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James Fisher - More acquisitions before long

April 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Fisher's decision to write down the carrying value of Nexus and a loss on disposal of some vessels in its tankship business caused some confusion and an initial negative share price reaction when results for the year to 31 December were announced. In fact, adjusting for those one off items pretax profit was ahead of expectations at £11.8m for eps of 21.6p.  Total operating profit was up 18% to £15.6m which was a remarkable achievement given the extent of the decline in cable laying profits by equally dramatic growth in tankships and marine support services. Equally, cash generation was strong helped by the low tonnage tax regime with operating cashflow of £22.8m. Borrowings were maintained at £48m (gea ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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