27th Aug 2014 11:42
LONDON (Alliance News) - James Fisher and Sons PLC said Wednesday that trading in its half-year was in line with its expectations after securing new contracts at home and overseas, leading the company to up its interim dividend by 10%.
The marine services provider said in its results for the six months to June 30, 2014 that profit before tonnage and income tax rose 12% to GBP20.8 million from GBP18.6 million in 2013 while revenue increased 8% to GBP216.1 million compared to GBP200.7 million in the comparable period.
James Fisher said trading in the first-half was good, with higher metrics achieved despite an "adverse currency backdrop" after winning significant new contract business both at home and overseas.
On a divisional basis, the company said the Offshore Oil business benefited from the delivery of two major equipment sales in the first-half which, together with a strong underlying performance, boosted profit by more than 30% to GBP11.9 million from GBP9.0 million last year.
The Specialist Technical division performed well, with profit up 50% to GBP4.5 million from GBP3.7 million, excluding the earnings from its shareholding in Foreland Shipping which was sold in August 2013.
The company said the Marine Support business had a slow start to the year in the first quarter as it faced reduced ship-to-ship market activity in the Far East, though said that this improved in the second quarter. The biggest impact on the division was the strength of sterling against the US dollar, said the FTSE 250-listed company.
A number of marine maintenance contracts are not due to commence until the second-half following delays, said James Fisher. "These contracts should underpin a stronger second-half of the financial year" said Charles Rice, chairman.
Due to the continued positive outlook for the group, the company has declared a 10% increase in its interim dividend for the period to 7.10 pence per share, up on the 6.46 pence paid last year.
In a separate statement Wednesday James Fisher and Sons said that its subsidiary Divex has been awarded a contract by Keppel Singmarine to supply a saturation diving system for the BP Exploration Shah Deniz II Project in the Caspian Sea.
Divex has been contracted for the engineering design, supply, installation and commissioning of a 300 metre depth, 18 man, twin bell / twin hyperbaric lifeboat saturation diving system. The vessel is being constructed in Singapore and is expected to be completed in the Baku Shipyard for delivery in 2017.
"This is testament to the market leading design skills and technology which Divex possesses" said CEO Nick Henry.
The company said that it has continued its strategy of "investing in niche businesses where their strong marine service and specialist engineering skills are valued and rewarded."
During the first-half, the group made three bolt-on acquisitions; Subsea Vision, Testconsult and Design Consulting Europe.
Subsea Vision is an operator of underwater remotely operated vehicles. The business was acquired for GBP2.5 million to improve the company's offering to the marine maintenance market. James Fisher acquired Testconsult for GBP8.0 million to complement its Strainstall Monitoring business and broaden the division's offering in the structural monitoring sector. Lastly, Swedish company Design Consulting Europe, was acquired for an initial consideration of GBP3.7 million to broaden the group's expertise and market presence in the swimmer delivery sector.
"Despite this continuing level of investment, the Group's balance sheet remains strong with gearing still at a conservative 43%. This reflects the healthy cash generating qualities of our operating companies" said Rice.
Shares in James Fisher and Sons were Wednesday trading 3.17% higher at 1,298.00 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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