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FSJ Fisher (james) & Sons Plc

261.00
-0.75 (-0.29%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Fisher (james) & Sons Plc LSE:FSJ London Ordinary Share GB0003395000 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.75 -0.29% 261.00 258.50 263.50 258.50 254.00 256.00 12,914 16:35:15
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Deep Sea Frn Trans-freight 520.9M -11.1M -0.2205 -11.72 130.15M

Fisher (James) & Sons plc Half Year Results 2017 (2282P)

30/08/2017 7:00am

UK Regulatory


Fisher (james) & Sons (LSE:FSJ)
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TIDMFSJ

RNS Number : 2282P

Fisher (James) & Sons plc

30 August 2017

30 August 2017

James Fisher and Sons plc

Half Year Results 2017

James Fisher and Sons plc (FSJ.L) ("James Fisher" or "the Group"), the leading marine service provider, announces its results for the six months ended 30 June 2017.

 
                                            H1 2017     H1 2016   % change 
 
 Group revenue                            GBP235.8m   GBP209.3m       +13% 
 Underlying operating profit *             GBP21.3m    GBP19.9m        +7% 
 Underlying profit before tax *            GBP18.6m    GBP17.5m        +6% 
 Underlying diluted earnings per share 
  *                                           30.1p       29.4p        +2% 
 Interim dividend per share                   9.40p       8.55p       +10% 
 Statutory profit before tax               GBP17.6m    GBP17.4m        +1% 
 
 
 

* underlying profit excludes separately disclosed items.

Highlights:

   --   Revenue up 13% at GBP235.8m (2016: GBP209.3m) 
   --   Underlying operating profit 7% higher at GBP21.3m (2016: GBP19.9m) 
   --   Strong profit growth in Specialist Technical 
   --   Underlying diluted earnings per share up 2% to 30.1p (2016: 29.4p) per share 
   --   Interim dividend raised by 10% to 9.4p per share 

Commenting on the results, Nick Henry, Chief Executive Officer said:

"James Fisher had a positive start to the year with revenue increasing by 13% to GBP235.8m and underlying operating profit by 7%. The phasing of renewables projects within Marine Support combined with a degree of recovery in maintenance activity in the oil and gas sector indicates stronger growth for the Group in the second half leading to a good improvement in the result for the year."

For further information:

 
                                           Chief Executive 
                                            Officer 
 James Fisher and    Nick Henry             Group Finance     020 7614 
  Sons plc            Stuart Kilpatrick     Director           9508 
------------------  --------------------  -----------------  --------- 
                     Susanne Yule                             0203 727 
 FTI Consulting       Richard Mountain                         1340 
------------------  ---------------------------------------  --------- 
 

Chairman's Statement

Half Year Results for the six months ended 30 June 2017

Results

I am pleased to report that James Fisher had a positive start to the year with revenue in the first half increasing by 13% to GBP235.8m (2016: GBP209.3m) and underlying profit before tax by 6% to GBP18.6m (2016: GBP17.5m) compared with the same period last year.

Three of our divisions continued to trade well, with Marine Support and Tankships profits at similar levels to last year and Specialist Technical significantly ahead. Offshore Oil reported similar revenue but reduced profits after a slow start in the first four months of the year reduced utilisation levels. Trading in May and June in this division gives grounds for some optimism for an improved second half.

Strategic Developments

James Fisher continues to pursue a consistent strategy of investing in niche businesses operating in demanding environments where strong marine service skills are valued and rewarded. Whilst organic growth has driven the majority of James Fisher's development, the Group continues to be alert for incremental acquisitions which will strengthen our range of products, services or geographical coverage.

The first half saw the Group's investments of recent years bear fruit with significantly higher volumes of work in Asia Pacific for our Specialist Technical businesses and the opening of an important new market in Brazil for ship-to-ship oil transfer services. In March we strengthened our product offering to the offshore renewables sector with the acquisition of Rotos 360, a high technology specialist in the repair and reconditioning of wind turbine rotor blades.

Outlook

Profit in the second half is likely to benefit from the phasing of projects across our renewables businesses due to seasonal factors and across our offshore oil businesses due to some improvement in oil and gas sector demand. We would therefore expect to see good growth from our Marine Support division. In Offshore Oil, orders in our Norwegian and our downhole equipment businesses have begun to show clear signs of recovery. Our Specialist Technical businesses continue to trade well despite some slowing in our nuclear decommissioning activities. Tankships maintain its good performance of recent years. Overall, we therefore expect to see stronger growth for the Group in the second half leading to a good improvement in the result for the year.

Dividend

The Board believes that James Fisher remains well placed to provide further growth and value for its shareholders. The Board has agreed a 10% increase in the interim dividend to 9.40 pence per share (2016: 8.55p) payable on 3 November 2017 to shareholders on the register on 6 October 2017.

C J Rice

29 August 2017

Operating and Financial Review

Half Year Results for the six months ended 30 June 2017

Operating performance

The Group's financial performance in the first half progressed well with a 7% increase in underlying operating profit on revenue that was 13% higher at GBP235.8m (2016: GBP209.3m). The overall growth rates reported have been positively impacted by exchange rates as a significant proportion of the Group's revenue is received in US Dollars. Changes at constant exchange rates have been calculated by retranslating the results for the six months ended 30 June 2016 at the average rates for the comparator in 2017.

 
 
                                                                Change 
                                H1        H1               at constant 
   Revenue                    2017      2016     Change       currency 
 
   Group                     235.8     209.3       +13%            +8% 
------------------------  --------  --------  ---------  ------------- 
 Marine Support              105.6      92.4       +14%            +9% 
 Specialist Technical         75.7      62.9       +20%           +19% 
 Offshore Oil                 27.1      27.0          -           (7)% 
 Tankships                    27.4      27.0        +1%           (2)% 
------------------------  --------  --------  ---------  ------------- 
 
 
                                                                Change 
   Underlying operating         H1        H1               at constant 
   profit                     2017      2016     Change       currency 
 
   Group                      21.3      19.9        +7%            +4% 
------------------------  --------  --------  ---------  ------------- 
 Marine Support                9.1       9.3       (2)%           (6)% 
 Specialist Technical          8.5       6.1       +39%           +38% 
 Offshore Oil                  1.1       2.1      (47)%          (52)% 
                                                                         Group revenue increased 
                                                                          by 13% compared to 
                                                                          prior period and by 
                                                                          8% at constant currency. 
                                                                          The contribution from 
                                                                          businesses acquired 
                                                                          was 5% and organic 
                                                                          growth, driven by 
                                                                          Marine Support and 
                                                                          Specialist Technical, 
                                                                          was 3%. Offshore Oil 
                                                                          revenue was flat but 
                                                                          7% lower excluding 
                                                                          currency effects reflecting 
                                                                          reduced demand in 
                                                                          the first four months, 
                                                                          in particular. 
 
