11th Mar 2019 07:59
LONDON (Alliance News) - Clarkson PLC on Monday reported a slight decrease in its annual profit due to a challenging start to 2018 and higher costs.
For 2018, the FTSE 250 shipping services provider posted pretax profit of GBP42.9 million, 5.5% lower compared to GBP45.4 million a year ago.
Revenue meanwhile rose 4.2% to GBP337.6 million from GBP324.0 million.
The dip in profit was mainly due to higher administrative expenses of GBP282.1 million compared to GBP269.3 million a year ago.
Clarkson upped its total dividend by 3% to 75 pence per share, from 73p paid a year ago. This was after recommending a final dividend of 51p up from 50p.
"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," Chief Executive Officer Andi Case said.
Looking ahead, the company said it started the year with a "stronger forward order book".
However, it warned that geo-political uncertainty, from trade wars, Brexit and the imposition of sanctions, is continuing to have an impact on global sentiment.
"This is causing delays in the ability for our financial segment to execute on awarded mandates and also, combined with the effects of tragic natural disasters, is impacting the rate environment within the dry cargo segment," Clarkson said.
It added: "Consequently, we believe our results in 2019 will be second half weighted as it will take a time for these headwinds to improve."
Finally, Clarkson said that Non-Executive Director Peter Anker will step down from its role on the company's board after its annual general meeting in May.
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