James Fisher (FSJ) has spent the past few years building exposure to high-margin niche sectors, and the benefits are reflected in strong numbers. Underlying operating profit grew 11 per cent to £22.2m during the first six months, and a boom in offshore oil work is on track to drive even better top-line growth in the second half.
Part of that reflects the drive toward high-quality kit after the Gulf of Mexico oil disaster. Following customers from the North Sea and Norway to more exotic locations helped grow offshore oil profit by 15 per cent during the period to £9m, and both Halliburton and Schlumberger have placed big orders for specialist compressors used for well-testing in Brazil. Large subsea and nuclear contracts will improve things at the specialist technical division in the months ahead, too. Foreign navies are spending money, and Fisher is in talks with potential new customers in Asia. It will also get the full benefit of Divex, bought in March. However, expect a slower half at marine support, where profit adjusted for the sale of TRE in December rose by a fifth to £9.4m, and at the tankships division, too, as a couple of vessel charters with the Ministry of Defence end in December.
Broker N+1 Singer expects full-year adjusted pre-tax profit of £40m, giving adjusted EPS of 62.1p (from £35.4m and 55.5p in 2012).
JAMES FISHER (FSJ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,060p | MARKET VALUE: | £532.1m | |
| TOUCH: | 1,054-1,060p | 12-MONTH HIGH: | 1,124p | Low: 639p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 334p* | NET DEBT: | 45% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 188 | 16.8 | 26.1 | 5.87 |
| 2013 | 201 | 18.6 | 28.6 | 6.46 |
| % change | +7 | +11 | +10 | +10 |
Ex-div: 2 Oct Payment: 1 Nov *Includes intangible assets of £111.4m, or 222p a share | ||||
