Clarkson profits fall as shipping firm warns tough market conditions to continue
Clarkson PLC (Clarksons) is the world’s leading provider of integrated shipping services. From offices in 23 countries on six continents, we play a vital intermediary role in the movement of the majority of commodities around the world.
Clarkson PLC yesterday announced preliminary results for the 12 months ended 31 December 2018.
• Robust performance in line with expectations, despite a challenging start to the year
• Underlying profit before taxation £45.3m (2017: £50.2m)
• Underlying earnings per share 105.2p (2017:116.8p)
• Strong balance sheet, including a 5% increase in free cash resources to £57.0m (2017: £54.1m)
• Dividend increased by 3% to 75p; 16 years of consecutive dividend increases
 Free cash resources are cash and cash equivalents and current investment deposits, after deducting amounts accrued for performance- related bonuses, outstanding loan notes and monies held by regulated entities.
Andi Case, Chief Executive Officer, commented:
“Despite a challenging start to 2018, I am pleased to announce that we delivered a robust financial performance in line with expectations, strengthening our position at the forefront of the market and generating further returns for our shareholders with our 16th consecutive year of increased dividend. We continue to invest in our innovative technology offering and hire the best talent, maintaining our leading position by providing first class products and services for our clients.
“Geo-political uncertainty and natural disasters are currently affecting global sentiment and exchange rates, which in part offsets the better visibility from an improved forward order book. These headwinds are having an impact, in particular within our financial segment, but as the year progresses, we expect these to diminish and the impact from changes in regulation around sulphur emissions to begin. Consequently, we believe that the strength and breadth of Clarksons, enhanced by technology platforms which continue to be rolled out to our clients, positions the Group well for the future. The Board remains confident about the longer-term outlook for Clarksons.”
Alternative performance measures (APMs)
Clarksons uses APMs as key financial indicators to assess the underlying performance of the Group. Management considers the APMs used by the Group to better reflect business performance and provide useful information. Our APMs include underlying profit before taxation and underlying earnings per share. An explanation of the term ‘underlying’ and related calculations are included within the financial review.Full Report
Source: Clarkson PLC