James Fisher And Sons Plc · LSE:FSJ
James Fisher And Sons — H1 2024 Earnings Presentation
31 slides from James Fisher And Sons's earnings presentation, Sep 10, 2024
Slide 1: Results for the half year ended 30 June 2024
10 September 2024 James Fisher and Sons plc Results for the half year ended 30 June 2024 james-fisher.com
Slide 2: Disclaimer
Disclaimer This presentation is confidential and is delivered to interested accepts any responsibility or liability to any person to whom parties for information only. It is delivered solely on the basis that the presentation is made available for the accuracy, adequacy, neither the whole nor any pa
Slide 3: Agenda
Agenda 01. Introduction 02. Financial results 03. Strategic progress and outlook 04. Q&A 3 james-fisher.com
Slide 4: 01 Introduction
01 Introduction 4 james-fisher.com
Slide 5: 1H 2024 Business highlights
1H 2024 Business highlights Focus Simplify Deliver • 1H performance in line with • Functional strengthening and • Improved cash management expectations Executive Committee in place and collection • Successful sale of • Strong capital discipline • Targeted investment on high RMSpumptools and Martek t
Slide 6: 02 Financial results
02 Financial results 6 james-fisher.com
Slide 7: First half in line with expectations, strengthening our financial position
First half in line with expectations, strengthening our financial position Revenue down Underlying Underlying operating operating profit up1 12.1% margin1 (up 200 bps) (flat excl. Subtech Europe and Swordfish) 20.0% 7.6% Net debt 2 Net debt 2 ROCE3 (covenant basis) to EBITDA (up 280bps) £144.8m 2.6x
Slide 8: Revenue down 12.1%
Revenue down 12.1% Revenue was flat excluding the closure of Subtech Europe and the impact of Swordfish (£m) 252.0 Revenue for six months ended 30th June 20.3 RMSpumptools 219.9 1.0 0.6 221.5 and Well (32.1) 20.3 22.8 Services growth offset by Fendercare 231.7 199.6 198.7 Excl RMSpumptools RMSpumpto
Slide 9: Operating profit up 20%
Operating profit up 20% Focus on improving margins, investing in capability and improved financial discipline 7.6% (£m) margin 7.0% 0.3 5.6% margin margin 3.1 1.0 16.8 1.5 15.5 14.0 (3.2) 4.5 6.7 4.6 Decommissioning Gain on Life of 11.0 Field assets 9.3 10.1 Other Excl RMSpumptools RMSPumptools HY23
Slide 10: Energy
Energy Underlying results for the six months ended 30 June 2024 £m 2023 £m Change Total revenue 110.2 134.0 (17.8%) Operating profit 15.0 7.5 100.0% Margin 13.6% 5.6% 800 bps ROCE 14.1% 8.2% 590 bps Revenue down 17.8% Operating profit doubled • Revenue increase of 8.1% if adjusted • Higher margin ac
Slide 11: Defence
Underlying results for the six months 2024 2023 Defence ended 30 June £m £m Change Total revenue 36.5 37.0 (1.4%) Operating profit (0.4) 0.6 n/m (270 Margin (1.1%) 1.6% bps) (120 ROCE 0.6% 1.8% bps) Revenue decreased 1.4% Operating loss of £0.4m • Underperforming revenue due • Cost base will not inc
Slide 12: Maritime transport
Underlying results for the six months 2024 2023 Maritime ended 30 June £m £m Change transport JF Tankships 40.4 39.6 2.0% Fendercare 34.4 41.4 (16.9%) Total revenue 74.8 81.0 (7.6%) Operating profit 8.2 10.0 (18.0%) (130 Margin 11.0% 12.3% bps) ROCE 27.8% 24.1% 370 bps Operating profit down 18% Focu
Slide 13: Underlying results impacted by higher finance charges
Underlying results impacted by higher finance charges 2024 2023 Underlying results for the six months ended 30 June £m £m Revenue 221.5 252.0 Operating profit 16.8 14.0 Finance income 1.5 1.1 Finance charges (14.0) (8.7) Profit before tax 4.3 6.4 Taxation (1.3) (1.7) Profit after tax 3.0 4.7 Underly
Slide 14: Reported results
Reported results 2024 2023 Results for the six months ended 30 June £m £m Underlying operating profit 16.8 14.0 Impairment charges - 0.3 Refinancing (2.5) (9.3) Restructuring costs (0.4) (1.4) Disposal of Subtech Europe Assets 3.6 - Other disposal of businesses and assets1 (4.1) 1.1 Other (0.7) (1.5
Slide 15: Cash flow
Cash flow 2024 2023 Free cash flow from continuing operations for six months ended 30 June £m £m Underlying operating profit from continuing operations 16.8 14.0 Depreciation and amortisation 18.3 20.8 Net working capital inflow/(outflow) 12.2 (8.4) Net interest paid (8.1) (5.1) ROU1 operating lease
Slide 16: Continuing to strengthen our balance sheet
Continuing to strengthen our balance sheet (£m) Results for the six months ended 30 June 2024 2023 2.8x £m £m 2.8x 2.6x Net Borrowings 186.6 203.5 Less: right-of-use lease (ROU) liability (53.9) (56.3) Add: ROU liability associated to finance Working 2.2 5.7 towards target leases (under IAS 17) 154.
