Clarkson posts big rise in half-year profits, eliminates debt

Clarkson saw profits tax before jump by a quarter to reach £21.9m at the half-year stage amid top-line growth from £147.2m to £156.8m.

On an underlying basis, profits before tax were ahead from £21.8m to £24.5m, for 22% growth in earnings per share to 50.8p.

The company said it was seeing signs of rebalancing in its markets but low newbuilding activity meant activity was continuing to be dominated by spot business, limiting its forward visibility on revenues. Neither did management expect a "major upturn" across the sector in the near-term.

However, despite experiencing some challenging conditions in the first half of 2017, "very early signs" of recovery in some of the major shipping markets were emerging, the group's chairman said.

Significantly, the company announced it was debt free following the repayment of loan notes in June 2017.

For the six months to 30 June, the group's preferred measure of liquidity, net funds, which excludes amounts accrued for performance-related bonuses, rose from £46.7m to £71.4m.

By segments of activity, underlying profits in Broking improved from £19.3m to £21.0m, in Financial they rose from £2.4m to £5.0m and in Research they were up from £2.3m to £2.4m while in Support they slipped from £0.8m to £0.7m.

Clarkson chief Andi Case, said: "Our solid cash position means that irrespective of market conditions, we are able to invest in the business for future growth, deliver increasing returns to shareholders and take advantage of strategic opportunities as they arise."

The shipping services group raised its interim pay-out from 22p to 23p.

As of 0844 BST shares were edging higher by 0.08% to 2,654p.