Final Results
Fisher (James) & Sons PLC
08 March 2004
James Fisher & Sons plc
('James Fisher' or the 'Company')
Another Productive Year and Positive Outlook
James Fisher, the marine services provider, announces its Preliminary Results
for the year ended 31 December 2003, representing another productive year with
good growth and continued strong cash flows.
The marine support services division now accounts for 41% (2002: 14%) of
segmental operating profits before central and exceptional costs and has become
the largest profit contributor, confirming James Fisher's strategy to grow its
service businesses both organically and by acquisitions. With the tankships
division contributing a further 34% (2002: 32%), there is a reduced reliance on
the cable ships division, where it has been considered prudent to write down
cable ship Nexus to its scrap value with an impairment provision of £4.8m.
Financial Highlights
• Turnover up 9% to £77.2m (2002: £71.1m).
• Total operating profit up 18% to £15.6m (2002: £13.2m), excluding Nexus
impairment.
• Pre-tax profit, excluding Nexus impairment, up 4% to £10.1m (£5.4m after
impairment; 2002 - £9.7m).
• Basic earnings per share after adjustment for Nexus impairment is 19.01p
and (2002 before tax credit: 18.63p) - before adjustment 9.04p (2002:
21.11p).
• Final dividend of 4.30p (2002: 3.74p), making a total dividend of 6.77p
(2002: 5.94p), up 14%.
Operational Highlights
• Tankships division: Profits up 30% to £6.06m; fleet modernisation
programme; UK market leader.
• Marine support services division: Now largest profit contributor with
segmental operating profit of £7.32m (2002: £2.15m); expansion in defence, North
Sea, non-defence areas, including nuclear industry; primary area for growth.
• Cable ships division: Segmental operating profit down to £4.3m before
Nexus impairment (2002: £7.9m) on conclusion of Nexus charter and weaker dollar
impact on other charter income.
• Higher quality earnings and good returns on capital in core divisions.
Commenting on the Outlook, Chairman, Tim Harris, CBE, said:
'The strength of James Fisher's marine service capabilities is demonstrated by
the overall growth in profits in 2003 despite a deterioration in profit from
cable ships. Early signs of recovery in this cyclical market may be emerging.
Overall, tankships is well placed to produce strong cash flows and a growing
trend in profitability. Marine support services profitability has grown
dramatically during 2003. We plan to continue this growth both organically and
by acquisition.
Trading in the year to date has been in line with expectations and we are well
placed to continue producing growth in profitability and dividends for our
shareholders.'
For further information
James Fisher and Sons plc Binns & Co PR Ltd
Tim Harris, Chairman Peter Binns
Angus Buchanan, Chief Executive Paul McManus
Mike Shields, Finance Director Tel: 020 7786 9600
Tel: 020 7338 5808 Mobile: 07980 541 893
Chairman's Statement
Overview
2003 was another productive year for James Fisher in which we have been able to
demonstrate continuing good growth in profitability and strong underlying cash
flows. Particularly noteworthy was the growth in our Marine Support Services
division, which now accounts for 41% of our overall profits before central
costs.
We have considered it prudent to write cs Nexus down to its scrap value with an
impairment provision of £4.8 million, the effect of which is to reduce the 2003
basic earnings per share from 19.01p to 9.04p.
% 2003 2002
Turnover +9% £77.2m £71.1m
Total operating profit * +18% £15.6m £13.2m
Pre tax profit* +4% £10.1m £9.7m
Basic earnings per share -57% 9.04p 21.11p
Basic earnings per share before Nexus impairment +2% 19.01p 18.63p +
Proposed final dividend +15% 4.30p 3.74p
Dividends whole year +14% 6.77p 5.94p
* excluding Nexus impairment provision of £4.8m
+ before £1.2m tax credit 2.48p
The basic earnings per share in 2002 benefited from a one-off tax credit of £1.2
million or 2.48p per share.
Your Board is recommending a final dividend of 4.30p per share, giving a total
for the year of 6.77p (2002 - 5.94p) - an increase of 14%. The dividend is
payable on 7 May 2004.
Tankships
Tankships, the UK market leader operating a fleet of 18 clean petroleum tankers,
had a good year with segmental operating profit up by 30% over 2002 to £6.06
million. The volume of contract cargo increased by 10% (6.03 million tonnes
2003 vs 5.46 million tonnes 2002) and the spot market was stronger.
