James Fisher & Sons PLC (LSE:FSJ) has reported revenue growth and improved margins in a positive trading update for the six months ending 30 June 2023.
The shipping group said its revenue from continuing operations is expected to reach approximately £250mln, representing a 16% increase compared to the same period in 2022. Despite increased investment to strengthen core capabilities, including the establishment of the Business Excellence team, underlying operating profit and operating profit margin from continuing operations are projected to show modest growth compared to last year.
It added that all of its three divisions recorded revenue and profit growth, with the Energy division performing particularly well due to strong market demand for well-testing, bubble curtain and artificial lift products and services.
The Defence division is expected to report a modest profit compared to a modest loss in 2022. Tankships within the Maritime Transport division demonstrated consistent performance, benefiting from high tanker utilization and solid day rates for spot charters. Fendercare's ship-to-ship transfer business stabilized at levels in line with the second half of 2022.
Although net bank borrowings increased to around £147mln as of 30 June 2023, compared to £133mln at the end of December 2022, the company said it expects these figures to decrease by the end of the financial year, in line with its usual trading pattern.
Looking ahead, the company remains mindful of macro-economic uncertainties but said its board's expectations for the full year remain unchanged.
In the trading statement, Jean Vernet, the company's chief executive officer, expressed satisfaction with the first-half performance and highlighted the benefits of operational improvements and recent business and asset disposals.
Vernet said: "These, combined with the previously announced business and asset disposals and the refinancing concluded in June, provide us with a stronger platform for the future. Despite uncertainty in the macro-economic environment, the group's markets remain resilient and the board's outlook for the full year remains unchanged."
The company said its half-year results will be published on 21 September 2023.
CFO to step down
In a separate statement, James Fisher also announced that Duncan Kennedy will be stepping down as its chief financial officer and executive director within the next year.
The company said its board has initiated a search for his successor and Kennedy will remain in his role until the new CFO assumes responsibilities to ensure a smooth transition.
Angus Cockburn, chairman of James Fisher, expressed gratitude for Kennedy's contributions, particularly in implementing the company's new strategy.
Kennedy himself stated his pride in the progress made during his tenure, including streamlining operations and reducing debt.