Clarksons sticks to £50m profit forecast

London-listed shipbroker says trading has matched expectations since November warning.

Clarksons has reiterated its 2015 forecast for an adjusted pre-tax profit of around £50m ($72.82m).

The world’s largest shipbroker, which issued a profit warning in November, told the City trading has since been in line with expectations.

Robert Joynson of Nomura said: “Considering that shipping markets weakened during late-2015 – most notably in dry bulk, when the BDI sunk to historical lows (based on data extending back to 1985), but also in the container shipping market – the absence of any change to expectations is testament to the resilience of Clarkson’s broking business.

“We believe that Clarksons continues to take market share in this area – consistent with our belief that difficult shipping markets will benefit Clarkson in the long term, as flow progressively concentrates towards the larger brokers.”

The company booked a profit of £33.8m in 2014 but that was before it completed a merger with RS Platou.

Clarksons shares were trading down 1.62% at 2,125 pence each at the time of writing today.

Gert Zonneveld of Panmure Gordon says recovering shipping and capital markets will help Clarksons push up profit over the next few years.

He projects an adjusted pre-tax gain of £60.7m in 2016, rising further to £70m in 2017.

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