James Fisher and Sons (FSJ) H2 2024 earnings summary

Executive summary

• Completed key divestitures and the first phase of a business turnaround, simplifying the portfolio and implementing the One James Fisher model to align with core customer verticals in energy, defense, and maritime transport.

• Successfully refinanced debt on improved terms, significantly deleveraged the balance sheet, and reduced administrative costs, providing flexibility for future growth.

• Achieved significant progress in execution, accountability, and operational synergies, positioning for growth in 2025 with a clear strategy to scale in aligned markets and subsegments.

Financial highlights

• Adjusted revenue up 8.6% year-over-year, driven by strong H2 performance, mainly in Energy; unadjusted revenue down 11.8% due to disposals and closures.

• Adjusted operating profit up 31% to £22m (margin 5.4%); unadjusted operating profit flat; underlying EPS from continuing operations increased to 16.9p.

• Net debt reduced to £61m (covenant basis), net debt/EBITDA at 1.4x, within target range.

• ROCE increased to 8.2%, up 160bps year-over-year.

• Profit after tax rose to £5.5m from £2.3m year-over-year.

Outlook and guidance

• 2025 guidance unchanged, with performance expected to be H2-weighted and in line with Board expectations.

• Capital and development expenditure expected at £30m–£35m, similar to 2024 and weighted to 1H25.

• Bank interest rates guided at ~8.5%; effective tax rate expected at 29%.

• Mozambique contract concluded in Q1 2025, impacting full-year revenue by ~£35m.