                                                                          Underlying operating 
                                                                          profit increased by 
                                                                          7% to GBP21.3m (2016: 
                                                                          GBP19.9m). Underlying 
                                                                          operating profits 
                                                                          at Marine Support 
                                                                          and Tankships were 
                                                                          broadly similar to 
                                                                          prior period and a 
                                                                          38% increase at Specialist 
                                                                          Technical more than 
                                                                          offset the lower result 
 Tankships                     3.9       3.8        +3%            +1%    at Offshore Oil. 
 Common costs                (1.3)     (1.4) 
------------------------  --------  --------  ---------  ------------- 
 

Marine Support

 
                                       H1 2017   H1 2016 
 Revenue (GBPm)                          105.6      92.4 
 Underlying operating profit (GBPm)        9.1       9.3 
 Underlying operating margin              8.6%     10.1% 
 Return on capital employed              12.0%     13.6% 
 

Revenue in Marine Support grew by 14%. Volumes in ship-to-ship transfers were weaker in Asia Pacific, but this was offset by the commencement of operations for the Brazilian market. Whilst the businesses acquired in the renewables sector contributed to some increase in revenue, the phasing of projects within both the UK renewables and international marine service sectors, suppressed profits in the first half. Subtech, our South African based marine service business, contributed to the first half growth with project wins in the Middle East and West Africa.

Underlying operating profit was marginally lower at GBP9.1m (2016: GBP9.3m) as the benefit from increased ship-to-ship transfers and businesses acquired was offset by a lower level of marine service projects and by a slow start from our mass-flow excavation business which suffered from the weakness in the oil & gas sector, particularly in the first four months of the year. The Group's marine services and support contract in relation to the construction of the Galloper Wind Farm performed well in the period but did not see the benefit of additional work.

On 22 March 2017, the Group acquired Rotos 360 for an initial consideration of GBP1.5m with potential further consideration of GBP5.0m dependant on profit targets for the three years ending 31 December 2019. Rotos 360 uses the latest technological innovation to provide solutions in the inspection, repair and reconditioning of wind farm rotor blades, primarily in the offshore environment. The company was established in 2013 as part of a UK Government funded research project to reduce the cost of operation and maintenance of offshore wind turbines.

Specialist Technical

 
                                       H1 2017   H1 2016 
 Revenue (GBPm)                           75.7      62.9 
 Underlying operating profit (GBPm)        8.5       6.1 
 Underlying operating margin             11.2%      9.7% 
 Return on capital employed              18.8%     15.6% 
 

Specialist Technical revenue was 20% higher than prior period at GBP75.7m (2016: GBP62.9m). Our defence and diving equipment business, JFD, was 24% ahead of 2016, reflecting a full six months from the Indian submarine rescue project compared to three months in 2016, the start of a saturation diving system for China and including 5% relating to businesses acquired. In nuclear decommissioning, whilst the Winfrith reactor project continued to perform well, the business saw a 5% reduction in revenue as a change in UK policy has reduced projects awarded across the supply chain.

Underlying operating profit was 39% ahead of the equivalent six months in 2016 at GBP8.5m (2016: GBP6.1m) reflecting good contributions from JFD's service contracts, products and submarine rescue and diving equipment projects which more than offset a small reduction in nuclear profitability.

JFD successfully completed the first operational dive of its Compact Bailout Rebreathing Apparatus (Cobra) which provides 45 minutes of fully independent breathing gas to a diver in an emergency to enable them to return to the diving bell. Our nuclear decommissioning business, JFN, won its first order to supply a manipulator to China in the second half.

Offshore Oil

 
                                       H1 2017   H1 2016 
 Revenue (GBPm)                           27.1      27.0 
 Underlying operating profit (GBPm)        1.1       2.1 
 Underlying operating margin              4.1%      7.8% 
 Return on capital employed               1.6%      3.3% 
 

Offshore Oil had a slow start to the year and although revenue was similar to 2016, after adjusting for currencies, it was 7% lower. The majority of the reduction was due to low utilisation levels in the early months of the year which decreased margins.

Underlying operating profit was GBP1.0m lower at GBP1.1m (2016: GBP2.1m) and underlying earnings before interest, tax, depreciation and amortisation was GBP6.4m (2016: GBP7.6m). Overheads in the half were reduced by a further 10%. Whilst the first half result was lower, the business remains profitable and orders received since May, together with indications from customers, suggest a stronger second half.

Tankships

 
                                       H1 2017   H1 2016 
 Revenue (GBPm)                           27.4      27.0 
 Underlying operating profit (GBPm)        3.9       3.8 
 Underlying operating margin             14.2%     14.1% 
 Return on capital employed              29.2%     28.3% 
 

Tankships reported a similar result to the first half of 2016 with an operating margin of around 14%. The business operated 14 vessels (2016: 15) in the period and received some benefit from lower bareboat charter costs in the period. It also won a contract to supply two vessels for the refuelling of the HMS Queen Elizabeth during the second half of 2017.

Finance

Interest and taxation

Net interest was GBP0.2m higher at GBP2.6m (2016: GBP2.4m) due to increased borrowings mainly arising from the funding of working capital for the project to design and assemble two submarine rescue vessels for the Indian Navy and from other large projects.

The effective tax rate on underlying profit before tax in the period increased to 17.2% (2016: 15.4%). This rate is based on estimates for the full year and has increased due to a greater proportion of profits being earned in higher tax jurisdictions such as Brazil and Ghana. The first half of 2016 also benefitted from adjustments to tax provisions in respect of prior years which has not been repeated in 2017. The Group's tanker operations continue to be taxed with respect to tonnage rather than profits and this reduces the effective rate by 2.3 (2016: 2.4) percentage points in the period.

Separately disclosed items

The directors consider that alternative performance measures described in note 3 assist an understanding of the underlying trading performance of the businesses. These measures exclude separately disclosed items which consist of gains or losses on the sale of a business, asset impairments and charges or income relating to the acquisition of businesses. The net charge for separately disclosed items after tax in the six months ended 30 June 2017 was GBP0.8m (2016: GBPnil).

Earnings per share and dividends

Underlying profit before taxation increased 6% to GBP18.6m (2016: GBP17.5m) due to the strong operating profit growth at Specialist Technical. Underlying diluted earnings per share rose by 2% to 30.1 pence per share (2016: 29.4p), which was lower than the uplift in underlying profit before taxation due to the higher effective tax rate and a larger minority interest charge in the period.

Diluted earnings per share after separately disclosed items were 28.5 pence per share (2016: 29.4p). The interim dividend has increased by 10% to 9.40 pence per share (2016: 8.55p) and will be paid on 3 November 2017 to shareholders on the register on 6 October 2017.

