18th Aug 2014 10:11
LONDON (Alliance News) - Shipping services firm Clarkson PLC Monday hiked its interim dividend after reporting a rise in pretax profit in the first half on the back of a revenue increase, although it warned it was facing challenging market conditions and a hit from the strength of sterling against the dollar.
The company reported a pretax profit of GBP14.1 million in the half year to June 30, up from GBP9.0 million in the same period last year. That was driven by a 25% rise in revenue to GBP111.7 million, from 89.1 million a year earlier.
On the back of the profit rise, the firm hiked its interim dividend to 21 pence a share, from 19 pence last year.
In its main broking arm, the company said revenue was up to GBP84.5 million, from GBP73.4 million last year, despite the firm warning on the current state of trading in a number of segments.
The strongest performances came from its financial unit, which generated revenue of GBP8.4 million, from GBP3.9 million last year, and its support business, where revenue rose to GBP14.1 million, from GBP7.2 million. Revenue in its research business edged up to GBP4.7 million, from GBP4.6 million.
Despite the revenue increase, the company said shipping markets remain volatile at present. It expressed optimism that the moves it has made to invest in all areas of its business would leave it well-positioned when a sustainable recovery emerges.
"Clarkson's strong performance in the first half of 2014 once again underlines the strength of the company's strategy and business model. Clarkson continues to make positive strides despite the challenges that remain in shipping markets and the weakness in the US dollar," said Clarkson Chief Executive Andi Case.
"We have seen some tentative signs of recovery in certain areas of the market," Case added.
Clarkson shares were up 2.4% to 2,220.233 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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