Clarkson grew its market share in the first half in spite of what finance director Jeff Woyda described as "incredibly challenging" market conditions. "Our goal is to keep improving our market position, so when the recovery comes we will be stronger than we were before the downturn," said Mr Woyda.
The shipping services group saw a 19 per cent drop in underlying pre-tax profits to £11m before exceptional gains that boosted the reported figures, on flat revenues, reflecting a 23 per cent decline in average vessel earnings. The shortfall also reflected a squeeze on the group's finance division, encompassing futures broking and financial services, where losses almost doubled to £4.8m. This prompted broker Panmure Gordon to slash its full-year EPS forecast by 20 per cent to 90p (121p in 2012), although the broker notes scope for "the second half performance of the division to be significantly better". It's worth noting that the broking division, which generates the bulk of revenues, broadened its market footprint in spite of a continued drop in dry bulk earnings.
Credit markets remain tight, however, and Mr Woyda does not see overall conditions for the shipping industry recovering in the second half, although he expressed confidence in delivering future growth: "We believe very strongly that the market will turn around."
CLARKSON (CKN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,265p | MARKET VALUE: | £240m | |
| TOUCH: | 1,252p-1,265p | 12-MONTH HIGH: | 1,421p | Low: 1,012p |
| DIVIDEND YIELD: | 4.3% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 648p | NET CASH: | £76.4m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 88.6 | 13.5 | 52.6 | 18.0 |
| 2012 | 88.0 | 14.7 | 54.0 | 18.0 |
| % change | -1 | +9 | +3 | nil |
Ex-div: 12 Sep Payment: 28 Sep *Includes intangible assets of £39.9m, or 210p a share | ||||
