Fisher (James) & Sons plc Half year post close trading update (1830S)

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RNS Number : 1830S

Fisher (James) & Sons plc

07 July 2020

7 July 2020

James Fisher and Sons plc (FSJ.L)

Half year post close trading update

James Fisher and Sons plc ("James Fisher" or the "Group"), the leading marine services provider, issues the following post close trading update for the half year to 30 June 2020.

Introduction

Our priority throughout the Covid-19 pandemic has been to protect our employees and their families and to continue to provide our services and goods to customers, whilst supporting and maintaining our supply chain. The commitment, support and engagement of our employees in stepping up to the challenges of Covid-19 continues to be remarkable and greatly appreciated.

Trading update

As announced in the Group's AGM statement, the effects of Covid-19 on the Group have been exacerbated by a sharp fall in the price of oil. The imbalance between supply and demand in the oil and gas sector has continued to place downward pressure on oil prices since then and this may persist for some time. Whilst many of the Group's businesses have proven to be resilient through the first half, Group revenue in the second quarter was 18% lower than the comparative period in 2019. For the first half, Group revenue was 10% lower than the comparative period in 2019.

In Marine Support, the second quarter saw subsea service projects being deferred, in both renewables and in the oil and gas sector, together with supply chain challenges due to Covid-19 across all businesses. As a result, Marine Support's financial performance will be lower in the first half, year-on-year, despite the ship-to-ship oil transfer business trading strongly during that period. We have taken the decision to restructure the division, reduce the cost base and refresh the management structure which will provide clearer strategic and operational direction going forward.

Specialist Technical has performed satisfactorily with both the nuclear and defence segments proving resilient despite some logistical supply chain issues.

Offshore Oil, which had good momentum entering 2020, has traded well despite the challenges of Covid-19 and will report improved profitability compared to the first half of 2019. Notably, our artificial oil-well lift business continues to perform well and we have secured a number of marine infrastructure decommissioning projects in Asia during the first half.

Tankships traded well through the first four months of 2020, but shipments of clean petroleum products inevitably reduced during May and June as a consequence of the UK and Irish lockdown.

Covid-19 mitigating actions and financial position

At the start of the Covid-19 pandemic, the Group took immediate actions to protect our people, optimise cash flow and maximise liquidity.

This included making use of the Government's furlough scheme, which the Group will shortly stop utilising, coupled with a 20% deferral in salary for around 800 employees for the second quarter. This will be repaid during the second half of the year, except to all Board members and the Executive Committee who have accepted pay cuts of 20% for the second quarter. The Group has returned to full salaries with effect from 1 July.

The Group has a strong balance sheet with net debt estimated at approximately GBP175m at 30 June 2020, compared to GBP203m at the year end. In the first half of 2020, the Group increased its committed lending facilities by GBP50m to GBP300m. Strong cash management and the deferral of payments for dividends, taxes and pensions, together with tight control of costs and capital expenditure, has seen headroom under committed facilities increase from GBP42m at 31 December 2019 to over GBP100m at 30 June 2020.

Half year results

Due to the uncertainties surrounding our markets at the time of our AGM on 30 April 2020, the Group withdrew financial guidance for the year. While the intervening months have continued to present challenges, the Group has proven resilient and performed well in the circumstances.

James Fisher is well diversified by geographical sector and by end markets which provides resilience to profitability and cash flow, most notably in the current environment. The Group's half year results are scheduled to be announced on 25 August 2020.

For further information:

 
                                           Chief Executive 
                                            Officer 
 James Fisher and    Eoghan O'Lionaird      Group Finance 
  Sons plc            Stuart Kilpatrick     Director          020 7614 9508 
                     Richard Mountain 
 FTI Consulting       Susanne Yule                            0203 727 1340 
                    ---------------------------------------  --------------

Forward-looking statements

This announcement contains statements which are, or may be deemed to be, "forward-looking statements" which are prospective in nature. All statements other than statements of historical fact are forward-looking statements. By their nature, forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Factors may cause future outcomes to differ from those foreseen or implied, many of which are beyond James Fisher's control or influence. Any forward-looking statements speak only as of the date of this announcement and have not been audited or otherwise independently verified. Past performance should not be taken as an indication or guarantee of future results and no representation or warranty, express or implied, is made regarding future performance. Except as required by any applicable law or regulation, James Fisher expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained in this announcement to reflect any change in the Group's expectations or any change in events, conditions or circumstances on which any such statement is based after the date of this announcement, or to keep current any other information contained in this announcement. Accordingly, undue reliance should not be placed on any forward-looking statements.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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