31st Aug 2016 06:57
LONDON (Alliance News) - James Fisher & Sons PLC on Wednesday said it expects to see growth resume in its second half, leading to an improved full-year result, as it saw profit fall slightly in the first half of 2016.
The marine service provider proposed an interim dividend per share of 8.55 pence, up 10% from 7.80p the year before.
James Fisher reported a pretax profit of GBP17.4 million for the six months to the end of June, compared to GBP17.9 million in the same period the prior year, as revenue fell to GBP209.3 million from GBP213.1 million.
The company said it had traded in line with management expectations in the first half, with the fall in revenue due to reduced activity levels in its Offshore Oil business and the cessation of a contract in the second quarter.
However, its Marine Support, Specialist Technical and Tankships divisions showed strong profit growth, with new contracts in renewables, defence and nuclear beginning to contribute from the second quarter, and the Marine Support division in particular benefiting from strong demand in the ship-to-ship transfer market.
James Fisher said it is "well placed" to face uncertainties caused by the Brexit referendum result, noting it trades relatively little with the European Union, and is focused outside of the UK on Asia Pacific, South America, the Middle East and Africa. Additionally, a substantial part of its revenues are dollar based, which brings it "at least a short term benefit" from the devaluation of the pound.
"Strong performances in Specialist Technical, Marine Support and Tankships, which together increased underlying operating profit by 18%, offset reduced activity levels in Offshore Oil leaving the first half similar to last year. With new contracts in renewables, defence and nuclear decommissioning contributing fully in the second half and continued firm demand for ship to ship services, we expect to see a resumption of growth in the second half leading to a good improvement in the result for the full year," said Chief Executive Officer Nick Henry in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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