James Fisher & Sons (FSJ) is expanding into the renewable energy sector after winning a five-year maintenance contract with the London Array wind farm in the Thames Estuary. Chief executive Nick Henry said most of the work will be in construction and support, and should provide the company with higher-quality earnings. He didn’t share any specific targets in the wake of the deal, although the overall goal is to build more relationships with big wind farm players focused on markets such as the US, Taiwan and China.
The company also delivered its first submarine rescue system for the Indian Navy during the first half, with a second due for completion by the end of the year. It's hoped an ongoing, working relationship with the Indian Navy will give rise to other projects, not least because it has one of the biggest naval budgets in the world. Investment in the Indian Naval project peaked in March when the first vessel was delivered. That said, cash conversion recovered from 31 per cent last year to 120 per cent as investment in the project slowed and payments came through.
Analysts at Investec expect pre-tax profits of £54.2m during 2018, giving EPS of 86.3p, up from £48.6m and 78p in 2017.
| JAMES FISHER & SONS (FSJ) | ||||
| ORD PRICE: | 1,852p | MARKET VALUE: | £932m | |
| TOUCH: | 1,840-1,852p | 12-MONTH HIGH: | 1,940p | LOW: 1,340p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 562p* | NET DEBT: | 51% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 233 | 17.1 | 27.9 | 9.4 |
| 2018 | 261 | 21.5 | 34.7 | 10.3 |
| % change | +12 | +26 | +24 | +10 |
| Ex-div: | 04 Oct | |||
| Payment: | 02 Nov | |||
| *Includes intangible assets of £197m, or 393p a share | ||||
