James Fisher's shares were up 7 per cent after the company's geographical spread and specialist niches helped to drive record profits.
The company's core offshore oil services market remained buoyant, with operating profits up 38 per cent to £12.7m. The business operates predominately in the North sea - Norway is the single most important market with 40 per cent of sales - but is growing its presence on the west coast of Africa. Marine oil disappointed with profits of £6m, down from £8.6m, because of operational problems, which management says have now been resolved.
Executive chairman Tim Harris said that the single most important event would be the final delivery of a rescue submarine to Singapore. Commissioning is expected in June, and will help to reduce the company's financial gearing substantially this year. Mr Harris added that the oil price has little direct effect on James Fisher, as it is more focused on continuing production.
Broker Investec forecasts pre-tax profits of £28m for 2009, with EPS of 43.1p, (from £24.2m and 38p, respectively, in 2008).
JAMES FISHER & SONS (FSJ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 322p | MARKET VALUE: | £160m | |
| TOUCH: | 322-326p | 12-MONTH HIGH: | 685p | LOW: 200p |
| DIVIDEND YIELD: | 4.0% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 195p* | NET DEBT: | 97% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2004 | 71.2 | 10.2 | 16.8 | 7.72 |
| 2005 | 91.4 | 11.4 | 21.9 | 8.79 |
| 2006 | 118 | 14.1 | 23.9 | 10.0 |
| 2007 | 182 | 19.1 | 32.7 | 11.4 |
| 2008 | 234 | 23.6 | 36.9 | 13.0 |
| % change | +28 | +23 | +13 | +14 |
Ex-div: 15 Apr Payment: 15 May *Includes intangible assets of £70.1m, or 141p a share. | ||||
