9th Mar 2020 08:25
(Alliance News) - Clarkson PLC on Monday said its profit plummeted in 2019 due to an impairment charge, and it expects to take a further hit from coronavirus in the first half of 2020.
The FTSE 250-listed shipping services provider said its pretax profit in 2019 fell to GBP200,000 from GBP42.9 million reported a year earlier.
Clarkson explained that it has reviewed the need for a non-cash impairment relating to the acquisition of RS Platou ASA. The company said it has determined that an impairment charge - relating to goodwill attributable to securities and offshore broking - amounting to GBP47.5 million was required.
Underlying pretax profit - which excludes exceptional items and acquisition costs - grew to GBP49.3 million from GBP45.3 million year-on-year.
Revenue, meanwhile, rose 7.5% to GBP363.0 million from GBP337.6 million the year before.
Clarkson declared a dividend of 78 pence a share, having paid a 75p payout for 2018.
"2019 delivered robust underlying financial results and strong free cash flow generation, which has enabled us to increase the dividend for the 17th consecutive year," said Chief Executive Andi Case.
"We started 2020 with a stronger forward order book than in 2019, however, the emergence of the covid-19 virus will impact our first half performance. In the medium term, the environmental regulatory drivers and supply demand dynamics in the shipping industry are favourable and we remain confident in the prospects of the group," added Case.
Clarkson shares were trading 7.1% lower in London on Monday at 2,215.00p each.
By Evelina Grecenko; [email protected]
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