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."

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