(Alliance News) - James Fisher & Sons PLC on Tuesday returned to profit at the pretax level, despite double-digit percentage decline in revenue, thanks to lower refinancing and restructuring costs.
The Barrow In Furness, Cumbria-based marine services provider said it has made progress on its turn-around plan and its outlook for the full-year remains in line with market expectations.
James Fisher swung to a pretax profit of GBP200,000 in the six months that ended June 30 from a GBP4.4 million loss a year before.
Revenue declined by 12% to GBP221.5 million from GBP252.0 million, partly due to business disposals, but cost of sales fell in line, leaving gross profit flat.
James Fisher took GBP2.5 million in refinancing costs in the recent half-year, down from GBP9.3 million a year before, and GBP400,000 in restructuring costs, down from GBP1.4 million.
On an underlying basis, operating profit grew by 20% to GBP16.8 million from GBP14.0 million a year before, though pretax profit on the same basis fell by 33% to GBP4.3 million from from GBP6.4 million.
James Fisher, a former FTSE 250 index constituent, has been selling off non-core businesses and assets to shore up its finances. It expects to secure cash after transaction costs of about GBP100 million from these disposals in 2024 and is working on a refinancing of its debt on better terms.
Net debt was GBP144.8 million on June 30, down 6.3% from GBP154.5 million a year before.
"We have made important strategic progress on our business turn-around this year, significantly deleveraging our balance sheet through the sale of non-core assets, to provide a stronger financial foundation for growth," said Chief Executive Officer Jean Vernet.
James Fisher shares were up 0.6% to 352.00 pence in London on Tuesday.
By Tom Waite, Alliance News editor
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James Fisher and Sons (FSJ)
