Despite an unpredictable shipping market, broker Clarkson (CKN) beat market expectations last year, reporting a 35 per cent improvement in underlying pre-tax profit to £33.8m. Adjusted EPS increased by 37 per cent to 134p (versus Panmure Gordon's estimate of 127p) and the dividend rose for the 12th year in a row - up 7 per cent to 60p.
This was largely the result of a good year for the broking division. Revenues rose 14 per cent to £183m and operating profits increased to £34.1m from £27.5m in 2013. The financial division is also going from strength to strength since its 2013 restructuring. Revenues there jumped by a third to £15.5m, while losses fell to just £1.4m from £3.3m in 2013. Shipping markets aren't bouncing back, though, with ongoing supply and demand imbalances in the dry bulk business weighing on prospects.
Last November the group agreed to buy Norwegian competitor RS Platou for £281m. Chief executive Andi Case said Clarkson will focus on fully integrating the Platou deal (which was only finalised last month) before it looks for any more acquisitions.
Analysts at Panmure Gordon expect pre-tax profits of £64m for 2015, giving EPS of 158p. This is up from £34m and 134p in 2014.
| CLARKSON (CKN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,069p | MARKET VALUE: | £623m | |
| TOUCH: | 2,055-2,070p | 12-MONTH HIGH: | 2,750p | LOW: 1,835p |
| DIVIDEND YIELD: | 2.9% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 556p* | NET CASH: | £92m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 203 | 32.4 | 125 | 47 |
| 2011 | 195 | 35.4 | 134 | 50 |
| 2012 | 176 | 22.9 | 85 | 51 |
| 2013 | 198 | 22.0 | 82 | 56 |
| 2014 | 238 | 25.2 | 92 | 60 |
| % change | +20 | +15 | +12 | +7 |
Ex-div: 21 May Payment: 5 Jun *Includes intangible assets of £40m, or 134p a share | ||||
