# James Fisher & Sons Q3 revenue 17% lower than comparable period last year

- Link: https://www.directorstalkinterviews.com/james-fisher-sons-q3-revenue-17-lower-than-comparable-period-last-year/412935472
- Published: 2020-11-06T07:53:59+00:00
- Author: Amilia Stone

**James Fisher and Sons plc** (LON:FSJ), the UK’s leading marine services company,
has published its trading update for the quarter ended 30 September 2020.Trading
in the third quarter continued to be challenging as the Group did not see the improvement
to trading conditions and the seasonal uplift it had been anticipating at the Half
Year Results. As a result, revenue for the nine months ended 30 September 2020 was
17% lower than the comparable period last year. Stringent cost control has reduced
selling, general and administration costs by 17% to date compared to 2019. The Board
now anticipates underlying operating profit for the full year, before separately
disclosed items, to be in the range of £35m-£40m.

Due in large part to Covid-19 restrictions, especially in the UK, the Middle East
and southern Africa, revenue in Marine Support continued to be impacted by project
delays and cancellations in subsea projects in both Renewables and Oil & Gas. In
response a further restructuring programme has been implemented in Marine Support
and the carrying value of the asset base is under review.   

Elsewhere, the Group performed with resilience in the period.  Within Marine Support,
ship-to-ship traded in line with our expectations in the quarter. In Specialist 
Technical, good progress was made on approval and testing milestones on the supply
of six swimmer delivery vehicles and separately a 500-metre saturation diving system.
Offshore Oil remained resilient in the quarter and performed in line with management
expectations. Tankships improved month on month following the sharp drop in utilisation
in April due to lockdown, and fleet utilisation was just below 90% in September.

Net borrowings were in line with expectations at 30 September and headroom under
committed revolving credit facilities was c. £96m.

James Fisher and Sons is diversified geographically and by end market and continues
to be resilient and profitable in the most challenging of market conditions. Swift
actions taken to reduce costs and to improve liquidity, position James Fisher for
an improvement in market conditions and the Group remains well placed to deliver
future growth for its shareholders.

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