Interim Results
Fisher (James) & Sons PLC
12 September 2000
Interim Results for the Six Months
to 30 June 2000
Summary Half year Half year Year to
to 30.06.00 to 30.06.99 31.12.99
Turnover £30.21m £37.43m £68.13m
Profit before tax £3.28m £3.09m £6.28m
Earnings per share 6.47p 5.66p 37.41p
Dividend per share 1.70p 1.54p 4.35p
* Profit up on reduced turnover
* Interim dividend increased by 10 per cent
* New large tanker under consideration
Prospects
David B. Cobb, Executive Chairman, says: 'In a changing
freight environment we continue to carry increasing tonnages
of clean oil around N.W. Europe. Our contracts of
affreightment in the first six months produced a 15% net
increase in volume of tons carried compared with the same
period last year.
'The company is operating on a sound footing and should
produce a further set of good results this year.'
Enquiries: David B. Cobb, CBE, Executive Chairman
Tel: 020 7338 5808
Issued on behalf of James Fisher and Sons Public Limited
Company by Tavistock Communications Limited (contact: Keith
Payne, tel: 020 7600 2288)
Results
Pre-tax profits for the six months ended 30 June 2000
increased by 6% to £3,281,000 from £3,091,000 in the same
period last year. Turnover and cost of sales were down, the
results for the period to 30 June 1999 having had the
benefit of the purchase and sale of two vessels acquired for
conversion but sold prior to the commencement of the
project.
Net interest charges were lower at £712,000 against
£1,301,000, as cash was transferred to a revolving credit
facility thereby reducing debt to minimise our tax exposure.
These facility funds are available to us at short notice.
We have already declared our intention to join the new
Tonnage Tax regime, which has now received Royal Assent and
is retrospective from 1 January 2000. The tax charge for
our shipping operations has been calculated in accordance
with the new legislation. The profit on ordinary activities
after taxation for the period was £3,118,000 (six months
ended 30 June 1999 £2,722,000) and adjusted earnings per
share was 6.59p (six months ended 30 June 1999 4.44p), a
rise of 48%. Earnings per share was 6.47p (six months ended
30 June 1999 5.66p).
The Board is increasing the interim dividend by 10% to 1.70
pence per ordinary share (six months ended 30 June 1999 1.54
pence per ordinary share) payable on 16 November 2000 to
shareholders on the register at the close of business on 13
October 2000.
Operations
In a changing freight environment we continue to carry
increasing tonnages of clean oil around N.W. Europe. Our
contracts of affreightment produced a 15% net increase in
volume of tons carried. We are considering the acquisition
of one new tanker for our large ship end of the market to
replace existing older tonnage now chartered in.
Our dry cargo fleet is now fully operational with the
exception of one vessel which will be re-activated in the
Autumn. The commercial management has been out-sourced.
Market conditions remain very difficult and have not been
helped by the substantial increase in the cost of bunkers,
this increase in cost being applicable mainly to dry cargo
ships. Our dry cargo ships are performing satisfactorily and
producing better results this year albeit still at a loss.
The relocation of the Liverpool office to Barrow is now
complete and already producing operating efficiencies in a
much improved working environment.
The cable layer and ship management divisions have again
contributed excellent results. The cable ship CS 'Nexus',
the RFA tanker 'Oakleaf', the British Nuclear Fuels plc
contract and the Ministry of Defence RAF Sealand contract,
all performed exceptionally well and with charters/contracts
in place should continue to do so.
Our Aberdeen operation is profitable despite the effects of
the slow-down in North Sea activities. In August we
acquired substantially larger freehold premises which will
enable us to undertake an increased variety of tasks on
offshore/oil/gas related production structures. Seafloor
Dynamex has been integrated with Underwater Engineering
Services and the Hydrodigger is now being marketed
principally as an emergency response tool with a watchful
eye being kept for production or period contracts.
Our leasehold port facilities at Newhaven remain on a care
and maintenance basis. Discussions between third parties
and the owners of the port continue with a view to the sale
and possible subsequent development. We are being kept
informed of those negotiations and are ever hopeful of a
satisfactory outcome.
Prospects
Our contracts/charters across all of our operating units for
the remainder of the year are in place and should operate as
planned. We are looking forward to the delivery of our two
new cable ships presently under conversion at the Viktor
Lenac shipyard in Croatia. When completed these vessels
will commence their 5 year time charter with i.t.
International Telecom, a subsidiary of General Dynamics, of
the USA. Their introduction will have a positive impact on
the 2001 results going forward.
Our cash flow remains strong and while we shall reduce our
cash and increase our debt with the introduction of the new
ships, these will be cash positive so that our ability to
grow will not be impeded.
