Clarkson, the shipbroking company, recorded a pre-tax profit of £69.1m in 2021, as opposed to the loss of £16.4m in 2020.
Clarkson shares rose 7.2% to 3,340p on Monday morning as result of the shipping services company bouncing back from their losses as a result of recovery from the pandemic.
Revenues grew by 23% to £443.3m in 2021. Underlying profits before tax also saw a 55% increase with £69.4m in 2021. Growth in all segments contributed to these positive numbers, with strong performances in the group’s broking and financial division.
Laurence Hollingworth, Chair, Clarkson said, “In 2022, we expect the favourable supply/demand dynamics to continue.”
“The supply of new ships continues to be affected by the structural reduction in shipbuilding capacity compared to 2008 whilst the economic recovery from the COVID-19-induced pandemic has strengthened the demand side. We have a very strong forward order book and the outlook for freight rates remains positive.”
The broking division gained from the company’s longer-term plan to expand its global presence in the shipping and offshore segment in the past few years. With reduced ship supply, freight rates had scope to strengthen. The broking segment increased profits from £55.4m in 2020 to £73.6m in 2021, and increased margins to 21.6%.
The financial segment saw a 432% increase in profits, with £2.5m in 2020 to £13.3m in 2021. The margins in 2021 grew to 23.8% as a result of active capital markets.
Andi Case, Chief Executive Officer, Clarkson said, “our record 2021 results are testament to the strategy which we have followed and communicated to stakeholders over recent years.”
“It is with great pride that I reflect on the strength of our people in all sectors, roles and geographies, together comprising the best team in the world of shipping, offshore and renewables.”
“We are positive about the future of the shipping industry. The outlook for Clarksons remains strong and we believe the business will continue to benefit from its market-leading position.”
The dividend for the group has seen growth for 19 consecutive years. The proposed final dividend has increased by 3p to 57p in 2021, totalling 84p for the full year. With a share price 3,362p, Clarkson has a historical yield of 2.4%