Shipping broker Clarkson lifted by rising tide of seaborne trade
SHARES in ship broker Clarkson were buoyed yesterday by the rise in trading activity on the seas.
Revenues at Clarkson rose 12 per cent last year to £198m, while profits excluding one-off costs rose 26 per cent to £25.1m, beating forecasts.
While the FTSE-listed firm said rates for ships often were below operating costs at the start of 2013, demand for seaborne trade continued to improve and the final quarter of the year was particularly strong.
Clarkson said the upswing in ship activity had helped the capital markets side of its business, which took part in 20 deals to raise more than $3.9bn last year, compared to four transactions in 2012.
The firm, which was set up in London in 1852 as a shipping rental business but has since diversified, closed its Dubai capital markets office during the year and opened new branches in Morocco and Sweden.
“An increased forward order book within broking, momentum in revenue growth from both the financial and research divisions, and an enlarged support team incorporating Gibb Tools, means that we begin 2014 with a degree of optimism,” the firm said in a statement.
Clarkson said its balance sheet, with £75m of net funds, will allow for further acquisitions this year.
For the 11th consecutive year, Clarkson raised its dividend, taking its annual payout from 51p to 56p.
Shares in Clarkson increased 10.64 per cent in London yesterday to close at 2,266p.