DAVY VIEW

James Fisher has announced the completion of the sale of RMSpumptools. The cash proceeds, of circa £83m, will broadly half the current net debt level and enable the finalisation of the new revolving credit facility (RCF) negotiation. We anticipate the new RCF will be on significantly better terms, with longer duration and a lower interest rate. Management will then be in a stronger position to give more details on its growth plans and how it will progress to 10% EBITA margins. We see this as an inflection point and reiterate our 600p price target.