Clarksons Post Robust 2H Performance
Clarkson PLC, world’s leading shipping services group, reported robust performance during the six months ended 30th June 2015.
Robust performance despite continued challenging market conditions in some of our markets
Strong performance from broking division in tankers, specialised products and gas markets
Clarksons Platou Securities completed a number of significant transactions with pipeline looking strong for the second half of 2015
Completed acquisition of RS Platou ASA and integration progressing in line with plans
Rebranding of broking and financial services under the banner Clarksons Platou now complete
Merged teams in London, Oslo and New York
Revenue increased by 30% to £145.3m (2014: £111.7m)
Underlying profit before taxation* 49% ahead at £23.6m (2014: £15.8m)
Underlying earnings per share* 54.3p (2014: 62.2p)
Increased interim dividend 22p per share (2014: 21p per share)
Strong balance sheet, with £86.7m of net funds# underpinning long-term growth
*Including 5 months post-acquisition results of RS Platou ASA
#Net funds is cash and cash equivalents, less overdrafts and bonus entitlements
* Before exceptional items and acquisition costs
Andi Case, Chief executive, commented, “The multi-cyclical and volatile nature of our markets has once again been demonstrated by the sudden shift in oil and other commodity prices, giving rise to a consequential change in the demand supply balance in many markets. Across our broking and banking businesses, this backdrop has created both opportunities and challenges. The group made a solid start to the year, testament to the strength and breadth of our strategy and unique client offer.
“The acquisition of RS Platou completed during the first quarter and we are delighted with the level of interaction between the teams, the pace of integration and the reaction of our clients to the improved service.
“As previously outlined, the delivery profile of our activities in broking and financial will result in a weighting in performance towards the second half of the year. Whilst we are mindful of the ongoing headwinds in a number of our markets, our strategy has proven to be robust in this trading environment and with a strong balance sheet underpinning our business model we have confidence in Clarksons’ prospects for continued progress in the second half.”
The global shipping markets have been weak in recent years and in many sub-sectors still remain highly challenged. These headwinds have driven a flight to quality as clients look to work with the most experienced and creative advisors.
At Clarksons our robust business model has been proven in these challenging times. Our full service client offer across shipping and offshore, broking and banking is truly unique and we have continued to build market share and leverage opportunities across our business as the number one shipping services provider.
The acquisition of RS Platou ASA was completed during the first quarter of this year and the integration has continued at great pace. I congratulate the entire team for the rapid progress that has been made. New London and Oslo offices reflect our long-term vision for the business and the priority that we place on research and technology to support our teams and to give them the best tools to justify our position as the industry leader.