6th Mar 2023 11:15
(Alliance News) - James Fisher & Sons PLC on Monday said it sold loss-making nuclear services business James Fisher Nuclear Holdings Ltd and associated properties to Myneration Ltd, an investment vehicle of Rcapital Partners LLP, and will take an impairment as a result.
James Fisher is a Cumbria, England-based marine services provider. JFN provides engineering, manufacturing and technical services to the UK's nuclear decommissioning industry. In 2021, the division recorded a pretax loss of GBP100,000 on third-party revenue of GBP51.7 million.
James Fisher will receive the nominal sum of GBP3 for the business. It will impair the value of goodwill and tangible fixed assets of JFN in its annual results for 2022, in which the business will be shown as a discontinued operation. The results will be published on March 28.
The disposal is part of the company's effort to "rationalise and focus" its portfolio, it said.
James Fisher said a GBP1.2 million loan that it had made available to JFN will remain outstanding following completion of the sale, and it will make available secure interest-bearing loan facility of up to GBP3.5 million available to JFN.
"Existing management and staff will remain with the business as it transitions into new ownership and Rcapital will provide JFN with a GBP3 million secured revolving credit facility to fund the growth of the business going forward," James Fisher explained.
Meanwhile, James Fisher said it expects revenue from continuing operations to increase 7.4% to GBP475 million in 2022 from GBP442.4 million in 2021, but underlying operating profit from continuing operations will be in line with 2021.
Further, the company is starting discussions with its lending group about existing borrowing facilities, which are due to mature between October this year and September next year.
James Fisher shares were down 5.3% to 369.90 pence each on Monday morning in London.
By Tom Budszus, Alliance News reporter
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