We have made progress in our fleet modernisation programme by acquiring the
newbuilding contracts for two 12,800 dwt vessels under construction in the Samho
yard in Korea and scheduled for delivery in late 2004 and early 2005. At the
year-end, £7.3 million was being carried as a debtor in the balance sheet in
respect of payments made for the vessels. Since the year end both of the
vessels have been on-sold to First Ship Lease Ltd and bareboat chartered for a
period of ten years from delivery. As a result we have recovered in full the
£7.3 million.
We intend to replace our smaller and older ships by bareboat charters in line
with our commitment to develop further the fleet with minimal capital cost. This
strategy has been greatly benefited by the Tonnage Tax regime which removes the
need for ship purchases to enable an operator to benefit from capital
allowances. During 2003 we sold three of the smallest ships for £1.86 million
in cash resulting in a book loss of £1.0 million but thereby avoiding £530,000
in refit costs. The average age of our fleet is already lower than that of our
main competitors but we need to continue our fleet renewal programme both to
maintain this advantage and to comply with the increasing demands that our
customers and environmental legislation rightly place on our industry.
Marine Support Services
Progress in this division during 2003 was encouraging for two reasons:
• the division became the largest contributor to group profits with
segmental operating profit at £7.32 million (2002 £2.15 million) including our
25% share of the operating profit of AWSR Shipping Limited, the MoD's Strategic
Sealift service
• the Rumic and Scan Tech acquisitions last year produced strong results
and, with the acquisitions in late 2003 of Air Supply AS and WM Defence (now
James Fisher MIMIC Limited), further growth should be achieved in 2004
Marine Support Services comprises three main activities:
• Defence Services, being provided by James Fisher Rumic Limited, AWSR
Shipping Limited and James Fisher MIMIC Limited
• Scan Tech, which provides services in the North Sea
• Specialist Technical Services, which comprises other non-defence
services and is currently mainly concerned with the nuclear industry
Defence Services
James Fisher Rumic Limited, which operates the Royal Navy's submarine rescue
service, had a good year and is adding real capability to bid for defence
contracts.
We also benefited from the first full year of AWSR's operation which contributes
a pre-tax profit of £1.27 million to our results. All six of its strategic
sealift Ro-Ro vessels are now in service, with four utilised with the MoD and
the remaining two on charter to a Scandinavian operator until late 2005. It is
anticipated that AWSR will commence dividend payments in 2004.
We have recently received notice from the Ministry of Defence that they intend
to exercise their purchase option for RFA Oakleaf in September 2004. This will
result in a capital profit of £589,000 but means that we will lose a profit
contribution of c £1 million per annum with effect from the exercise date.
In October 2003 we announced the acquisition of W M Defence, which had an
operating profit of £563,000 in the year ended 31 July 2003, for £3.1 million in
cash. It supplies maintenance and related asset management services to the
Royal Navy with its Conditioned Based Monitoring system, MIMIC, which is
installed in the majority of Royal Navy warships.
We intend to continue to grow our MoD related services aggressively both
organically and by acquisition.
Scan Tech
Our North Sea businesses, based in Stavanger and Aberdeen, now trade as a group
under the Scan Tech name. Scan Tech AS in Stavanger, which we acquired in
January 2003, had a record year but Aberdeen had a quieter year reflecting
conditions in the UK market, although its HydroDigger service has started
producing an acceptable rate of return. In October we announced the acquisition
of Air Supply AS for NOK 57.5 million (£4.81 million) in cash. In the year
ended 31 December 2002 Air Supply AS had a turnover of NOK 22.1 million (£1.9
million) and an EBITDA of NOK 12.8 million (£1.1 million). Air Supply rents and
provides large containerised air compressors to the offshore oil and gas
industry and is complementary to the customers and product range of Scan Tech AS
and is also based in Stavanger.
Specialist Technical Services
We have a longstanding relationship with British Nuclear Fuels plc, for whom we
manage seven vessels, which has been broadened by Rumic's growing nuclear
decommissioning business. As a Cumbrian based company, whose core expertise is
the practical application of engineering and operational skills, we see
interesting opportunities in expanding our nuclear business both organically and
by acquisition in the specialist field of nuclear decommissioning, particularly
to service the challenging requirements of the local Sellafield site.
