Clarkson sticks with trading estimates

Ship broker Clarkson said that since its interim management statement at the start of November, when it issued a profit warning, trading had continued in line with expectations.

The two line update gave no other detail than full year results to the end of December are due on 7th March.

Last November's profit warning was blamed on global economic uncertainty reflected in reduced freight rates and lower asset prices.

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At the time the company said short-term outlook for rates and values was uncertain, with demand/supply imbalance a brake on recovery and continued weakness in capital markets.

Lower than anticipated activity in the second half, particularly in broking and financial, had resulted in a reduction in the board's expectations for the full year results, it added.

The firm's ship broking operation has been hard hit by the continued cyclical downturn in the shipping industry, with freight rates falling and downward pressure on asset prices across a number of sectors.

Tightness in the debt market, especially for second hand tonnage, has further reduced the volume of sales and the value of the vessels hitting its revenues.