Clarkson (CKN) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was £310.1m, down from £321.1m year-over-year; underlying profit before tax fell to £51.5m.

• Interim dividend increased to 32p per share, marking the 22nd consecutive year of dividend growth.

• Board maintains full-year expectations, with results expected to be second-half weighted due to the forward order book invoicing profile.

• Strong balance sheet with £178.4m in free cash resources and net available funds of £201.5m at 30 June 2024.

• New business in broking increased year-over-year; FOB business developing well.

Financial highlights

• Underlying profit before taxation: £51.5m (H1 2023: £53.1m); reported profit before taxation: £50.1m (H1 2023: £52.2m).

• Underlying EPS: 129.1p (H1 2023: 133.5p); reported EPS: 124.6p (H1 2023: 130.5p).

• Free cash resources: £178.4m after dividend and working capital movements.

• Net available funds at 30 June 2024 were £201.5m, stable from year-end.

• Interim dividend: 32p per share (H1 2023: 30p).

Outlook and guidance

• Full-year results expected to be second-half weighted, with confidence in meeting Board expectations.

• Forward order book is developing, with revenue recognition weighted to H2 2024.

• Company remains cash generative and debt free, supporting continued dividend growth.

• Market tailwinds include supply-side constraints, energy transition, and growing global maritime demand; headwinds include geopolitical risks, exchange rates, and inflation.

• Currency headwinds from a stronger GBP/USD rate likely to persist into H2 2024.