Fisher (james) & Sons Share Discussion Threads

[rivaldo] 06/3/2014 11:26

No probs. Buying coming in at almost 1500p now.

OT : two similarly unheralded, solid stocks on very low ratings and with very sound Balance Sheets (i.e with cash piles) are HVN and CRE. I hold both. They're more cyclical than FSJ, but at this stage in the global economic recovery they could both go a long way imho.

[bouleversee] 05/3/2014 14:30

Thanks, Rivaldo.

[rivaldo] 05/3/2014 13:41

Bouleversee, take a look mat the P&L Account - you'll see that the left hand column is "before separately disclosed items". As you say, this is the column to concentrate on, as it excludes one-offs like profits on the sale of ships or divisions.

Here you'll be able to confirm that underlying/core profitability has inceased very nicely indeed.

I'm afraid in many cases newspaper journalists - and web sites - only have the space or skills to report the most basic figures, and ignore nuances which investors who can see the detail can concentrate on.

[bouleversee] 05/3/2014 12:43

I really must get round to changing my newspaper. The only mention re Fisher in The Times today is in the Results in Brief list, which says pre-tax profit is £46.2m (Questor says £46.3m), last year £46.4m, which isn't exactly inspiring.
However, I'm trying to get my head round the following quote from the Questor article, which seems a bit of a non-sequitur, though admittedly I haven't studied the accounts:

"The company said that, in the year ended December, revenue had increased 14pc to £414m. The reported pre-tax profit numbers showed little progress, being largely flat at £46.3m. However, once the impact of one-off profits for selling parts of the business last year and other costs are removed, underlying pre-tax profits increased 18pc to £41.4m".

Can anyone elucidate? I presume the one off costs must have considerably exceeded the one off asset sale profits. There is often a substantial difference between reported and underlying profits. Which is the figure we should pay attention to? I presume we should ignore one off profits and costs and concentrate on what the company's business activities are doing, in which case what is the point of The Times only giving the reported figures? My family have over 10,000 Fisher shares between us so I need to make more of an effort to understand the figures; please excuse my ignorance,

[roddiemac2] 05/3/2014 12:15

Yes, I read it in the paper. NB what N+1 Singer say about the dividend prospects.
The company has been pursuing a progressive dividend policy , and it seems it will continue to do so. Anyone who first bought the shares at around £ 1 is now getting a 20% dividend return on that investment, on top of the massive appreciation in the share price: a very rewarding ISA inclusion over the years.

[rivaldo] 05/3/2014 10:01

Questor's Buy tip has now appeared online....



"Questor share tip: James Fisher lifted by upgrades

Cumbrian based marine engineer benefits from strong oil and gas industry demand, says Questor

By John Ficenec, Questor editor
6:00AM GMT 05 Mar 2014

James Fisher
£14.39+49p
Questor says BUY

JAMES FISHER and Sons, the deep sea diving and marine engineering specialist, started life in the 19th century as a Barrow-in-Furness-based shipping company that transported goods around the coastal waters of the UK. The company has retained its Cumbrian base of operations but has expanded its horizons to provide diving and technical assistance to the oil and gas industry across the world.

The company yesterday reported full-year results that were ahead of market expectations, leading to a round of broker upgrades which sent shares up by more than 2pc.

The company said that, in the year ended December, revenue had increased 14pc to £414m. The reported pre-tax profit numbers showed little progress, being largely flat at £46.3m. However, once the impact of one-off profits for selling parts of the business last year and other costs are removed, underlying pre-tax profits increased 18pc to £41.4m.

Nick Henry, chief executive, said the strong performance during the year was down to the company's ability to take expertise from Norwegian oil fields and export it across the world.

Offshore oil projects in West Africa and Brazilian waters helped to drive a 19pc increase in revenues and a 15pc increase in underlying operating profit to £19.7m in the offshore oil operations.

While other oil and gas services groups have been hit hard by budget cuts in exploration activity and a production slowdown from the North Sea, James Fisher has avoided this by having little exposure to exploration and North Sea projects.

The company has also expanded its underwater diving expertise. The purchase of Divex last year for £20.8m brought advanced "saturation" techniques, which allow divers to go deeper underwater for longer. This service is in strong demand as it reduces costs for oil companies undertaking maintenance and repairs on their offshore oil rigs.

The Specialist Technical division, which includes Divex and also carries out submarine rescue work, reported underlying operating profit up 55pc to £8.5m.

James Fisher's results were also boosted by contracts in West Africa. Oil extracted from the heart of Africa has to be transported down navigable rivers in shallow draft vessels. It then has to be transferred to supertankers moored off the coast. The company is expert at ensuring the ship-to-ship oil transfer in choppy waters is carried out without spillage.

The marine operations division, which includes ship transfer, reported underlying operating profits had slipped by £1m to £1.3m during the full year.

The company also reported an excellent cash-flow performance. Cash generated from operating activities was £53.3m, up from £48.1m in the year before. That more than covered the £25m spent on buying new businesses and also easily covered the £9.1m paid out in dividends.