Cable Ships
As anticipated, profit from this division, pre-exceptionals, was substantially
reduced from £7.92 million to £4.32 million for two reasons: the conclusion of
the charter of Nexus to Global Marine Systems in December 2002; and the effect
of a much weaker dollar on the charter income from Oceanic Princess and Oceanic
Pearl.
Nexus was utilised in the second half on two short-term charters, both for
defence purposes. Her cash holding costs of around £300,000 per annum are
limited and our policy is to use the vessel opportunistically while working on a
number of options for her long-term future. However, in view of her age of
thirty-two years, and as we have been unable over the last year to find
long-term employment for the vessel, we have considered it prudent to write down
her carrying cost to scrap value with an impairment provision of £4.8 million.
If we are unable to find employment for the vessel, we shall sell her for scrap.
Oceanic Princess and Oceanic Pearl were in lay-up throughout the year,
reflecting the present bleak state of the cable market. Both remain chartered
to it International Telecom, until May 2006 and December 2006 respectively, with
the charters guaranteed by the parent company, General Dynamics. During 2003 we
re-negotiated the terms of the charter so that we may market the ships for our
own account, while retaining our future profit stream from the existing
charters. We may also sell the vessels if we choose, either with or without the
charter income.
Although the current cable laying market is depressed, there have been some
early indications during the second half 2003 of a slow turnaround, as a result
of the recovery in the technology markets and the scrapping of around 15 cable
vessels during the year whilst no more are being built. Indeed, we are now
being asked to quote for major contracts albeit at very competitive rates.
In many ways the cable market appears to be behaving like a classic shipping
market with boom followed by bust, then attrition of the older vessels until
supply again meets a recovering demand. There is effectively no active market
in cable ships at present and our policy is to use the shelter of the present
charters, which still have a considerable period to run, and to wait until the
market conditions are more favourable when we shall have the option to sell and
release significant capital resources.
Directors and Employees
Sir David Hardy, our senior non-executive director, is retiring at the AGM after
ten years service on the Board. His stalwart professionalism, including a stint
as stand-in chairman, has been of much benefit to James Fisher and his opinions
and knowledge have always been valued. On behalf of the Company and myself, I
would like to thank him for his great contribution. Anthony Cooke will be
replacing him as the senior non-executive director.
I would also like to thank Terry Moore who retired from the Board on 31 December
2003 after five years service as a non-executive director.
It was a pleasure to welcome Maurice Storey CB, the recently retired CEO of the
Maritime Coastguard Agency (MCA), to the Board as a non-executive director on 1
December 2003. His joining James Fisher emphasises our commitment to
maintaining the highest marine standards both operationally and technically.
It is also a pleasure to welcome Charles Rice to the Board as a non-executive
director with effect from 1 April 2004. Charles was the P&O main board director
with responsibilities for its logistics division before its sale last year. He
comes to us with much valuable experience and knowledge of service companies,
including the identification and management of acquisitions.
Although we have a stable set of four executive directors, we have been
strengthening our senior management level immediately below the Board.
Noteworthy in this context are Simon Harris who has joined us from Houlder
Limited as Commercial Director for our MoD Division, Nick Henry who has now
served a year as Managing Director of Tankships, Stewart Jeffcoat who joined us
in October 2003 as Technical Director and John Sands who has just joined as
Managing Director of Scan Tech UK. These appointments supplement the management
provided by Roger Chapman and Bjorn Erik Bjornsen who both continue to play a
full part in the integration of James Fisher Rumic and Scan Tech into the Group.
2003 has been a challenging year in many ways and I would like both to recognise
and thank the employees at sea and ashore for their great contribution to the
group's growth and success.
Outlook
The strength of James Fisher's marine service capabilities is demonstrated by
the overall growth in profits in 2003 despite a £3.60 million deterioration in
the trading profit from Cable Ships. The group has also continued to
demonstrate its ability to generate strong cash flows.
Tankships enjoys a strong position in its UK niche market with important
longstanding customer relationships. We have made real progress with fleet
renewal in 2003 which will continue in 2004. Overall, Tankships is well placed
to produce strong cash flows and a growing trend in profitability which may
however vary slightly from year to year with the strength of the spot market.
Marine Support Services' profitability has grown dramatically during 2003 and we
plan to continue this growth both organically and by acquisition. The
acquisitions made during 2003 have been fully integrated and are already
contributing to the success of this division. We also see our Cumbrian base as
an advantage in expanding the defence and nuclear fields as both are
longstanding 'local' industries.
