James Fisher And Sons Plc · LSE:FSJ
James Fisher And Sons — H1 2023 Earnings Presentation
24 slides from James Fisher And Sons's earnings presentation, Sep 21, 2023
Slide 1: James Fisher and Sons plc 2023 Interim Results Presentation
James Fisher and Sons plc 2023 Interim Results Presentation 21 September 2023
Slide 2: Jean Vernet and Duncan Kennedy
Jean Vernet Duncan Kennedy Chief Executive Officer Chief Financial Officer
Slide 3: Disclaimer
Disclaimer This presentation is confidential and is delivered to interested parties for information only. It is delivered solely on the basis that neither the whole nor any part of the information contained in this presentation may be disclosed to, or used or relied upon by, any other person or used
Slide 4: Agenda
Agenda • Introduction • Financial Headlines • Business Review • Summary and Outlook • Questions and Answers 2023 Interim Results 4
Slide 5: Summary H1 2023: Financial Performance
Summary H1 2023 FINANCIAL PERFORMANCE • Strong revenue growth of 17.2% to £252.0m (H1 22: £215.0m) • Underlying operating profit up £2.6m to £14.0m (H1 22: £11.4m) and operating margin enhancement of 30bps • Loss before tax of £4.4m (H1 22: profit £5.2m): refinancing advisory costs of £9.3m; higher
Slide 6: Summary H1 2023: Operational Progress
Summary H1 2023 OPERATIONAL PROGRESS • Continued momentum behind Group simplification ‒ Sales of Swordfish DSV; Nuclear Decommissioning business and obsolete assets • Focus, Simplify and Deliver ‒ Moving towards One James Fisher operating model ‒ 3 divisions (Energy, Defence, Maritime Transport) ali
Slide 7: Progress against 2023 priorities
Progress against 2023 priorities Guiding principle of working as “One James Fisher” Our ‘internal’ KPI scorecard H1 23 Progress The best at HSE LTIF: 0.53 vs target 0.48 10% improvement on 2022 TRCF: 2.38 vs target 2.39 Any incident is one too many Meet our budget and forecasts Reduce revenue and ma
Slide 8: Financial Headlines
James Fisher and Sons pic Pioneering Sustainably Financial Headlines
Slide 9: Financial Summary
Financial Summary Continuing operations £m H1 23 H1 22 Change Revenue 252.0 215.0 +17.2% Underlying operating profit 14.0 11.4 +22.8% Underlying operating profit margin 5.6% 5.3% +30bps Operating profit 3.2 9.8 -67.3% (Loss) / profit before tax (4.4) 5.2 n/m ROCE 4.7% 2.7% 200bps • Strong revenue gr
Slide 10: Divisional Performance Overview
Divisional Performance Overview Revenue Underlying operating profit £m H1 23 H1 22 Change H1 23 H1 22 Change Energy 134.0 106.1 26.3% 7.5 6.2 21.0% Maritime Transport 81.0 76.3 6.2% 10.0 8.4 19.0% Defence 37.0 32.6 13.5% 0.6 (1.3) n/m Central (4.1) (1.9) Total 252.0 215.0 17.2% 14.0 11.4 22.8% • All
Slide 11: Cashflow
Cashflow H1 23 H1 22 £m £m • Working capital is being rebalanced: (Loss) / profit for the period (9.6) 2.0 Tax (credit) / charge (1.2) 1.2 • Debtor days reduced from 83 to 70 Adjustments to reconcile profit / (loss) before tax to net cash flows Depreciation and amortisation 20.8 20.4 • Creditor days
Slide 12: Borrowing Facility
Borrowing Facility H1 23 H1 22 FY22 Net debt : EBITDA actual (target) 2.8 (< 3.5) 3.3 (< 3.5) 2.7 (< 3.5) Interest cover actual (target) 3.2 (> 2.5) 4.5 (> 3) 3.5 (> 3) Covenant net debt (£m) 154.5 172.4 142.1 • New secured RCF signed in June 2023 with existing six lenders: • Maturity 31 March 2025
Slide 13: Division Performance
James Fisher and Sons pic Pioneering Sustainably Division Performance
Slide 14: Energy
Energy • IRM delivered good revenue growth, including the impact H1 23 H1 22 Change of having the Swordfish fully operational. European business experienced underutilisation of a seasonal vessel Revenue 134.0 106.1 26.3% resulting in £1.7m provision UOP 7.5 6.2 21.0% • Artificial lift product sales
Slide 15: Maritime Transport
Maritime Transport • High utilisation of tanker fleet (91% vs 88% H1 H1 23 H1 22 Change 22) and continued good day rates for spot charters Revenue 81.0 76.3 6.2% • Lady Maria Fisher joined the fleet and is on charter UOP 10.0 8.4 19.0% • Mersey Fisher reached end of commercial life and was sold in t
Slide 16: Defence
Defence • Strong demand for commercial diving equipment H1 23 H1 22 Change in the period, consistent with higher activity levels in Revenue 37.0 32.6 13.5% the Energy division’s diving activities • Development work underway on next generation UOP 0.6 (1.3) n/m products UOP margin 1.6% (4.0%) 560bps
Slide 17: Summary and Outlook
Summary and Outlook
Slide 18: Our roadmap 2023 – 2027
Our roadmap 2023 – 2027 1 2 3 4 Positioning for growth: Focus Simplify Deliver A leading authority, contributing to a sustainable, changing world. 2023 – 2024 2025… and another 175 years Deploy marine One James Fisher Deliver on our Tier 1 provider, chosen by our customers engineered commitments bec
Slide 19: Summary and Outlook
Summary and Outlook • Solid financial performance in H1 2023 ‒ Strong revenue growth; some modest operating leverage progress ‒ Refinancing costs and higher interest rates holding back improved pre-tax profitability • Continued progress against Focus, Simplify and Deliver objectives ‒ Divisional str
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Slide 21: Appendix
James Fisher and Sons pic Pioneering Sustainably Appendix
Slide 22: Income Statement
Income Statement Year ended Six months Six months 31 ended ended December 30 June 2023 30 June 2022 2022 Note restated* £m £m £m Continuing operations Revenue 4 252.0 215.0 478.1 Cost of sales (186.5) (159.9) (350.9) Gross profit 65.5 55.1 127.2 Administrative expenses (62.4) (45.9) (104.4) Impairme
Slide 23: Underlying Operating Profit H1 23
Underlying Operating Profit H1 23 Continuing operations Impairment Disposal of Total As charges/ Re- Re- businesses Other/ Underlying Discontinued underlying reported (reversals) financing structuring and assets Tax results operations results £m £m £m £m £m £m £m £m £m Continuing operations Revenue
Slide 24: Underlying Operating Profit H1 22
Underlying Operating Profit H1 22 Continuing operations Amortisation As of acquired Impairment Disposal of Total reported intangible charges/ businesses Other/ Underlying Discontinued underlying restated assets (reversals) and assets Tax results operations results £m £m £m £m £m £m £m £m Continuing
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