We have been invited to tender for a number of shipping-
related offshore projects which are currently receiving our
attention. Our joint venture with Cammell Laird which
commenced in August is now under way with the diving support
vessel 'Fisher Cavalier'.
The group is operating on a sound footing and should produce
a further set of good results this year.
Website
Further information can be found on our website at www.james-
fisher.co.uk
Staff
Once again my sincere thanks to all our employees for their
dedication and hard work without whom these results would
not be possible.
David B. Cobb, CBE
Executive Chairman
Group profit and loss account
Six Six Audited
months to months to Year
30 June 30 June ended 31
2000 1999 December
1999
Notes £000 £000 £000
Turnover 2 30,208 37,433 68,129
Cost of sales (24,666) (31,598) (56,316)
------ ------ ------
Gross profit 5,542 5,835 11,813
Administrative expenses:
Exceptional relocation costs (60) - (281)
Others (1,489) (1,389) (2,994)
------ ------ ------
Operating profit 3 3,993 4,446 8,538
Continuing operations:
Loss on sale of ships - (54) (153)
------ ------ ------
3,993 4,392 8,385
Interest receivable 478 504 1,073
Interest payable (1,190) (1,805) (3,183)
------ ------ ------
Profit on ordinary 2 3,281 3,091 6,275
activities before taxation
Taxation 4 (163) (369) 11,712
------ ------ ------
Profit for the financial 3,118 2,722 17,987
period/year
Dividends
------ ------ ------
Non Equity (2) (2) (4)
Equity (821) (743) (2,099)
------ ------ ------
(823) (745) (2,103)
------ ------ ------
Retained profit for the 2,295 1,977 15,884
period/year
===== ===== =====
Pence Pence Pence
Earnings per share 6 6.47 5.66 37.41
Adjusted earnings per share 6 6.59 4.44 12.35
Diluted earnings per share 6 6.45 5.64 37.26
Ordinary dividends paid
or payable:
Interim 1.70 1.54 1.54
Final 2.81
There are no recognised gains or losses other than the
profit for the financial period/year.
Group balance sheet
30 June 2000 30 June 1999 Audited
31 December
1999
£000 £000 £000
Fixed assets
Intangible assets 674 712 693
Tangible assets 89,689 94,058 90,428
------ ------ ------
90,363 94,770 91,121
Current assets
Stocks 862 717 709
Debtors 10,133 9,520 10,604
Cash at bank and in hand 7,006 4,932 2,639
Short term deposits 1,395 15,076 19,078
------ ------ ------
19,396 30,245 33,030
------ ------ ------
Creditors: amounts falling due
within one year
Trade and other (12,063) (11,356) (10,896)
Bank loans (5,551) (5,550) (5,551)
------ ------ ------
(17,614) (16,906) (16,447)
------ ------ ------
Net current assets 1,782 13,339 16,583
------ ------ ------
Total assets less current 92,145 108,109 107,704
liabilities
Creditors: amounts falling
Due after more than one year
Trade and other (63) (38) (11)
Bank loans (19,978) (40,118) (37,548)
------ ------ ------
(20,041) (40,156) (37,559)
------ ------ ------
Provisions for liabilities (2,373) (14,424) (2,709)
and charges
------ ------ ------
Net assets 69,731 53,529 67,436
====== ====== ======
Capital and reserves
Called-up share capital 12,168 12,168 12,168
Share premium account 23,050 23,050 23,050
Profit and loss account 34,513 18,311 32,218
------ ------ ------
Shareholders' funds 69,731 53,529 67,436
====== ====== ======
Group cash flow statement
Audited
Six months Six months Year ended
To 30 June To 30 June 31 December
2000 1999 1999
Notes £000 £000 £000
Net cash inflow 5(a) 7,986 7,621 14,837
From operating
activities
Returns on 5(b) (624) (1,087) (2,046)
investments and
servicing of
finance
Taxation 5(c) 146 (753) (1,347)
Capital 5(d) (1,900) 200 (439)
expenditure and
financial
investment
Acquisitions and 5(e) - (243) (246)
disposals
Equity dividends (1,354) (1,134) (1,877)
paid
------ ------ ------
Cash inflow before 4,254 4,604 8,882
management
of liquid resources
and financing
Management of 5(f) 17,683 (580) (4,582)
liquid resources
Financing 5(g) (17,570) (1,992) (4,561)
------ ------ ------
Increase/(decrease) 5(h) 4,367 2,032 (261)
in cash in
the period/year
====== ====== ======
Reconciliation of
net cash flow to
movement in net
debt
Increase/(decrease) 5(h) 4,367 2,032 (261)
in cash in the
period/year
Cash outflow from 5(h) 17,570 1,992 4,561
decrease in debt
Cash (inflow)/ 5(h) (17,683) 580 4,582
outflow from
(decrease)/increase
in liquid resources
------ ------ ------
Movement in net debt 5(h) 4,254 4,604 8,882
in the period/year
Net debt at the 5(h) (21,382) (30,264) (30,264)
beginning
of period/year
------ ------ ------
Net debt at end of 5(h) (17,128) (25,660) (21,382)
period/year
====== ====== ======
Notes to the Interim Accounts
1. Interim accounts
The unaudited interim accounts for the group have been
prepared on the basis of the accounting policies as set out
in the annual report and accounts for the year ended 31
December 1999 except that corporation tax on the group's
shipping operations has been calculated in accordance with
the new tonnage tax legislation which received Royal Assent
in August.
