James Fisher and Sons, the marine services group spanning Defence, Energy and Maritime Transport, reported underlying operating profit up 27.9% to £14.2m for the six months to 30 June, against a 2.1% rise in revenue to £195.9m.
The operating margin improved by 140 basis points to 7.2%, while reported operating profit more than doubled to £10.3m as adjusting items fell.
Defence revenue jumped 43% to £53.8m, with underlying operating margin up 800 basis points on stronger Tactical Delivery Vehicle and Submarine Platform demand, while the division's order book stood at £295m, down from £315m a year earlier, though a further £95m of confirmed framework awards support second-half visibility.
Maritime Transport revenue rose 8% to £74m, with underlying operating profit up 47.8% to £10.2m on high tanker utilisation and strong ship-to-ship transfer demand in Latin America.
Energy revenue fell 20.6% to £68.1m, or 11.7% excluding the previously announced Middle East and Africa closures, as geopolitical uncertainty and offshore wind project delays weighed on Energy Services, only partly offset by growth in Renewables.
Net debt on a covenant basis stood at £73.3m, equivalent to 1.5 times EBITDA, within the company's target range, with available liquidity of £47.2m.
Return on capital employed rose 210 basis points to 8.2%.
"Heightened geopolitical uncertainty has continued to challenge activity levels in the first half across several of our Energy markets," said chief executive Jean Vernet, adding that the group remains focused on building towards its medium-term targets of 10% underlying operating margin and 15% ROCE.
Early second-half trading has been in line with the first half, with momentum in Defence and Maritime Transport expected to continue, though Energy market conditions are anticipated to remain challenging.
Assuming no further deterioration in Energy markets, the board said its full-year expectations remain unchanged.
