Final Results
Fisher (James) & Sons PLC
09 March 2005
James Fisher & Sons plc ('James Fisher' or 'the Company')
2004 Preliminary Results
Strong Profit Growth, Strong Balance Sheet and Cashflows; Well Placed
James Fisher, the marine services provider, announces its Preliminary Results
for the year ended 31 December 2004, representing another year of encouraging
growth in profitability supported by strong underlying cashflows.
Marine Support Services, the largest of the Company's three divisions, now
accounts for 46% of group profits. Operating profits for are up by over 300%
over the last two years and the return on capital remains most attractive.
Financial Highlights
• Turnover up 2% to £78.8m (2003: £77.2m).
• Pre-tax profit up 29% to £13.1m (2003: £10.1m*).
* After adding back adjustment to Nexus impairment provision of £4.8m.
• Basic earnings per share up 22% to 23.20p (2003: 19.01p*)
* After adjustment for Nexus impairment.
• Proposed final dividend up 15% to 4.95p (2003: 4.30p), payable 6 May 2005.
• Good organic growth.
• Acquisitions integrated well.
• Debt reduced to £36.6m (2003: £55.85m)
• Gearing reduced to 40% (2003: 68%).
• £7.5m of cash used to fund acquisitions during the year.
Operating Highlights
• Marine Support Services - Operating profits up 25% to £9.1m (2003:
£7.3m); Organic growth and acquisitions contributed; Increased on turnover of
£26.01m (2003: £19.91m); increased sales, services and products; continued
expansion in defence, North-Sea non-defence areas, including nuclear industry;
sales now global.
• Marine Oil Services - Tankships: Operating profit up 13% to £6.9m
(2003: £6.1m) on turnover of £45.15m (2003: £46.57m) due to improvement achieved
in second half; trading from 4 less vessels than in 2003 at 17 tankships, for
oil majors in UK coastal market; not overly influenced by global cycles.
• Cable Ships - Operating profit 10% down at £3.9m (2003: £4.3m); on
turnover of £7.60m (2003: £10.74m) due to impact of weaker dollar on charter
revenue from General Dynamics. Nexus sold in first half 2004; other two vessels
benefiting from charters expiring May 2006 and December 2006.
• Nick Henry became Group Chief Executive in December 2004.
• Two Senior Management Appointments.
Commenting on the Outlook, Chairman, Tim Harris, CBE, said: 'During 2004 we have
continued to make excellent progress with our strategic plan to expand our
Marine Services operation. The creation of James Fisher Defence and James Fisher
Nuclear gives further clarity and focus to these areas; the Scan Tech group of
companies enjoys a strong market position. Tankships continues to provide a
strong platform of cashflow. The cable ship market remains at a cyclical low.
Our financial strength enables us to determine when it most advantageous to
realise their potential.'
He added: 'James Fisher has a clear view of what it is seeking to do and is
developing a track record of achievement. It also has a strong balance sheet and
excellent cash flow. Overall, it is well placed to continue to grow aggressively
both organically and by acquisition, providing increasing value for our
shareholders.'
For further information:
James Fisher & Sons plc
Tim Harris, Chairman 020 7338 5808
Nick Henry, Chief Executive Officer 020 7338 5802
Michael Shields, Group Finance Director
Binns & Co PR Ltd
Peter Binns 020 7786 9600
Paul McManus 07890 541 893
Matt Ridsdale 07789 556 905
Chairman's Statement
Overview
2004 was a good year for James Fisher with an encouraging growth in
profitability supported by strong underlying cash flows. Most importantly, the
strongest growth in profitability came from the marine support services
division, which now accounts for 46% of group profits, as the largest profits
contributor. Financial gearing was reduced to 40% at the year-end despite the
use of £7.5 million cash to fund the acquisitions made during the year. This
confirms the financial strength of the Company and its ability to expand its
profitable marine service activities further in 2005.
