations
and Maintenance (O&M) services. This includes
North East Asia, where we recently signed a
joint collaboration agreement with Tokyo Gas
Group. From a technology perspective, our
bubble curtain technology is a technology
differentiator for James Fisher and we have
seen strong interest from our customers.
While we have made some
progress, this is a long-term
journey. There is a greater potential
around our digital solutions.
Revenue (£m)
£266.5m
2023 £266.5m
2022 £242.6m
Statutory operating profit/(loss)
(£m)
£9.5m
2023 £9.5m
2022 £16.4m
Underlying operating profit* (£m)
£15.7m
2023 £15.7m
2022 £13.9m
Return on capital employed (%)
9.3%
2023 9.3%
2022 8.0%
ENHANCING PROTECTING CONNECTING
* Before adjusting items, refer to Note 2 in the
Financial statements.
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BRIDGING THE SKILLS GAP IN
OFFSHORE WIND
James Fisher has responded to the
growing skills gap facing the offshore wind
industry through the launch of the James
Fisher Academy, with the aim of upskilling
employees across both operational and
logistical roles.
The Academy launched its pilot scheme
in the fourth quarter of 2023 with an initial
focus on high voltage safety – an area
in which the industry is experiencing a
shortage of suitably-trained personnel.
It offers a combination of online and
field-based operational learning, using
high-quality material created and delivered
by industry experts.
Commenting on his experience of the
Academy, Philip Brammer, Electrical
Maintenance Technician, said, “The
training, although intense, has been a
fantastic learning experience and has
taught me a lot about staying safe at
work.”
A wider rollout is planned for 2024,
along with additional internal learning
pathways. The upskilling of employees will
reduce reliance on external contractors
– improving our service offering for
customers – and enhance James Fisher’s
reputation within a fast-growing industry.
GEOGRAPHICAL EXPANSION IN
ACTION – KSA
A new purpose-built facility is enabling
James Fisher to better serve customers
in the emerging Middle East market.
The site, in Al Khobar, Kingdom of Saudi
Arabia, which has been utilised by a
number of James Fisher Product Lines,
gives the Group a local base from which
to meet the demands of the oil and gas
market in the Middle East with a current
focus on artificial lift technologies.
RMSpumptools, a prime user of the site, has
doubled the number of employees based at
the facility since it opened its doors in late
2022 in response to customer demand –
with a particular focus on the Field Service
Team that carries out customer installations.
Many of the team are Saudi nationals, in line
with James Fisher’s support of the IKTVA
(In-Kingdom Total Value Add Programme),
which aims to increase the levels of
localisation in the country.
Production and output levels rose by
65 percent in less than eight months
since the site opened. With further
investment in new tooling and productivity
improvements, alongside the introduction
of new Product Lines, this figure is set to
increase to 300 percent after the first full
year of the site being operational.
From addressing the growing
skills gap in offshore wind
to introducing specialist
air compressors in the
US market, our energy
case studies demonstrate
how we’re responding to
customer and industry needs
across the globe.
OUR DIVISIONS CONT. ENERGY CASE STUDIES
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BRINGING BUBBLE CURTAIN INNOVATION TO THE US OFFSHORE
WIND MARKET
James Fisher has developed innovative new air
compressors to overcome a key challenge faced by
customers during offshore wind farm construction.
In 2023 we introduced the new ST3100 containerised air compressors to
create big bubble curtains – crucial for protecting marine life when subsea
construction work is taking place.
It represents a significant improvement over traditional solutions thanks to its stackable
design, meaning the footprint required for installation is significantly reduced. As a result,
customers can operate them from smaller vessels, increasing manoeuvrability and
reducing costs.
The compressors pump air through flexible piping on the seabed to create a bubble curtain
that alters the form of pressure waves in the water, weakening the acoustic impact of
subsea construction work and reducing the harm posed to marine life.
The ST3100 compressors were deployed on a project in North America’s burgeoning
offshore wind market during 2023, playing a key role in the construction of one of the first
commercial-sized offshore wind farms built on the east coast of the US, and exceeding the
expectations of our customer. Further projects are in the pipeline, as James Fisher continues
to grow its presence in the North American renewable energy market.
