James Fisher and Sons plc, the Barrow-in-Furness international marine engineering company, said it sold James Fisher Nuclear Holdings Limited (JFN) and related properties to Myneration Limited, a wholly-owned investment vehicle of Rcapital Partners LLP.
JFN is a supplier of specialist engineering, manufacturing and technical services to the UK’s nuclear decommissioning industry.
Fisher also published a trading update for the year ended December 31, 2022, saying it generated good revenue and underlying operating profit growth across its Marine Support, Offshore Oil and Tankships divisions.
Fisher said it is expecting to report revenue from continuing operations of £475 million, up from £442.4 million.
However, Fisher said its Specialist Technical division experienced a disappointing year. Fisher shares fell about 6%.
“The sale forms part of the board’s ongoing commitment to rationalise and focus the group’s portfolio,” said Fisher.
“Existing management and staff will remain with the business as it transitions into new ownership and Rcapital will provide JFN with a £3m secured revolving credit facility to fund the growth of the business going forward.”
In the trading update, Fisher said: “The group made good strategic and financial progress during 2022, disposing of three businesses, agreeing the sale of the Swordfish dive support vessel and generating good revenue and underlying operating profit growth across the Marine Support, Offshore Oil and Tankships divisions.
“The Specialist Technical division experienced a disappointing year, with JFD at a trough in its long-term projects cycle and JFN, which will be reported as a Discontinued Operation, reporting an operating loss following ongoing project challenges.
“For the year ended 31 December 2022, the group is expecting to report revenue from continuing operations of c.£475m (2021: £442.4m). Underlying operating profit from continuing operations is anticipated to be in line with 2021.
“The three business sales completed in December 2022 generated gross proceeds of c.£18.4m. Net bank borrowings at 31 December 2022 were c.£135m, with the group expecting to remain within its banking covenants.
“The sale of the Swordfish Dive Support Vessel, which was announced in December 2022, completed in January 2023, with cash proceeds of c.£20m now received.
“The group has commenced discussions with its lending group regarding existing borrowing facilities, which have maturity dates ranging from October 2023 to September 2024.”
Fisher said its full year results will be published on March 28, 2023, two weeks later than had originally been planned “reflecting the significantly higher-than-normal levels of recent corporate activity and consequential impact on audit timetable.”