James Fisher returns to profit in ‘year of stabilisation’
Cumbrian marine engineering group, James Fisher, has returned to profit, its delayed annual results showed.
In March the Barrow-based business announced it would delay publication of its results for the year to December 31, 2022, for a month due to ongoing talks with its bankers over debt levels.
The group has now unveiled its figures, which show a pre-tax profit of £14.5m, against a pre-tax loss of £28.9m a year earlier, on sales of £478.1m, up from £442.2m the previous year.
Once again, the board has not recommended payment of a dividend for shareholders.
The group said it has made good strategic and financial progress in stabilising the business, and revealed that committed financing of £210m has been agreed with lenders, and is expected to be concluded in coming weeks.
Angus Cockburn, independent non-executive chair, said: “After the three years, from 2019 to 2021, which saw the company’s underlying operating profit fall by 58%, to £28m, 2022 was a year of stabilisation.”
He said the poor performance of several past acquisitions had contributed to an increase in debt levels and a long-term decline in return on operating capital employed.
Three businesses were sold in December 2022 – the Mimic and Prolec businesses and the UK operations of Strainstall – and, subsequent to the year end, the Swordfish dive support vessel was sold. All disposals were from the Marine Support division.
The business sales in December raised £18.5m, helping to reduce net bank borrowings at the year end from £139.6m to £132.9m. The sale of the Swordfish vessel has reduced net debt further, by around £20m, with these proceeds being received in January 2023.
The Nuclear Decommissioning business was sold in March 2023. It will not reduce debt but will help the company streamline its activities to improve the focus on its chosen end markets and help to improve operating margin. Mr Cockburn said this refocusing of the portfolio will continue over the next couple of years.
He added: “I regret that, having not paid a dividend in 2021, we were unable to pay an interim dividend in 2022 and the board is not recommending the payment of a final dividend for the year. I recognise the disappointment this will cause our shareholders, and I am committed to rectifying this, once circumstances permit.”
Chief executive, Jean Vernet, said: “Since I joined the group in September 2022, I am pleased to report that progress has been made both strategically and financially. We have a new leadership team in place ready to address the challenges that we currently face.
“In a macro-economic environment that remains uncertain for 2023, we expect our industry verticals to be robust.
“Our 2023 priority is to show significant progress in our turn-around plan by implementing the simplification of our divisional structure, and by delivering on key change management objectives. Our trading in Q1 2023 gives us confidence in the outturn for the year. “
