Covid hits pre-tax profits but marine services provider remains upbeat
Revenues at James Fisher, the Cumbrian marine services provider, remain impacted by the pandemic.
In an update for the six months to the end of June 2021, the group reported revenues of £233.7m, down 9.5% to £258.1m for the same period last year.
Underlying pre-tax profits were down 39% to £9.2m for the period compared to £15.1m in 2020.
James Fisher, which provides products and services for offshore oil companies and other marine industries, said its order book was looking strong, particularly in decommissioning and offshore wind, following high tender wins in H1.
It is also embarking on a new strategy to deliver sustainable profitable growth announced in June 2021, it said.
Chief executive Eoghan O’Lionaird, said: “Our first half result was in line with the Board’s expectations, with Q2 showing a marked improvement over Q1.
“The Group is expecting performance to improve during the second half of the year as our end markets recover from the disruption caused by the effects of the global pandemic.
“However, we experienced weaker than anticipated trading in Fendercare and lower short-cycle order intake at JFD during the important summer period and this, combined with project suspensions in Mozambique, lead the Board to now expect underlying operating profit for 2021 to be around the same level as that achieved in 2020.
“Looking beyond 2021, forward-looking order books in our long-cycle businesses are strengthening following high levels of tendering activity and contract wins year-to-date which gives the Board confidence in the Group’s future prospects.”
He added: “James Fisher’s new strategy to deliver sustainable profitable growth is progressing well.
“The Group is focused on capitalising on its leading market positions within the marine, energy and defence markets and is well placed to benefit from the market recovery and meet its mid-term financial targets.”
The Board has not declared an interim dividend for 2021.