Cash flow and borrowings

 
 Summary cash flow 
-----------------------------  --------  -------- 
                                H1 2017   H1 2016 
                                   GBPm      GBPm 
-----------------------------  --------  -------- 
 Underlying operating 
  profit                           21.3      19.9 
 Depreciation & amortisation       13.1      12.1 
----------------------------- 
 Ebitda *                          34.4      32.0 
 Working capital                 (18.9)    (10.1) 
 Working capital 
  - Indian Navy                   (6.7)         - 
 Pension / other                  (2.3)     (1.7) 
----------------------------- 
 Operating cash flow                6.5      20.2 
 Interest & tax                   (5.1)     (5.1) 
 Capital expenditure             (11.3)     (8.6) 
 Acquisitions                     (4.2)     (7.7) 
 Dividends                        (8.8)     (8.0) 
 Other                              0.3     (2.4) 
----------------------------- 
 Net outflow                     (22.6)    (11.6) 
 Net borrowings at 
  start of period               (105.7)    (93.9) 
-----------------------------  --------  -------- 
 Net borrowings at 
  end of period                 (128.3)   (105.5) 
=============================  ========  ======== 
                                                    Underlying earnings before 
                                                     interest, tax depreciation 
                                                     and amortisation (Ebitda) 
                                                     increased by 8% to GBP34.4m 
                                                     (2016: GBP32.0m). This funded 
                                                     the seasonal increase in 
                                                     working capital of GBP10.2m 
                                                     and a project related increase 
                                                     of GBP15.4m, including, 
                                                     as previously stated, working 
                                                     capital in relation to the 
                                                     submarine rescue project 
                                                     for the Indian Navy. 
 
                                                     Cash conversion, the proportion 
                                                     of underlying operating 
                                                     profit converted into operating 
                                                     cash, excluding the project 
                                                     for the Indian Navy was 
                                                     62% (2016: 102%). Capital 
                                                     expenditure was 31% up on 
                                                     prior period GBP11.3m (2016: 
                                                     GBP8.6m) and GBP4.2m (2016: 
                                                     GBP7.7m) was spent on business 
                                                     acquisitions, inclusive 
                                                     of GBP1.5m of deferred consideration 
 * Underlying earnings before                        in respect of a business 
  interest, tax,                                     that had been acquired in 
  depreciation and amortisation                      2013. 
 

After dividends paid in the period of GBP8.8m (2016: GBP8.0m), the net cash outflow was GBP22.6m (2016: GBP11.6m) and net borrowings increased to GBP128.3m (2016: GBP105.5m). The ratio of net borrowings (which includes project related bonds and guarantees) to ebitda increased in line with management expectations, to 2.2 times (2016: 1.8 times) reflecting the working capital bonds and guarantees in relation to the Indian Navy project. Excluding this project, the ratio would be 1.8 times. Net gearing, the ratio of net debt to equity was to 49% (2016: 46%).

Balance sheet

 
                          30        30 
                        June      June 
                        2017      2016 
------------------- 
                        GBPm      GBPm 
-------------------  -------  -------- 
 Intangible assets     185.6     163.8 
 Other assets          136.6     135.7 
 Working capital       112.8      75.3 
 Other liabilities    (42.3)    (38.7) 
------------------- 
 Capital employed      392.7     336.1 
-------------------  -------  -------- 
 Borrowings            128.3     105.5 
 Equity                264.4     230.6 
------------------- 
                       392.7     336.1 
-------------------  -------  -------- 
                                         Intangible assets have increased 
                                          by GBP21.8m since June 2016 
                                          due to the acquisitions of 
                                          Lexmar and Hughes in the 
                                          second half of 2016 and the 
                                          acquisition of Rotos 360 
                                          in March 2017. 
 
                                          Working capital was GBP37.5m 
                                          higher than prior year due 
                                          to the project for the Indian 
                                          Navy which cumulatively is 
                                          GBP13.4m and from businesses 
                                          acquired in the last twelve 
                                          months amounting to GBP6.9m. 
                                          The balance relates to project 
                                          related outflows, mainly 
                                          in Specialist Technical and 
                                          Marine Support reflecting 
                                          the uneven cash flows of 
                                          a more project led business. 
 

Delivery of the two submarine rescue vessels for the Indian Navy is scheduled for March 2018 and December 2018 and as previously stated, a further increase of working capital in the second half of 2017 of around GBP15m-GBP18m is expected which reverses when the vessels are delivered during 2018.

Risks and uncertainties

The principal risks and uncertainties which may have the largest impact on performance in the second half of the year are the same as disclosed in the 2016 Annual Report and Accounts on pages 20-22. The principal risks set out in the 2016 Annual Report and Accounts were:

   --      Strategic - energy markets, operations in emerging markets; 

-- Operational - project delivery, recruitment and retention of key staff, reputational risk and cyber security;

   --      Financial - foreign currency and interest rates. 

The Directors consider that the principal risks and uncertainties set out in the 2016 Annual Report and Accounts have not changed and remain relevant for the second half of the financial year.

Directors' Responsibilities

We confirm to the best of our knowledge:

The interim financial report has been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the European Union.

The interim management report includes a fair review of the information required by:

(a) DTR 4.2.7R of the "Disclosure and Transparency Rules", being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) DTR 4.2.8R of the "Disclosure and Transparency Rules", being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last annual report that could do so.

   N P Henry                                 S C Kilpatrick 
   Chief Executive Officer                Group Finance Director 

29 August 2017

CONDENSED CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2017

 
                                       Six months   Six months 
                                            ended        ended     Year ended 
                                          30 June      30 June    31 December 
                                Note         2017         2016           2016 
                                      -----------  ----------- 
                                           GBP000       GBP000         GBP000 
 Revenue                         4        235,775      209,317        465,969 
 Cost of sales                          (168,064)    (144,999)      (324,239) 
                                      -----------  -----------  ------------- 
 Gross profit                              67,711       64,318        141,730 
 Administrative expenses                 (47,379)     (45,083)       (94,641) 
 Share of post tax results 
  of joint ventures                           924          647          1,414 
 Acquisition related income 
  and (expense)                  7        (1,009)         (83)          1,456 
                                      -----------  -----------  ------------- 
 Operating profit                4         20,247       19,799         49,959 
 
 Analysis of operating 
  profit: 
  Underlying operating 
   profit                                  21,256       19,882         50,781 
  Separately disclosed 
   items                                  (1,009)         (83)          (822) 
                                      -----------  -----------  ------------- 
 
 Net finance expense             5        (2,640)      (2,421)        (5,026) 
                                      -----------  -----------  ------------- 
 Profit before taxation                    17,607       17,378         44,933 
 
