James Fisher profits, revenue decline in 'disappointing' year

James Fisher & Sons reported a decline in annual profit and revenue on Thursday as it said markets were not recovering as expected, sending shares in the marine service provider sharply lower.

In the year to the end of December 2021, underlying pre-tax profit fell 37.5% to £19.7m, with revenues down 4.7% at £494.1m. Underlying operating profit declined to £28m from £40.5m the year before.

The company said it had been a "challenging" and "disappointing" year, citing disruption from the pandemic and the fact that markets did not recover at expected rates. Lockdown affected the first half, while projects delays and provisions further affected the group in the second half.

James Fisher said the revenue drop was driven mainly by the marine support division being £34.9m behind 2020. Within that segment, the Fendercare ship-to-ship transfer revenues were around 36% below a record year in 2020.

"There is no doubt that the performance of James Fisher has been impacted by Covid-19 over the past couple of years, but this is not the sole reason for the company's recent poor performance," it said.

"The company has in the past made a number of acquisitions which have enhanced earnings per share in the short term, but which have contributed to an increase in debt levels and a long-term decline in return on capital employed. Poor performance in a number of these acquired businesses, combined with weakness in trading in our traditional Tankships, Fendercare and JFD businesses, led to a disappointing financial performance in 2021 and a high level of debt.

"Our over-riding short term priorities are; firstly to reduce our debt and optimise our portfolio through a series of disposals; and secondly to focus on improving our operational and financial performance."

At 0900 GMT, the shares were down 17% at 412p.