Over the last two years the cable ship market has been very depressed and
continues to be so. We have been substantially protected by the General
Dynamics charters which still have well over two years to run. The early signs
of recovery may be emerging, but it is still too early to predict how soon and
how completely this will be realised. With the re-negotiation of the charter
terms, we now have complete flexibility to make the right move for the group at
the right time in the cycle. 2004 profits will suffer from the effects of a
weak dollar on Oceanic Princess' and Oceanic Pearl's $14 million of charter
income but, conversely, will benefit from any activity we can generate for the
vessels even at marginal rates.
James Fisher now has over 75% (2002 - 46%) of its trading profits coming from
its Marine Service Divisions and Tanker Division. Trading in the year to date
has been in line with expectations and we are well placed to continue producing
growth in profitability and dividends for our shareholders.
GROUP PROFIT AND LOSS ACCOUNT
For the year ended 31 December
Exceptional 2003 2002
Headline items (note 4) Total Total
£000 £000 £000 £000
Turnover: group and share of joint ventures 84,574 - 84,574 72,322
less share of joint ventures (7,359) - (7,359) (1,211)
77,215 - 77,215 71,111
ongoing 70,647 - 70,647 70,979
acquisitions 6,568 - 6,568
77,215 - 77,215 70,979
discontinued - - - 132
Group turnover 77,215 - 77,215 71,111
Cost of sales (excluding C.S. Nexus impairment) (60,308) - (60,308) (53,269)
C.S. Nexus impairment - (4,769) (4,769) -
Cost of sales (60,308) (4,769) (65,077) (53,269)
Gross profit 16,907 (4,769) 12,138 17,842
Administrative expenses
goodwill amortisation (623) - (623) (58)
general (4,474) - (4,474) (4,266)
(5,097) - (5,097) (4,324)
Group operating profit/(loss)
ongoing 11,262 (4,769) 6,493 13,541
acquisitions 548 - 548
11,810 (4,769) 7,041 13,541
discontinued - - - (23)
11,810 (4,769) 7,041 13,518
Share of operating profit/(loss) in joint ventures 3,744 - 3,744 (298)
Total operating profit: group and share of joint 15,554 (4,769) 10,785 13,220
ventures
Continuing operations
Loss on sale of ships - (1,033) (1,033) (327)
Discontinued operations
Loss on sale of ships - - - (8)
Provision for termination of business - - - (794)
15,554 (5,802) 9,752 12,091
Net interest payable
Group (2,237) - (2,237) (2,519)
Joint venture (2,478) - (2,478) (355)
Exchange gain on loan conversion 343 - 343 501
(4,372) - (4,372) (2,373)
Profit on ordinary activities before taxation 11,182 (5,802) 5,380 9,718
Taxation (1,050) - (1,050) 318
Profit on ordinary activities after taxation 10,132 (5,802) 4,330 10,036
Dividends
Non equity (4) - (4) (4)
Equity (3,250) - (3,250) (2,832)
(3,254) (3,254) (2,836)
Retained profit for the year 6,878 (5,802) 1,076 7,200
pence pence
Basic earnings per ordinary share 9.04 21.11
Diluted earnings per ordinary share 8.70 20.63
Basic earnings per ordinary share after adjustment for 19.01 18.63
Nexus
Impairment (2002 tax credit)
Ordinary dividends paid or payable:
Interim 2.47 2.20
Final 4.30 3.74
6.77 5.94
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 December
2003 2002
Total Total
£000 £000
Profit for the financial year excluding profit/(loss) of joint ventures 586 10,334
Share of joint ventures' profit/(loss) for the year 3,744 (298)
Profit on ordinary activities after taxation 4,330 10,036
Currency translation differences on foreign currency net investments 406 -
Exchange difference on loan (476) -
Total recognised gains and losses relating to the year 4,260 10,036
GROUP BALANCE SHEET
As at 31 December
2003 2002
£000 £000
Fixed assets
