Insider: directors buy at FTSE 250 firm and high-flying Haleon

Two Clarkson (LSE:CKN) directors have backed the tariffs-hit shipping broker’s return to calmer waters by spending a combined £217,000 on shares at the cheapest price in 18 months.

Board chair Laurence Hollingworth led with a purchase of £178,000 at 2,965p, which compares with 4,410p seen prior to the City’s negative reaction to annual results on 10 March.

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Clarkson posted a record profit of £115.3 million and grew its dividend for a 22nd consecutive year but shares fell by a fifth after it said markets had softened at the start of 2025.

The jitters intensified last week when the FTSE 250-listed company scaled back profit expectations for this year to a range of £85 million and £95 million.

Faced with uncertainty due to Donald Trump's 90-day pause on reciprocal tariffs for all countries other than China, Clarkson said the volume of spot negotiations in its broking division were 7% lower than it anticipated at the time of annual results.

The vast majority of Clarkson’s broking revenue is earned in US dollars, which at current lower levels could translate into a £9.5 million currency hit if continued for the rest of 2025.

The group said it had successfully navigated the financial crisis, the Covid-19 pandemic and Brexit, adding that the effect of current macroeconomic uncertainty has the potential to be reversed once normality returns to the markets.

In addition, it said demand for Clarkson’s research products is currently high as clients seek advice during the current market turbulence.

Founded in 1852, Clarkson provides shipbroking services, sector research, logistical support and investment banking capabilities in all key shipping and offshore sectors. It employs over 2,100 people in over 60 offices across its four divisions.

In response to last week’s update, Peel Hunt downgraded its 2025 profit forecast by 20% to the midpoint of the company’s new guidance and “cautiously” trimmed estimates for future years.

However, it reiterated a Buy recommendation with its new lower price target of 4,250p representing an upside of 34% on Friday’s price of 3,160p. It said: “Clarkson believes that the current uncertainty can be reversed once normality returns to the markets.

“We take this to mean that trade, and therefore the shipping industry, will adjust to tariffs once they are known and not constantly changing, although there may be some impact from weaker economic growth and even a US recession.”

The broker adds that Clarkson remains well placed to navigate this uncertainty given the strength of its customer relationships, order flow and market data.

It said: “Greater complexity can also highlight the value of a leading shipbroker such as Clarkson, and may mean trade routes become longer, which boosts demand and can help mitigate weaker rates and trade volumes.”

Deutsche Bank reduced its target price from 5,100p to 4,150p following last week’s warning.

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As well as Hollingworth, non-executive director Constantin Cotzias bought shares at a price of 2,986p after Thursday’s downgrade.

On the same day as the trading update, shareholders delivered the latest in a series of AGM protest votes over the remuneration of long-serving chief executive Andi Case.

His total for 2024 topped £12 million for the second year in a row, boosted by a performance-related bonus of £11 million linked to underlying adjusted profit.

The annual remuneration report was approved with 47% of votes cast against, while there were sizable votes against the re-election of Hollingworth and remuneration chair Tim Miller.

A final dividend of 77p per share is due to be paid on 23 May, representing a 7% increase in the total for the year to 109p a share.

Haleon nears record high

A £4 foothold for Haleon (LSE:HLN) shares was marked on Friday by one of the consumer healthcare group’s non-executive directors spending £62,000 on an increased stake.

L’Oréal executive Asmita Dubey has been a board member ever since the former GSK and Pifzer joint venture joined the stock market at a price of 330p in July 2022.

The shares stayed close to that mark for the following two years before an acceleration that culminated in shares breaking the 400p barrier for the first time in March and again last week.

Dubey bought shares at 401p after they rallied on the back of a robust first-quarter update and Thursday’s presentation to City analysts, when the Sensodyne and Centrum business expressed “continued confidence” in delivering medium-term 4-6% annual organic revenue growth.

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Chief executive Brian McNamara said: "We've delivered on the commitments we made since the demerger and have established strong foundations as a standalone company.

“We are now focused on unlocking the full potential of this company, as we transform Haleon into a world-class consumer company.”

UBS raised its price target to 460p following the update, although this could increase to 500p if Haleon delivers on the top-end of its gross margin expansion target up to 2030.

Haleon's shares currently trade on 19 times forecast earnings, which is in line with the European Food & Household Personal Care sector.

UBS added: “In our view, a double-digit premium to the sector is warranted as the company offers superior earnings growth prospects and visibility owing to the resilience of the Consumer Healthcare industry, Haleon's proven ability to outperform its industry and its significant self-help programme.”