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LONDON (Alliance News) - Clarkson PLC on Monday reported a fall in pretax profit in the first half, as an increase in revenue was more than offset by higher administrative expenses and costs connected to its acquisition of rival shipping broker RS Platou ASA, and said it made a "solid" start to the year.
The FTSE 250 shipping services company said it made a GBP10.8 million pretax profit in the six months to the end of June, compared with GBP14.1 million in the corresponding period the prior year.
Revenue increased to GBP145.3 million from GBP111.7 million, while administrative expenses were up to GBP127.8 million from GBP91.0 million.
Underlying pretax profit, which includes GBP12.8 million of exceptional and acquisition-related costs, increased to GBP23.6 million from GBP15.8 million. The company increased its interim dividend by 1 pence to 22 pence per share.
"The multi-cyclical and volatile nature of our markets has once again been demonstrated by the sudden shift in oil and other commodity prices, giving rise to a consequential change in the demand supply balance in many markets. Across our broking and banking businesses, this backdrop has created both opportunities and challenges. The group made a solid start to the year, testament to the strength and breadth of our strategy and unique client offer," Chief Executive Andi Case said in a statement.
The CEO reiterated that the company's performance will be weighted to the second half.
"Whilst we are mindful of the ongoing headwinds in a number of our markets, our strategy has proven to be robust in this trading environment and with a strong balance sheet underpinning our business model we have confidence in Clarksons' prospects for continued progress in the second half," Case said.
Clarkson said that cost synergies from the acquisition of Platou will benefit the combined company to the tune of some GBP4 million per year once they come through.
"The acquisition of RS Platou completed during the first quarter, and we are delighted with the level of interaction between the teams, the pace of integration and the reaction of our clients to the improved service," Case said.
RS Platou was acquired for GBP249.9 million late in 2014.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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