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James Fisher & Sons PLC on Wednesday posted a fall in interim profit as administrative expenses and cost of sales outpaced revenue growth.
Pretax profit in the six months to June 30 narrowed to £3.2 million from £8.1 million a year prior, the Cumbria, England-based marine services company said.
Revenue increased 2.0% to £238.4 million from £233.7 million. However, this was offset by administrative expenses widening by 9.6% to £49.2 million from £44.9 million. Further, cost of sales also outpaced revenue growth, increasing by 2.9% to £182.7 million from £177.6 million.
Meanwhile, the company said revenue from its Specialist Technical unit fell 17% to £56.1 million from £67.8 million, citing underperforming contracts. The unit turned to an underlying operating loss of £2.5 million from a profit of £5.6 million a year prior.
On a brighter note, the Offshore Oil unit increased its revenue by 28% to £50.8 million from £39.6 million. Underlying operating profit climbed by 55% to £8.2 million from £5.3 million.
James Fisher proposes no interim dividend, unchanged from a year ago.
Looking ahead, the marine services firm expects the second half of 2022 to be ‘materially stronger than the first half’, adding that trading in July and August was in line with expectations. Meanwhile, net debt and leverage is set to reduce due to seasonally driven operational cashflows.
‘ Although the ongoing geopolitical and economic climate is likely to remain uncertain, the Board is confident that it is taking the right steps to stabilise the business and create a platform for sustained recovery,’ Chair Angus Cockburn said.
James Fisher & Sons shares fell 3.2% to 295.36 pence each in London on Wednesday morning.
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