UK's Clarkson interim revenue rises, helped by elevated freight rates
UK's Clarkson interim revenue rises, helped by elevated freight rates
Overview
UK shipping services firm's interim revenue rose 39% yr/yr on strong trading conditions
Underlying basic EPS for the half rose to 147.6p from 98.6p yr/yr
Company raised interim dividend to 35p
Outlook
Clarksons expects full-year results to be materially ahead of market expectations
Company says usual second-half weighting is unlikely given exceptional first-half strength
Clarksons says geo-political tensions and macro-economic uncertainty continue to influence outlook
Result Drivers
TRADE ROUTE DISRUPTION - Co said closure of the Strait of Hormuz and related geo-political conflict drove volatility and reshaped shipping markets, supporting elevated freight rates and demand for chartering and risk management solutions
ACQUISITIONS AND ORGANIC GROWTH - Co said acquisitions of Link Group, Zuma Labs and Serpac International, along with hiring key staff, expanded product offering and geographic footprint
STRONG FINANCIAL DIVISION - Co said Financial division revenues nearly matched prior full yr, driven by debt capital markets activity and positive investor sentiment
Company press release: ID:nRSC8657Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 413.50 mln |
|
H1 Adjusted Pretax Profit |
| GBP 61.50 mln |
|
H1 Dividend |
| GBP 0.35 |
|
H1 Pretax Profit |
| GBP 55.60 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the marine freight & logistics peer group is "buy"
Wall Street's median 12-month price target for Clarkson PLC is GBp5,090.00, about 7.6% above its July 31 closing price of GBp4,730.00
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago
Reuters Recommended Reads
July 31 - Singapore's Vallianz expects H1 net loss on Middle East turmoil
Aug 2 - Italian-led EU force boards sanctioned tanker from Russia's 'shadow fleet' in Mediterranean
Aug 1 - EU naval force says Italian frigate escorts merchant vessel safely through Red Sea
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)