Choppy trading for Clarkson

Profits at Clarkson dipped in the first half of the year as the shipping services group pointed to a “challenging trading environment”.

The firm posted pre-tax profits of £18 million for the six months to 30 June, down from £21.9m in the same period last year. On an underlying basis, profits fell from £24.5m to £19.2m.

Revenues also came in lower, falling from £156.8m to £152.6m.

The figures come after Clarkson issued a profit warning in April, saying that earnings for both the first half and the full year were likely to be “materially below those of last year”.

Clarkson blamed choppy conditions in shipping and offshore capital markets, which resulted in transactions being pushed back.

This was compounded by a quiet period in sale and purchase activity for the group, while a weaker dollar and lower freight rates in the tanker market also took their toll.

But boss Andi Case struck a more upbeat tone yesterday, saying: “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 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.”

Clarkson confirmed its outlook for the full year remains unchanged since the April trading update.

Brokerage Liberum upgraded its recommendation to “buy” from “hold” following the update, saying that confidence in the short-term outlook has improved.