“The project was a brilliant success and a testament to the hard work and dedication which
has been applied to such pioneering technology. The ST3100s are a stable product for
ScanTech Offshore and signify an exciting future for our presence in the renewables market.”
Barry Craig
Vice President of Renewables
The project was a
brilliant success and a
testament to the hard
work and dedication
which has been applied
to such pioneering
technology. The
ST3100s are a stable
product for ScanTech
Offshore and signify
an exciting future for
our presence in the
renewables market.
Barry Craig
Vice President of Renewables
ENHANCING PROTECTING CONNECTING
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OUR DIVISIONS CONT.
2023 HIGHLIGHTS
Safety
1 year LTI free globally
Performance
Successful transition of
NATO contract
Solid commercial diving
performance
Significant improvement in
employee engagement
Innovation
Successful trials of Shadow Seal
special operations vehicle
DEFENCE
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Some of these projects have been impacted
by issues outside of our control, including
dependencies on customer deliverables and
government approvals, which led to delays and
cost increases. Our results also reflect delays
to customer procurement processes, mainly in
response to backlogs from COVID. We expect
to complete the remaining milestones on these
projects in 2024, with key lessons learned.
During 2023 we successfully transitioned the
NATO Submarine Rescue System In-Service
Support (ISS) contract from “2ISS” to “3ISS”
following the award of the 5 (+4) year £63m
contract in December 2022. Our enduring
support to NATO highlights the strength of our
submarine rescue capability and was based on
the continuous improvement of our services to
our NATO and international customers.
The defence market carries an inherently high
risk of delays to procurement schedules; a
major focus for 2024 is to strengthen our
sales forecasting and put in place more
robust mitigation against delays in projects. In
2023 we developed a more focused Defence
Division strategy and operating model to
accelerate international growth across our
core Product Lines. This is underpinned by
our new senior leadership team, including a
combination of experienced and new hires
who will energise the business behind our
ambitions.
We have a growth pipeline with opportunities
coming to market in 2024 and beyond across
all our Product Lines. While we face increasing
levels of competition in some areas of the
business, this is a further catalyst to drive
innovation and performance and we are laying
out a development roadmap to meet the needs
of our customers in a changing battlefield
environment. This includes trials of our Shadow
Seal special operations vehicle in 2023, ahead
of delivery to our customers in 2024.
We are seeing early momentum from our
international “home markets” model, including
a step change in India following the transition
to a locally managed team; strong growth
pipelines in Australia, Singapore, Sweden
and the Netherlands; and potential in the US
defence market where we have recruited an
outstanding general manager to lead our US
business. Our commercial diving business has
also continued to perform well. Key to all of this
is our people.
Our annual employee engagement survey
in November showed a material increase in
employee engagement. While there is a lot
to achieve, this improvement shows that our
colleagues have increasing confidence in
the future of Defence – and together we are
committed to making it happen.
Rob Hales
Head of Defence
I was delighted to
join the James Fisher
Defence Division in 2023
at an important time, as
geopolitical and energy
security trends mean that
undersea and special
operations capabilities
are being prioritised for
investment across our
markets.
It has been a great privilege to meet our
customers and partners around the world,
understanding their needs so we can build
stronger customer intimacy and align this with
our expertise. This is vital if we are to deliver
the longer-term potential in our Defence
business, including our commitment to safety
and assurance in the most pressurised of
environments.
2023 was a mixed year of performance for
Defence. Importantly, our safety performance
was strong with no Lost Time Injuries and
a material reduction in our Total Recordable
Case Frequency. We have teams deployed
globally in high hazard environments every day
of the year, so this is a great testament to our
safety management.
Financially, we increased profit but revenue
from larger project orders was lower than
expected in this year. Our greatest challenge
was working through a difficult legacy of being
over-reliant on large, one-off projects, with
several still to complete.
Revenue (£m)
£72.5m
2023 £72.5m
2022 £68.2m
Statutory operating profit/(loss)
(£m)
£(23.7)m
£(23.7)m 2023
2022
Underlying operating profit* (£m)
£1.5m
Return on capital employed (%)
2.1%
We have a growth
pipeline with
opportunities
coming to market
in 2024 and
beyond, across all
our Product Lines.
