Clarkson raises profits guidance again to at least £69m

In a short trading statement released on Friday, the company said it now expected said it expected to report underlying profit annual of at least £69m, driven by its broking and financial divisions. Shipping rates have soared on surging demand for containers after disruption from the Covid pandemic.

The provider of integrated shipping services last month lifted guidance after sustained strong trading in the second half of the year as it forecast pre-tax profits of at least £65m.

AJ Bell investment director Russ Mould said Clarkson shares were "sailing back toward their all-time highs although analysts are forecasting that profits will sag slightly in 2022 through to 2023, presumably due to the view that 2021 was a bit of a freak year owing to the global supply chain disruption caused by the pandemic".

"But the shares could steam higher if the global economic recovery proves stronger than expected, emission regulations further tighten supply in the shipping market and Clarkson’s customers continue to adopt its Sea/ technology platform," he said.

“This shows that Clarkson is about more than just broking. The FTSE 250 member continues to develop value-added services such as research data and financial services, to help smooth out the effect of the shipping cycle, and its latest innovation is its Sea/ service, which enables clients to monitor fleet performance, book vessels and pay for them, all on the same platform."

“Clarkson is more than just a ship-broker. The company continues to develop value-added services such as research data and financial services, to help smooth out the effect of the shipping cycle, and its latest innovation is its Sea/ service, which enables clients to monitor fleet performance, book vessels and pay for them, all on the same platform.

Mould noted that new environmental regulations for tankers regarding sulphur emissions could force some ships to be scrapped or drydocked as they are refitted.

He added that a lean decade for ship owners had led to a collapse in order books for new ships.

"A strong economic upturn could yet prompt an imbalance between demand for ships and supply of them, boosting shipping rates and also demand for Clarkson’s broking, financing and data services.”