Intangible assets - goodwill 17,397 2,721
Tangible assets 114,455 126,109
Investments:
Investments in joint venture:
Share of gross assets 52,333 30,979
Share of gross liabilities (50,742) (30,635)
1,591 344
Other investments 1,514 2,053
134,957 131,227
Current assets
Stocks 2,377 1,115
Debtors 18,895 14,918
Cash at bank and in hand 5,455 4,904
26,727 20,937
Creditors: amounts falling due within one year
Trade and other (16,566) (15,854)
Bank loans (9,674) (8,614)
(26,240) (24,468)
Net current assets/(liabilities) 487 (3,531)
Total assets less current liabilities 135,444 127,696
Creditors: amounts falling due after more than one year
Trade and other - (500)
Bank loans (51,633) (44,358)
(51,633) (44,858)
Provisions for liabilities and charges (200) (147)
Net assets 83,611 82,691
Capital and reserves
Called up share capital 12,311 12,238
Share premium account 23,558 23,380
Profit and loss account 47,742 47,073
Shareholders' funds 83,611 82,691
GROUP CASH FLOW STATEMENT
For the year ended 31 December
2003 2002
£000 £000
Net cash inflow from operating activities 22,848 24,712
Returns on investments and servicing of finance
Interest received 341 470
Interest paid (2,562) (3,014)
Preference dividend paid (4) (4)
(2,225) (2,548)
Taxation
Corporation tax paid (386) (651)
Overseas tax paid (314) -
Corporation tax received - 109
(700) (542)
Capital expenditure and financial investment
Purchases less sales of own shares by ESOP (75) (258)
Purchase of tangible fixed assets (2,214) (3,133)
Sale of tangible fixed assets 2,027 738
Purchase of shipbuilding contracts via subsidiary undertakings (7,293) -
(7,555) (2,653)
Acquisitions and disposals
Cash acquired with subsidiary undertakings 888 1,768
Purchase of subsidiary undertakings (17,603) (3,275)
Loans to joint venture (944) (2,722)
Loans from joint venture 1,997 944
Purchase of interest in joint venture - (25)
(15,662) (3,310)
Equity dividends paid (2,978) (2,570)
Net cash (outflow)/inflow before management
of liquid resources and financing (6,272) 13,089
Management of liquid resources
Increase in short term deposits (1,535) -
Financing
Issue of ordinary shares 251 -
New secured loans 19,898 1,912
Repayment of loans (13,326) (16,922)
6,823 (15,010)
Decrease in cash in the year (984) (1,921)
Reconciliation of net cash flow to
movement in net debt
Decrease in cash in the year (984) (1,921)
Cash (inflow)/outflow from (increase)/decrease in debt (6,572) 15,010
Cash inflow from increase in short term deposits 1,535 -
Change in net debt resulting from cashflows (6,021) 13,089
Exchange differences 343 501
Loans acquired with subsidiary undertakings (2,106) -
Movement in net debt (7,784) 13,590
Net debt at 1 January (48,068) (61,658)
Net debt at 31 December (55,852) (48,068)
NOTES
1. Financial information
The financial information set out above does not comprise the company's
statutory accounts. Statutory accounts for the previous financial year ended 31
December 2002 have been delivered to the Registrar of Companies. The auditors'
report on those accounts was unqualified and did not contain any statement under
section 237(2) or (3) of the Companies Act 1985.
The auditors have given an unqualified opinion on the accounts for the year
ended 31 December 2003 which will be delivered to the Registrar of Companies
following the annual general meeting.
The financial information above has been prepared on the basis of the accounting
policies set out in the group's statutory accounts for the year ended 31
December 2002.
2. Segmental analysis
The segmental analysis has been restated by allocating directly attributable
administration expenses to the operating segments.