ENHANCING PROTECTING CONNECTING
£(3.5)m
2022
2022
£(0.4)m
(0.4)%
2023 £1.5m
2023 2.1%
* Before adjusting items, refer to Note 2 in the
Financial statements.
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SUBMARINE RESCUE STEP-
CHANGE IN INDIA
In 2016, JFD won a £193m contract with
the Indian Navy and by 2018 delivered
two of its Third Generation Submarine
Rescue Systems. This world class
capability is maintained by JFD and
operated by the Indian Navy, supported
by training from JFD’s global submarine
rescue operations team.
2023 saw a step-change in performance,
as we implemented our transition plan
under the leadership of our new Indian
management team.
Achievements in 2023 included:
• Conducting our first in-country deep
maintenance period for the West Coast
submarine rescue system
• Completing training for the fifth and sixth
Indian Navy submarine rescue crews
• Supporting the “Goa Maritime Conclave”
where the Indian Navy hosts its regional
partners across the Indian Ocean
• Completing a deep dive to over 500m
These achievements were recognised by
the UK Secretary of State for Defence
and the Indian Defence Minister, the
Honourable Raksha Mantri, during the first
UK visit by an Indian Defence Minister in
23 years during January 2024.
ENTERING US MARKET WITH
TACTICAL DIVING VEHICLE
TECHNOLOGY
James Fisher has expanded its presence
in the US defence market through a
partnership with Blue Tide Marine (BTM), to
launch a new tactical diving vehicle (TDV).
Shadow Seal has the ability to transport
a pilot, navigator and two passengers in
surface, semi-submerged and submerged
mode with a range of 80 nautical miles.
Designed for special operations forces
that need to covertly cross offshore and
nearshore waters, Shadow Seal can
be used to protect complex, high value
platforms and critical infrastructure.
Working with BTM gives James Fisher
greater access to the US market and
expands our subsea maritime capability.
The partnership – with BTM leasing the
production model of Shadow Seal – is
a significant step towards offering a full
turnkey solution in the US.
“This partnership ensures that we can
offer innovative solutions to modern day
challenges. James Fisher is committed
to further developing our in-country
capabilities including through-life support
services and this reflects a significant
milestone in our mission to better serve
the US and wider Americas undersea
markets.”
Rob Hales
Managing Director of James Fisher’s
Defence Division
OUR DIVISIONS CONT. DEFENCE CASE STUDIES
Our defence case studies
shine a spotlight on
what can be achieved
through partnership and
communities, with entry into
the US defence market and
a thriving network focused
on championing inclusivity
amongst the Division’s
highlights.
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EMPOWERING WOMEN IN DEFENCE
Established in the Defence Division in 2023, the “Supporting Her Empowerment Network”
(S.H.E) meets on a quarterly basis and is open to all employees with the aim of creating a
more inclusive workplace. Over the last 12 months, the S.H.E Network has been focused on
promoting more open communication around topics such as gender and cultural diversity,
increasing advocacy, achieving greater diversity within recruitment and championing
mentorship programmes.
The network played a key role in organising regional events across the Division to mark
International Women’s Day and helped realise the Group’s ambition of becoming a member
of “Women in Defence”, a not-for-profit organisation committed to accelerating gender
equity in the defence sector.
For 2024, the network has set itself the ambition of enhancing the Defence Division’s social
value impact – actively engaging with local communities by supporting a charity or cause
dedicated to advancing women’s health, rights or wellness.
“We are delighted with the enthusiasm and momentum the S.H.E Network has gained over
the past year, with a great foundation now in place from which to build on throughout 2024.
It’s clear there is a real appetite from across our global locations to make a positive change
around gender equity and I am encouraged by what has already been achieved.”
Jessica Seymour
S.H.E Network Co-Chair
ENHANCING PROTECTING CONNECTING
We are delighted with
the enthusiasm and
momentum the S.H.E
Network has gained
over the past year, with
a great foundation now
in place from which to
build on throughout
2024. It’s clear there
is a real appetite from
across our global
locations to make a
positive change around
gender equity and I
am encouraged by
what has already been
achieved.
Jessica Seymour
S.H.E Network Co-Chair
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OUR DIVISIONS CONT.
