(Alliance News) - James Fisher & Sons PLC said Thursday it saw improved trading in its fourth quarter, so now expects 2020 underlying profit to be at the upper end of its guided range.
Shares in Barrow-in-Furness based marine engineering service provider were 7.0% higher in London on Thursday morning at 982.00 pence each.
James Fisher noted the fourth quarter continued to be "challenging", but saw revenue grow 7% sequentially over the third quarter.
For 2020, revenue is expected to be down 16% on 2019's GBP617.1 million.
As a result, underlying operating profit for the full year, before separately disclosed items, is now expected to be at the higher end of the GBP35 million to GBP40 million range. In 2019, underlying operating profit was GBP66.3 million, so it is expected to be down at least 40%.
"Specialist Technical, Tankships and Offshore Oil performed relatively well in the fourth quarter despite difficult trading conditions. Our ship-to-ship transfer operations continue to perform in line with our expectations, whilst elsewhere in Marine Support there has been a significant impact from the lack of subsea projects, both in offshore wind and oil & gas," the company said.
James Fisher noted it has already taken "swift actions" to reduce overheads in its Marine Support unit and have reviewed the carrying value of its entire asset base. As a result, it intends, subject to audit, to make a one-off impairment provision in relation to goodwill, fixed assets and certain accounts receivable within the unit but noted it will have no cash impact.
The company said its year-end net borrowing are expected to be between GBP175 million and GBP180 million, with headroom of about GBP120 million.
James Fisher will publish its annual results on March 2.
By Paul McGowan; paulmcgowan@alliancenews.com
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James Fisher and Sons (FSJ)