Geographical market supplied
Marine
Turnover Tankships Cable ships Support Services Total
2003 2002 2003 2002 2003 2002 2003 2002
£000 £000 £000 £000 £000 £000 £000 £000
Continuing operations
UK & Ireland 41,971 41,451 1,377 5,005 12,451 6,960 55,799 53,416
Continental Europe 4,596 4,577 - - 6,052 432 10,648 5,009
Americas - - 9,360 11,838 1,296 637 10,656 12,475
Rest of World - - - - 112 79 112 79
Discontinued operations
UK & Ireland - - - - - 132 - 132
46,567 46,028 10,737 16,843 19,911 8,240 77,215 71,111
Total operating profit
The group operates from two geographical locations as follows:
United Kingdom
& Ireland Norway Total
2003 2002 2003 2002 2003 2002
£000 £000 £000 £000 £000 £000
Continuing operations
Ongoing 12,905 15,050 - - 12,905 15,050
Acquisitions 72 - 978 - 1,050 -
Impairment (4,769) - - - (4,769) -
Share of operating profit in joint 3,744 (298) - - 3,744 (298)
ventures
Discontinued operations
Segment Loss - (23) - - - (23)
11,952 14,729 978 - 12,930 14,729
Goodwill amortisation (relates to Marine Support Services) (623) (58)
Common costs (1,522) (1,451)
Total operating profit: group and share of joint ventures 10,785 13,220
Profit on ordinary activities before taxation
Marine
Tankships Cable ships Support Services Total
2003 2002 2003 2002 2003 2002 2003 2002
£000 £000 £000 £000 £000 £000 £000 £000
Continuing operations
Ongoing 6,061 4,657 4,322 7,919 2,522 2,474 12,905 15,050
Acquisitions - - - - 1,050 - 1,050 -
Impairment of C.S. Nexus - - (4,769) - - - (4,769) -
Share of operating profit
in joint ventures - - - - 3,744 (298) 3,744 (298)
Discontinued operations
Segment loss - - - - - (23) - (23)
6,061 4,657 (447) 7,919 7,316 2,153 12,930 14,729
Goodwill amortisation (relates to Marine Support (623) (58)
Services)
Common costs (1,522) (1,451)
Total operating profit: group and share of joint 10,785 13,220
ventures
Continuing operations
Loss on sale of ships (1,033) (335)
Discontinued operations
Provision for termination of business - (794)
9,752 12,091
Net interest payable
Group (2,237) (2,519)
Joint Venture (2,478) (355)
Exchange gain on loan conversion 343 501
(4,372) (2,373)
Profit on ordinary activities before taxation 5,380 9,718
Marine
Tankships Cable ships Support Services Total
2003 2002 2003 2002 2003 2002 2003 2002
£000 £000 £000 £000 £000 £000 £000 £000
Net operating assets
Net assets by segment:
Continuing operations 64,170 67,923 48,067 55,833 29,792* 8,046* 142,029 131,802
The net operating assets are reconciled to shareholders' funds as follows:
Net operating assets 142,029 131,802
Fixed asset investments 1,157 1,157
Own shares held under trust 357 896
Net borrowings (55,852) (48,068)
Corporation tax (1,277) (653)
Deferred tax (200) (147)
Deferred consideration (535) (500)
Dividends payable (2,068) (1,796)
Shareholders' funds 83,611 82,691
* Includes share of net assets of joint ventures, 2003: £1.591m (2002: £1.397m).
3. Group operating profit
Group operating profit is stated after charging depreciation on tangible fixed
assets of £9.526m (2002 £9.818m), amortisation of goodwill of £0.623m (2002
£0.058m) and an impairment loss of £4.769m (2002 £nil).
4. Exceptional items
(a) Exceptional items reported before group operating profit
2003 2002
£000 £000
C.S. Nexus impairment (4,769) -
C.S. Nexus impairment
As part of the preparation of the financial statements for the year ended and as
at 31 December 2003, the directors performed an impairment review of the cable
laying ships C.S. Oceanic Princess, C.S.Oceanic Pearl and C.S. Nexus. The
result of this review has led to an impairment provision of £4.769m against the
C.S. Nexus primarily in view of her age of thirty-two years.
(b) Exceptional items reported after group operating profit
Continuing shipping operations
2003 2002
£000 £000
Loss on sale of (1,033) (327)
ships
Discontinued shipping operations
2003 2002
£000 £000
Loss on sale of - (8)
ships
Provision for termination of business - (794)
- (802)
The loss on sale of ships of £nil (2002 £8,000) represents the disposal of the
remaining dry cargo vessels following the decision to withdraw from this market.
On 28 January 2003 the dsv Fisher Cavalier, a ship owned by the group's joint
venture company, Fisher Offshore Services Limited, was sold and a provision of
£0.794m was made in 2002 representing the group's share of loss on sale of
vessel of £0.464m and a provision on termination of business of £0.330m.
The taxation effects of the exceptional items reported after operating profit is
£nil (2002 £nil).
