Big block trade at 260p - hopefully cleared the seller |
Porsche 1945
You do make some odd statements
Are you OK ?
Mental health or similar ? |
"A more recent addition to our portfolio is James Fisher (LSE: FSJ), a leading provider of marine services and technical products to the offshore- renewables, energy and defence sectors. The group covers a range of specialist niches where its engineering expertise is crucial, from building offshore wind farms to submarine rescue services. The group serves global markets with secular growth drivers and often provides unique products or services. Having had a troubled period after the pandemic, the group now has a new CEO with clear plans to drive improved performance across margins and return on capital, a key gauge of profitability. The shares trade at around book value, which we see as undervaluing the expertise and quality in the group’s varied business units."
Odyssean Investment Trust 12/10/23
No position - added to my watchlist. |
…and how’s this working out for you?? I’ll stick to Msft thanks. I’m sure my kids will be grateful whereas yours will be living in a tent on the proceeds of this crxp. Nobody buys U.K. shares anymore ffs. |
Ouch ... maybe 15 pound not 😀
China is Tanking head for cover ! |
Nice to see the 100 new license for the North Sea .
3- 4 years . Fisher £ 15 + |
Porsche1945
Problem with your theory your giving your kids what's happened in the past , not the potential future .
Of course everything is now AI .. this will turn out to be a nothing just like the millennium bug , Crypto etc .
Will oil be around when your kids are old and Grey ... I reckon so |
what junk this share is even by dog index of the world uk standards, if youre giving shares to your kids….its msft and apple, not hopeless capital destructive uk vomit like this. |
That sounds like a very good AGM update- the first with a positive tone for years? (literally) |
Thanks, Illis. S.P. down a bit more today while the market seems to be on an upward trend. Hope FSJ changes course. |
 Hello Bottomfisher,
Good points. I agree with you. The new hires look good and the new division structure makes more sense in todays markets. I think this change has been underway for some time and the previous CEO is still working in the company (until June iirc) to complete the restructuring and integration of subsidiary units with new company systems.
I'm hoping that under the covers the profitable businesses are making good progress. Contining revenue is ahead of expectation and I expect that the management is focusing upon not taking on low margin business and disposing of low margin operations. The recent fall in share price seems to be partly market wide and of course the banking convenant difficulty, likely disconnecting the share price from progress being made at the company?
Dividend. I notice that broker consensus following the recent snafu with the banks has reduced the forecast FY23 eps from 40p to 36p but retains a proposed dividend of 15p. That seemed ambitious to me, I'd prefer that they continue to pay down debt and invest, but its still there and I wonder if that reflects tough conversations between the BoD and the Sir John Fisher Foundation trustees?
It seems that in the setting up of the Trust Sir John Fisher stated his intention that the majority of the Trusts assets should be the Fisher shares. I don't know what the trustees think of that but it's not easy to ignore and they have been aware of the risks for many years. Accordingly they retained the advice of a Shipping consultant years ago, which is sensible given the stated intention of the donor in setting up the trust.
Reading between the lines I think the founder had two main reasons for setting up the foundation - the first being to continue his families charitable activities in the local area. The second being to put a substantial block of shares where it would not be easy for them to be disposed of or acquired by a hostile bidder.
I see in the accounts of the Foundation that it's expenditure is primarily in charitable donations - it has only modest operating costs of its own - and almost entirely gives to support other charities and a large number at that which suggests that they are careful to ensure that no one charity is overly dependent upon them. That is probably not by accident. A reflection of the risk to their funding and has enabled it to reduce funding by over 50% whilst its income has almost completely disappeared.
Spending over 1m in the year to March2022 surprised me. Luckily for the foundation another family trust - the John Mervyn Fisher Trust (Jersey) was wound up in 2021 and the assets transferred to the John Fisher Foundation - including over 2m in cash. It seems this has given the foundation an ability to continue substanntial donations to worthy causes - but I can also see that they will be asking (possibly even demanding) the return of dividend payments as soon as possible.
Given the founders intentions for the trust assets - I doubt that the trustees are in a rush to sell the shares? Personally I hope that they don't. I can imagine that they might sell some of the Mervyn Fisher shares, but probably once the share price has recovered enough for the sale to provide them with more appropriate short term liquid funds/investments to cope with future variations in dividends. Though of course, that would depend upon the nature of the Mervyn Fisher settlement which I don't know.
I shall be watching with interest to see how the potential return of dividend in 2023 proceeds, with a good offshore season in the energy business its certainly possible and that could transform the situation of the company later in the year - as well as its share-price? I can hope, but it seems Stuart Widdowson at Oddysean agrees - and he's way smarter than I am, which has me thinking.........
cheers |
The new ceo seems to be really shaking up Fisher’s management team. Over the last month or so Fisher has appointed a new group general counsel Jean Francois Bauer (a near 30-year Schlumberger veteran), and new heads for two of the group’s three divisions. Rob Hales, the new head of defence is ex-Serco, and Neil Sims, the new head of energy comes from Expro.