The results for the six months to 30 June 2000, the group
balance sheet and the group cash flow statement have been
subject to a review.
The figures for the year ended 31 December 1999 have been
extracted from the 1999 annual report and accounts which
have been filed with the registrar of companies. The
auditors' report on those accounts was unqualified and did
not contain any statement under section 237(2) and (3) of
the Companies Act 1985.
2. Segmental analysis
Geographical market supplied
Six months Six months Year ended
to 30 June to 30 June 31 December
2000 1999 1999
£000 % £000 % £000 %
United Kingdom 26,880 89 28,486 76 56,602 83
And The Republic
Of Ireland
Continental 3,317 11 8,331 22 10,626 16
Europe
Africa - - 5 - 45 -
Asia - - 551 2 551 1
Middle East 11 - 60 - 304 -
Others - - - - 1 -
---- ---- ---- ---- ---- ----
30,208 100 37,433 100 68,129 100
==== ==== ==== ==== ==== ====
Turnover and profit on ordinary activities before taxation
are attributable to the following activities all of which
are continuing:
Six months Six months Year ended
to 30 June to 30 June 31 December
2000 1999 1999
£000 £000 £000
Turnover
Shipping operations 29,298 36,307 66,177
Engineering operations 910 1,126 1,952
------ ------ ------
30,208 37,433 68,129
====== ====== ======
Profit on ordinary
Activities before taxation
Shipping operations:
Trading 4,031 4,137 8,432
Sale of ships - (54) (153)
Exceptional relocation (60) - (281)
costs
------ ------ ------
3,971 4,083 7,998
Engineering operations 22 309 387
------ ------ ------
3,993 4,392 8,385
Interest payable less (712) (1,301) (2,110)
receivable
------ ------ ------
3,281 3,091 6,275
====== ====== ======
Included within the turnover and profit of continuing
shipping operations for the period ended 30 June 1999 and
the year ended 31 December 1999 is the effect of the
purchase and sale of two second hand vessels to a third
party. In the opinion of the directors, the disclosure of
separate segmental information for this transaction would be
commercially seriously prejudicial to the interests of the
group.
The comparative figures for turnover and profit for the
period ended 30 June 1999 have been restated to show James
Fisher and Sons (Seafloor Dynamex) Limited as an engineering
operation rather than as a shipping operation.
3. Operating profit
Operating profit is stated after charging depreciation of
tangible fixed assets of £3,560,000 (six months ended 30
June 1999 £3,791,000) and amortisation of intangible assets
of £19,000 (six months ended 30 June 1999 £19,000).
4. Taxation
The charge for taxation on ordinary activities represents:
Six months Six months Year ended
to 30 June to 30 June 31 December
2000 1999 1999
£000 £000 £000
Corporation tax at 30% (163) (369) (760)
(1999 30.25%)
Deferred taxation - (624) -
------ ------ ------
(163) (993) (760)
Adjustments in respect
of prior years
UK Corporation tax - (603) 216
Deferred taxation:
Other - 786 12,256
Change of rate - 441 -
------ ------ ------
(163) (369) 11,712
====== ====== ======
The tax effect of the loss on sale of ships is as follows:
Loss on sale of ships - 16 46
====== ====== ======
5. Group cash flow statement
(a) Reconciliation of operating profit to net cash inflow
from operating activities
Six months Six months Year ended
To 30 June To 30 June 31 December
2000 1999 1999
£000 £000 £000
Operating profit 3,993 4,446 8,538
Depreciation 3,560 3,791 8,034
Amortisation of goodwill 19 19 38
Profit on disposal of tangible (43) (6) (124)
fixed assets
(Increase)/decrease in stocks (153) - 8
Decrease in debtors 105 328 131
Increase/(decrease) in 663 (657) (1,196)
creditors
Decrease in provisions (158) (300) (592)
------ ------ ------
Net cash inflow from operating 7,986 7,621 14,837
activities
====== ===== =====
(b) Returns on investments and servicing of finance
Interest received 535 519 1,042
Interest paid (1,157) (1,604) (3,084)
Preference dividend paid (2) (2) (4)
------ ------ ------
Net cash outflow (624) (1,087) (2,046)
====== ===== =====
(c) Taxation
Corporation tax paid (6) (753) (1,347)
Corporation tax received 152 - -
------ ------ ------
Net cash inflow/(outflow) 146 (753) (1,347)
====== ===== =====
(d) Capital expenditure and financial investment