2004 2003
Turnover +2% £78.8 million £77.2 million
Pre tax profit +29% £13.1 million *£10.1 million
Basic earnings per share* +22% 23.20p *19.01p
Proposed final dividend +15% 4.95p 4.30p
* 2003 adjusted by adding back Nexus impairment provision of £4.8 million
(9.97p)
Dividend
Your Board is recommending a final dividend of 4.95 p per share, giving a total
for the year of 7.72p (2003 - 6.77p) - an increase of 14%. The dividend is
payable on 6 May 2005 to shareholders on the register on 15 April 2005.
Marine Support Services
Operating profits grew by 25% to £9.1 million (2003 - £7.3 million) with both
internal organic growth and the WM Defence (renamed James Fisher MIMIC Limited)
and Air Supply acquisitions contributing well. The operating profits from this
division have grown by more than 300% over the last two years and the return on
capital remains most attractive.
Defence Services
We have established a new company, James Fisher Defence Limited, with effect
from 1 January 2005 with Simon Harris as Managing Director, to be the focus of
our defence activities which we are seeking to expand. Our key expertise, a
legacy from our James Fisher and Rumic pasts, relates to commercial ship
operation and submarine rescue and we are building a new team based on our
existing resources, together with some recruits with particular skills. Despite
the well publicised defence cuts, our view is that this sector will continue to
offer good opportunities because limited resources will put greater emphasis on
value for money, something we are well placed to provide with our commercial
expertise.
During 2004, we experienced mixed fortunes. In September 2004 the Ministry of
Defence exercised its purchase option for RFA Oakleaf, after a successful
nineteen year charter, giving us a capital profit of £0.6m, although this has
also resulted in the loss of £1 million per year in contribution. However, we
received our first dividend of £1 million from AWSR Shipping Limited, now
renamed Foreland Shipping Limited, in August and the charters of the two
commercial ships have been recently extended until December 2007. James Fisher
MIMIC Limited, which provides the Conditioned Based Maintenance System installed
on the majority of Royal Navy warships, has now been fully integrated and is
making a good contribution.
Our submarine rescue expertise is widely recognised both in the UK and
internationally and during 2004 we have been very busy. In October 2004, as part
of the Royal Navy exercise named 'Flying Dutchman 2004', we successfully
provided a complete package of a mother ship and commercial diving team for the
operation of the United Kingdom Submarine Rescue Service, which we manage, in a
subsurface exercise with the Norwegian Navy. More than forty Royal Navy
personnel were present for this 'combined operation' together with
representatives of foreign Navies.
Offshore Oil Services - Scan Tech
The Scan Tech companies had a good year in 2004 and with an expanding product
range we are well placed to take advantage of the increased level of activity in
the North Sea and elsewhere, encouraged by the recent high level of oil prices.
The acquisition of the Air Supply companies in late 2003 helped expand our range
of compressors that are particularly in demand for well testing. We are now
following our North Sea customers into new markets in the former Soviet
republics and elsewhere. In December 2004 we purchased Reanco Team AS, based in
Norway, for the equivalent of £2.12 million with a further £0.25 million of
deferred consideration which is dependent upon results. This company, which
provides maintenance services in the Norwegian sector of the North Sea, is being
integrated into Scan Tech with whom it shares common customers.
Our HydroDigger operation picked up in the second half with work in Egypt and
Australia as well as the North Sea. We are now marketing it globally.
