Broker Clarkson (CKN) reported better-than-expected results as the ever-volatile shipping market showed signs of recovery in the final quarter of 2013. After witnessing its own ClarkSea index (which measures average earnings for different vessel types) fall to historic lows at the end of 2012, Clarkson made a sound recovery last year. Underlying pre-tax profit grew 26 per cent to £25.1m and adjusted EPS rose 31 per cent to 98p.
Finance director Jeff Woyda told us that the company's strategy to increase volumes and grow market share had positioned Clarkson for a comeback once the trading environment improved. A more active acquisition strategy could be on the agenda now that conditions are better and the company has plenty of cash. Mr Woyda said funds would first be directed into recruitment and technology upgrades in its core ship-broking business after a strong 2013 performance. Broking reported a £2.3m jump in revenues to £27.5m, while the forward order book is valued at $100m (£60m) - up from $81m at the end of 2012.
But Mr Woyda admitted that a weakening dollar would be a short-term headwind in 2014. Broker Panmure Gordon expects underlying pre-tax profits of £33m in 2014, giving adjusted EPS of 127p.
CLARKSON (CKN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,208p | MARKET VALUE: | £420m | |
| TOUCH: | 2,208-2,223p | 12-MONTH HIGH: | 2,441p | LOW: 1,472p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 725p* | NET CASH: | £75m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 177 | 22.5 | 90 | 43 |
| 2010 | 203 | 32.4 | 125 | 47 |
| 2011 | 195 | 35.4 | 134 | 50 |
| 2012 | 176 | 22.9 | 85 | 51 |
| 2013 | 198 | 22.0 | 82 | 56 |
| % change | +12 | -4 | -4 | +10 |
Ex-div: 21 May Payment: 6 Jun *Includes intangibles of £40m, or 212p a share | ||||