The increase in cash meant net debt fell by £8.8m during the year to end at £54.3m. That is almost half the level two years ago.

This set of results meant house broker N+1 Singer upgraded forecasts by 6pc for this year and next. The broker also estimates investors will be rewarded with double digit dividend increases for the next two years.

Questor recommended buying the shares last August (Buy, £10.57, August 21) as they looked cheap. The shares have since delivered gains of 35pc, almost three times that of the wider market. They now trade on a not so cheap 19.5 times forecast earnings, falling to 18.3 times next year.

The balance sheet is strong and could fund a bigger acquisition this year which could push shares higher.

Given this encouraging result, we retain that recommendation. Buy."

[scottishfield] 05/3/2014 08:37

excellent, tks steeple.

[steeplejack] 05/3/2014 08:33

Daily Telegraph Questor recommends BUY this morning

[rivaldo] 05/3/2014 07:49

Here's an article about another FSJ company investing "to utilize their assets in a wider range of projects"....



Extracts:

"Osiris achieves IMCA accreditation
Posted on Mar 3rd, 2014

Osiris Marine Services, a division of James Fisher and Sons plc, has become a contractor member of the International Marine Contractors Association (IMCA) Remote Systems and ROV Division.

IMCA is the internationally respected trade association representing offshore, marine and underwater engineering companies. The Remote Systems and ROV Division of IMCA assists ROV operators in achieving high levels of safety and efficiency, and Osiris has joined IMCA in recognition that it wishes to meet these high levels. IMCA membership and adherence to the guidance they publish is recognised by clients worldwide looking for safe and efficient contractors."

"Osiris supplies an array of subsea engineering services on a global basis to both the onshore and offshore sectors. Its ROV capabilities began nearly a decade ago, and since then have grown to provide a wide range of equipment from inspection-class ROVs capable of flying down pipelines with an internal diameter of as little as 190mm, to work-class underwater ROVs that can operate powered tools and carry cable finding equipment to depths of up to 1,000 metres. The company has also invested in a Launch and Recovery System (LARS) and a Tether Management System (TMS) to enable them to utilize their assets in a wider range of projects.

"Our ROV range has grown substantially since its inception," added Aiden West, managing director at Osiris. "Our workshops, technicians and equipment meet with the most stringent of audits, and we are extremely pleased that we are now members of IMCA.

"Osiris' IMCA membership will enable the company to expand and strengthen its capabilities even further, whilst continuing to offer the same high-quality, tailored service that its customers are familiar with," the company said in a press release."

[battlebus2] 04/3/2014 23:37

I see our friends Panmure have also downgraded to a hold with a raised target price up from 1000 to 1300....

The mind boggles.

[rivaldo] 04/3/2014 23:11

I note that Investec - behind the times as always - have today increased their target price to 1450p from 1150p, with an Add rating rather than Buy given the recent share price rise. No doubt when the share price reaches 1750p they'll increase their target price again to 1800p.

[scottishfield] 04/3/2014 14:29

increased my holding this morning, hard not to imo, gl all.

[battlebus2] 04/3/2014 14:28

Good to see 1400 now taken out.

[rivaldo] 04/3/2014 14:25

Given this comment from the results one can pretty safely expect further earnings-enhancing acquisitions soon:

"James Fisher's strong balance sheet will enable us to invest in further organic growth opportunities and to make appropriate bolt-on acquisitions"

[steeplejack] 04/3/2014 09:53

Been watching this for awhile.Pretty compelling,given track record.Tick all the boxes.

[roddiemac2] 04/3/2014 09:11

Everything I have said in the past is still valid. Since I first bought these 12 years ago, as a good value small tank ship business , management have executed Tim Harris`s vision to perfection, and continue to do so under Charles Rice.

An exceptionally well run business with great prospects in " the last frontier "

[rivaldo] 04/3/2014 08:42

I've not been here as long as some (hi bouleversee and Goldendigger!), but since "slow and steady" means an almost 250% gain since I first invested then give me more "tortoise" shares like this any day :o))

A similar EPS increase this year would give around 80p EPS, which would justify a 1700p-1800p share price imo in say 6 to 7 months' time. If more acquisitions are made then we should see further upgrades to those numbers.

[battlebus2] 04/3/2014 07:53

Funny how investors over look the slow steady growing earnings and dividend increasing shares. I too wish i held more scottishfield.

[scottishfield] 04/3/2014 07:48

Yes, very impressive, is what they so often give us. Always wishing I had more of these, but grateful I have what I have.

[battlebus2] 04/3/2014 07:21

Yep really good numbers, as i keep telling myself this is one of the best stocks on the market :))

[goldendigger] 02/3/2014 22:58

bouleversee -

Well done for not selling out, wish I had not sold. What a fabulous tip it was.

Looking at the graph it appears to get stronger and stronger through the years.

I hold mainly mining/gold AIM shares not doing very good over the last few years. Maybe one day I will pick a good one giving me gains like you have here.
Any tips would be most welcome!! Good luck.