Fisher (james) & Sons Share Discussion Threads

[topvest] 06/3/2023 18:30

It's a bit of a Kinovo style disposal with financial support and parent company guarantees in place. Could always come back to bite them unfortunately!

[bouleversee] 06/3/2023 15:28

Thanks, Illis. I was already feeling depressed.

[illiswilgig] 06/3/2023 14:55

Hello Boule, no simple answer from me I'm afraid.

Sold for £3 (which is £1 for each of the 2 trading cos and the holdco as far as I can see).

Good or Bad?

Bad in that its an(other) asset write down which won't improve the balance sheet.

But more good than bad I think in that it removes a complex and underperforming business. Without the losses ebitda increases and removes the need to keep putting more capital in and raising debt levels. It improves the debt covenent situation as well as removing one big problem which has lower prospects than other parts of the company?

Trading update looks just about ok on a continuing basis, in that revenue is above expectations where as profit? Who knows? Probably about in line but its hard to forecast financing and tax.

But most of all I see this as the new CEO getting his feet firmly under the table. Sold off a bunch of testing companies, the Swordfish DSV (For a much better price than the previous sale) and now removed a large non-core (in that its not a marine ) business.

I'm disappointed it wasn't better, but not as much as I am relieved it wasn't worse. Don't think it affects the medium term prospects very much, so now we wait to see how the CEO handles the coming year? The rns didn't waste any time trying to talk up good news, so this was most likely about ditching the past and setting the scene for the future? He won't want another year of write-offs he'll be looking to show good progress by the end of the year? And claim the credit.

I expect the buy the rumour mob will now be selling the news - but I can't see how that wasn't going to happen anyway?

I'll be paying close attention over the next few months. I hope he's successful!

cheers

[alfred] 06/3/2023 12:24

Given it away haven't they? Why couldn't they make the nuclear services division work?
Now a leaner cleaner company if anyone is interested in making an offer.

[bouleversee] 06/3/2023 10:49

Anyone got any views on today's RNS reporting sale of James Fisher Nuclear Holdings and related companies? S.p. down over 5% when I looked a few mins. ago.

[newbold120] 24/2/2023 08:53

Read across from John Wood?

[hamhamham1] 23/2/2023 20:10

Nice finish

[hamhamham1] 20/2/2023 06:32

As another Fisher (Carrie) once said,..
"My The Forth Be With You!"

[bottomfisher] 15/2/2023 13:03

A couple of dates for the diary. FSJ is due to publish its annual results on March 14th and its AGM is set for May 4th.

[bscuit] 01/2/2023 22:16

I had been thinking we were getting back to historic levels but a 12% fall in 2 days isn’t a confidence builder.

[se81] 20/1/2023 13:32

Trying to break through 400p which has acted as resistance since Apr 22

[illiswilgig] 13/1/2023 07:42

Bottomfisher - my thinking is the same. And the reason I've been adding to my holding at lows last year before the share price started to recover.

I think the CEO is a good choice and I think he will be a better deal-maker in FSJ's key marine markets than the previous CEO. But he's not a business integration or operational efficiency expert. The previous CEO is - and I think that this is the reason he is still working (until June) to complete the work. With one working on the key deal-making and one working on improving the operations and integration I think we are likely to make good progress at last. The kudos will go to the new CEO, and that's normal, but in my view he will be succeeding in large part due to the hard work across the company before he joined.

cheers

PS - I see a press release confirming JFD has been awarded the next NATO submarine rescue 5-year contract worth £63m on their website. Seems to be a lower-key approach to announcement of regular contracts than in the old days? Hopefully a good thing.

[bottomfisher] 12/1/2023 14:08

My faith in the long-term recovery of James Fisher (FSJ) has been bolstered by the decision of Odyssean Investment Trust (OIT), a small cap investor with a good track record, to take a 4.3% stake last July, and make FSJ one of the trust’s top ten holdings. Its investment came a month after Aberforth, another trust with a strong value bias, took a 5% stake.