 Analysis of profit before 
  tax: 
  Underlying profit before 
   taxation                                18,616       17,461         45,755 
  Separately disclosed 
   items                                  (1,009)         (83)          (822) 
                                      -----------  -----------  ------------- 
 
 Income tax                      6        (3,014)      (2,567)        (6,786) 
 Profit for the period                     14,593       14,811         38,147 
                                      ===========  ===========  ============= 
 
 Attributable to: 
 Owners of the Company                     14,387       14,835         39,753 
 Non-controlling interests                    206         (24)        (1,606) 
                                           14,593       14,811         38,147 
                                      ===========  ===========  ============= 
 
 Earnings per share 
                                            pence        pence          pence 
 Basic                           8           28.7         29.6           79.4 
 Diluted                         8           28.5         29.4           78.7 
 

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

for the six months ended 30 June 2017

 
                                     Note         2017         2016          2016 
                                            Six months   Six months 
                                                 ended        ended    Year ended 
                                               30 June      30 June   31 December 
                                           -----------  ----------- 
                                                GBP000       GBP000        GBP000 
 Profit for the period                          14,593       14,811        38,147 
 Items that will not be reclassified 
  to the income statement 
 Remeasurement loss on defined 
  benefit pension schemes             10             -            -       (3,054) 
 Actuarial loss in defined 
  benefit pension schemes                            -        (697)             - 
 Tax on items that will not 
  be reclassified                                   28        (553)         (124) 
                                           -----------  -----------  ------------ 
                                                    28      (1,250)       (3,178) 
 Items that may be reclassified 
  subsequently to the income statement 
 Exchange differences on foreign 
  currency net investments                     (2,798)        7,158        16,771 
 Effective portion of changes 
  in fair value of cash flow hedges              5,262      (2,783)       (3,249) 
 Effective portion of changes 
  in fair value of cash flow hedges 
  in joint ventures                              (229)        (213)         (139) 
 Net change in fair value of cash 
  flow hedges transferred to income 
  statement                                      (282)          (6)           551 
 Deferred tax on items that 
  may be reclassified                            (742)          488           432 
                                           -----------  -----------  ------------ 
                                                 1,211        4,644        14,366 
 Total comprehensive income 
  for the period                                15,832       18,205        49,335 
                                           ===========  ===========  ============ 
 
 Attributable to: 
 Owners of the Company                          15,642       18,062        50,725 
 Non-controlling interests                         190          143       (1,390) 
                                                15,832       18,205        49,335 
                                           ===========  ===========  ============ 
 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

at 30 June 2017

 
                                               2017        2016          2016 
                                            30 June     30 June   31 December 
                                         ----------  ---------- 
                                   Note      GBP000      GBP000        GBP000 
 Non-current assets 
 Goodwill                                   163,661     147,832       165,047 
 Other intangible assets                     21,908      15,979        15,453 
 Property, plant and equipment              128,536     128,191       131,026 
 Investment in joint ventures                 6,678       6,031         6,424 
 Available for sale financial 
  assets                                      1,377       1,478         1,377 
 Deferred tax assets                          1,850       3,588         2,852 
                                            324,010     303,099       322,179 
                                         ----------  ----------  ------------ 
 
 Current assets 
 Inventories                                 56,392      49,786        54,092 
 Trade and other receivables                178,674     150,029       157,384 
 Cash and cash equivalents          11       14,861      29,720        21,848 
                                            249,927     229,535       233,324 
                                         ----------  ----------  ------------ 
 
 Current liabilities 
 Trade and other payables                 (122,218)   (124,582)     (129,332) 
 Current tax                                (8,394)     (6,515)       (8,426) 
 Loans and borrowings                       (2,891)    (10,800)       (3,086) 
                                          (133,503)   (141,897)     (140,844) 
                                         ----------  ----------  ------------ 
 Net current assets                         116,424      87,638        92,480 
 Total assets less current 
  liabilities                               440,434     390,737       414,659 
                                         ----------  ----------  ------------ 
 
 Non-current liabilities 
 Other liabilities                         (10,280)     (9,141)       (4,962) 
 Retirement benefit obligations     10     (25,395)    (26,416)      (26,770) 
 Cumulative preference shares                 (100)       (100)         (100) 
 Loans and borrowings                     (140,192)   (124,345)     (124,380) 
 Deferred tax liabilities                     (111)       (153)         (111) 
                                          (176,078)   (160,155)     (156,323) 
                                         ----------  ----------  ------------ 
 Net assets                                 264,356     230,582       258,336 
                                         ==========  ==========  ============ 
 
 Equity 
 Called up share capital                     12,550      12,543        12,543 
 Share premium                               25,690      25,573        25,573 
 Treasury shares                               (75)       (610)         (554) 
 Other reserves                               4,024     (6,877)         2,797 
 Retained earnings                          221,233     197,422       216,979 
                                         ----------  ----------  ------------ 
 Equity attributable to owners 
  of the Company                            263,422     228,051       257,338 
 Non-controlling interests                      934       2,531           998 
 Total equity                               264,356     230,582       258,336 
                                         ==========  ==========  ============ 
 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2017

 
                                                      2017         2016          2016 
                                                Six months   Six months          Year 
                                         Note        ended        ended         ended 
                                                   30 June      30 June   31 December 
                                               -----------  ----------- 
                                                    GBP000       GBP000        GBP000 
 Profit before tax for the 
  period                                            17,607       17,378        44,933 
 Adjustments to reconcile profit 
  before tax to net cash flows 
     Depreciation and amortisation                  13,942       12,647        25,821 
     Acquisition costs charged                         135           60           727 
     Profit on disposal of fixed 
      assets                                         (818)         (61)         (556) 
     Provision for contract cessation                    -            -         2,278 
     Adjustment to provision for 
      contingent consideration                           -        (522)       (3,384) 
     Net finance expense                             2,640        2,421         5,026 
     Share of post tax results 
      of joint ventures                              (924)        (647)       (1,414) 
     Share based payments                              218          577         1,144 
 Increase in inventories                           (2,550)      (4,177)          (54) 
 Increase in trade and other 
  receivables                                     (23,556)           41       (5,675) 
 Decrease/(increase) in trade 
  and other payables                                   454      (5,962)      (13,291) 
 Defined benefit pension cash 
  contributions less service 
  cost                                             (1,686)      (1,691)       (4,233) 
                                               -----------  -----------  ------------ 
 Cash generated from operations                      5,462       20,064        51,322 
 Cash outflow from acquisition 
  costs                                              (231)            -         (631) 
 Income tax payments                               (2,848)      (3,376)       (6,930) 
                                               -----------  -----------  ------------ 
 Cash flow from operating activities                 2,383       16,688        43,761 
 
