James Fisher and Sons reported improved first-half profitability as strong performances in Defence and Maritime Transport offset difficult market conditions across its Energy business.
Revenue increased 2.1% to £195.9 million, while underlying operating profit rose 27.9% to £14.2 million. Underlying operating margin expanded 140 basis points to 7.2%, and underlying profit before tax increased 40% to £6.3 million.
Reported operating profit more than doubled to £10.3 million, up 114.6%, while reported profit before tax increased 71.4% to £2.4 million.
The marine services company ended the period with covenant net debt of £73.3 million, equivalent to 1.5x EBITDA, and available liquidity of £47.2 million. Return on capital employed improved 210 basis points to 8.2%.
Defence was the standout division. Revenue increased 43.1% to £53.8 million, while underlying operating profit jumped to £5.3 million from £0.7 million and underlying operating margin increased 800 basis points to 9.9%.
The Defence order book stood at £295 million, with approximately £95 million of additional confirmed awards under framework agreements. Growth was broad-based across Tactical Delivery Vehicles, Submarine Platforms, Submarine Escape & Rescue, Military Diving and Commercial Diving.
Maritime Transport revenue increased 8% to £74 million, with underlying operating profit rising 47.8% to £10.2 million. Tankships benefited from high fleet utilization and favorable spot-market rates, while Fendercare recorded strong ship-to-ship transfer activity in Latin America.
Energy revenue declined 20.6% to £68.1 million, with lower activity across Energy Services and disruption related to geopolitical uncertainty partially offset by improved Renewables performance.
James Fisher is continuing to invest in new technology and geographic expansion, including a new Defence facility in Singapore, U.S. Defence expansion, increased Tactical Delivery Vehicle capacity in Sweden and a larger Energy operation in Guyana.
Product development includes a next-generation submarine rescue platform, electric compressors and capabilities spanning data science, AI, autonomous systems and high-voltage technology.
Early second-half trading was consistent with the first half. The board expects momentum in Defence and Maritime Transport to continue while Energy conditions remain challenging, and full-year expectations remain unchanged assuming no deterioration in Energy markets.
James Fisher continues to target a 10% underlying operating margin and 15% ROCE over the medium term.
KEY QUOTE:
“We continue to operate in end markets with positive long-term structural drivers. This is translating into strong growth in Defence and good performance in Maritime transport, while heightened geopolitical uncertainty has continued to challenge activity levels in the first half across several of our Energy markets.
“Against this backdrop, we remain focused on disciplined delivery and executing our strategic priorities which have enabled the Group to make further progress in margin and ROCE performance in the first half. We have continued to strengthen our operational and financial platform, allowing us to focus increasingly on our long-term growth drivers, while expanding business development in attractive growth markets including North America, Continental Europe and the Indo Pacific region. At the same time, we are trialing emerging services opportunities that could support the fast evolving energy security space.
“Alongside continued investment in innovation and differentiation of our product offering, this gives the Board comfort in the Group’s ability to grow and to build towards its medium-term financial targets of 10% underlying operating margin and 15% ROCE.”
Jean Vernet, Chief Executive Officer of James Fisher and Sons