OIT was attracted to FSJ because it holds “leading positions across multiple niche marine services”, is focussing on improving its capital allocation, integrating past M&A, and improving operational efficiency.

In its latest quarterly report to shareholders, OIT notes that FSJ has “announced three non-core business disposals and sale of a dive support vessel. Expected proceeds will de-gear the balance sheet easing near term covenant and re-finance pressure”.

Whilst all of this is well known, I take some comfort from OIT’s comment that “we remain positive on early interactions with the new CEO and the scope for material operational improvement across the group.”

The key to the long overdue recovery in FSJ’s fortunes is the new CEO who only took over in September. Early days yet, but it is reassuring to learn that one professional investor believes that the new CEO may be able to turn this ship around.

[darrin1471] 28/12/2022 19:06

2020 annual report "in 2020 we have taken a goodwill impairment of £17.0m and in consideration of the prospects for dive support vessels"

[chucko1] 28/12/2022 15:26

My understanding is that the attributable "net" revenue was in the order of £0.4mn. A decent further reduction in debt more than compensates, especially given the focus on the latter the past few years.

All this on top of the recent business sales should gradually allow some positive change in the risk perception of the stock.

[our haven] 28/12/2022 08:34

This looks like a good deal for us, given the sale value much higher than the book price. I do not think that the revenue will be missed.

[bouleversee] 22/12/2022 11:58

and can't be bothered with their shareholders, who have had a raw deal in recent years.

[roddiemac2] 22/12/2022 10:39

boule

Happy Christmas to you and all holders.----

I have not heard anything from the co. re. Prolec. I guess they are winding down for the holiday.

[bouleversee] 19/12/2022 13:44

The market is clearly unimpressed. Let's hope things buck up in the new year. Happy Christmas, Roddie. Not feeling too jolly myself.

[roddiemac2] 19/12/2022 12:39

Our Haven,

they show the price paid for Mimic and the UK operations of Strainstall as £ 13.6m plus a performance related payment of £ 3,9m but they don`t show how much was paid for Prolec . ----I phoned the Co. and left a message requesting clarification

[our haven] 19/12/2022 08:17

I must be reading the sale of the three businesses as I can only see the price paid for the two UK companies.

[bottomfisher] 01/12/2022 09:46

Motley Fool's FSJ share tip.

By Gabriel McKeown. It used to be tricky to find high-quality companies with low market capitalisation; however, the recent market turmoil has meant that there are now far more small-cap opportunities for UK investors. A prime example of this is Fisher James & Sons (LSE: FSJ), as the share price has fallen almost 85% from pre-pandemic levels.
Despite this share-price decline, the company’s earnings are forecast to grow considerably, signalling a rebound may be on the horizon. Earnings per share is expected to grow by over 40%, compared to 3% turnover growth, indicating that profit margins should improve. Additionally, free cash generation remains strong and is now above its three-year average level.
The company’s significant debt level has likely caused investors to avoid this opportunity. However, the interest cover ratio of 2.1 indicates that this can be covered comfortably by earnings. This financial stability is certainly encouraging, especially if market conditions continue to weaken.

[hamhamham1] 16/11/2022 07:46

What NAV (Net Asset Value) do you have for both?

James Fisher:
NAV of £210m for FSJ
(market cap £156m)
P/B (price to book) ratio is 0.74

Ashtead Technology:
NAV of £61m for AT.
(market cap £244m).
P/B (price to book) ratio is 4

Therefore FSJ has a P/B which is better than AT. by a factor of 5.4x

For FSJ to have the same P/B ratio as AT. (ie 4), FSJ market cap would need to be £831m, with a share price of 1682p.
That's where it was in March 2020, having come down from 2100p at the start of that year.

Whilst those are only one or two indicators, it shows value is where you find it. GLA.