Shares of James Fisher & Sons plummet after annual results delay as engineer continues debt talks with lenders
- Annual results are postponed one month to April 28
- The Group must finalize discussions with banks regarding its existing debt facilities
- It must also resolve “certain technical limitations” related to the divestment of JFN
Shares of James Fisher & Sons plummeted after the shipbuilding group delayed the release of its full-year results to finalize talks with banks about its existing debt facilities.
Full-year results are postponed by a month to April 28 as the group also tries to resolve “certain technical constraints” related to the sale of its nuclear decommissioning services division, JFN.
However, the group told investors on Friday it still expects 2022 performance to be broadly in line with 2021, when it posted a loss of £20.7m, with sales up 7.4 per cent to £475m .
Debt talks: James Fisher needs to finalize talks with the credit banks started earlier this year
James Fisher shares fell 6.9 percent to 291.50 p during midday trading on Friday. The stock lost a fifth of its value last year.
The group has divested parts of its business to pay off debt after a difficult few years.
In December, the group sold four businesses, including the maritime services vessel, Swordfish, to India-based Seamec for £20 million.
The sale of the other three vessels – Prolec, Mimic and Strainstall – netted James Fisher a total of approximately £18.4 million.
But it has yet to get approval for some aspects of the JFN sale, though it said it is grateful for the lenders’ “constructive approach” and has “accelerated cooperation” with them to seek a permanent solution by the end of April.
The group praised an “encouraging” start to 2023, with performance in January and February in line with expectations and above the level of the same period last year.
Net debt is also in line with management expectations, with the group benefiting from the receipt of £20m cash proceeds from the completed sale of Swordfish.
Before receipt of the proceeds from Swordfish, net debt was £135 million as of 31 December, down 3.3 per cent from £139.6 million a year earlier.
While the economic environment remains challenging more generally, the Group has made clear strategic and financial progress in recent months.
“With the benefit of a more focused portfolio and a strengthened strategy, the board is confident that the group can continue this momentum through 2023, driving further financial and operational improvements.”