Clarkson sees better medium term as FY profits fall

Shipping broker Clarkson said interim prospects remained challenging with signs of a pick up in the medium term as it reported a fall in full year underlying pre-tax profits to £44.8m from £50.5m.

The underlying numbers reflected "significantly lower freight rates and asset values during the year, offset by increased transaction volumes, increased market share and a strong US dollar", Clarkson said. Reported pre-tax profits rose to £47.3m from £31.8m on revenues up to £306.1m from £301.8m.

A final dividend of 43p a share was declared, up from 40p in 2015, making a total dividend of 65p, up 5%.

Chief executive Andi Case said indicators suggested the shipping and offshore markets were “beginning to recalibrate and we are well positioned to capitalise on the opportunities this presents in 2017 and beyond”.

“Whilst we anticipate that the market will remain challenging in the near-term, we believe the medium-term outlook for the sector is more positive,” he said.

“Demand continues to progress and the recalibration of the demand/supply balance is improving following lower levels of ordering and continued scrapping assisted by the impact of environmental regulation.”