Clarksons posts drop in interim profits but lifts dividend, backs FY outlook

Shipping services firm Clarksons reiterated its expectations for the full year on Monday even as it posted a drop in interim profit and revenue.

In the six months to 30 June, underlying pre-tax profit fell to £51.5m from £53.1m in the same period a year earlier, with revenue down to £310.1m from £321.1m.

Clarksons said the broking division had another successful first half, with strong performances across all major segments.

Both spot and forward business transacted was ahead of the same period last year, it said.

While reported divisional profit was slightly lower than in the first half, the performance is expected to be second half weighted due to the invoicing profile of the forward order book, Clarksons said.

The company said that against a "challenging" geopolitical backdrop and global economic uncertainty, the "encouraging" fundamentals of the shipping markets continue, with global supply and demand dynamics remaining positive.

"Supply-side constraints have resulted in relatively low order books in many sectors, most notably bulkers and tankers," it said.

"Limited berth availability at shipyards creating long lead times for new orders, high newbuild prices from increased commodity and labour costs and uncertainty around fuelling technologies, all continue to constrain the building of new vessels."

Chief executive Andi Case said: "The profile and further development of the forward order book, level of new business being transacted and pipeline for the second half, means that we have confidence that we will be second half weighted and deliver full year results in line with the board's expectations.

"This confidence has enabled the board to increase the interim dividend by 2p to 32p, continuing the progressive dividend policy into the 22nd year."