Shipbroking giant Clarksons published a positive profit update on Friday, guiding for a record underlying full-year profit well ahead of previous market expectations
The expected underlying profit before tax for 2023, pending audit, is now anticipated to exceed £108m ($137m), as communicated to the London Stock Exchange.
Clarksons pointed to strong trading throughout the final quarter, particularly from the shipbroking division, as the catalyst for the revision.
The world’s largest shipbroker had not provided its own fiscal year forecast previously, but the consensus among analysts had been for an underlying pre-tax profit of just over £100m, according to Bloomberg data.
Gerald Khoo, an analyst at Liberum, Clarksons' in-house brokerage, said the update showed the company was on course for another record result.
“Importantly, this is set to be achieved against a much tougher shipping rate backdrop,” he said.
“This provides clear evidence of Clarksons’ structural progress, which has previously been masked by shipping market tailwinds.”
Investors responded positively to the news, with Clarksons shares racing up almost 9% to 3,550 pence in early trading on Friday.
At this level, the shipbroker has a market capitalisation of just over £1bn.
Clarksons reported its best-ever results for the first half of last year. Net profit before tax was £52.2m, driven by strong shipbroking.
It reported a pre-tax profit of £100.9m in 2022, a record-breaking year for the company.
Chairman Laurence Hollingworth said at the time that the performance came during “a remarkable year for the shipping industry”.
Khoo concluded: “Although earnings growth is set to be much more modest in 2023 than in the two prior years, it is still positive in tougher market conditions.”
Clarksons will publish its full results for 2023 on 4 March.
