Clarkson PLC on Monday raised its interim dividend despite reporting weaker first half performance, with the order book weighted toward the coming six months.
The London-based shipping and off-shore services provider said pretax profit fell 4.0% to £50.1 million in the six months that ended June 30 from £52.2 million a year before.
Revenue declined 3.4% to £310.1 million from £321.1 million.
Clarkson raised its interim dividend by 6.7% to 32 pence per share from 30p last year, representing the 22nd consecutive year of progressive dividends.
Free cash resources stood at £178.4 million, up 39% from £128.2 million.
Chief Executive Officer Andi Case said: ‘Supply and demand dynamics both remain favourable, and we expect to start seeing a positive impact from our recent hires in the second half of the year and into 2025.
Over the past twelve months, the company has invested in recruiting new personnel to expand its product offering, with the aim of strengthening Clarkson’s global presence.
‘The geo-political landscape is highly complex, with elections, conflicts, sanctions and climate-related change all causing uncertainty and increasing client demand for advice, data and experience to help them negotiate these challenges,’ CEO Case added.
Profit from the Broking, Financial and Research segments was down year-on-year, although the forward order book is due to deliver better performance in the second half, Clarkson said.
Support profit rose 18% during the recent half, primarily as a result of February’s £2.0 million acquisition of Trauma & Resuscitation Services Ltd.
The acquisition expanded the Support segment’s offering to the oil and gas, marine, and renewable energy sectors through the provision of advanced first aid training.
Clarkson expects its 2024 financial performance to be weighted towards the second half which has ‘already started well’ in line with management’s expectations.
Looking ahead, Clarkson said the green transition will remain a key focus for the business, as clients increasingly require support and advice while driving forward their decarbonisation efforts.
Clarkson shares were down 7.8% to 4,029.04 pence each in London on Monday morning.
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