Clarkson raises dividend despite slow first half

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Clarkson raises dividend despite slow first half
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Shipping services provider Clarkson (LON:CKN) saw revenues contract by 2.67% to £152.6 million during the six months ended 30th June. Profits before tax for the period dropped by 17.8% to £18 million. Despite these results, management have increased the interim dividend to 24p.”

Management said that trading conditions had been difficult during the first half, but had improved recently, and that the current US exchange rate was more favourable to the business. As a result, guidance for the current year has not been adjusted and the board reiterated their confidence in the business’ medium to long term prospects.

Chief Executive Andi Case commented: “The first quarter of 2018 presented a challenging trading environment across the shipping and offshore capital markets, including a quiet period in sale and purchase, and accentuated by a fall in the value of the US dollar. Conditions in some markets did, however, improve in the second quarter when the breadth and diversity of our business again provided opportunity irrespective of volatility in the market.

“We should benefit in the second half of the year from these recent improvements and remain confident in the mid to long-term potential for the Group. Our investment across the business continues apace, as we drive innovation and remain focused on furthering Clarksons’ position at the forefront of the sector.”

Shares in Clarkson climbed by 8.60% to 2,807.40p (as of 10:00 BST).

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