James Fisher and Sons Regulatory News (FSJ)

11 Nov 2009 07:00



James Fisher and Sons plc

11 November 2009

Interim Management Statement

The Board of James Fisher and Sons plc is pleased to announce its Interim Management Statement in respect of the period from 1 July 2009 to date. Trading in the third quarter was in line with management expectations and very similar in pattern to trading in the second quarter. We have continued to see strong performances from the majority of our businesses but there has been no improvement to date in the performance of James Fisher Everard, our coastal tanker business.

The specialist technical division continued to trade strongly, benefiting from robust organic growth. In August we purchased MB Faber Limited for up to £5.25 million to strengthen James Fisher Nuclear, our growing nuclear business.

The offshore division continued to perform in line with the first half with strong performances in Norway and the new southern hemisphere oil provinces, offset by a Scottish sector quieter than last year. The fundamentals of this business remain sound and we shall continue to invest in our niche offshore businesses.

The local refinancing of our Singaporean submarine rescue service joint venture was only completed in late August, some four months later than anticipated. Although the delays on this project have affected the 2009 result, including the second half, we have now received full payment reducing our financial gearing and the through-life service, which is contracted until 2029, will benefit both from the decline in interest rates and sterling against the Singapore dollar. Our world leading submarine rescue activities continue to receive strong interest from countries worldwide which need to protect their submariners.

Trading for James Fisher Everard remains the most affected by the present challenging economic environment and there has been no improvement over the second quarter. The winter season and a strengthening Continental European economy ought to be positive influences, but so far there has been no sign of either improved volumes or a stronger spot market, the two keys to a recovery in earnings for this division.

James Fisher continues to monitor acquisition opportunities to strengthen our marine support divisions. In the current economic climate, these opportunities are becoming more plentiful and less subject to competition and we have the financial resources and proven track record to take advantage of them as they occur.

The overall resilience and strength of the Company and its marine service strategy has been demonstrated by its continued ability to grow profits in the most serious economic downturn of recent times. It remains well placed to produce long-term growth and value for its shareholders.

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