CLARKSONS REPORTS RECORD FIRST-HALF PROFIT ON SHIPPING DISRUPTION

Clarksons, the FTSE 250 shipping broker, reported pre-tax profit 39 per cent higher in the first half of the year than the same period in 2023, with earnings per share rising 50 per cent. The group's board increased its dividend from 33 pence to 35 pence, marking the 24th consecutive year of dividend increases. Clarksons stated it expects full-year results to be "materially ahead" of market expectations. Share price rose as much as nine per cent on the announcement.

The company attributed the surge to market volatility caused by disruption to global trade, including the situation in the Strait of Hormuz. Clarksons' core shipbroking and investment banking divisions achieved record trading after vessels were forced to take longer routes around shipping disruptions in the Red Sea and Persian Gulf. A shortage of available ships bolstered earnings, with dozens remaining stranded in the Persian Gulf. These conditions allowed the group to earn considerably higher commission than in previous years. Clarksons also operates growing consultancy and trading arms alongside its core broking business.

Chief executive Andi Case said the group could "look forward with confidence" regardless of geopolitical developments given the breadth of its services. Analyst Gerald Khoo at Panmure Liberum said the shipbroker had "far surpassed" analyst estimates, helped by favourable market conditions. Clarksons noted it received a new finance chief during a period of pay scrutiny across the sector.