James Fisher (FSJ) shares sink as profits decline in H1

Performance for the year is expected to be weighted to the second half where some deferred projects are set to pick up.

Article updated: 28 August 2019 11:00am Author: Graham Spooner

  • 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.

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Graham Spooner

Investment Research Analyst

Graham started out as a fully authorised dealer on the Stock Exchange trading floor and for various banks, before becoming an FCA-approved investment adviser. Now a respected voice in the media, Graham’s share tips and comments on the markets are frequently sought by the national press.