James Fisher buys, sells and reveals profits hike

MARINE Services group James Fisher and Sons has announced a hike in profits, and £11m disposal and a £3m acquisition.

The company said profits in the six months to the end of June surged 15% to £19.4m  on revenue up 7% to £200.7m.

Announcing its two deals alongside its interim figures the Barrow-in-Furness-based company said it had sold its 25% share in a private finance initiative consortium set up in 2001 to buy six roll-on, roll-off vessels, four of which are under contract to the Ministry of Defence.

The share in the venture, called Foreland Holdings, has been acquired by Hadley Shipping (Ro-Ro) Limited for an initial consideration of £11.4m with potential additional consideration on the sale of two vessels owned by Foreland.

James Fisher’s net and gross investment in Foreland was £3.1m on 30 June 2013.  Its share in the post tax earnings in Foreland for the year ended 31 December 2012 was £1.6m.  The proceeds from the disposal will be invested back into the business.

One such investment is the acquisition of Yorkshire company Osiris Marine Services and Osiris Underwater Engineering for £3.25m.

Both companies were owned by Aiden West and his wife. Mr West will stay on as managing director of Osiris, which is based in Keighley and was established in 1996 to provide diving and sub-sea services primarily to the offshore wind-farms.

Further consideration of up to £1.25m is payable contingent on certain profit targets for the years ended June 2014 and June 2015.

E C Hambro Rabben & Partners has acted as corporate adviser to James Fisher.

Commenting on the half year results James Fisher chief executive Nick Henry said: “James Fisher benefitted from good market conditions in both Marine Support and Offshore Oil driven by demand for our specialist services around the world.

“Looking ahead, we expect stronger revenue growth in the second half when compared with the first, led by our Offshore Oil businesses which are enjoying buoyant demand for their services in both the North Sea and internationally.

“To date in the second half, the Group is trading to management expectations and continues to be well placed to deliver further value to our shareholders.”

Shareholders will pocket an interim dividend of 6.46p per shares, up 10%.