Clarkson PLC Trading Update (2642K)
21 April 2020 - 4:00PM
UK Regulatory
TIDMCKN
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 funds(1) as at 31 March 2020 were
GBP88.5m (31 December 2019: GBP84.7m), 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: +44(0) 20 7334 0000
Camarco
Billy Clegg
Jennifer Renwick
Tel: +44(0) 20 3757 4983 / 4994
(1) Net 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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END
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