Slide 17: 2024 Guidance
2024 Guidance • 3Q 2024 to date, performance is in line with the Board's expectations and the outlook for the full year remains unchanged • Looking forward, we continue to see supportive end markets in 2024 and would expect to deliver further benefits from our turn-around initiatives • Refinancing w
Slide 18: 03 Strategic progress and outlook
Strategic progress 03 and outlook 18 james-fisher.com
Slide 19: Progress on turn-around
Progress on turn-around Delivering the Supportive Positioning OJF strategy markets for growth Progress on ‘focus, simplify Robust end markets across all Targeted regional growth and deliver’, including financial Divisions, long-term customer underpinned by people, strengthening and company base with
Slide 20: 18 months into turn-around strategy
18 months into turn-around strategy One James Fisher 2023: Fix 2024: Stabilise 2025: Grow 2026+ Focus Synergies and growth • Purpose and portfolio • Financial foundations • Unified company priorities Simplify Accountability and efficiency • OJF ExCo team • Three divisions Standardisation and resourc
Slide 21: Progress on 2024 priorities
Progress on 2024 priorities 2024 YTD PRIORITY OBJECTIVE Lost Time Injury Frequency no greater than 0.44 Exceptional safety Total Recordable Case Frequency no greater than 2.09 and no fatalities Complete RMSpumptools sale Reduce debt towards our net debt/EBITDA target of 1.0-1.5x Foundations for grow
Slide 22: Moving towards our 10% UOP strategic target
Moving towards our 10% UOP strategic target Supply Chain Supply chain integration Defence rebound Review supply chain partners and Revenue growth drive price reductions in Defence for key suppliers 10% UOP Improve BU performance No increase in cost and business strategic target base required to exce
Slide 23: Supportive end-market exposures
Supportive end-market exposures ENERGY: Forecast fossil fuel demand1 ENERGY: Offshore wind capacity demand increase 2 600 Forecast • Demand forecast to • Global climate 500 peak in 2030, levelling commitments into 2050 driving demand 400 Oil for offshore wind • Investment focused on maximising produ
Slide 24: Robust, blue-chip customer base underpinned by long-term relationships
Robust, blue-chip customer base underpinned by long-term relationships Our high-quality offerings across divisions has resulted in a strong customer base ENRGY ENERGY DEFENCE MARITIME TRANSPORT TOP 10 CUSTOMER BASE TOP 10 CUSTOMER BASE TOP 10 CUSTOMER BASE Average: 9 years Average: 19 years Average:
Slide 25: Delivering our growth strategy
Delivering our growth strategy ENERGY DEFENCE MARITIME Transition to clean, Build undersea and TRANSPORT efficient energy special operations Delivering cleaner, more production capabilities efficient shipping operations #1 #1 #1 Provider of Unique technology: Provider of sub Leading global Leading E
Slide 26: Geographical growth markets
Geographical growth markets ENERGY We deliver safe, efficient • Existing footprint in key energy hubs operations to • Targeted growth in UK and Europe, our customers North & Latin America, Asia Pacific, Middle East • Focus on IRM, offshore wind, digital and data in ~25 countries world-wide. DEFENCE
Slide 27: Conclusion
Conclusion Results in line with expectations and the 01. outlook for the full year remains unchanged Good progress on our turn-around strategy 02. and positioning for future growth Through our Significantly deleveraged our balance growth pillars, we 03. sheet will deliver the second phase of End-mar
Slide 28: Appendix
Appendix 28 james-fisher.com
Slide 29: Income Statement
Income Statement 2024 2023 £m £m Continuing Operations Revenue 221.5 252.0 Cost of sales (155.5) (186.5) Gross profit 66.0 65.5 Administrative expenses (51.3) (52.0) Impairment charges - (0.1) Refinancing costs (2.5) (9.3) Restructuring costs (0.4) (1.4) Share of post-tax results of associates 0.9 0
Slide 30: Underlying operating profit - 2024
Underlying operating profit - 2024 Disposal of As businesses Underlying reported Refinancing Restructuring and assets Other/Tax results £m £m £m £m £m £m Continuing operations Revenue 221.5 – – – – 221.5 Cost of sales (155.5) – – – – (155.5) Gross profit 66.0 – – – – 66.0 Administrative expenses (51
Slide 31: Underlying operating profit - 2023
Underlying operating profit - 2023 Disposal of As Impairment businesses Underlying reported reversals Refinancing Restructuring and assets Other / Tax results £m £m £m £m £m £m £m Continuing operations Revenue 252.0 – – – – – 252.0 Cost of sales (186.5) – – – (1.1) – (187.6) Gross profit 65.5 – – –
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