Specialist technical services
The results of our nuclear decommissioning business were encouraging in 2004. We
are making good progress with 'Operation Cumbria', our programme of expanding
James Fisher Rumic Limited's (Rumic) profitable nuclear decommissioning
business. We have now completed three acquisitions of similar and complementary
companies which also provide specialist decommissioning support to BNFL at
Sellafield, a local Cumbrian site for James Fisher. In December 2004 we
purchased Remote Marine Systems Limited (RMS) and Nuclear Decommissioning
Limited (NDL) for a total of £4.9 million in cash and, in January 2005, Harsh
Environment Systems Limited (Harsh) for £1.6 million in cash. We are currently
in the process of merging Rumic's nuclear activity, RMS, NDL and Harsh into one
specialist decommissioning company to be called James Fisher Nuclear Limited
with, as Managing Director, Gordon Robertson who formerly held that position
with RMS. Harsh has excellent facilities close to Sellafield itself and in
future we shall use them as James Fisher Nuclear's shop window. BNFL, our
customer, has been most supportive of these developments as it is seeking to
rationalise its own supplier chain and sees a stronger, local and specialist
supplier as being an advantage.
Marine Oil Services - Tankships
The operating profit of £6.9 million was 13% better than in 2003 (£6.1 million).
This improvement, which was entirely achieved in the second half, was
commendable as the number of vessels we have been trading was four less than the
twenty-one we had in 2003. Improvement in contract rates, in part the result of
the withdrawal of tonnage from chartered-out to own-operation together with a
stronger spot market, were responsible.
Our fleet renewal programme continues apace. In December 2004 we took delivery
of Cumbrian Fisher and in February 2005 her sister Clyde Fisher (both 12,800
dwt) from the Samho Ship Yard in Korea. The vessels will begin trading in our
contract programme on their arrival in Europe. One vessel will replace the time
charter of the Linnea (11,500 dwt) which we are not renewing because of her age,
the other will add to the tonnage at our disposal. Shannon Fisher and her sister
Solway Fisher (both 5,000 dwt) are scheduled for delivery from the Damen Galati
yard in Romania in late 2005 and mid 2006 respectively. All four new vessels are
being financed by ten-year bareboat charters with First Ship Lease Limited.
During 2004 we sold Eastgate (3,400 dwt) and Westgate (3,400 dwt) both of which
were built in 1979 for close to their book values.
Tankships provides a marine service to the oil majors in the UK coastal market
which is not closely related to global shipping markets. Its operating profit
record has shown some consistency, not being overly influenced by global
shipping cycles. In recent years this record has been enhanced by the employment
of chartered as well as owned tonnage which has enabled the return on capital
employed to be improved significantly (2004 - 12%) We shall continue to seek an
improvement in the return on capital by managing the size of our fleet to suit
market conditions, including, when the need and opportunity arises, the sale of
existing vessels.
Cable Ships
The operating profit of £3.9 million was 10% lower than last year (£4.3 million)
principally as a result of the effect of a weaker dollar on charter revenue
received from General Dynamics. Nexus, which was written down to scrap value at
31 December 2003, was sold in the first half of 2004.
Oceanic Princess and Oceanic Pearl continue to benefit from the General Dynamics
charters which expire in May 2006 and December 2006 respectively. Both ships
remained in lay-up throughout 2004 reflecting the bleak state of the cable
laying market. At least this encouraged some rationalisation and eight vessels
from the world cable fleet of around fifty vessels were either scrapped or
converted for other use in 2004. On the demand side, there was some modest
increase in cable laying activity but this was offset by a reduction in the
requirement for maintenance ships. In recent months there has been a slightly
higher level of enquiries and we have just agreed terms with Canyon Offshore for
work for Oceanic Princess off Indonesia. Although this contract has been priced
marginally and will not make a major profit contribution in 2005, it will enable
the ship to be mobilised again.
Directors and Employees
Nick Henry, who joined James Fisher as Managing Director of Tankships in early
2003, took over from Angus Buchanan as Chief Executive on Angus's resignation in
December 2004. On behalf of the Company, I would like to welcome Nick to the
Board and thank Angus for his contribution to James Fisher's success. Otherwise
there have been no changes to the Board since the last AGM.
