Clarkson fights to remain buoyant in face of shipping slump

Revenue of £147.2m in the six months to 30 June was up just over 1%, while underlying profits before tax were down 9% to £21.8m and underlying earnings per share was down 2.5% to 52.9p.

The interim dividend was maintained at 22p per share.

Management's expectations for full year results remain unchanged from the 4 July update, where the FTSE 250 group has warned 2016's profits will be "materially lower" than last year's, adding now that there would be greater balance between the first and second halves.

"The global shipping industry is experiencing the most challenging rate environment seen in many years which, as previously highlighted, has inevitably impacted the group's performance for the first six months of 2016," said chief executive Andi Case, with the Baltic Dry Index testing all-time lows during the period.

In the short-term, Case said shipping markets are likely to remain tough due to the ongoing supply/demand imbalance hitting newbuild contracts and high levels of spot business limiting visibility of earnings.

"However, we believe industry operators and investors will look to these difficult trading conditions to seek solutions and exploit areas of opportunity and Clarksons' full service client offer, underpinned by our geographic reach, will continue to ensure we are at the forefront of all activity.

"Clarksons' clear strategy is aligned to the long-term fundamental drivers in our markets. Our business is highly cash generative and through our strong balance sheet we will continue to invest and take advantage of opportunities, positioning the group for upturns in each of our markets when they come."

The recent recovery in the oil price has driven some return to activity in offshore broking, but any recovery will have to be sustained for some time before confidence returns and meaningful volumes start to come through.

Falling rates and asset values, along with subdued capital markets and continued weak investor confidence, has led to reduced activity within the financial division, though the unit has leveraged what opportunities it finds to build an "encouraging" mandate pipeline.

While the support business remains depressed by the offshore slump, there was an increase in activity in the offshore renewable sector and a strong performance from dry cargo.