2023 HIGHLIGHTS
Safety
1 year LTI free globally
Performance
Strong performance vs. budget
Key contract renewal with P66
Innovation
Delivery of two dual-fuel vessels
Successful refuelling-at-sea
operation
MARITIME
TRANSPORT
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We also secured Tankships’ largest
contracted revenue renewal with Phillips
66 in the UK, pioneered successful trials
of refuelling-at-sea between the Royal
Fleet Auxiliary and a commercial tanker,
as the Royal Navy looks to develop its
replenishment operations to sustain task
groups and warships for even longer at sea.
So while it has been a positive year, we are
not complacent and recognise the need
for continued efficiency by reducing fleet
downtime and optimising our maintenance
schedules.
As the world leader in ship-to-ship (STS)
transfers, the Fendercare business increased
its net operating profit compared to 2022.
This was achieved thanks to the new
organisation structure and leadership team,
driving a focus on key markets, expertise
and differentiated services that are critical
in an increasingly competitive marketplace.
STS contracted volumes increased to 30%,
including contract retainers for Liquefied
Natural Gas (LNG). The marine products side
of the business also saw growth in fixed and
floating fenders, with the latter primarily due
to new floating LNG projects in Europe.
Martek Marine worked through some
challenges due to stock and staff challenges,
but the business has made progress in
resolving and stabilising performance. A new
product was also launched, chromatography
gas, targeting the growing dual-fuel vessel
market. Cattedown Wharves, which handles
a variety of cargoes in the Southwest of
England, continued to perform well during
2023, including renewal of a significant
contract.
As we look ahead, our focus for 2024 remains
on integrating our business and identifying
synergies from which to grow our customer
base. With our capability in Tankship and STS
transfers, we have the foundations to grow.
And we will continue to focus on how we
differentiate our services from competitors,
to ensure we maintain market share and
leadership.
Krystyna Tsochlas
Head of Maritime Transport
Against the backdrop of
a year with considerable
change, Maritime Transport
had a solid year, delivering
on our financial and
safety targets. Thanks to
our strengthened senior
leadership team in place,
I am confident that we will
continue to thrive.
With safety as our first priority, I’m pleased to
report we had no Lost Time Injuries and saw
a 44% decrease in our Total Recordable Injury
Frequency Rate. But we still have room for
improvement as we seek to achieve our “goal
zero” incidents vision and deliver exceptional
safety standards in all that we do.
Reflecting on 2023, a proud moment was the
delivery of Tankships’ two dual-fuel vessels
– Sir John Fisher and Lady Maria Fisher. The
maritime industry is a key enabler to reducing
overall global greenhouse gas emissions and
why we are committed to investing in our
fleet of the future. Thanks to our heritage
we are ideally positioned to lead the field
through our Tankships, which could not have
been possible without the dedication and
partnership with our customers, colleagues,
and industry partners.
Revenue (£m)
£157.2m
2023 £157.2m
2022 £167.3m
Statutory operating profit/(loss)
(£m)
£21.7m
2023 £21.7m
2022 £19.2m
Underlying operating profit* (£m)
£23.3m
2023 £23.3m
2022 £18.8m
Return on capital employed (%)
30.3%
2023 30.3%
2022 22.5%
Our focus for
2024 remains
on integrating
our business
and identifying
synergies from
which to grow our
customer base.
ENHANCING PROTECTING CONNECTING
* Before adjusting items, refer to Note 2 in the
Financial statements.
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ONBOARD WITH EXCEPTIONAL
SAFETY
By embracing a culture of accountability in
pursuit of Exceptional Safety, the Maritime
Transport Division achieved several
significant landmarks in performance in
2023. This included no Lost Time Incidents
(LTIs), alongside a 44 percent reduction in
its Total Recordable Injury Frequency Rate.
Three of our vessels, Seniority, Superiority
(sister ships) and Solway Fisher have
each achieved 6,000 days without a
LTI, demonstrating the unwavering
commitment of our seafarers to
maintaining exceptional safety standards
despite the challenging environmental
conditions in which they operate.
In recognition of the accomplishment,
crews onboard each of the vessels were
presented with platinum awards and
thanked for their diligent approach to safety.
“Congratulations to all who have sailed
onboard these three vessels. Reaching
6,000 days without a LTI, the equivalent of
over 16 years, is a fantastic milestone and
wouldn’t have been possible without the
crews’ commitment to safety.”