During the year we have welcomed a number of new colleagues to the Company, one
of whom, Gordon Robertson, has been appointed as Managing Director of James
Fisher Nuclear Limited. It is pleasing that we have been able to keep the
management of the companies we have acquired and in this context I would
particularly like to recognise the constructive roles played by Roger Chapman of
Rumic and Bjorn Erik Bjornsen in Scan Tech.
The success of 2004 has inevitably created a high workload in many areas of the
business and I would like to thank our employees for all their hard work and
good humour during the last year and I look forward to their continuing support
in the year ahead of us.
Outlook
Over the last three years the Company has had a clear strategic plan to expand
its marine service operations both in terms of scale and skills and during 2004
we have continued to make excellent progress towards this aim. This has been
achieved both by organic growth as well as strategic acquisitions, at the same
time we have invested in the people to take the business forward in 2005 and
beyond.
The creation of James Fisher Defence Limited and James Fisher Nuclear Limited
gives further clarity and focus to what we are doing in these areas and the Scan
Tech group of companies already enjoys a strong position in the particular
markets in which it operates. Our acquisitions have been, and will continue to
be, close to where we have existing skills and customers, maintaining the
consistency and coherence of our marine service expansion.
Tankships continues to provide a strong platform of cash flow and skills which
will be important in our future development.
The cable ship market remains at a cyclical low. There has been some progress on
ship attrition during 2004 but the market remains weak. The new employment for
Oceanic Princess is a positive sign although it is still too early to predict
when there will be a significant change in the overall market. The Company's
financial strength is such as to enable us to determine how and when it is most
advantageous to realise the potential from the cable ships.
James Fisher has a clear view of what it is seeking to do and is developing a
track record of achievement. It also has a strong balance sheet and excellent
cash flow. Overall it is well placed to continue to grow aggressively both
organically and by acquisition, providing increasing value for our shareholders.
GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31 December
Notes 2004 2003
£000 £000
------- -------
Turnover: group and share of joint ventures 86,858 84,574
less share of joint ventures (8,105) (7,359)
------- -------
78,753 77,215
------- -------
ongoing 78,624 77,215
acquisitions 129 -
------- -------
Group turnover 2 78,753 77,215
------- -------
Cost of sales (59,433) (60,308)
C.S. Nexus impairment - (4,769)
------- -------
Cost of sales (59,433) (65,077)
------- -------
Gross profit after impairment 19,320 12,138
Administrative expenses
------- -------
goodwill amortisation (915) (623)
general (5,043) (4,474)
------- -------
(5,958) (5,097)
Group operating profit
------- -------
ongoing 13,289 7,041
acquisitions 73 -
------- -------
13,362 7,041
Share of operating profit in joint ventures 3,876 3,744
------- -------
Total operating profit: group and share of joint 17,238 10,785
ventures
Continuing operations
Profit/(loss) on sale of ships 475 (1,033)
------- -------
17,713 9,752
Net interest payable
------- -------
Group (2,181) (2,237)
Joint ventures (2,596) (2,478)
Exchange gain on loan conversion 155 343
------- -------
(4,622) (4,372)
------- -------
Profit on ordinary activities before taxation 13,091 5,380
Taxation 5 (1,891) (1,050)
------- -------
Profit on ordinary activities after taxation 11,200 4,330
Dividends
------- -------
Non equity (4) (4)
Equity (3,750) (3,250)
------- -------
(3,754) (3,254)
------- -------
Retained profit for the year 7,446 1,076
======= =======
pence pence
Basic earnings per ordinary share 7 23.20 9.04
Diluted earnings per ordinary share 22.91 8.70
Ordinary dividends paid or payable:
Interim 2.77 2.47
Final 4.95 4.30
------- -------
7.72 6.77
======= =======
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 31 December
Notes 2004 2003
£000 £000