 Investing activities 
 Dividends from joint venture 
  undertakings                                         988          172           700 
 Proceeds from the disposal of 
  property, plant and equipment                      1,509          724         1,678 
 Proceeds from the disposal 
  of investments                                         -            -           144 
 Finance income                                        190           87           180 
 Acquisition of subsidiaries, 
  net of cash acquired                             (4,020)      (7,689)      (19,093) 
 Acquisition of property, plant 
  and equipment                                    (9,706)      (7,964)      (13,859) 
 Development expenditure                           (1,622)      (1,376)       (2,672) 
                                                                         ------------ 
 Cash flows used in investing 
  activities                                      (12,661)     (16,046)      (32,922) 
 
 Financing activities 
 Proceeds from the issue of 
  share capital                                        124           49            50 
 Finance costs                                     (2,403)      (1,815)       (4,115) 
 Purchase of own shares by Employee 
  Share Ownership Trust                              (709)        (635)         (556) 
 Capital element of finance 
  lease repayments                                    (50)         (81)         (174) 
 Proceeds from other non-current 
  borrowings                                        15,868       16,460         2,363 
 Dividends paid                                    (8,830)      (8,026)      (12,303) 
 Dividend paid to minority 
  interest                                           (416)            -             - 
                                               -----------  -----------  ------------ 
 Cash flows from financing 
  activities                                         3,584        5,952      (14,735) 
 
 Net increase in cash and cash 
  equivalents                                      (6,694)        6,594       (3,896) 
 Cash and cash equivalents 
  at beginning of period                            21,848       22,962        22,962 
 Net foreign exchange differences                    (293)          164         2,782 
 Cash and cash equivalents 
  at end of period                        11        14,861       29,720        21,848 
                                               ===========  ===========  ============ 
 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 June 2017

 
                    Share     Share   Retained      Other   Treasury   Shareholders'   Non-controlling     Total 
                  capital   premium   earnings   reserves     shares          equity         interests    equity 
                   GBP000    GBP000     GBP000     GBP000     GBP000          GBP000            GBP000    GBP000 
 At 1 January 
  2017             12,543    25,573    216,979      2,797      (554)         257,338               998   258,336 
 Total 
  comprehensive 
  income                -         -     14,415      1,227          -          15,642               190    15,832 
 Contributions 
 by and 
 distributions 
 to owners: 
 Ordinary 
  dividends 
  paid                  -         -    (8,830)          -          -         (8,830)                 -   (8,830) 
 Dividend paid 
  to minority 
  interest              -         -          -          -          -               -             (416)     (416) 
 Acquisition 
  of minority 
  interest                               (318)          -          -           (318)               162     (156) 
 Share based 
  payments              -         -        218          -          -             218                 -       218 
 Tax effect 
  of share 
  based 
  payments              -         -       (43)          -          -            (43)                 -      (43) 
 Purchase of 
  shares by 
  ESOT                  -         -          -          -    (1,094)         (1,094)                 -   (1,094) 
 Sale of shares 
  by ESOT               -         -          -          -        385             385                 -       385 
 Arising on 
  the issue 
  of shares             7       117          -          -          -             124                 -       124 
                 --------  --------  ---------  ---------  ---------  --------------  ----------------  -------- 
                        7       117    (8,973)          -      (709)         (9,558)             (254)   (9,812) 
 Transfer               -         -    (1,188)          -      1,188               -                 -         - 
                                     ---------             ---------  -------------- 
 At 30 June 
  2017             12,550    25,690    221,233      4,024       (75)         263,422               934   264,356 
                 ========  ========  =========  =========  =========  ==============  ================  ======== 
 
 
                                                                                                  Non- 
                    Share     Share   Retained      Other   Treasury   Shareholders'       controlling     Total 
                  capital   premium   earnings   reserves     shares          equity         interests    equity 
                   GBP000    GBP000     GBP000     GBP000     GBP000          GBP000            GBP000    GBP000 
 At 1 January 
  2016             12,541    25,525    192,908   (11,354)    (1,613)         218,007             2,388   220,395 
 Total 
  comprehensive 
  income                -         -     13,585      4,477          -          18,062               143    18,205 
 Contributions 
 by and 
 distributions 
 to owners: 
 Ordinary 
  dividends 
  paid                  -         -    (8,026)          -          -         (8,026)                 -   (8,026) 
 Share based 
  payments              -         -        577          -          -             577                 -       577 
 Tax effect 
  of share 
  based 
  payments              -         -         16          -          -              16                 -        16 
 Purchase of 
  shares by 
  ESOT                  -         -          -          -    (1,153)         (1,153)                 -   (1,153) 
 Sale of shares 
  by ESOT               -         -          -          -        518             518                 -       518 
 Arising on 
  the issue 
  of shares             2        48          -          -          -              50                 -        50 
                 --------  --------  ---------  ---------  ---------  --------------  ----------------  -------- 
                        2        48    (7,433)          -      (635)         (8,018)                 -   (8,018) 
 Transfer               -         -    (1,638)          -      1,638               -                 -         - 
 At 30 June 
  2016             12,543    25,573    197,422    (6,877)      (610)         228,051             2,531   230,582 
                 ========  ========  =========  =========  =========  ==============  ================  ======== 
 
 

NOTES TO THE CONDENSED CONSOLIDATED HALF YEAR STATEMENTS

   1          Basis of preparation 

James Fisher and Sons plc (the Company) is a public limited company registered and domiciled in England and Wales and listed on the London Stock Exchange. The condensed consolidated half year financial statements of the Company for the six months ended 30 June 2017 comprise the Company and its subsidiaries (together referred to as the Group) and the Group's interests in jointly controlled entities.

Statement of compliance

The condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) IAS 34 "Interim Financial Reporting" as adopted by the European Union (EU). As required by the Disclosure and Transparency Rules of the Financial Services Authority, the condensed consolidated set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2016 with the exceptions described below. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2016.

The comparative figures for the financial year ended 31 December 2016 are not the Group's statutory accounts for that financial year. Those accounts which were prepared under IFRS as adopted by the EU (adopted IFRS), have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The consolidated financial statements of the Group for the year ended 31 December 2016 are available upon request from the Company's registered office at Fisher House, PO Box 4, Barrow-in-Furness, Cumbria LA14 1HR or at www.james-fisher.co.uk.

The half year financial information is presented in Sterling and all values are rounded to the nearest thousand pounds (GBP000) except where otherwise indicated.

The half year report was approved for issue by the Board of Directors on 29 August 2017.

Going concern

After making enquires, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly they continue to adopt the going concern basis in preparing the condensed consolidated financial statements.

The Group meets its day to day working capital requirements through operating cash flows with borrowings in place to fund acquisitions and capital expenditure. The Group had GBP34.0m of undrawn committed facilities at 30 June 2017 and no revolving credit facilities due for renewal within the next twelve months.

Significant accounting policies

The accounting policies applied by the Group in these condensed consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2016.

