Join our community of smart investors

Clarkson stabilises in second half

The shipping services company reported a better second half after a "challenging start" to the year
March 11, 2019

The focus at Clarkson (CKN) during the second half of 2018 was to minimise the impact of a "challenging start" to the year, when first-half profits missed expectations due to fewer investment banking transactions in the asset broking division and a subdued period for sale and purchase broking. Clarkson ended the year with numbers marginally ahead of consensus estimates after a rebound in the sale and purchase markets in the second half.

IC TIP: Hold at 2385p

Chief executive Andi Case said geopolitical uncertainty and natural disasters affected global sentiment and exchange rates which, in part, offset better visibility from an improved forward order book. "Significant market disruption" is expected towards the end of 2019 as regulatory changes from the International Maritime Organisation (IMO) to cap sulphur dioxide emissions come into effect. The changes will limit available fleet supply to some extent, as ships go out of service to prepare for compliance, and is expected to limit the expansion of the active fleet to below 3 per cent.

Analysts at Panmure Gordon expect adjusted pre-tax profits of £50.5m during 2019, giving EPS of 121p, compared with £45.3m and 105p in 2018.

CLARKSON (CKN)   
ORD PRICE:2,385pMARKET VALUE:£723m
TOUCH:2,365-2,390p12-MONTH HIGH:3,455pLOW: 1,834p
DIVIDEND YIELD:3.1%PE RATIO:24
NET ASSET VALUE:1,421p*NET CASH:£73.4m
Year to 31 DecTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201423825.291.960.0
201530231.868.262.0
201630647.312065.0
201732445.410473.0
201833842.998.875.0
% change+4-6-5+3
Ex-div:16 May   
Payment:31 May   
*Includes intangible assets of £293m, or 968p a share