------- -------
Profit for the financial year excluding profit of 9,981 3,083
joint ventures
Share of joint ventures' profit for the year 1,219 1,247
------- -------
Profit on ordinary activities after taxation 11,200 4,330
Currency translation differences on foreign currency
net investments
Exchange difference on loan (150) 406
303 (476)
------- -------
Total recognised gains and losses relating to the 11,353 4,260
year
Prior year adjustment 1 (357) -
------- -------
Total recognised gains and losses since last annual
report 10,996 4,260
======= =======
GROUP BALANCE SHEET
at 31 December
Notes (Restated)
2004 2003
£000 £000
------- --------
Fixed assets
Intangible assets - goodwill 20,250 17,397
Tangible assets 103,091 114,455
Investments:
Investments in joint ventures:
------- --------
Share of gross assets 52,389 52,333
Share of gross liabilities (50,579) (50,742)
------- --------
1,810 1,591
Other investments 1,157 1,157
------- --------
126,308 134,600
Current assets
Stocks 4,028 2,377
Debtors 14,901 18,895
Cash at bank and in hand 10,045 5,455
------- --------
28,974 26,727
------- --------
Creditors: amounts falling due within one
year
Trade and other (17,789) (16,566)
Bank loans (7,679) (9,674)
------- --------
(25,468) (26,240)
------- --------
Net current assets 3,506 487
------- --------
Total assets less current liabilities 129,814 135,087
Creditors: amounts falling due after more than
one year
Trade and other (14) -
Bank loans (38,472) (51,633)
------- --------
(38,486) (51,633)
------- --------
Provisions for liabilities and charges (287) (200)
------- --------
Net assets 91,041 83,254
======= ========
Capital and reserves
------- --------
Called up share capital 12,405 12,311
Share premium account 23,810 23,558
Other reserves (1,212) (971)
Profit and loss account 56,038 48,356
------- --------
Shareholders' funds 9 91,041 83,254
======= ========
GROUP CASH FLOW STATEMENT
for the year ended 31 December
Notes 2004 2003
£000 £000
Net cash inflow from operating activities 6(a) 19,298 22,848
------- -------
Dividends from joint venture undertakings 1,000 -
Returns on investments and servicing of finance
Interest received 314 341
Interest paid (2,482) (2,562)
Preference dividend paid (4) (4)
------- -------
(2,172) (2,225)
------- -------
Taxation
Corporation tax paid (1,187) (386)
Overseas tax paid (396) (314)
------- -------
(1,583) (700)
------- -------
Capital expenditure and financial investment
Purchase of tangible fixed assets (3,649) (2,214)
Refund of payment to acquire tangible fixed 3,851 -
assets
Sale of tangible fixed assets 4,966 2,027
Sale/(purchase) of shipbuilding contracts 7,293 (7,293)
------- -------
12,461 (7,480)
------- -------
Acquisitions and disposals
Cash acquired with subsidiary undertakings 1,204 888
Purchase of subsidiary undertakings (7,454) (17,603)
Loans to joint venture - (944)
Loans to joint ventures repaid 225 1,997
------- -------
(6,025) (15,662)
------- -------
Equity dividends paid (3,410) (2,978)
------- -------
Net cash inflow/(outflow) before management of
liquid resources and financing
19,569 (6,197)
Management of liquid resources
Increase in short term deposits
(465) (1,535)
------- -------
Financing
Issue of ordinary shares 346 251
Purchase less sales of own shares by ESOP (616) (75)
New secured loans 12,074 19,898
New unsecured loans 500 -
Repayment of loans (27,409) (13,326)
------- -------
(15,105) 6,748
------- -------
Increase/(decrease) in cash in the year 3,999 (984)
------- -------
Reconciliation of net cash flow to movement in
net debt
Increase/(decrease) in cash in the year 3,999 (984)
Cash outflow/(inflow) from decrease/(increase) in 14,835 (6,572)
debt
Cash inflow from increase in short term 465 1,535
deposits ------- -------
Change in net debt resulting from cashflows 19,299 (6,021)
Exchange differences 281 343
Loans acquired with subsidiary undertakings (334) (2,106)
------- -------
Movement in net debt 19,246 (7,784)
Net debt at 1 January 6(b) (55,852) (48,068)
------- -------
Net debt at 31 December (36,606) (55,852)
======= =======
NOTES TO FINANCIAL STATEMENTS
1. Financial Information
The financial information set out above does not comprise the company's
statutory accounts as defined by Section 240 of the Companies Act 1985.
