Performance for the year is expected to be weighted to the second half where some deferred projects are set to pick up.
James Fisher (FSJ) shares sink as profits decline in H1
- The shares have outperformed the FTSE 250 year to date but are down 2% after this morning’s interim results.
- Profit fell to £20.9m but investors will be pleased to see a 10% rise in the dividend.
- We continue to recommend the stock as a ‘buy’ for medium risk investors willing to seek growth.
This morning we’ve had interim results from marine support services group James Fisher. While the shares have outperformed the FTSE 250 year to date, they have encountered slightly choppier waters after the group highlighted that the performance for the year will be weighted to the second half.
Profit for the period fell slightly to £20.9m, but investors will be pleased to see a 10% rise in the dividend to 11.3 pence. The firm reported revenue of £286.9 m, up 10% year-on-year from £260.5m and there was a strong performance from Offshore Oil and Tankships. However, a slower start at the Marine Support division, where some projects have been deferred to the second half, offset the former.
We’ve long been fans of the group and its ability to provide a range of specialist services to oil rigs, nuclear decommissioning, wind farms, transporting oil, wharf operations, marine equipment and monitoring stress in structures and submarine rescue creates an expertise and limits competition.
Our view on James Fisher - Buy
We continue to view the stock as a medium risk ‘buy’ for investors looking for a company that provides niche maritime services around the globe.
If you're looking to invest in the Industrial Transportation sector and you're not currently a customer of The Share Centre, sign up today. You can also view the full range of Industrial Transportation companies and their share prices.
All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.