Clarksons shares slid 1.8% to 3,490p in early morning trading on Monday, following a record revenue growth to £266.7 million against £190.1 million in HY1 2021.
The shipping services group attributed its revenue climb to long-term supply and demand dynamics of the shipping market, which reportedly put upward pressure on rates. The company noted particularly strong performance in its Broking sector.
Clarksons added that it benefited from the weaker Pound Sterling against the US dollar, contributing to additional revenues.
Clarksons confirmed a 53.5% underlying pre-tax profit growth to £42.2 million in HY1 2022 compared to £27.5 million the last year, along with a reported pre-tax profit of £42.2 million against £27.3 million.
The group noted a high performance across its dry cargo, sale and purchase and tanker markets in its Broking division as contributing factors to HY1 profits, as sustained volumes and rates boosted profits in the financial term.
The company mentioned a strong HY2 2022 outlook, with the structural supply shortage in the global shipping fleet boosting guidance for freight rates and asset values, alongside good momentum going forward.
“I am pleased to report that Clarksons has had a strong first six months of 2022, with a positive performance across all divisions,” said Clarksons CEO Andi Case.
“The outlook for the business remains strong due to the structural supply shortage in the global shipping fleet and we continue to benefit from our international footprint, leading market position, diverse offering and a deep understanding of the energy transition.”
Meanwhile, the firm highlighted an underlying EPS rise to 98.5p from 63.5p.
Clarksons announced a hiked interim dividend per share to 29p compared to 27p in the previous year.