- FTSE 250 listed Clarkson saw its share price fall 31 per cent, or 982p, to 2,122p
- Clarkson said it has suffered from lower freight rates within the tanker market
Shares in Clarkson lost nearly a third of their value today after the shipping services giant issued a profit warning.
Clarkson, which had recently predicted a recovery in its market, said instead that profits would be ‘materially below those of last year’ due to ‘challenging environment in shipping and offshore capital markets’.
FTSE 250 listed Clarkson saw its share price fall 31 per cent, or 982p, to 2,122p in morning trading.
Profit warning: Clarkson blamed a ‘challenging environment in shipping and offshore capital markets
The profit warning comes as a contrast to a statement by Clarkson chief executive Andi Case only last month, when he said: ‘We believe 2018 will be a year of continued growth as early indicators of recovery are showing across our core markets.’
Today Clarkson said the group had also suffered from lower freight rates within the tanker market and a fall in the US dollar.
‘Together these have resulted in financial performance that is below that previously expected by the Board,’ the company said in a statement.
‘Consequently, whilst it is still too early to determine the exact impact, profits for both the first half and the full year are now anticipated to be materially below those of last year.’
Michael Hewson, chief market analyst at CMC Markets UK, said: ‘Lower freight rates doesn’t tally with optimism over the health of the global economy, though over capacity in the industry has also been a key factor.
‘The announcement is all the more surprising because it turns on its head an announcement in March that management were optimistic over a recovery in the shipping market.
‘There is the possibility that recent tensions over trade have dented this recovery as customers delay making key decisions.’
Last year, the firm booked a half year pre-tax profit of £21.9million and £45.5million for the full year.
In August 2017, Clarkson had flagged a ‘significant increase’ in spot broking revenues and rising dry cargo rates, helping to offset lower revenues from its forward order book.