   2          Accounting estimates and judgements 

The preparation of half year financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 December 2016.

   3          Alternative performance measures 

The Group uses a number of alternative (non-Generally Accepted Accounting Practice (non-GAAP)) financial measures which are not defined within IFRS. The Directors use these measures in order to assess the underlying operational performance of the Group and, as such, these measures are important and should be considered alongside the IFRS measures. The adjustments are separately disclosed and are usually items that are significant in size or non-recurring in nature. The following non-GAAP measures are referred to in the half year results.

3.1. Underlying operating profit and underlying profit before taxation

Underlying operating profit is defined as operating profit before amortisation or impairment of acquired intangible assets, acquisition expenses, adjustments to deferred consideration (together, acquisition related income and expense), the costs of a material restructuring, asset impairment or rationalisation of operations and the profit or loss relating to the sale of businesses. Amortisation of acquired intangible assets and acquisition expenses are recurring in nature where business combinations are part of a group's strategy. As acquisition expenses fluctuate with activity and to provide a better comparison to businesses that are not acquisitive, the Directors consider that both of these items should be separately disclosed to give a better understanding of operating performance. The Directors believe that the underlying operating profit is an important measure of the operational performance of the Group. Underlying profit before taxation is defined as underlying operating profit less net finance expense.

 
                                      2017         2016           2016 
                                Six months   Six months 
                                  ended 30     ended 30     Year ended 
                                      June         June    31 December 
                                    GBP000       GBP000         GBP000 
 --------------------------    -----------  -----------  ------------- 
 Operating 
 profit                             20,247       19,799         49,959 
 Separately disclosed 
  items before taxation              1,009           83            822 
-----------------------------  -----------  -----------  ------------- 
 Underlying operating 
  profit                            21,256       19,882         50,781 
 Net finance expense               (2,640)      (2,421)        (5,026) 
-----------------------------  -----------  -----------  ------------- 
 Underlying profit before 
  taxation                          18,616       17,461         45,755 
-----------------------------  -----------  -----------  ------------- 
 

3.2. Underlying earnings per share

Underlying earnings per share (EPS) is calculated as the total of underlying profit before tax, less income tax, but excluding the tax impact on separately disclosed items included in the calculation of underlying profit less profit attributable to non-controlling interests, divided by the weighted average number of ordinary shares in issue during the year. The Directors believe that underlying EPS provides an important measure of the underlying earnings capability of the Group. Underlying earnings per share is set out in note 8.

3.3. Capital employed and return on capital employed (ROCE)

Capital employed is defined as net assets less cash and short-term deposits and after adding back borrowings. Average capital employed is adjusted for the timing of businesses acquired and after adding back cumulative amortisation of customer relationships. Segmental ROCE is defined as the underlying operating profit, divided by average capital employed. The key performance indicator, Group post-tax ROCE, is defined as underlying operating profit, less notional tax, calculated by multiplying the effective tax rate by the underlying operating profit, divided by average capital employed.

3.4. Cash conversion

Cash conversion is defined as the ratio of operating cash flow to underlying operating profit. Operating cash flow comprises cash generated from operations adjusted for dividends from joint venture undertakings.

   4          Segmental information 

Management has determined that the Group has four operating segments reviewed by the Board: Marine Support, Specialist Technical, Offshore Oil and Tankships. Their principal activities are set out in the Strategic report within the consolidated financial statements of the Group for the year ended 31 December 2016.

The Board assesses the performance of the segments based on operating profit. The Board believes that such information is the most relevant in evaluating the results of certain segments relative to other entities which operate within these industries. Inter-segmental sales are made using prices determined on an arms-length basis. Sector assets exclude cash, short-term deposits and corporate assets that cannot reasonably be allocated to operating segments. Sector liabilities exclude borrowings, retirement benefit obligations and corporate liabilities that cannot reasonably be allocated to operating segments.

 
 Six months ended 30 
  June 2017 
                               Marine   Specialist   Offshore   Tankships   Corporate       Total 
                              Support    Technical        Oil 
                               GBP000       GBP000     GBP000      GBP000      GBP000      GBP000 
 Segmental revenue            105,791       75,993     27,115      27,418           -     236,317 
 Inter-segmental 
  sales                         (182)        (300)       (60)           -           -       (542) 
 Revenue                      105,609       75,693     27,055      27,418           -     235,775 
                            =========  ===========  =========  ==========  ==========  ========== 
 
 Underlying operating 
  profit                        9,060        8,496      1,080       3,860     (1,240)      21,256 
 Acquisition costs               (12)            -          -           -       (123)       (135) 
 Amortisation 
  of acquired intangibles       (594)        (132)      (148)           -           -       (874) 
                            ---------  -----------  ---------  ----------  ----------  ---------- 
 Operating profit               8,454        8,364        932       3,860     (1,363)      20,247 
 Net finance expense                                                                      (2,640) 
                                                                                       ---------- 
 Profit before 
  tax                                                                                      17,607 
 Income tax                                                                               (3,014) 
 Profit for the 
  period                                                                                   14,593 
                                                                                       ========== 
 
 Assets and liabilities 
 Segmental assets             222,589      155,808    131,209      33,173      24,480     567,259 
 Investment in 
  joint ventures                3,688        2,990          -           -           -       6,678 
                            ---------  -----------  ---------  ----------  ----------  ---------- 
 Total assets                 226,277      158,798    131,209      33,173      24,480     573,937 
 Segmental liabilities       (61,027)     (53,207)    (8,176)     (6,469)   (180,702)   (309,581) 
                                                    --------- 
                              165,250      105,591    123,033      26,704   (156,222)     264,356 
                            ---------  -----------             ----------  ----------  ---------- 
 
 Other segmental 
  information 
 Capital expenditure            3,450        3,270        729       1,975         287       9,711 
 Depreciation 
  and amortisation              4,785        1,905      5,328       1,652         272      13,942 
                            ---------  -----------  ---------  ----------  ----------  ---------- 
 
 
 Six months ended 30 
  June 2016 
                                Marine    Specialist    Offshore   Tankships   Corporate       Total 
                               Support     Technical         Oil 
                                GBP000        GBP000      GBP000      GBP000      GBP000      GBP000 
 Segmental revenue              92,600        63,441      27,082      26,991           -     210,114 
 Inter-segmental 
  sales                          (161)         (525)       (102)         (9)           -       (797) 
 Revenue                        92,439        62,916      26,980      26,982           -     209,317 
                             =========   ===========   =========  ==========  ==========  ========== 
 
