James Fisher & Sons plc has released its full year trading update for the year ended 31 December 2023. The company's overall underlying trading in the second half was resilient and in line with market expectations. The Group has continued to make further early progress with its transformation during the period, focusing on operational improvements and simplification.
Performance trends across all divisions through the second half were generally consistent with the first half. The energy market conditions remained largely supportive, underpinning strong performance in a number of divisional businesses. However, North Sea IRM and decommissioning conditions continued to be challenging. The Maritime Transport division performed well with Tankships maintaining high tanker utilization and stable day rates continuing for spot charter while Fendercare benefitted from increased operations in Brazil.
The Group made further strategic progress in the second half to simplify and focus its portfolio, while improving overall financial performance. In December 2023, the Group ceased operations at Subtech Europe, which generated c.£40m of revenue in 2023. The Group also reduced its borrowings in the second half with pre-IFRS 16 net debt at 31 December 2023 reducing to £140m, from £147m at 30 June 2023.
Jean Vernet, Chief Executive Officer, expressed optimism about the progress made across the three divisions, stating, "We are building the foundations for recovery and are seeing the benefits of the operational improvements being implemented. We remain fully committed to our ongoing portfolio simplification, which should further strengthen our balance sheet, as well as the investment in capability that will provide a platform for sustainable growth."