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James Fisher & Sons Share Price Plunges on Negative Trading Update

Updated: 25 Oct 2021

Shares of marine services provider James Fisher & Sons (LON: FSJ) plummeted Monday after it said business is below the previously expected rate, and projects have been delayed. 

The company's shares are down just under 35% at 510p so far on Monday. 

“Following a difficult start to the year, improvement in the Fendercare ship-to-ship transfer business remains below the rate previously expected, with some growing evidence of market shifts in some key territories,” the group said. 

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In addition, it said customers of its marine contracting, decommissioning and nuclear businesses have further delayed projects in recent weeks.

There has also been a recent deterioration in the condition of a financially distressed customer has increased bad debt risk by £2m.

As a result, the company has lowered its guidance for the full year and FSJ's management is performing a detailed review of its cost base and balance sheet. 

However, despite the negative outlook, revenue in the quarter ended 30 September was 7.6% higher than Q3 2020 and 8.7% higher than Q2 of 2021. Its year-to-date income is 3.9% below the prior year.

“Notwithstanding some revenue opportunity moving from Q4 2021 to 2022, the Board currently expects this to be materially offset by the continuation of challenges the Group is currently experiencing with customer demand and the safe mobilisation of teams to work sites,” FSJ stated.

“The board remains confident in the Group's strategy to deliver sustainable profitable growth from the significant market opportunities that are available to it and remains committed to executing on its long-term strategy,” they added. 

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