Scott Dobson
Ship Manager
DEVELOPING THE NEXT
GENERATION OF SEAFARERS
James Fisher has continued its officer
cadet training programme, sponsoring
aspiring maritime professionals towards
achieving formal qualifications.
In partnership with one of the UK’s leading
maritime colleges, Fleetwood Nautical
Campus, cadets undergo rigorous training,
working towards an “Officer of the Watch”
certificate in competency and a formal
qualification to at least an Higher National
Certificate level.
The programme emphasises the
development of leadership qualities,
critical thinking abilities, and adaptability to
effectively navigate the dynamic challenges
inherent in the maritime sector.
James Fisher's commitment to developing
cadets stems from its recognition of the
invaluable role that skilled professionals
play in maintaining operational excellence
and driving innovation within the maritime
industry. Investing in the development
of cadets not only ensures a pipeline of
talented individuals for our workforce, but
also contributes to the overall growth and
sustainability of the maritime sector.
OUR DIVISIONS CONT. MARITIME TRANSPORT CASE STUDIES
Focused on safety with
notable performance
milestones reached in the
year, Maritime Transport also
had its sights set clearly on
the future with the launch
of its cadet programme and
expanded service offering.
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SUPPORTING THE ROYAL NAVY IN NEW WAYS
James Fisher has expanded its service offering to the defence industry by undertaking a
replenishment at sea (RAS) operation for the UK Ministry of Defence.
Crew onboard the MV Raleigh Fisher, part of the fleet of vessels operated by James Fisher
Tankships, received specialised training on RAS safety and procedures, enabling them to
successfully complete a series of trials involving RFA Tideforce.
Led by Captain Peter Harrison, the crew worked alongside the Royal Navy vessel, transferring
fuel between the two tankers during a range of tests. This was part of a wider operation by the
Royal Navy, exploring ways in which commercial tankers such as Raleigh Fisher can work with
RFA vessels to help sustain the Royal Navy fleet at sea for even longer periods.
Tideforce is part of the Royal Fleet Auxiliary and provides global logistical support to the
Royal Navy, notably Queen Elizabeth Class aircraft carriers.
“What a privilege it has been for us to work with our fellow professional mariners on Raleigh
Fisher. They have been so receptive to the work and dangers associated with replenishment
operations at sea.
For all of them this was a first and to have achieved so much, so quickly, is a testament to
their dedication and drive to ensure they could deliver fuel safely whilst separated by just 35
metres and underway.”
Captain Chris Clarke
Commanding Officer of Tideforce
ENHANCING PROTECTING CONNECTING
For all of them this
was a first and to have
achieved so much, so
quickly, is a testament
to their dedication
and drive to ensure
they could deliver fuel
safely whilst separated
by just 35 metres and
underway.
Captain Chris Clarke
Commanding Officer
of Tideforce
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WELCOME
We have a strong heritage built
on the foundations of our people
and innovation. Alongside our
valuable partnerships with
customers, communities and
suppliers, we are embedding
a more sustainable approach
across our business.
The Sustainability Strategy is fundamental to our
success and this year, we have integrated it into the
business, centred around three key pillars: People,
Planet and Partnerships.
Our recent christening of the Lady Maria Fisher,
our second dual-fuel tanker, is testament to the
Sustainability Strategy in action. It brought together
the strengths of our people, low-carbon technologies
and partnerships with suppliers and customers,
in pursuit of the net zero future. We also launched a
new cross-company Exceptional Safety campaign,
aimed at delivering a step-change in our culture and
training – including how we deliver it in partnership
with our contractors.
Heading into 2024, we have a greater potential to
deliver, particularly around our emissions reductions
across the business. With the continued support and
engagement of all our stakeholders, we will focus
on progressing this priority and continue to embed
sustainability more broadly across James Fisher.
Jean Vernet
Chief Executive Officer
SUSTAINABILITY
OUR 2023 SUSTAINABILITY REPORT
To find out more on our ESG practices read
our Sustainability Report 2023
VISION
To harness the international,
Blue Economy space,
providing technically
advanced solutions
that enhance, protect
and connect.
SUSTAINABILITY
PURPOSE
To protect the environment
and create a positive impact
on society, and the economy,
by integrating sustainability
considerations into our
operations.
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