Clarkson PLC (LSE:CKN) shares rose almost 7% after the shipping broker reported first-half results slightly ahead of expectations, though profits were lower due to falling freight rates and macroeconomic uncertainty.
The FTSE 250-listed group reported underlying profit before tax of £39.4 million, down 23.5% from a year earlier, as revenue declined 4% to £297.8 million.
The interim dividend was increased to 33p per share as the shipping services firm maintained a strong balance sheet with free cash resources of £206.2 million.
CEO Andi Case said the results demonstrated "the resilience and adaptability of our business in what remains a highly complex global environment".
Full-year results are expected to be second-half weighted and in line with guidance given at its AGM, with Case saying the board considers "the opportunities before us are significant once the effects of macro-economic uncertainty begin to normalise".
The Broking division delivered an operating profit of £41.8 million, down from £53.4 million as activity in the segment was impacted by lower freight rates, the complex geopolitical environment and reduced volumes in newbuild and sale-and-purchase markets.
The Financial division recorded an operating profit of £4.5 million, up from £1.2 million on much increased revenue of £28.9 million; Support Services saw a decline in profit to £2.9 million from £4 million due to ongoing disruption in the Middle East and reduced tooling demand; and the Research division posted an operating profit of £5.1 million, up from £4.6 million, with recurring revenue accounting for 92% of sales. Broker Peel Hunt said underlying PBT of £39.4 million beat its forecast of £38 million, with sterling weakness against the US dollar expected to provide a tailwind in the second half, although the latest salvo of tariffs announced by President Trump "may introduce additional headwinds".
The shares rose 236p to 3,651p.