Clarkson PLC (LSE:CKN) reported over 50% growth in half-year profits and said the outlook remains “strong” as a supply shortage in the global shipping fleet boosts freight rates.
As flagged in a recent trading statement, underlying pre-tax profit grew to £42.2mln in the six months to 30 June 2022 from £27.5mln in the same period last year. Revenue increased to £266.7mln from £190.1mln, the international shipping services group said in its earnings release.
“The strong performance has been driven by the long-term supply/demand dynamics of the shipping market, which has put upward pressure on rates,” said chair Laurence Hollingworth.
The company said it achieved a positive performance across all its divisions in the first half and highlighted particularly strong results in its broking business, which reported profits of £47mln, up £16.7mln, reflecting a margin of 22.3%.
Looking ahead, chief executive Andi Case said: "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."
Hollingworth said there had been an “encouraging” start to the second half of the year. The "favourable supply/demand dynamics" in the shipping markets are set to continue, he added, with “increasing seaborne trade; a global shipping fleet which is having to navigate both supply disruptions from geo-political events; and the continued acceleration of investment in the green transition”.
On the back of the strong first-half performance and its confidence in the outlook, the company is raising its interim dividend to 29p from 27p per share.