Statutory accounts for the previous financial year ended 31 December 2003 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 2004 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 2003.
The comparative balance sheet at 31 December 2003 has been restated to reflect
the change in accounting policy following the publication of UITF 38, Accounting
for ESOP Trusts, which is mandatory for accounting periods ending on or after 22
June 2004, by the Accounting Standards Board. The change in accounting policy
has resulted in a prior year adjustment for both the group and the company. For
the group and company, shareholders' funds at 1 January 2004 have been reduced
by £0.357m, investments have been reduced by £0.357m, other reserves have been
reduced by £0.971m and profit and loss account reserves at 1 January 2004
increased by £0.614m. There was no impact on the results for the year ended 31
December 2003.
2. Segmental analysis
Geographical market supplied
Turnover Marine Marine
Support Services Oil Services Cable ships Total
2004 2003 2004 2003 2004 2003 2004 2003
£000 £000 £000 £000 £000 £000 £000 £000
Continuing operations
UK & 15,806 12,451 40,037 41,971 - 1,377 55,843 55,799
Ireland
Continental 8,380 6,052 5,111 4,596 - - 13,491 10,648
Europe
Americas 285 1,296 - - 7,600 9,360 7,885 10,656
Rest of 1,534 112 - - - - 1,534 112
World ------ ------ ------ ------ ------ ------ ------ ------
26,005 19,911 45,148 46,567 7,600 10,737 78,753 77,215
====== ====== ====== ====== ====== ====== ====== ======
Included in turnover for Marine Support Services is an amount of £0.129m in
respect of acquisitions during the year. This arose in Continental Europe.
Turnover
By geographical origin
The group operates from two geographical locations as follows:
2004 2003
£000 £000
------ ------
Continuing operations
United Kingdom and Ireland 71,050 70,894
Norway 7,703 6,321
------ ------
78,753 77,215
====== ======
Operating profit
By geographical origin
United Kingdom & Ireland Norway Total
2004 2003 2004 2003 2004 2003
£000 £000 £000 £000 £000 £000
Continuing
operations
Ongoing 14,245 12,977 1,679 978 15,924 13,955
Acquisitions - - 73 - 73 -
Impairment - (4,769) - - - (4,769)
Share of operating 3,876 3,744 - - 3,876 3,744
profit in joint
ventures
------ ------ ------ ------ ------- -------
18,121 11,952 1,752 978 19,873 12,930
====== ====== ====== ======
Goodwill amortisation (relates to Marine Support (915) (623)
Services)
Common costs (1,720) (1,522)
------- -------
Total operating profit - group and share of joint 17,238 10,785
ventures ======= =======
Profit on ordinary activities before taxation
Marine Marine
Support Services Oil Services Cable ships Total
2004 2003 2004 2003 2004 2003 2004 2003
£000 £000 £000 £000 £000 £000 £000 £000
Continuing
operations
Ongoing 5,195 3,572 6,850 6,061 3,879 4,322 15,924 13,955
Acquisitions 73 - - - - - 73 -
Impairment of
CS Nexus
Share of - - - - - (4,769) - (4,769)
operating
profit
in joint
ventures
3,876 3,744 - - - - 3,876 3,744
------ ------ ------ ------ ------ ------ ------- -------
9,144 7,316 6,850 6,061 3,879 (447) 19,873 12,930
====== ====== ====== ====== ====== ======
Administration expenses:
Goodwill amortisation (relates to Marine Support Services) (915) (623)
Common Costs (1,720) (1,522)
------- -------
Total operating profit: group and share of joint ventures 17,238 10,785
Continuing operations
Profit/(loss) on sale of ships 475 (1,033)
------- -------
17,713 9,752
Net interest payable
------- -------
Group (2,181) (2,237)
Joint ventures (2,596) (2,478)
Exchange gain on loan conversion 155 343
------- -------
(4,622) (4,372)
------- -------
Profit on ordinary activities before taxation 13,091 5,380
======= =======
Net operating Marine Marine
assets
Support Services Oil Services Cable ships Total
2004 2003 2004 2003 2004 2003 2004 2003
£000 £000 £000 £000 £000 £000 £000 £000
Net assets
by segment:
Continuing 34,123 28,201 54,831 64,170 40,325 48,067 129,279 140,438
operations
Share of net
assets of
joint
ventures
1,810 1,591 - - - - 1,810 1,591
------ ------ ------ ------ ------ ------ ------- -------
35,933 29,792 54,831 64,170 40,325 48,067 131,089 142,029
====== ====== ====== ====== ====== ======
Net operating assets by geographical area of 2004 2003
origin
£000 £000
------- -------
Continuing operations
United Kingdom & Ireland 113,835 127,627
Norway 17,254 14,402
------- -------
131,089 142,029
======= =======
Net operating assets includes £3.207m in the Marine Support Services segment relating to acquisitions, of which
£0.610m is in Norway and £2.597m is in United Kingdom & Ireland.
2004 2003
£000 £000
------- -------
The net operating assets are reconciled to shareholders' funds as follows:
Net operating assets 131,089 142,029
Fixed asset investments 1,157 1,157
Net borrowings (36,606) (55,852)
Corporation tax (1,601) (1,277)
Deferred tax (287) (200)
Deferred consideration (301) (535)
Dividends payable (2,410) (2,068)
------- -------
Shareholders' funds 91,041 83,254
======= =======
3. Group operating profit
Group operating profit is stated after charging depreciation on tangible fixed
assets of £8.259m (2003 £14.295m, which includes an impairment loss of £4.769m)
and amortisation of goodwill of £0.915m (2003 £0.623m).
4. Exceptional items
(a) Exceptional items reported before group operating profit
2004 2003
£000 £000
CS Nexus impairment - 4,769
====== ======
CS Nexus impairment
As part of the preparation of the financial statements for the year ended 31
December 2003, the directors performed an impairment review of the cable laying
ships CS Oceanic Princess, CS Oceanic Pearl and CS Nexus. The result of this
review was an impairment provision of £4.769m against the CS Nexus primarily in
view of her age of thirty-two years. On 20 April 2004 the vessel was sold for
net proceeds of £1.101m.
(b) Exceptional items reported after group operating profit
Continuing shipping operations
2004 2003
£000 £000
Profit/(loss) on sale of ships 475 (1,033)
====== ======
The tax effect of the profit on sale of ships was £nil (2003 £nil).
5. Taxation
The group has entered the UK tonnage tax regime under which its ship owning and
operating activities are based on the net tonnage of vessels operated. Any
income and profits outside the tonnage tax regime are taxed under the normal UK
corporation tax rules.
