Clarkson PLC forecasts challenging market conditions
Clarksons, the world's leading shipping services group, announced its Interim Management Statement published in accordance with the UK Listing Authority's Disclosure and Transparency Rules, for the period from 1 January 2013 to 9 May 2013 ("the period"), said in the company's press release.
At the Annual General Meeting to be held in London today, Bob Benton, Chairman of Clarksons, will make the following statement:
Trading
Shipping markets remained suppressed throughout the period with rates and asset values under pressure, reflecting the backdrop of continued global economic uncertainty.
Against these difficult trading conditions the expertise of company teams and strength of our research offer, underpinned by our global footprint, once again demonstrated their value to clients and company have continued to make good progress towards our strategic goals.
Broking
Freight rates have been under increasing pressure since the start of the year with the average ClarkSea Index for Q1 2013 down 9% and the Baltic Dry Index down 13%. However, the strength and breadth of company teams has meant company have been at the forefront of any activity and continued to build volumes and market share across most sectors. Company have also begun to see more activity in underlying assets which is encouraging, albeit the associated revenues will not all be recognised in 2013.
Financial
Following the management actions taken towards the end of last year, our Financial businesses are now operating at a reduced level of overall losses as company continue to build their capability for the long term. Revenue growth derived from company new equity sales and trading team in New York has started to gain momentum and should be further supported by several key hires made during the period.
Support
The year has started well for company port and agency businesses which are benefiting from the completed integration of the Port Services and EnShips acquisitions made at the end of 2011.
Research
Research underpins all of Clarksons' services and in challenging trading conditions the value it offers company clients is more important than ever. We continue to grow and develop the breadth and depth of our offer and have seen an increase in underlying revenue from research activities during the period.
Board Changes
As previously announced on 25 March 2013 Philip Green has been appointed Senior Independent Director and will succeed me as Chairman on 1 August 2013, when I retire from the role, remaining on the Board until November 2013. Philip brings with him a wealth of experience and on behalf of the Board I would like to wish him every success in his new role.
Outlook
The industry outlook remains challenging with the continued focus on the spot market limiting visibility. The delivery profile of company newbuild and offshore activities will result in a weighting in performance to the second half this year. Nevertheless group trading in 2013 is in line with the Board's expectations.