Clarkson increases dividend despite dip in half-year results
- Revenue fell to £310.1m year-to-year for the six months ended 30 June
- Underlying profit before taxation down slightly to £53.1m from £51.5m
Clarkson shares tumbled after it reported a dip in its revenues and profits in its first half results.
The world's largest shipping services company told investors on Monday that its revenue fell by 3.4 per cent year-to-year to £310.1million for the six months ended 30 June.
The FTSE 250-listed firm also revealed that its underlying profit before taxation saw a slight dip to £53.1million from £51.5million.
The world's largest shipping services told investors on Monday that its revenue fell by 3.4% year-on-year to £310.1million, for the six months ended 30 June
Following the trading update, Clarkson shares were down 9.61 per cent to 3,950p in Monday morning trading.
Despite the dip in results, the group has hiked interim dividend to 32p, up from last year's 30p, as it still expects annual results to be 'in line' with expectations.
Andi Case, chief executive officer of Clarkson, said: 'The profile and further development of the forward order book, level of new business being transacted and pipeline for the second half, means that we have confidence that we will be second half weighted and deliver full year results in line with the board's expectations.
'This confidence has enabled the board to increase the interim dividend by 2p to 32p, continuing the progressive dividend policy into the 22nd year.'
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Following the results, analysts at Panmure Liberum said Clarkson still remained a 'buy' as it said results 'were in line with [its] forecasts'.
In March, Clarkson posted record numbers for 2023 despite a 'year of disruption in the maritime markets'.
It revealed that its underlying profit before taxation was up 8.2 per cent year-on-year to £109.2million, whilst revenue rose to £639.4million, up last year's £603.8million.
The shipping results were largely aided by the unrest in the Middle East, which has led to an increase in ships being charted as transport companies attempted to avoid the Red Sea, where attacks on boats from Houthi rebels in Yemen have increased.
Shipping firms have had to arrange longer voyages to avoid using the Suez Canal, where tensions have flared following the war between Israel and Hamas.
The alternative shipping route around South Africa's Cape of Good Hope can add 10-14 days to a journey compared to passage via the Red Sea and Suez Canal.
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