Clarksons Delivers Strong 1H Results despite Challenging Markets
London-based provider of integrated shipping services Clarkson PLC (Clarksons) saw a strong financial performance during the six months ended June 30, 2017, despite continued headwinds in the global shipping markets and broader global macro-economic environment.
During 1H 2017, Clarksons’ revenue stood at GBP 156.8 million (USD 203.1 million), an increase of 6.5 percent compared to GBP 147.2 million (USD 190.6 million) recorded in the same period a year earlier.
What is more, the group’s underlying profit before taxation rose by 12.4 percent to GBP 24.5 million in the first half of 2017 from GBP 21.8 million posted in the six-month period a year earlier.
As explained, the first half of the year has seen a significant increase in spot broking revenues following an uptick in transaction volumes and a rise in dry cargo rates. This increase has gone some way to offset the lower revenues from the forward order book brought forward from previous years. The financial division has also performed strongly, following its successful second half of 2016. Growth has continued in the research division as well. The port services division traded flat as market activity remains depressed.
“We are pleased with our performance so far in 2017, increasing revenue and volumes in difficult shipping and offshore markets. As we see signs of a rebalancing across some of the shipping markets, we are optimistic in our ability to capitalise on the upturn in the markets when it occurs, whilst maintaining the strength of the underlying business. Nevertheless, in the short-term, low activity in the newbuilding market and a predominance of spot over longer-term period business continues to limit forward visibility of revenues,” Andi Case, Clarksons’ Chief Executive Officer, commented.
“Our solid cash position means that irrespective of market conditions, we are able to invest in the business for future growth, deliver increasing returns to shareholders and take advantage of strategic opportunities as they arise,” Case added.