Trading Update

RNS Number : 2642K

Clarkson PLC

21 April 2020

 

CLARKSON PLC

(the "Company" or "Clarksons")

21 April 2020

Trading Update

Clarksons is pleased to provide a trading update in respect of the three months ended 31 March 2020 and considers regular shareholder communication important in this ongoing environment of uncertainty from COVID-19.

Staff

Protecting the health and wellbeing of our staff and their families has been our highest priority and our advanced IT platform and infrastructure has meant that productivity has remained high, as our teams have worked extremely hard remotely to provide clients with uninterrupted service of the highest quality.

Several members of staff have suffered from the direct effects of COVID-19, and we were extremely saddened to lose a senior Managing Director and employee of some 40 years who passed away in March. Our thoughts are with his family at this time.

Trading

Broking has performed well over the period, with an increase in new business executed compared to the same period last year. All sectors have made a valuable contribution, but areas of particular strength were the tanker sector and wet futures, where rates and volumes benefited from the recent volatility of oil markets.

As expected, our Financial division has had a very quiet first quarter, with almost all activity in the capital markets having ground to a halt. As a result, securities revenue, including that from advising on primary transactions, has been extremely limited. A small restructuring, which was planned late last year, has been put in place to reduce ongoing overheads.

Our Research team has continued to service its customers effectively, providing them with much needed data and analytics on the state of the shipping and offshore markets. Revenues in the first quarter were broadly in line with the Board's expectations.

The Support division has inevitably seen a downturn from its oil and gas related activities, but renewables, short sea broking and port agency remain active, and overall the business is profitable and busy assisting its extensive client base with ongoing operational challenges.

Balance sheet and net funds

Net cash and available funds¹ as at 31 March 2020 were £88.5m (31 December 2019: £84.7m), highlighting our continued day-to-day operational discipline and robust financial position.

Outlook

The impact from COVID-19 on both demand and supply has varied locally and by market. Ultimately, the effect on shipping of the anticipated reduction in global GDP will depend on both the time to, and speed of, recovery. The ongoing nature of this uncertainty is particularly negatively impacting the financial markets. We therefore continue to believe, as highlighted in the Company's Full Year 2019 results issued on 9 March 2020, that the Company's performance will be impacted in the first half of 2020. Due to the limited visibility of the duration and impact of COVID-19, at this stage it is too early to quantify the potential effects on Clarksons' financial performance for the full year. We remain confident in the prospects of the Group in the medium-term.

Capital Markets Day

Clarksons has taken the decision to postpone the Capital Markets Day which was due to take place on 29 April 2020. The event was designed to showcase the market leading Sea/ suite of technology products and we believe that a face-to-face meeting in which analysts and investors have the opportunity to meet the broader Sea/ management team will be considerably more valuable than hosting the event virtually. We intend to hold the Capital Markets Day later in the year and will provide an update on timing in due course.

Ends

For further details contact:

Clarkson PLC

Andi Case, Chief Executive Officer

Jeff Woyda, Chief Financial Officer and Chief Operating Officer

Tel: [phone]

Camarco

Billy Clegg

Jennifer Renwick

Tel: [phone] / 4994

¹Net cash and available funds is cash and cash equivalents and current investment deposits, after deducting interest-bearing loans and borrowings and amounts accrued for performance related bonuses.

About Clarkson PLC

Clarkson PLC is the world's leading provider of integrated services and investment banking capabilities to the shipping and offshore markets, facilitating global trade.

Founded in 1852, Clarksons offers its diverse and growing client base an unrivalled range of shipbroking services, sector research, on-hand logistical support and full investment banking capabilities in all key shipping and offshore sectors.

The Company has delivered 16 years of consecutive dividend growth. The highly cash generative nature of the business, supported by a strong balance sheet, has enabled Clarksons to continue to invest to position the business to capitalise on the upturn in its markets.

Clarksons is listed on the main market of the London Stock Exchange under the ticker CKN and is a member of the FTSE 250 Index.

For more information, visit www.clarksons.com .

 

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