With gross profits, dividends and fleet utilisation all up, full-year figures for Gulf Marine Services (GMS) again point to the group's resilience. But these headline figures were overshadowed by a profit warning released the day before full-year results, which forecast a 25 to 30 per cent year-on-year drop in earnings per share in 2016.
According to chief executive Duncan Anderson, the unusual decision to post a separate update followed a board meeting over the weekend*. This followed a meeting with a major client last week, in which Gulf Marine agreed to cut prices for the year - a trend management says is indicative of the cost-cutting programmes of other customers of its self-elevating support vessels (SESVs).
Narrowing cash flow and capital expenditure of around $150m (£105m) in 2016 mean net debt is likely to peak at $435m, testing borrowing covenant limits of four times cash profit. Management is comfortable with the leap in borrowing, although undrawn bank facilities were expanded to $225m in December.
Barclays has lowered this year's pre-tax income forecast to $54.8m, giving adjusted earnings per share of 15¢, against $77.1m and 24¢ in 2015.
GULF MARINE SERVICES (GMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 75p | MARKET VALUE: | £262m | |
| TOUCH: | 74.8-76p | 12-MONTH HIGH: | 137p | LOW: 68p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 5 | |
| NET ASSET VALUE: | 121¢ | NET DEBT: | 94% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011* | 107 | 26.3 | 22.2 | na |
| 2012* | 143 | 51.3 | 48.1 | na |
| 2013* | 184 | 73.3 | 68.2 | na |
| 2014 | 197 | 80.4 | 22.1 | 1.47 |
| 2015 | 220 | 77.1 | 21.4 | 1.61 |
| % change | +12 | -4 | -3 | +10 |
Ex-div: 14 Apr Payment: 16 May £1=$1.43 *Pre-IPO figures | ||||
