UK shipbroker Affinity (Shipping) has logged a 66% rise in profits for 2020, which resulted in a substantial pay rise for boss Richard Fulford-Smith.
The stronger performance came despite "widespread disruption" caused by the Covid-19 pandemic, the company said.
Accounts filed at Companies House in the UK show net profit was £7.78m ($10.76m) to 31 December, up from £4.25m in 2019.
Revenue grew 26% to £51.8m and pre-tax profit was up 66% from 2019 at £9.2m.
Boss banks the most
Chief executive Fulford-Smith was the highest paid employee, banking £1.14m, up from £800,000 in 2019. This includes a priority profit share and bonus.
Personnel costs rose to £26.5m from £22.1m in 2019.
The group said it had continued its expansion in 2020 and the first quarter of 2021, with new business operations stating in Singapore, South America, and China
"Members consider the results to be satisfactory," said chief financial officer Christopher Chasty.
"The outlook for 2021 is uncertain in view of the Covid-19 pandemic, but the members are confident that the group has sufficient financial resources to withstand the economic impact and to take advantage of the opportunities that will arise once the global economy begins to recover," he added.
Stress test passed
The company said it has conducted "a severe but plausible" stress test on its finances by reducing revenue projections by 20% and considering deferring some overheads for 18 months from 1 January this year.
Members believe the company would survive such a scenario but are optimistic the reality will not be as tough as this.
The accounts reveal that in 2019, the company bought French ship manager ST Management SAS, which contributed revenue of £2.78m that year, and profit of £4.7m.
In January, Affinity acquired Grieg Shipbrokers Asia as part of a major expansion of its Asian dry bulk chartering activities.
The move more than doubled the size of the group's bulker activities in Asia, raising its team strength from seven to 20, including 14 brokers.
The 2020 accounts reveal it paid $580,000 for the company.
Investments coming?
In May, the group also spent $1m on a 33.3% interest in Affinity Shipholdings I, a UK company set up to hold shipping investments, the report said.
Two members have left this year.
Shipbroker Andrew Finn, one of the firm's founding partners, resigned in February to pursue other opportunities, while Toby English quit in July to head SSY's sale-and-purchase operations.
Affinity first launched in January 2015 following Fulford-Smith's split from Norwegian broker RS Platou ahead of its merger with Clarksons.
Last November, the broker branched into the Oslo ship finance market with the hire of former Nordea global head of syndicated lending Ronny Bjornadal.
