ACM sheds the red

ACM Shipping (ACM) of the UK reported a full-year profit Monday that was slightly ahead of market forecasts.

The AIM-listed shipbroker reversed a GBP 1.9m ($3.2m) loss with a GBP 2.1m gain for the 12 months to 31 March 2014 as revenues rose 8.2% to GBP 27.9m year-on-year.

ACM attributed the improvement to an uptick in sale-and-purchase activity and increased earnings from both its tanker and dry-cargo divisions.

The company said offices in Australia, Singapore, India and China performed particularly well and contributed to what it described as “considerable growth” during the period.

ACM pointed out that lacklustre freight rates took a toll on its derivatives desk but insisted it is still a “highly profitable” division thanks to the maintenance of relatively healthy volumes.

In a statement chairman Johnny Plumbe noted the broker’s board sees signs of optimism in the shipping industry as a whole but admitted there is still “considerable volatility” across the board.

While ACM acknowledged that freight rates have been relatively unstable chief executive James Gundy said the ongoing expansion of its forward orderbook is encouraging.

Going forward the firm said the shipping industry is showing signs of improvement and assured investors that it will be “well positioned” to cash in on an upturn in the market but didn’t say when it expects a rally in core segments to materialise.

“This market position will be strengthened even further as a result of the proposed merger with Braemar, which will create an excellent platform for growth not only in shipbroking but also in the other shipping services businesses,” ACM added.

You can read ACM Shipping’s latest full-year earnings report in full by clicking on the link located under the Related Media section to the right of this article