It doesn't matter that James Fisher's (FSJ) marine support business stalled last year, with underlying operating profits down 22 per cent to £14.2m. Strong performances from the company's other three divisions more than offset this, pushing overall operating profit up 11 per cent to £51.5m for 2014. This prompted a 10 per cent hike in the dividend, marking the 20th consecutive year of growing shareholder distributions.
The marine support division came under pressure due to lower market activity in South East Asia and significant exposure to the effects of sterling's first-half rise against the US dollar. But profits grew across the specialist technical, tankships and offshore oil segments. This last division now faces a harder year as oil prices remain depressed. Some large one-off contracts will provide tough comparative figures as well.
The group announced its latest deal alongside these numbers: the £3.4m acquisition of South African marine and subsea service provider Subtech Group. Chief executive Nick Henry said the deal would give James Fisher access to some "exciting" markets in east Africa, such as Mozambique and Tanzania.
Analysts at N+1 Singer expect pre-tax profits of £50.2m in 2015, giving EPS of 78.7p (from £46.9m and 74p in 2014).
| JAMES FISHER (FSJ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,214p | MARKET VALUE: | £609m | |
| TOUCH: | 1,221-1,229p | 12-MONTH HIGH: | 1,565p | LOW: 1,003p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 404p* | NET DEBT: | 31% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 268 | 25.9 | 39.9 | 14.7 |
| 2011 | 308 | 29.8 | 48.4 | 16.1 |
| 2012 | 363 | 46.4 | 79.1 | 17.7 |
| 2013 | 414 | 46.2 | 76.6 | 20.0 |
| 2014 | 445 | 49.2 | 80.2 | 22.0 |
| % change | +7 | +6 | +5 | +10 |
Ex-div: 9 Apr Payment: 8 May *Includes intangible assets of £127m, or 253p a share | ||||
