Shipping services firm Clarkson PLC (LON:CKN) has warned that its profits for both the first half and the full year are now anticipated to be materially below those of last year.
In a brief trading update, the FTSE 250-listed firm said that the challenging environment in shipping and offshore capital markets has led to transactions being pushed back within the financial segment.
READ: Clarkson expects continued growth in 2018 as shipping market recovers
The group added that this has compounded a quiet period in sale and purchase activity across shipping and offshore.
Further, the firm said, it has suffered from lower freight rates within the tanker market and a fall in the value of the US dollar, the predominant trading currency of the group's banking and broking businesses.
Clarkson’s concluded: “Together these have resulted in financial performance that is below that previously expected by the Board.”
The downbeat statement led City broker Liberum capital to swiftly downgrade its rating for Clarkson to ‘hold’ from ‘buy’ and reduce its target price to 3,200p from 3,600p.
In a note to clients, Liberum’s analysts said: “Clarkson remains well positioned in its markets and long-term fundamentals continue to point to improved market conditions, but conditions in the short term are more challenging.”
Clarkson shares closed trading on Friday at 3,105p.