Clarkson PLC (LSE:CKN) shares sank 12% to 2,890p after the shipping services group cut its full-year profit guidance due to the effects of global trade tensions and currency headwinds.
The FTSE 250-listed group cut its full-year profit guidance to a range of £85 million to £95 million, compared to a profit before tax of £115.3 million last year.
Having already warned alongside annual results in mid-March that regional conflicts and trade tensions were "creating uncertainty" and hitting freight rates and asset values, Clarkson's fresh update noted that uncertainty has escalated.
So far this year US dollar spot negotiations in its broking arm are running 7% lower than anticipated at the time of its results.
The profit downgrade also reflects the sharp depreciation of the US dollar, in which the majority of its revenues are earned.
Year-to-date currency movements could reduce profits by £9.5 million if current levels persist.
As well as US President Donald Trump's series of US trade announcements in April, including blanked global tariffs and 'reciprocal' measures, and subsequent the 90-day pause, there have also been new port fees on Chinese vessels announced on 18 April.
Clarkson said these measures have escalated the risk of a global trade war.
Despite the warning, the company maintained that results for 2025 will be weighted toward the second half and said its market position, flexible cost base, and strong balance sheet provide resilience.
It also noted a rise in demand for its research services as clients seek guidance in volatile markets.
"The group, which has successfully navigated the challenging markets seen during the global financial crisis, the Covid-19 crisis and Brexit, continues to be very well placed to navigate periods of macroeconomic," it said.