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The Markets
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The Markets
by Proactive
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The Markets
by Proactive
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Manufacturing & engineering

James Fisher and Sons to pay an interim dividend despite profit plunge

In the six months to June 30, 2020, the marine services group's revenue slid by 30%, while its profit before tax was down 59% to £7mln

James Fisher and Sons PLC (LON:FSJ) has declared an interim dividend despite first-half profits more than halving amid the coronavirus crisis.

The marine service provider said it will make an 8p per share payout, albeit down 29% from last year, as it forecast a slow recovery in the second half.

READ: James Fisher provides trading update, ahead of half-year results scheduled for late August

The FTSE 250-listed firm noted the price of oil has partially recovered from a low point hit in April, while the group's geographic spread is helping to balance the business.

Fisher's offshore oil division reported interim profit 23% ahead of last year thanks to a strong first quarter.

In Marine Support, it added, projects in both renewables and oil & gas were deferred into the second half of 2020 and beyond, so the company has decided to restructure the division which will cost £1.5mln.

In the six months to June 30, 2020, Fisher's revenue slid by 30%, with profit before tax down 59% to £7mln. Impairment charges in the period were £4.8mln with acquisition fees of £1.7mln.

Analysts at Peel Hunt trimmed the target price to 1,700p from 1,800p after reducing expectations for underlying operating profit by 8% for the full year.

Shares dropped 6% to 1,160p on Tuesday at the opening bell.

--Adds analyst comment, shares--

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