Clarksons trading well despite strong headwinds

Shipping services group Clarkson reported on a year of solid growth on Monday, with revenue growing 26.9% to £301.8m in the 2015 calendar year, from £237.9m in 2014.

Its preliminary results showed underlying profit before tax was up 49.4% top £50.5m from £33.8m, and profit before tax grew 26.2% to £31.8m from £25.2m. Underlying earnings per share were 121.9p, down from 134.2p in 2014.

The company's basic earnings per share stood at 68.2p, down from 91.9p in 2014.

Chief executive Andi Case described the performance as robust in what was a challenging year across all markets.

"Offshore has experienced the most challenging environment, where significant movements in commodity prices have changed trade flows, which in turn has created both positive and negative impacts to shipping demand as the volatility has played out," he explained.

"Throughout, our 'best in class' service offer, underpinned by unique breadth, global reach and the depth of expertise, has enabled us to not only be at the forefront of activity in the markets, but benefit from a flight to quality as operators look to work with the most experienced and creative solution providers in the industry," Case added.

During the year, Clarksons managed to successfully integrate RS Platou ASA following its acquisition in February 2015.

The company said seaborne trade grew in 2015, though the primary concern remained an oversupply of tonnage in a number of shipping markets combined with the challenge of debt and equity funding across the industry.

"The geopolitical and macroeconomic environment remains very uncertain and as such, we do not anticipate any changes to our markets in the near term," Case said.

"However our business model has proven to be robust and the strategic advances we have made in 2015, coupled with our strong balance sheet, ensure that we are 'fit for the future'."

Looking at the current year, Clarkson's forward order book for the enlarged group stood at $151m (£106.4m). The firm's balance sheet was described by its board as 'solid', with £96.1m in net funds.

Clarkson's board recommended a final dividend of 40p, taking the year's total dividend to 62p - up from 60p in 2014. It was a continuation of the unbroken progressive dividends seen since 2002.