Last checked at 1 Sep 2009 07:00
Tuesday 1 September 2009
JAMES FISHER AND SONS PLC
HANDOVER OF SINGAPORE RESCUE SUBMARINE
20 Year Service Contract Confirmed
James Fisher and Sons plc (JFS) announces that its submarine rescue service for the Republic of Singapore Navy (RSN) is now operational and all monies relating to its pre delivery funding have been received. This cash item of over £18m will reduce JFS gearing by circa 19%.
James Fisher Defence (JFD), the JFS subsidiary, entered into a 50:50 joint venture with Singapore Technologies Marine (STM) in March 2007, specifically for the provision of rescue services to the RSN under a S$400m (£171m) Public Private Partnership contract. The rescue service will use the new integrated mother ship and rescue system which has been purpose built for the task.
The joint venture First Response Marine Pte Ltd (FRM) has completed the 20 year finance transaction valued in excess of SGD 95m (£41m), with DBS Bank Singapore.
The Submarine Support and Rescue Vessel, Swift Rescue, which was designed and built specifically to support submarine rescue activities, as well as a full range of secondary roles for RSN, was built over a two year period. The ship will be based at Changi Naval Base and operated by a civilian crew including some of JFD's employees.
The integrated rescue payload includes the new DSAR-6 rescue submersible, a handling system and decompression system designed, installed and commissioned by 75 JFD employees based in Renfrew, Scotland. DSAR-6 is the latest submersible to be delivered by JFD which will operate and maintain the rescue system throughout the 20 year service. The service contract will have a value of around SGD 90m (£38m) over a 20 year period.
The delivery of the Singaporean Rescue System, only months after the delivery of a similar system for the Korean Navy, confirms JFD's world leading position in the niche market of submarine rescue vehicles and systems. JFD is currently working in China, Korea, Australia, Brazil and, through NATO, France, Norway and the UK, and offers deployment of submarine rescue services within 12 hours to anywhere in the world. The company has been involved in a number of high profile submarine rescue missions including the successful rescue of seven Russian submariners in August 2005.
JFD began with a single contract to operate the UK Submarine Rescue Service for the Ministry of Defence. Since then the company has won all potential work for which it has bid worldwide amid strong competition in Asia, the US and the UK.
Simon Harris, Managing Director of James Fisher Defence, said:
"The successful delivery of the rescue system is a great achievement and cements James Fisher's market position as the leading submarine rescue service provider. This is the product of our pursuit of a niche worldwide demand for engineering, expertise and equipment in Submarine Rescue Services."
EC Hambro Rabben & Partners have acted as corporate finance advisors to James Fisher and Sons plc.
Contacts:
| James Fisher and Sons plc | Tim Harris | Chairman | 020 7614 9508 |
| James Fisher Defence | Simon Harris | Managing Director | 07901 915 808 |
| Financial Dynamics | Simon Elliott | 020 7269 9318 | |
| EC Hambro Rabben & Partners | Peter Donald | 020 355 4100 |