ACM Shipping issues Preliminary first quarter Results

ACM Shipping Group plc (AIM:ACMG), a leading international shipbroker, yesterday announces its preliminary results for the year ended 31 March 2011.

Summary
• Revenue up 11% to US$45.7 million (2010: US$41.1 million); in sterling up 13% to £29.3 million (2010: £25.9 million)
• 14% increase in the number of tanker spot fixtures contracted during the year on organic business increasing market share
• Profit before amortisation and taxation and adjusted for minority interest at £6.5 million (2010: £6.6 million) in line with expectations
• Adjusted earnings per share of 24.8 pence (2010: 26.3 pence)
• Final dividend of 7.0 pence per share, making 10.0 pence per share for year – up 5% (2010: 9.5 pence per share)
• Strong cash position of £5.0 million (2010: £4.3 million) and no debt, as a result of high cash generation
• The Group continues to make progress on its global expansion plans, with Singapore in particular performing well
• New global dry cargo division on track and making good progress
• Appointment of Timothy Jaques and Jurgen Breuer as non-executive directors during the year, bringing further extensive brokerage expertise to the Group
Margins have reduced mainly due to investment into dry cargo broking
Commenting on the results, Johnny Plumbe, Chief Executive of ACM Shipping Group plc, said: "The Board is pleased to report another period of solid results, despite the challenging market conditions. ACM's strategy is robust, and the Group continues to gain market share across its divisions. Our global presence continues to grow, and we look forward to capitalising on strengthening markets and inevitable opportunities as they arise.
"The Group has achieved good volumes of fixtures during the period, in particular a 14% increase in the number of spot fixtures over last year, although profit growth has been constrained by weak freight rates. The Board is confident that we currently have the right structure and team in place and we continue to look for opportunities to expand our global shipbroking network further. Our progressive dividend policy reflects the Board's confidence for the future and ACM remains optimistic that the Group is well placed for both medium and longer-term growth."
Chairman's Statement
During the period, ACM has continued to make strong progress, and the Board is pleased to report the results that have been achieved against a backdrop of historically weak freight rates. The Group's global infrastructure, which has been built over recent years, is now well positioned to take advantage of existing markets as well as potential increases in the volume of commodity shipping.
Results
The results for the year to 31 March 2011 are broadly in line with expectations and the Group is pleased to report revenue of US$45.7 million (2010: US$41.1 million), while profit before amortisation and taxation and adjusted for minority interest was £6.5 million (2010: £6.6 million). Margins have reduced mainly due to our investment into a new global dry cargo broking division.
The Group's cash position remains strong, with £5.0 million and no debt (2010: £4.3 million).
Dividend
In line with the Board's confidence in the longer-term prospects for the Group, the progressive dividend strategy has been maintained and the Directors are recommending a final dividend for the year ended 31 March 2011 of 7.0 pence, making a total of 10.0 pence per share for the year (2010: 9.5 pence per share), which is covered two and a half times by adjusted earnings. The final dividend is payable on 7 October 2011 to shareholders on the register as at 9 September 2011.
Strategy
Over recent years the Board has worked hard to put in place the foundations for future growth, and the Group's strategy is very much on track. With divisions performing well across our international offices, the Board believes that the Group has the right structure in place to achieve ACM's stated strategy of building a successful global integrated shipbroking business.
The Group's dry cargo shipbroking business, which was acquired in June 2010, is now integrating successfully. The Board is confident that this business will prove a good investment for future growth.
The Group will be moving to new premises in London in August 2011, which will provide additional space for further expansion.
Employees
The Board would like to thank all of our employees for their dedication and contribution to another year of significant achievement. ACM remains committed to recruiting, retaining and developing the best people and our committed and talented employees will play a critical role in the Group's success going forward.
Source: ACM Shipping Group plc