ACM Shipping up despite falling revenues

Ship broker ACM Shipping says it's recovering from the loss of some key personnel in October, and is well placed to benefit if, and when, the global economy recovers from its current doldrums.

The market clearly thinks something's going right at ACM because the numbers in the 12 months to the end of March are not too bright.

Revenues came in at £26.6m, down on the £29.3m seen in 2011 while underlying profits before tax were £4.3m, against £6.1m in the prior year.

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The firm's bullish view is reflected in it maintaining the total dividend at 7p per share despite the drop in profits.

Shipping is an inherently cyclical business, so it's not a surprise that turnover has fallen. ACM also had to cope with a staff exodus from its sale and purchase division in the Autumn of last year, for which it took a £7.8m impairment of intangible assets.

Crucially though, the spot brokerage desk, which organises the hire of ships for a single voyage is doing well, showing year on year revenue growth of 7%. As this is the firm's main business, the news will have reassured the markets.

The long term hire of tankers (the "time charter" division) is, however, facing tough headwinds from very low hire rates and a reduced order book.

Nevertheless the market seems to believe the Chief Executive, Johnny Plumbe, when he says the group is in a "strong position" to capitalise on any future strengthening in the shipping market.

At 10:55 ACM shares were up 6%.

BS