Shares in James Fisher hit a four-year high after the marine services group announced a 21 per cent rise in underlying pre-tax profits in half-year results that were ahead of both management's and analysts' high expectations. Chief executive Nick Henry said the business would continue to expand into higher growth markets in Africa and Asia and, combined with a resurgent North Sea oil market, this news prompted broker N+1 Brewin to upgrade pre-tax profits forecasts for each of the next three years by between 3 and 6 per cent. Analysts now forecasts full-year pre-tax profits of £35m and EPS of 55.1p (from £30m and 48.4p in 2011), rising to £38m and 59p in 2013.
Strong demand from the Norwegian North Sea oil market helped drive up profits in James Fisher's oil services division a third higher to £7.8m, and the operation continues to invest capital to support new contracts in Brazil. The first half also saw the successful start of a five-year contract with BP in Angola which, when combined with one-off profits from a London Olympics contract, boosted the specialist technical division profits by 16 per cent to £10.6m.
Tim Harris retired as chairman in July after 10 years at the helm, a period during which the company's share price increased sevenfold. He is replaced by Charles Rice, who was previously a non-executive director.
JAMES FISHER (FSJ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 670p | MARKET VALUE: | £335m | |
| TOUCH: | 665-675p | 12-MONTH HIGH: | 670p | LOW: 460p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 274p* | NET DEBT: | 72% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 148 | 14.0 | 22.7 | 5.34 |
| 2012 | 188 | 17.0 | 26.4 | 5.87 |
| % change | +27 | +21 | +16 | +10 |
Ex-div: 3 Oct Payment: 1 Nov *Includes intangible assets of £94m, or 188p a share | ||||
