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.

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.

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.

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021