Affinity (Shipping) saw softer results in 2021 and challenges for its non-core businesses, but it said the banner year it had in 2020 was a tough act to follow.

Profit after tax totalled £2.13m ($2.48m) in the 2021 financial year for the London-headquartered shipbroking group, less than one-third of the £7.78m it recorded the previous year.

Commissions and other fees receivable fell year on year by 14% to $44.2m, according to a financial statement filed with the UK’s Companies House.

“2021 was a challenging year in view of the difficult market conditions in the tanker sector, issues relating to non-core businesses and the continuing uncertainties caused by the Covid-19 pandemic,” partnership secretary Christopher Chasty remarked in the report.

“Revenues and pre-tax profits were lower by 14% and 65% respectively, compared to 2020. However, 2020 was an exceptional year due to the very strong tanker market and a high number of newbuilding deliveries, so overall the members consider the 2021 results to be satisfactory.”

The weaker results meant Affinity paid out less to its members last year, including managing partner and chief executive Richard Fulford-Smith.

Affinity’s 13 members each received average profit of £571,509 last year, comprising priority profit shares and bonuses. This compares with the £1.1m they each made in 2020.

The firm’s highest-paid member, Fulford-Smith, took home £675,000 during 2021, down from the £1.14m he made the previous year.

Affinity’s results also reveal that the group has taken a shareholding in Tor Olav Troim-backed shipowner Himalaya Shipping via a subsidiary.

Affinity spent £1.1m last year in acquiring a 33.19% equity interest in Affinity Shipholdings I, the rest of which is owned by members, shareholders and employees of the group.

This subsidiary has acquired just over 3.2m shares — or around 10% of the share capital — in Himalaya, which has 12 newcastlemax bulkers under construction in China for delivery in 2023 and 2024.

Affinity also invested in expanding its network last year by acquiring 50% of Affinity Flaship, a new Singapore shipbroker.

But there have been challenges posed by some of the group’s non-core businesses.

Affinity liquidated its ship management subsidiary ST Management in May this year, following the termination of an agreement with its principal customer, France’s Sea Tankers Shipping (not to be confused with the similarly named John Fredriksen entity).

ST Management made a net loss of £11,766 in 2021.

Affinity said it has also committed to provide financial support to subsidiaries Affinity Offshore and Affinity Shipping & Finance in Norway and Singapore-based Affinity Cape Bulk.

This will enable the entities “to meet their liabilities as they fall due, in the event that such support be required”, the report said.

Chasty said the outlook for 2022 remains uncertain in light of the disruptions to international trade caused by the war in Ukraine, sanctions on Russia and the remaining effects of the pandemic.

“Despite these uncertainties the members are confident the group has sufficient financial resources to withstand the economic impact and to take advantage of the opportunities that will arise as new trading patterns emerge and the global economy continues its recovery,” he said.