Clarkson warns of challenging outlook

In a statement to be made at the company’s annual general meeting in London, chairman James Hughes-Hallett said global shipping markets have continued to be challenging this year, with the ClarkSea Index – a weighted average index of earnings for the main vessel types in shipping – down 25% for the same period year-on-year and 24% on the quarter.

The FTSE 250 shipping services group said its broking business has seen good transaction volumes compared to the market, albeit at lower rates, against this “difficult backdrop”.

In the financial division, macro-economic uncertainty is hampering trading conditions across international markets, which in turn is denting overall activity levels, the company said.

In Clarkson’s port services business, the downturn in the oil and gas industry continues to take its toll, as anticipated at year end. As a result, the company said it is managing the operations to optimise the allocation of resource and ensure it is in a strong position to react when the market improves.

“The challenges across our markets have however increased the importance clients place on our industry-leading market insights, data and research, and this demand continues to underpin growth in our research business.”

At 1215 BST, Clarkson shares were down 4% to 2,176p.