2nd Mar 2016 08:24
LONDON (Alliance News) - Marine engineering services company James Fisher & Sons PLC on Wednesday posted a dip in annual pretax profit in line with a fall in revenue, but said it had managed to mitigate the decline in oil and gas sector activity with cost cuts.
The group said its pretax profit for the year to the end of December fell to GBP46.2 million, down from GBP49.2 million a year earlier, as revenue declined to GBP437.9 million from GBP444.8 million.
James Fisher said its Specialist Technical, Marine Support and Tankships divisions all performed well, but the decline in activity from its oil and gas sector clients dragged on revenue. The company said, however, it managed to preserve its gross margins somewhat through swift cost reduction plans.
The company hiked its final dividend to 16.0 pence from 14.9p, meaning its total payout rises 8.0% year-on-year to 23.8p from 22.0p.
"Looking forward, our Marine Support division looks well placed to deliver growth and Tankships continues to trade well at the levels seen last year. Prospects in our Specialist Technical businesses are strong but, as always, are linked to the timing of specific contract awards. Whilst the outlook in our Offshore Oil division is difficult to predict, the business has been strengthened by the cost actions management implemented last year," said Chief Executive Nick Henry.
"With a strong financial position and robust business model, the board remains confident in the group's ability to deliver further growth and value for its shareholders," he added.
James Fisher shares were up 7.2% to 1,025.00p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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