10th Mar 2022 11:58
James Fisher & Sons PLC - Barrow In Furness, Cumbria-based marine services - Withholds annual dividend after "disappointing year". Pretax loss narrows to GBP29.0 million in 2021 from GBP52.5 million in 2020, despite a 4.7% decline in revenue to GBP494.1 million from GBP518.2 million. However, underlying operating profit margin shrinks to 5.7% from 7.8%. "2021 was a challenging and disappointing year for the group," says Chief Executive Officer Eoghan O'Lionaird. "We experienced ongoing disruption from the global pandemic, our markets did not recover at expected rates, and we underestimated the headwinds faced by some of our businesses."
James Fisher decides to withhold dividend payments this year after a 8.0 pence payout in 2020.
"The board recognises the importance of paying dividends and is committed to reinstating the dividend when appropriate," company says, adding: "Within Marine Support, the Fendercare ship-to-ship transfer revenues were some 36% behind a record year in 2020. Underlying operating profit fell by 30.9% with the profitability of our Fendercare, JFD and Tankships businesses being particularly challenged. As a result of those performance challenges, combined with a high level of financial leverage, the company did not pay an interim dividend for 2021 and the board is not recommending the payment of a final dividend for the year."
Net debt stands at GBP185.6 million, down slightly from GBP198.1 million a year before.
Says performance in January and February is in line with management expectations, but it notes a number of uncertainties across the business that will influence the 2022 outcome.
"Our over-riding short term priorities are; firstly to reduce our debt and optimise our portfolio through a series of disposals; and secondly to focus on improving our operational and financial performance," James Fisher says.
Current stock price: 386.00 pence, down 23% on Thursday
12-month change: down 67%
By Tom Waite; [email protected]
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