Fisher (James) - Half year post close trading update
Half year post close trading update
Our priority throughout the Covid-19 pandemic has been to protect our employees and their families and to continue to provide our services and goods to customers, whilst supporting and maintaining our supply chain. The commitment, support and engagement of our employees in stepping up to the challenges of Covid-19 continues to be remarkable and greatly appreciated.
As announced in the Group's AGM statement, the effects of Covid-19 on the Group have been exacerbated by a sharp fall in the price of oil. The imbalance between supply and demand in the oil and gas sector has continued to place downward pressure on oil prices since then and this may persist for some time. Whilst many of the Group's businesses have proven to be resilient through the first half, Group revenue in the second quarter was 18% lower than the comparative period in 2019. For the first half, Group revenue was 10% lower than the comparative period in 2019.
In Marine Support, the second quarter saw subsea service projects being deferred, in both renewables and in the oil and gas sector, together with supply chain challenges due to Covid-19 across all businesses. As a result, Marine Support's financial performance will be lower in the first half, year-on-year, despite the ship-to-ship oil transfer business trading strongly during that period. We have taken the decision to restructure the division, reduce the cost base and refresh the management structure which will provide clearer strategic and operational direction going forward.
Specialist Technical has performed satisfactorily with both the nuclear and defence segments proving resilient despite some logistical supply chain issues.
Offshore Oil, which had good momentum entering 2020, has traded well despite the challenges of Covid-19 and will report improved profitability compared to the first half of 2019. Notably, our artificial oil-well lift business continues to perform well and we have secured a number of marine infrastructure decommissioning projects in
Tankships traded well through the first four months of 2020, but shipments of clean petroleum products inevitably reduced during May and June as a consequence of the
Covid-19 mitigating actions and financial position
At the start of the Covid-19 pandemic, the Group took immediate actions to protect our people, optimise cash flow and maximise liquidity.
This included making use of the Government's furlough scheme, which the Group will shortly stop utilising, coupled with a 20% deferral in salary for around 800 employees for the second quarter. This will be repaid during the second half of the year, except to all Board members and the Executive Committee who have accepted pay cuts of 20% for the second quarter. The Group has returned to full salaries with effect from 1 July.
The Group has a strong balance sheet with net debt estimated at approximately
Half year results
Due to the uncertainties surrounding our markets at the time of our AGM on
James Fisher is well diversified by geographical sector and by end markets which provides resilience to profitability and cash flow, most notably in the current environment. The Group's half year results are scheduled to be announced on
For further information:
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Chief Executive Officer
Group Finance Director
020 7614 9508
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0203 727 1340
This announcement contains statements which are, or may be deemed to be, "forward-looking statements" which are prospective in nature. All statements other than statements of historical fact are forward-looking statements. By their nature, forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Factors may cause future outcomes to differ from those foreseen or implied, many of which are beyond James Fisher's control or influence. Any forward-looking statements speak only as of the date of this announcement and have not been audited or otherwise independently verified. Past performance should not be taken as an indication or guarantee of future results and no representation or warranty, express or implied, is made regarding future performance. Except as required by any applicable law or regulation, James Fisher expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained in this announcement to reflect any change in the Group's expectations or any change in events, conditions or circumstances on which any such statement is based after the date of this announcement, or to keep current any other information contained in this announcement. Accordingly, undue reliance should not be placed on any forward-looking statements.
This information is provided by RNS, the news service of the
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