Compound Income
  • Blog
  • Scores
    • Scores Presentation
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact
  • New Page



Quiet start to the week but...

9/3/2015

0 Comments

 
...we have had final results from Clarkson (CKN) which is a £600 million market cap. United Kingdom-based provider of integrated shipping services group which operates from offices in 20 countries on six continents.

The results
seem to be ahead a the earnings level coming in at 134.2p v 127p consensus forecast according to Stockopedia. The dividend was however slightly shy at 60p for the year v a 61p forecast form the same source, although it was up by a reasonable 7% and is well covered by earnings and cash flow. Encouragingly this was slightly ahead of the 6% or so that they have achieved over the last 5 years and the Company points out that they have increased their dividend consecutively, as part of their progressive policy, for the last 12 years.

The other main feature of the year was their acquisition of
of RS Platou ASA (Platou) a leading international broker and investment bank, focused on the offshore and shipping markets which completed in February this year. This is covered in detail in today's announcement in which they said it:

"not only brings together two great teams, but transforms the strength and depth of our offering and further enhances the best in class service we deliver to our global clients. The board firmly believes this is a unique opportunity to combine two leading businesses, led by proven and experienced management teams, to create a 'best in class' fully integrated offer across shipping and offshore, broking and banking. The businesses are highly complementary with little overlap and we expect to generate significant opportunities for organic revenue and margin growth, creating shareholder value over the medium-term."

They do however acknowledge that they face extremely challenging conditions in some markets but they seem confident that they should benefit from their leading positions and extra services they can offer to clients as a result of the acquisition. The Mr market seem to like it as he has marked the shares up by 4 to 5% this morning.

Summary & Conclusion
A slightly difficult one to get your head around given the difficult background to some of the markets that they serve. However, there are several attractive aspects like a market leading position, strong balance sheet (net cash of £92.3m), a well covered and steadily growing dividend and potential benefits to come from what seems like a good acquisition.

The shares trade on around 12 to 13x 2015 forecast earnings and sport a yield of 3.6% at a share price of 2100 pence, if they achieve the currently forecast 73 pence dividend for 2015. At this share price they also have a current earnings yield of 6.7% which is about average and It scores in the top decile of the Compound Income Scores with a score of 94.

So it seems like a well managed business operating in a slightly difficult market which can be cyclical. Despite this they have been able to and seem confident in growing the dividend going forward. The rating seems about average and may be fair enough, so it probably looks like a strong hold rather than a raging buy.

However they do seem to have found some support at the 1900p level since the end of last year (see chart below) and there is also a gap at around 2400p which might be a good technical mid range target in the medium term perhaps, which would put it on 15x and a 3% yield for this year. Talking of which I also note that in the last 12 months the PE range based on this years forecasts has been roughly 12 to 17.5x and the yield 2.65% to 4%, so I guess there could be some upside to the rating on that basis as the acquisition beds down and if the Baltic Dry Index were to recover from its recent long term lows as this is seen as a key indicator for shipping and global trade. But I'll leave you to decide for yourself if you want to get on board this one or not.
Picture
0 Comments



Leave a Reply.

    RSS Feed

    Google+

    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    August 2019
    June 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    Categories

    All
    32Red
    Aberdeen Am
    Admin
    A G Barr
    Alliance Pharma
    Alternative Telecoms
    AMEC
    Amino Technologies
    Amlin
    Anglo Pacific
    Asset Allocation
    Auto Trader Group
    BA Systems
    BATS
    Behavioural Finance
    Bellway
    Berendsen
    BHP Billiton
    Bloomsbury Publishing
    Bodycote
    Books
    Bovis Homes
    BREXIT
    Britvic
    Catlin-group
    Central Asia Metals
    Centrica
    Character Group
    Churchill China
    Cineworld
    City Of London Investment Group
    Clarkson
    Commercial Property
    Compound
    Computacenter
    Connect Group
    Croda
    Currencies
    Demographics
    Diageo
    Diploma
    Directors Dealings
    Dividends
    Easyjet
    Economics
    Emerging Markets
    Emis
    Empiric Student Property
    Etfs
    Fairpoint
    Ferguson
    Ferrexpo
    Finsbury Foods
    Food Retailers
    Forterra
    Games Workshop
    Gateley
    Go Compare
    Goid
    Greene King
    GSK
    Hargreaves Services
    Hays
    Headlam
    Hedge Funds
    Hill & Smith
    House Builders
    Howden
    HSBC
    IG Group
    Imperial Tobacco
    Indivor
    Inflation
    Insurance
    Intermediate Capital
    Interserve
    Investec
    Investment Trusts
    It
    ITV
    James Halstead
    Jarvis Investment Management
    JLT
    Jupiter Fund Management
    KCOM
    Kingfisher
    Legal & General
    Lloyds Bank
    Maintel
    Man Group
    Market Timing Indicator
    Market Valuation
    Marston's
    Matchtec
    Media
    Merlin Entertainment
    Micro Focus
    Mining
    Mitie
    Miton Group
    Moenysupermarket
    Mondi
    Moneysupermaket.com
    Music
    National Grid
    N.Brown
    News
    Next
    Nichols
    Norcros
    Oil
    Page Group
    Paypoint
    Pennon
    Persimmon
    Personal Finance
    Pharmaceuticals
    Phoenix Group
    Photo Me
    Photo-Me
    Plus500
    Podcasts
    Polar Capital
    Politics
    Portfolio
    Portmeirion
    Provident Financial
    PZC
    Qinetiq
    Ramsdens Holdings
    Rank Group
    Reckitt Benckiser
    Renewable Energy
    Renew Holdings
    Renishaw
    Research Papers
    Restaurant Group
    Retailers
    RIO
    RM Group
    Rolls Royce
    RPC
    RPS
    Safestore
    Sage
    Sainsburys
    Savills
    Schroders
    Scores
    SCS Group
    Sell Discipline
    Shareholder Yield
    Share Picks
    Short Interest
    Somero
    Spectris
    Sprue Aegis
    SSE
    Stock Spirits
    S & U Plc
    TalkTalk
    Taptica
    Tax
    Technology
    Telecoms
    Tobacco
    Trading Ideas
    TSB
    TUI
    UK Market Update
    Unilever
    Utilitywise
    Value
    Victrex
    Vodafone
    VP.
    Water Utilities
    WH Smiths
    William Hill
    Wynstay
    XL Media
    XP Power
    Yield
    Zytronic

    googleda4a17cac6d02bb9.html
    File Size: 0 kb
    File Type: html
    Download File

Powered by Create your own unique website with customizable templates.
  • Blog
  • Scores
    • Scores Presentation
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact
  • New Page