 Underlying operating 
  profit                         9,313         6,149       2,089       3,759     (1,428)      19,882 
 Acquisition costs                   -             -           -           -        (60)        (60) 
 Adjustment to 
  provision for 
  contingent consideration           -           522           -           -           -         522 
 Amortisation 
  of acquired intangibles        (192)         (353)           -           -           -       (545) 
                             ---------   -----------   ---------  ----------  ----------  ---------- 
 Operating profit                9,121         6,318       2,089       3,759     (1,488)      19,799 
 Net finance expense                                                                         (2,421) 
                                                                                          ---------- 
 Profit before 
  tax                                                                                         17,378 
 Income tax                                                                                  (2,567) 
 Profit for the 
  year                                                                                        14,811 
                                                                                          ========== 
 
 Assets and liabilities 
 Segmental assets              204,243       109,756     134,062      33,073      45,469     526,603 
 Investment in 
  joint ventures                 3,380         2,651           -           -           -       6,031 
                             ---------   -----------   ---------  ----------  ----------  ---------- 
 Total assets                  207,623       112,407     134,062      33,073      45,469     532,634 
 Segmental liabilities        (68,877)      (36,308)     (8,169)     (6,549)   (182,149)   (302,052) 
                                                       --------- 
                               138,746        76,099     125,893      26,524   (136,680)     230,582 
                                         -----------              ----------  ----------  ---------- 
 
 Other segmental 
  information 
 Capital expenditure             2,687           918       2,969       1,143          95       7,812 
 Depreciation 
  and amortisation               3,490         1,780       5,463       1,652         262      12,647 
                             ---------   -----------   ---------  ----------  ----------  ---------- 
 
 
 
 Year ended 31 
  December 2016 
                                Marine   Specialist   Offshore   Tankships   Corporate       Total 
                               Support    Technical        Oil 
                                GBP000       GBP000     GBP000      GBP000      GBP000      GBP000 
 Segmental revenue             203,926      152,678     55,490      55,492           -     467,586 
 Inter-segmental 
  sales                          (354)        (893)      (362)         (8)           -     (1,617) 
 Revenue                       203,572      151,785     55,128      55,484           -     465,969 
                             =========  ===========  =========  ==========  ==========  ========== 
 
 Underlying operating 
  profit                        20,956       19,950      4,200       8,188     (2,513)      50,781 
 Contract cessation 
  costs                        (2,278)            -          -           -           -     (2,278) 
 Acquisition costs               (249)        (312)      (166)           -           -       (727) 
 Amortisation of 
  acquired intangibles           (400)        (801)          -           -           -     (1,201) 
 Adjustment to 
  provision for 
  contingent consideration       2,865          519          -           -           -       3,384 
                             ---------  -----------  ---------  ----------  ----------  ---------- 
 Operating profit               20,894       19,356      4,034       8,188     (2,513)      49,959 
 Net finance expense                                                                       (5,026) 
                                                                                        ---------- 
 Profit before 
  tax                                                                                       44,933 
 Income tax                                                                                (6,786) 
 Profit for the 
  year                                                                                      38,147 
                                                                                        ========== 
 
 Assets and liabilities 
 Segmental assets              208,605      141,792    133,611      33,398      31,673     549,079 
 Investment in 
  joint ventures                 3,744        2,680          -           -           -       6,424 
                             ---------  -----------  ---------  ----------  ----------  ---------- 
 Total assets                  212,349      144,472    133,611      33,398      31,673     555,503 
 Segmental liabilities        (48,440)     (60,335)    (8,363)     (7,160)   (172,869)   (297,167) 
                               163,909       84,137    125,248      26,238   (141,196)     258,336 
                             ---------  -----------  ---------  ----------  ----------  ---------- 
 Other segmental 
  information 
 Capital expenditure             4,622        2,077      5,599       1,413         160      13,871 
 Depreciation and 
  amortisation                   7,437        4,002     10,978       3,166         239      25,822 
                             ---------  -----------  ---------  ----------  ----------  ---------- 
 
   5          Net finance expense 
 
                                           2017         2016          2016 
                                     Six months   Six months 
                                          ended        ended    Year ended 
                                        30 June      30 June   31 December 
                                    -----------  -----------  ------------ 
                                         GBP000       GBP000        GBP000 
 Finance income: 
 Interest receivable on 
  short-term deposits                       188           88           205 
 Finance expense: 
 Bank loans and overdrafts              (2,365)      (1,901)       (3,982) 
 Preference dividend                        (2)          (2)           (3) 
 Finance charges payable 
  under finance leases                      (1)         (11)          (36) 
 Net interest on pension 
  obligations                             (309)        (453)         (993) 
 Unwind of discount on contingent 
  consideration                           (151)        (142)         (217) 
                                    -----------  -----------  ------------ 
                                        (2,828)      (2,509)       (5,231) 
 Net finance expense                    (2,640)      (2,421)       (5,026) 
                                    ===========  ===========  ============ 
 
   6          Taxation 

The effective tax rate on underlying profit before income tax, based on an estimated rate for the year ending 31 December 2017, is 17.2% (30 June 2016: 15.4%, 31 December 2016: 15.4%). The effective rate on profit before income tax (after separately disclosed items) is 17.1% (30 June 2016: 14.8%, 31 December 2016: 15.1%). Of the total tax charge, GBP2.0m relates to overseas businesses (2016: GBP1.5m), and GBP1.0m relates to UK businesses (2016: GBP1.1m).

   7          Separately disclosed items 
 
                                         2017         2016          2016 
                                   Six months   Six months 
                                        ended        ended    Year ended 
                                      30 June      30 June   31 December 
                                  -----------  -----------  ------------ 
                                       GBP000       GBP000        GBP000 
 Included in operating profit: 
 Administrative expenses: 
  Contract cessation costs 
   in Angola                                -            -       (2,278) 
 Acquisition related income 
  and (expense): 
  Costs incurred on acquiring 
   businesses                           (135)         (60)         (727) 
  Amortisation of acquired 
   intangibles                          (874)        (545)       (1,201) 
  Adjustment to provision 
   for contingent consideration             -          522         3,384 
                                  -----------  -----------  ------------ 
                                      (1,009)         (83)         1,456 
                                  -----------  -----------  ------------ 
 Separately disclosed items 
  before taxation                     (1,009)         (83)         (822) 
 Tax on separately disclosed 
  items                                   188          117           267 
                                        (821)           34         (555) 
                                  ===========  ===========  ============ 
 
   8          Earnings per share 

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period, after excluding ordinary shares held by the Employee Share Ownership Trust as treasury shares.

Diluted earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

The calculation of basic and diluted earnings per share is based on the following profits and numbers of shares:

Weighted average number of shares

 
                                        30 June      30 June   31 December 
                                           2017         2016          2016 
                                         Number       Number        Number 
                                             of           of            of 
                                         shares       shares        shares 
 For basic earnings per ordinary 
 share*                              50,144,671   50,066,388    50,096,089 
 Exercise of share options 
  and LTIPs                             401,397      332,104       387,067 
 For diluted earnings per 
  ordinary share                     50,546,068   50,398,492    50,483,156 
                                    ===========  ===========  ============ 
 

* Excludes 5,950 (June 2016: 46,619; December 2016: 45,368) shares owned by the James Fisher and Sons plc

Employee Share Ownership Trust.

