6th Nov 2020 11:00
(Alliance News) - Shares dropped in James Fisher & Sons PLC as it warned of a fall in annual operating profit as revenue for the first nine months of 2020 suffered a double digit decline.
Shares in the marine services firm were 19% lower at 878.00 pence on Friday in London.
James Fisher said that trading in the third quarter to the end of September was challenging, due to the lack of an improvement in trading conditions the company was expecting in August.
For the nine month period, revenue declined by 17% year-on-year. Revenue in the Marine Support segment has continued to be hindered by project delays and cancellations in subsea projects in both the Renewables and Oil & Gas.
Looking ahead, James Fisher will implement a further restructuring programme in Marine Support, placing the carrying value of the asset base under review.
However, the group did report a robust performance in the Specialist Technical and Offshore Oil businesses.
Despite a 17% reduction in selling, general and administration costs, James Fisher expects underlying operating profit for 2020 to be between GBP35 million and GBP40 million, a 39% to 47% decline from GBP66.3 million the year before.
By Dayo Laniyan; [email protected]
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