Purchase of tangible assets (1,983) (1,537) (3,773)
Sale of tangible fixed assets 83 1,737 3,334
------ ------ ------
Net cash (outflow)/inflow (1,900) 200 (439)
====== ===== =====
(e) Acquisitions and disposals
Costs associated with discontinued
port operations - (243) (246)
------ ------ ------
Net cash outflow - (243) (246)
====== ===== =====
(f) Management of liquid resources
Short term investments 17,683 (580) (4,582)
====== ===== =====
(g) Financing
New secured loan - 784 990
Repayment of secured loans (17,570) (2,776) (5,551)
------ ------ ------
Net cash outflow (17,570) (1,992) (4,561)
====== ===== =====
(h) Reconciliation of net debt
1 January Cash flow 30 June
2000 2000
£000 £000 £000
Cash in hand and at bank 2,639 4,367 7,006
------ ------ ------
Debt due after 1 year (37,548) 17,570 (19,978)
Debt due within 1 year (5,551) - (5,551)
------ ------ ------
(43,099) 17,570 (25,529)
Short term deposits 19,078 (17,683) 1,395
------ ------ ------
Net debt (21,382) 4,254 (17,128)
====== ===== =====
6. Earnings per share
The calculation of basic and diluted earnings per share are
based on the following profits and numbers of shares:
Six months Six months Year ended
to 30 June to 30 June 31 Deceember
2000 1999 1999
£000 £000 £000
Profit for the period/year 3,118 2,722 17,987
Preference dividend (2) (2) (4)
------ ------ ------
3,116 2,720 17,983
====== ===== =====
Weighted average number of shares
Number of Number of Number of
shares shares shares
For basic earnings per share 48,172,345 48,093,202 48,075,530
Exercise of share options 135,315 83,214 180,742
------ ------ ------
For diluted earnings per share 48,307,660 48,176,416 48,256,272
====== ===== =====
The adjusted earnings per share is shown to highlight the
underlying earnings trend and is calculated using the same
number of shares for the basic earnings calculation referred
to above and the amounts shown below:
Six months Six months Year ended
To 30 June To 30 June 31 December
2000 1999 1999
£000 p £000 p £000 p
Earnings 6.47 5.66 37.41
per share
------ ------ ------ ------ ------ ------
Exceptional 60 0.12 - - 281 0.58
relocation
costs
Loss on - - 54 0.11 153 0.32
sale of
ships
Tax effect - - (16) (0.03) (222) (0.46)
of above
Prior year - - (624) (1.30) (12,256) (25.50)
element of
tax charge
------ ------ ------ ------ ------ ------
60 0.12 (586) (1.22) (12,044) (25.06)
====== ====== ======
Adjusted 6.59 4.44 12.35
earnings
per share
====== ====== ======
7. Reconciliation of movements in group shareholders'
funds
30 June 30 June Audited
2000 1999 31 December
1999
£000 £000 £000
Profit for the financial year 3,118 2,722 17,987
Dividends paid and proposed (823) (745) (2,103)
equity and non-equity shares
------ ------ ------
Net addition to shareholders' 2,295 1,977 15,884
funds
Opening shareholders' funds 67,436 51,552 51,552
------ ------ ------
Closing shareholders' funds 69,731 53,529 67,436
====== ====== ======
8. Post balance sheet events
James Fisher (Logistics) Limited, a subsidiary company of
James Fisher and Sons Public Limited Company, acquired the
m.v. 'Mother of Pearl' and m.v. 'Oceanic Princess' on 25
July and on 10 August respectively. The total cost of each
ship, including its purchase price and conversion cost, is
approximately US$13 million.
In August a joint venture company was formed with Cammell
Laird Holdings PLC to acquire, design and convert
specialised ships for the company's own use.
In August tonnage tax was granted Royal Assent.
9. Interim dividend
A dividend for the six months to 30 June 2000 on the
preference shares was declared on 30 June 2000. The interim
dividend of 1.70p (1999 1.54p net) per 25p ordinary share is
payable on 16 November 2000 to those shareholders registered
in the books of the company at the close of business on 13
October 2000.
10. Interim report
The interim report, which was approved by the Board of
Directors on 11 September 2000, is to be sent to all
shareholders on Tuesday 19 September 2000, posted first
class. Copies of the interim report will also be available
from our registered office at: Fisher House, P.O. Box 4,
Barrow-in-Furness, Cumbria, LA14 1HR.
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