To provide a better understanding of the performance of the Group, underlying earnings per share on continuing activities are presented as set out in note 3.

 
                                           2017         2016          2016 
                                     Six months   Six months          Year 
                                          ended        ended         ended 
                                        30 June      30 June   31 December 
                                    -----------  ----------- 
                                         GBP000       GBP000        GBP000 
 Profit attributable to owners 
  of the Company                         14,387       14,835        39,753 
 Separately disclosed 
 items                                    1,009           83           822 
 Non-controlling interest 
  in separately disclosed items               -            -       (1,800) 
 Tax on separately disclosed 
  items                                   (188)        (117)         (267) 
 Underlying profit attributable 
  to owners of the Company               15,208       14,801        38,508 
                                    ===========  ===========  ============ 
 
 Basic earnings per 
  share                                    28.7         29.6          79.4 
 Diluted earnings 
  per share                                28.5         29.4          78.7 
 Underlying basic 
  earnings per share                       30.3         29.6          76.9 
 Underlying diluted 
  earnings per share                       30.1         29.4          76.3 
 
   9          Interim dividend 

The interim dividend of 9.40p (2016: 8.55p) per 25p ordinary share is payable on 3 November 2017 to those shareholders on the register of the Company at the close of business on 6 October 2017. The dividend recognised in the Condensed Consolidated Statement of Changes in Equity is the final dividend for 2016 of 17.60p which was paid on 9 May 2017.

   10         Retirement benefit obligations 

Movements during the period in the Group's defined benefit pension schemes are set out below:

 
                                        2017         2016          2016 
                                               Six months 
                            Six months ended        ended    Year ended 
                                     30 June      30 June   31 December 
                           -----------------  -----------  ------------ 
                                      GBP000       GBP000        GBP000 
 Net obligation as at 
  1 January                         (26,770)     (26,956)      (26,956) 
 Expense recognised in 
  the income statement                 (368)        (507)       (1,172) 
 Contributions paid to 
  scheme                               1,743        1,744         4,412 
 Remeasurement gains 
  and losses                               -        (697)       (3,054) 
 At period 
 end                                (25,395)     (26,416)      (26,770) 
                           =================  ===========  ============ 
 

The Group's net liabilities in respect of its pension schemes at 30 June 2017 were as follows:

 
                                         2017         2016          2016 
                                                Six months 
                             Six months ended        ended    Year ended 
                                      30 June      30 June   31 December 
                            -----------------  -----------  ------------ 
                                       GBP000       GBP000        GBP000 
 Shore Staff                          (9,435)      (8,498)      (10,057) 
 Merchant Navy Officers 
  Pension Fund                        (7,634)      (9,163)       (8,464) 
 Merchant Navy Ratings 
  Pension Fund                        (8,326)      (8,755)       (8,249) 
                                     (25,395)     (26,416)      (26,770) 
                            =================  ===========  ============ 
 

The principal assumptions in respect of these liabilities are disclosed in the December 2016 Annual Report. The Group has not obtained an interim valuation for the period ended 30 June 2017 as there are no material changes to the principal assumptions.

   11            Reconciliation of net debt 
 
                              1 January       Cash      Other   Exchange       30 June 
                                   2017       flow   non-cash   movement          2017 
                                 GBP000     GBP000     GBP000     GBP000        GBP000 
 Cash and cash equivalents       21,848    (6,694)          -      (293)        14,861 
 Debt due after 1 
  year                        (124,380)   (16,051)      (311)        534     (140,208) 
 Debt due within 
  1 year                        (2,994)        183          -          4       (2,807) 
                             ----------  ---------  ---------  ---------  ------------ 
                              (127,374)   (15,868)      (311)        538     (143,015) 
 Finance leases                   (192)         50       (25)        (1)         (168) 
 Net debt                     (105,718)   (22,512)      (336)        244     (128,322) 
                             ==========  =========  =========  =========  ============ 
 
                              1 January       Cash      Other   Exchange       30 June 
                                   2016       flow   non-cash   movement          2016 
                                 GBP000     GBP000     GBP000     GBP000        GBP000 
 Cash and cash equivalents       22,962      6,594          -        164        29,720 
 Debt due after 1 
  year                        (116,650)    (5,724)      (125)    (1,873)     (124,372) 
 Debt due within 
  1 year                              -   (10,736)          -          -      (10,736) 
                             ----------  ---------  ---------  ---------  ------------ 
                              (116,650)   (16,460)      (125)    (1,873)     (135,108) 
 Finance leases                   (201)         81          -       (17)         (137) 
 Net debt                      (93,889)    (9,785)      (125)    (1,726)     (105,525) 
                             ==========  =========  =========  =========  ============ 
 
                              1 January       Cash      Other   Exchange   31 December 
                                   2016       flow   non-cash   movement          2016 
                                 GBP000     GBP000     GBP000     GBP000        GBP000 
 Cash and cash equivalents       22,962    (3,896)          -      2,782        21,848 
 Debt due after 1 
  year                        (116,650)    (4,066)       (12)    (3,652)     (124,380) 
 Debt due within 
  1 year                              -      1,703    (4,765)         68       (2,994) 
                             ----------  ---------  ---------  ---------  ------------ 
                              (116,650)    (2,363)    (4,777)    (3,584)     (127,374) 
 Finance leases                   (201)        174      (127)       (38)         (192) 
 Net debt                      (93,889)    (6,085)    (4,904)      (840)     (105,718) 
                             ==========  =========  =========  =========  ============ 
 
   12         Commitments and contingencies 

Commitments and contingencies are as set out in the 2016 Annual Report other than for the following changes. At 30 June 2017, the Group had capital commitments of GBP8.8m (30 June 2016: GBP1.6m, 31 December 2016: GBP0.2m) and the Group had issued performance and payment guarantees to third parties with a total value of GBP44.7m (30 June 2016: GBP16.9m, 31 December 2016: GBP42.4m).

   13            Related parties 

There have been no significant changes in the nature of related party transactions in the period ended 30 June 2017 from that disclosed in the 2016 Annual Report.

Independent review report to James Fisher and Sons plc

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2017 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated cash flow statement, the condensed consolidated statement of movements in equity and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA"). Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2017 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FCA.

Mike Barradell

for and on behalf of KPMG LLP

Chartered Accountants

1 St. Peter's Square

Manchester

M2 3AE

29 August 2017

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR BLGDICXDBGRC

(END) Dow Jones Newswires

August 30, 2017 02:00 ET (06:00 GMT)

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