Clarkson’s (LON: CKN) shares jump on interim dividend announcement

3 min read | August 09, 2021 08:02 AM PDT | By Suhita Poddar

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Clarkson’s (LON: CKN) shares jump on interim dividend announcement — Image source: Avigator Fortuner, Shutterstock

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Summary

UK based shipping services company announced strong H1 2021 results that led the shares to jump by over 5 per cent.

The company reported a 30.3 per cent rise in its underlying profits before tax due to strong performance from its broking business units.

The company announced interim dividends of 27 pence per share, an 8 per cent rise from 25 pence per share in H1 2020.

UK-based integrated shipping services related company Clarkson Plc (LON: CKN) announced its H1 2021 results today, reporting a sharp rise in its underlying profit and an increased interim dividend payout due to strong business performance and improving supply demand dynamics in the shipping markets.

The company’s shares rose sharply following the announcement and was the second highest riser on the FTSE 250 index on the LSE.

Clarkson’s (LON:CKN) share price performance

Clarkson’s shares were trading at GBX 3,450.00, up by 5.67 per cent as of 9 August at 13:46 PM GMT+1. Meanwhile, the FTSE 250 index, which it is a part of, was trading at 23,445.25, down modestly by 0.05 per cent.

(Image Source: EODHD/Others)

Clarkson’s market cap stands at £993.44 million as of 9 August, and its year-to-date return is at 27.78 per cent.

Clarkson’s H1 2021 results

The shipping services company reported a revenue increase to £190.1 million in H1 2021, from £180.4 million in H1 2020.

Additionally, the company’s underlying profit before tax jumped sharply by 30.3 per cent to £27.5 million from £21.1 million in H1 2020 due to a strong performance in its broking business segment and due to witnessing a recovery in its financial division.

The improved performance was also driven by a recovery in the shipping markets and also due to the company’s digital services, such as online ship tracking, which received increased traction. Its digital platform Seal also witnessed a greater degree of client adoption.

Trade in the shipping industry is expected to be over 12 billion tonnes in 2021 due to demand recovery following government stimulus, increase in consumer spending and infrastructure investment.

Clarkson’s also reported a continuing strong cash position, with its cash balances ending at £152.9 million as of 30 June, compared to £173.4 million as of 31 December 2020.

Increase in H1 2021 interim dividends

The company also announced an interim dividend payout of 27 pence per share, up by 8 per cent from 25 pence per share in H1 2020 due to a more positive outlook in FY 2021.

The interim dividends will be paid on 17 September by the firm. The move is in line with the company’s progressive dividend policy it has upheld since 2020.

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