5. Taxation
Tax on profit on ordinary activities
2003 2002
£000 £000
The tax charge/(credit) is made up as follows:
Current tax:
UK tonnage tax 36 30
UK corporation tax 501 524
537 554
Tax underprovided in previous years 88 277
Foreign tax 354 -
Group current tax 979 831
Share of joint venture's current tax 18 30
Total current tax 997 861
Deferred tax:
Group deferred tax 53 (1,179)
Tax on profit on ordinary activities 1,050 (318)
6. Cash flow statement
(a) Reconciliation of operating profit to net cash inflow from operating
activities
2003 2002
£000 £000
Group operating profit 7,041 13,518
Depreciation and refit amortisation 9,526 9,818
C.S. Nexus impairment 4,769 -
Amortisation of goodwill 623 58
Increase in stocks (439) (255)
Decrease in debtors 2,247 1,650
Decrease in creditors (804) (303)
Profit on sale of tangible fixed assets (86) (44)
Share based compensation 277 156
(Decrease)/increase in provisions (306) 114
Net cash inflow from operating activities 22,848 24,712
(b) Reconciliation of net debt
1 January Acquisitions Cash Flow Transfer Exchange 31 December
2003 Movement 2003
£000 £000 £000 £000 £000 £000
Cash in hand, at bank 4,904 - (984) - - 3,920
Short-term deposits* - - 1,535 - - 1,535
Debt due after one year (44,358) - (19,898) 12,336 287 (51,633)
Debt due within one year (8,614) (2,106) 13,326 (12,336) 56 (9,674)
(52,972) (2,106) (6,572) - 343 (61,307)
Net debt (48,068) (2,106) (6,021) - 343 (55,852)
* Short term deposits are included within cash at bank and in hand in the
balance sheet.
7. Earnings per ordinary share
The calculations of earnings per ordinary share are based on the following
profits and numbers of shares.
2003 2002
£000 £000
Profit for the financial year 4,330 10,036
Preference dividends (4) (4)
4,326 10,032
Weighted average number of shares (excluding the shares owned by James Fisher
and Sons Public Limited Company Employee Share Ownership Trust):
2003 2002
Number of Number of
shares shares
For basic earnings per ordinary share* 47,855,653 47,516,302
Exercise of share options and LTIPs 1,850,531 1,110,975
For diluted earnings per ordinary share 49,706,184 48,627,277
*Excludes shares owned by James Fisher and Sons Public Limited Company Employee
Share Ownership Trust.
The basic earnings per share after adjustment for Nexus Impairment and 2002 tax
credit is calculated using the same number of shares for the basic earnings
calculation referred to above and the amount shown below.
2003 2002
£000 p £000 p
Basic earnings per share 4,326 9.04 10,032 21.11
Adjustments
cs Nexus impairment 4,769 9.97 - -
Deferred tax credit - - (1,179) (2.48)
9,095 19.01 8,853 18.63
8. Dividends paid and proposed
The directors are recommending a final ordinary dividend of 4.30p per ordinary
share which will be payable on 7 May 2004 to ordinary shareholders on the
Register on 16 April 2004, making a total for the year of 6.77p per share. This
compares with a final dividend for 2002 of 3.74p per share and a total
distribution for 2002 of 5.94p per share.
2003 2002
£000 £000
Rates of dividend paid and proposed
amount absorbed thereby:
Equity:
Ordinary interim paid of 2.47p per share
(2002 2.20p per share) 1,200 1,062
Ordinary final proposed of 4.30p per share
(2002 3.74p per share) 2,100 1,816
Non-equity:
3.5% Preference paid (2002 3.5%) 4 4
Less dividends on own shares held by the ESOP (50) (46)
3,254 2,836
The ordinary dividends are based upon the following number of issued shares:
2003 2002
No. No.
Interim 48,600,800 48,270,098
Final 48,843,215 48,550,800
The ordinary final dividend will be paid on 7 May 2004 to those shareholdings
registered in the books of the company at the close of business on 16 April
2004.
9. The AGM will be held at 1200 noon on Friday 30 April 2004 at the Abbey House
Hotel, Abbey Road, Barrow-in Furness, Cumbria.
10. Report and Accounts will be posted to members on 31 March 2004. Copies will
be made available to members of the public at Fisher House, PO Box 4,
Barrow-in-Furness, Cumbria, LA14 1HR.
11. This preliminary statement was approved by the Board of Directors on 8 March
2004.
This information is provided by RNS
The company news service from the London Stock Exchange
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