(Alliance News) - Clarkson PLC on Monday announced the return of its dividends following a robust performance in the first half of 2020 despite global disruption from Covid-19.
The FTSE 250-listed shipping services provider saw its pretax profit for the six months to June 30 grow to GBP20.9 million from GBP19.2 million a year prior.
Revenue was up to GBP180.4 million from GBP167.8 million year-on-year.
The London-based company explained that excellent results in its Broking and Research divisions boosted its confidence after deferring its 2019 final dividend earlier this year due to the uncertainties posed by Covid-19.
Broking saw its revenue rise to GBP147.1 million from GBP130.1 million a year prior.
The company explained that as China emerged from lockdown later in the half, industrial output rebounded which helped increase trade. Shipments started to ramp up at the beginning of June, leading Capesize earnings to increase from USD3,648 per day to a peak of USD30,857 per day by the end of June, the company said.
Research revenue rose to GBP8.5 million from GBP8.3 million a year before despite challenging trading conditions.
Clarkson said: "We have put in place a range of initiatives that have mitigated the impact on our business operations while also supporting our global client base through the provision of leading research focused specifically on the impact of COVID-19 on the shipping and offshore industry."
Following its robust first half performance, Clarkson said it would pay the previously deferred 2019 final dividend of 53 pence per share as an interim dividend on September 21. In addition to this, it announced a further interim dividend of 25p per share, equal to the year prior, to be paid on December 11.
The company said guidance for the full year remains withdrawn due to the uncertain nature of the global trade recovery from the Covid-19 pandemic.
Chief Executive Andi Case said: "Stimulus packages are being rolled out around the world and the impact on the speed and shape of global trade recovery is still to be determined. As a result, guidance for the full year remains withdrawn.
"We remain confident in the fundamentals of the global shipping industry and that Clarksons will continue to benefit from its leading market position and full range of services."
Clarkson shares were up 13% at 2,374.25 pence each on Monday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Clarkson (CKN)