Clarkson (CKN) shares jumped 8% to a new all-time high after the shipping services group said it expects full-year results to come in materially ahead of market expectations following a record first half.
The company benefited from unusually active shipping markets during the period, with disruption around the Strait of Hormuz creating significant changes across global trade routes. Freight rates moved higher as vessels were diverted and customers increased hedging activity to manage exposure to rising costs and changing market conditions.
That helped Clarkson deliver its strongest first-half performance on record, with revenue rising 39% to £413.5 million and pre-tax profit increasing 48% to £55.6 million compared with the same period last year.
The Broking division was the main contributor, reporting operating profit of £64.8 million, up from £41.8 million a year earlier, while its operating margin improved to 20.9% from 18.8%. The division benefited from higher levels of activity across shipping markets as companies responded to increased volatility.
Clarkson’s Financial division also recorded a sharp improvement, with operating profit rising to £11.7 million from £4.5 million, while Research increased profit to £6.3 million. The Support division was the only part of the group to see a decline, with operating profit falling slightly to £2.6 million from £2.9 million.
The company said the strength of the first six months means the usual second-half weighting in earnings is unlikely this year, with performance already running ahead of expectations. Clarkson now expects the full-year outcome to be materially above current market forecasts.
The interim dividend was increased to 35p per share from 33p last year, adding to the positive update for shareholders.
Following the rise on Monday, Clarkson shares are now up 37% since the start of the year and 42% over the past 12 months.