Tax on profit on ordinary activities
2004 2003
£000 £000
The tax charge is made up as follows:
Current tax:
UK tonnage tax 32 36
UK corporation tax 832 501
------ ------
864 537
Foreign tax 477 353
UK corporation tax underprovided in previous years 21 88
Irrecoverable ACT relating to previous years 388 -
------ ------
Group current tax 1,750 978
Share of joint venture's current tax 61 19
------ ------
Total current tax 1,811 997
------ ------
Deferred tax:
Group deferred tax 80 53
------ ------
Tax on profit on ordinary activities 1,891 1,050
====== ======
6. Cash flow statement
(a) Reconciliation of operating profit to net cash inflow from
operating activities
2004 2003
£000 £000
Group operating profit 13,362 7,041
Depreciation and refit amortisation 8,259 9,526
Impairment of fixed asset - 4,769
Amortisation of goodwill 915 623
Increase in stocks (150) (439)
(Increase)/decrease in debtors (2,697) 2,247
Decrease in creditors (790) (1,110)
Profit on sale of tangible fixed assets (59) (86)
Share based compensation 458 277
------ ------
Net cash inflow from operating activities 19,298 22,848
====== ======
(b) Reconciliation of net debt
1 January Acquisitions Cash Flow Other non-cash Exchange 31 December
2004 movement 2004
£000 £000 £000 £000 £000 £000
Cash in
hand, at
bank
Short-term 3,920 - 3,999 - 126 8,045
deposits*
1,535 - 465 - - 2,000
------- ------- ------- ------- -------- -------
Debt due
after one
year
Debt due (51,633) (300) - 13,383 78 (38,472)
within one
year
(9,674) (34) 14,835 (13,383) 77 (8,179)
------- ------- ------- ------- -------- -------
(61,307) (334) 14,835 - 155 (46,651)
------- ------- ------- ------- -------- -------
Net debt (55,852) (334) 19,299 - 281 (36,606)
======= ======= ======= ======= ======== =======
* 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.
2004 2003
£000 £000
Profit for the financial year 11,200 4,330
Preference dividends (4) (4)
------- -------
11,196 4,326
======= =======
Weighted average number of shares:
2004 2003
Number of Number of
shares shares
For basic earnings per ordinary share* 48,261,182 47,855,653
Exercise of share options and LTIPs 605,628 1,850,531
-------- --------
For diluted earnings per ordinary share 48,866,810 49,706,184
======== ========
*excludes shares owned by James Fisher and Sons Public Limited Company Employee
Share Ownership Trust
8. Dividends paid and proposed
2004 2003
£000 £000
Non-equity:
3.5% Preference paid (2003 3.5%) 4 4
Equity:
Ordinary interim paid of 2.77p per share
(2003 2.47p per share) 1,359 1,200
Ordinary final proposed of 4.95p per share
(2003 4.30p per share) 2,436 2,100
Less dividends on own shares held by the ESOP (45) (50)
------ ------
3,754 3,254
====== ======
The ordinary dividends are based upon the following number of ordinary issued
shares:
2004 2003
No. No.
Interim 49,069,964 48,600,800
Final 49,219,958 48,843,215
The ordinary final dividend will be paid on 6 May 2005 to those shareholdings
registered in the books of the company at the close of business on 15 April
2005.
9. Reconciliation of movements in group shareholders' funds
(Restated)
2004 2003
£000 £000
Profit for the financial year 11,200 4,330
Dividends paid and proposed (3,754) (3,254)
Currency translation differences on foreign currency net 153 (70)
investments ------ --------
Arising on share issue 346 251
Share based compensation expense 458 277
ESOP trust purchases less sales of shares (616) (75)
------ --------
Net addition to shareholders' funds 7,787 1,459
Opening shareholders' funds as previously reported 83,254 82,152
Prior year adjustment re ESOP shares as restated - (357)
------ --------
Closing shareholders' funds 91,041 83,254
====== ========
10. The AGM will be held at 12:00 noon on Friday 29 April 2005 at the
Abbey House Hotel, Abbey Road, Barrow-in-Furness, Cumbria.
11. Report and Accounts will be posted to members on 30 March 2005.
Copies will be made available to members of the public at Fisher House, PO Box
4, Barrow-in-Furness, Cumbria, LA14 1HR.
12. This preliminary statement was approved by the Board of Directors
on 9 March 2005.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 3 hours ago Oxford Nanopore Technologies
- 3 hours ago Aberforth Geared Value & Income Trust
- 3 hours ago Land Securities Group
- 3 hours ago VP
- 3 hours ago Spectris