Companies: FSJ   

James Fisher has sailed in with buoyant interim results to June, reflecting the navigation of an exceptional performance from its core marine support services operations.

First half pre-tax profits rose by 16.1% to £11m, on turnover increased 29% to £114.1m, enabling chairman Tim Harris to declare a 12% dividend hike to 4.36p, from earnings increased almost 10% to 17.72p.

Harris said strong organic growth from the marine support divisions – ‘offshore’, ‘specialist technical’ and ‘defence’ – drove the sales and profits advance, more than offsetting disappointment within the marine oil division, where profits subsided to £2.7m (£4.1m) on operational issues rather than demand shortfall.

Highlights of the half included a 28% profits increase and healthy organic growth within offshore oil as well as a 33% profits push within specialist technical.

Elsewhere, Harris said the 72% profits surge within defence reflected the performance of Korean and Singaporean submarine rescue contracts.

On the bigger picture, he attributes James Fisher’s consistent organic growth track record to ‘our strategy of investing in niche service businesses in the offshore, shipping and ports related sectors’, which are the ‘fastest growing and most recession resistant’ parts of the market.

Based on full year forecasts – pre-tax profits of £22.6m and 37.3p – the defensive, dividend paying company trades on a prospective earnings multiple of less than fifteen times. That looks ungenerous for a cash generative counter with good margins, for which, not long ago, investors were prepared to pay 719p per share. Climb aboard.

Fisher (James) & Sons	LSE	£208.49m	418.50p	-11.50p
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