James Fisher's growth has further to sail

Last year, the marine support (44 per cent of sales and 39 per cent of profit), specialist technical (33 per cent sales and 37 per cent profit) and tankships (12 per cent sales and 15 per cent profit) divisions all saw strong profit growth. One of the biggest contributors to that performance was JFD, a submarine rescue and saturation diving equipment business, which contributed 70 per cent of the specialist technical business's revenues and helped the division's operating margins rise from 10.7 per cent to 13.1 per cent. Full-year results were also accompanied by another multiyear diving saturation contract win. Elsewhere, there was a 40 per cent increase in renewables and tidal revenues, while the marine services group is also benefiting from an uptick in demand for its Container Weight System product, following regulatory changes requiring all shipping containers to be weighed.

We see several other reasons to be positive about the future. Firstly, it now seems almost inevitable that offshore oil work will return soon. Statoil implied as much in January, when the world's largest field operator blamed a near-fatal accident at one of its North Sea fields on a lack of maintenance. Second, management's assertion that 2017 has started with "strong order books and a number of active prospects" - a bullish tone by their standards - may have failed to budge the stock, which remains flat since September, but we think is worth paying heed to. And the company's track record suggests it will make the most of its opportunities. Underlying EPS has grown at an average compound rate of 12 per cent a year for a decade, and the shares boast an unbroken 22-year dividend growth record.

Then there is a positive currency effect, which has been delayed due to the company's hedging policies. A £1.4m benefit last year compared with what would have been about £6m unhedged, but, other things being equal, should now reverse out.