Clarkson PLC (LSE:CKN) unveiled record results for 2021 with a 55% surge in underlying profits as shipping markets started to recover from the COVID-19 pandemic.
The shipping services company reported underlying pre-tax profits of £69.4mln for the year to 31 December 2021, compared with £44.7mln in the previous year, on revenue up at £443.3mln from £358.2mln.
“2021 saw the start of a recovery in the shipping markets, with improved rates and increasing asset values in many verticals, resulting from a better supply/demand balance, low market order book and congestion arising from COVID-19 and supply chain challenges,” said Clarkson chair Laurence Hollingworth.
The Broking and Financial businesses showed a particularly robust performance last year, with Broking pre-tax profits rising by £18.2mln to £73.6m and Financial earnings up at £13.3mln from £2.5mln.
Clarkson said its forward order book for invoicing in 2022 totals US$165mln, a rise of 42.2% on the year before.
It proposed a final dividend of 57p, taking its full-year payout to 84p, compared with 79p in 2020.
Commenting on the outlook for 2022, Hollingworth said Clarkson expects 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,” he said.
Hollingworth noted that the current geopolitical uncertainty caused by Russia’s invasion of Ukraine could impact sanctions, exchange rates and commodity supply, which would be against the global backdrop of inflationary pressures and rising interest rates.
The company ended the year with free cash resources of £92.3mln, compared with £81.1mln a year earlier.
Shares climbed 5.55% to 3,287.98p.