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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Leasehold reforms promise the end of a nightmare for many homeowners
Property

Leasehold reforms promise the end of a nightmare for many homeowners

Horror stories about unscrupulous landlords profiting from a legal relic of the feudal era are about to get a happy ending, says Simon Wilson.
16 Jan 2021
Free 6 issue trial then continue to