Meanwhile, the collapse in Fisher’s share price and the abandonment of the dividend must be causing considerable soul searching amongst the trustees of the Sir John Fisher Foundation, the biggest shareholder, which owns 11.49m FSJ shares, or 22.79% of the company.
Virtually all of the charity’s assets are tied up FSJ shares and until recently the company was relying on its Fisher dividends to finance its annual donations of around £3m a year to over 70 local worthy causes mainly in the deprived surroundings of Barrow in Furness, its home town.
The charity does not appear to be represented on the Fisher board but according to the charity’s annual report has hired John Lawson, a former City shipping analyst, to advise it on how to contain the risks involved with the charity being almost totally dependent on the movement of the share price in just one company.
It would make sense at some stage for the charity to diversify its portfolio and substantially reduce its reliance on its income from Fisher’s shares. This is one reason why Fisher’s current depressed share price could attract a predator.
However, the recent disclosure that the company will retain some parent company guarantees to support the obligations of JF Nuclear following its sale could temper any potential predator’s enthusiasm. |
Roddie,
Had not seen your message when I wrote mine.
Yes, I think you are right, bank covenants are complicated things which I know little of. I expect that Odyssean will know much more than us - in addition to having the ear of management.
cheers |
Yes, I received that notification and found it somewhat reassuring, too. I'm afraid I don't have a long-term future but I gave my children and grandchildren my certificated
shares quite a while ago and bought some back in my ISA, which I expect are showing a loss but never mind. We'll just have to keep our fingers crossed and hope for the best. |
Boule,
I didn't mean to appear unduly negative or harsh. To provide some balance James Fisher has a number of good businesses, market leaders in their niches, with significant potential for growth. It had become clear that JFN was not one of them. But you're right it has certainly been a painful journey over the last few years and the turnaround is taking much longer than I'd anticipated.
Interesting that you should ask what the institutional investors think?
Today Odyssean Investment Trust has spent best part of a million quid to buy another 327k shares taking its holding to a round 5%. Odysseans managers are reputedly very shrewd, as is their top shareholder Harwood Capital. I have no doubt that they would sell and go if they thought this was going the wrong way.
I find that reassuring. But they are long-term investors so yet more patience is required..........
cheers |
boule
Odyssean Investment Trust have increased from 4.35% to 5%.Perhaps they have better info than us. |
Thanks, Illis. Not much to cheer about there! I should think sparks will fly at the AGM whenever it is. I wonder what the institutional holders make of all this, if there are any left. Heart-breaking that things have come to this pass after holding them for so many years. Up a few pence today but flatlining now. Anyone seen any press comment?
Bouleversee (name gets more appropriate every day) |
Boule, for what its worth:
No I'm not happy with them! Seems to be a rather unnecessary act of self-harm to me.
The statement is - probably deliberately - vague. It's not clear whether getting bank agreement to retaining these guarantees has the potential to be a big and/or costly deal, or whether its more of a formality.
Uncertainty is not good. Hence the sharp fall in share price.
To be clear - this deal selling £8m of tangible assets for £3 - doesn't make a lot of sense unless its financial engineering and there are no details of this to evaluate. Net debt up and risks retained set against reduced losses. Hope it makes sense. But not getting bank approval doesn't lend credibility to it?
Shame, because the trading statement is the same as stated at the time of sale so that's not got worse, and the revenue is ahead of previous expectations. Unfortunately the profit is not - and the company really does need to start generating more profit to get on top of its mountain of debt,
cheers |
Illis - What did you think about their announcement about the accounts being held up for a month and revenue and profits had not risen for 2022? S.p. down 8% at one point on Friday, closed at 5.91% down. Rather worrying. |
Agreed. They are paying (in retained risk at least) for the VC to take the business off them. I was more than a little sceptical of handing over to a VC but after a quick google and read of the Rcapital website it seems that they are genuine and successful turnaround experts.
Good luck to them. And I mean it, cos if they don't succeed it might well cost FSJ some more. Shame that FSJ could not bring it back to profit before selling - but I hear that the customer (UK government) is busy delaying decommissioning contracts to reduce annual funding at the moment. On that basis probably not a big market for loss-making businesses in the industry.
Given that FSJ are highly limited in capex for their growth businesses - and UK nuclear decommissioning can't be a growth industry right now - it's a hard decision, but most likely a rational one.
cheers |
Topvest,
I thought the same - although they make a point of saying they have safeguards of some sort in place.
G. |
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