Clarkson shares fall more than 30% after profit warning amid tough shipping market
- 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.
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.
Most watched Money videos
- Would you retire abroad for cheaper living costs?
- How to invest for income and growth: SAINTS' James Dow
- Mini unveil an electrified version of their popular Countryman
- Iconic Dodge Charger goes electric as company unveils its Daytona
- German car giant BMW has released the X2 and it has gone electric!
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- Aston Martin unveils new Vantage sports car capable of 202mph
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- How to invest to beat tax raids and make more of your money
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- MARKET REPORT: North Sea oil producer Enquest posts loss...
- Nearly half of young people don't realise buy now, pay...
- My blood boils when I hear critics say Waspi women should...
- Legal firm representing St James's Place customers to...
- Dividend hero SAINT's manager on the best shares for...
- JD Sports boss fires out at Nike for failing to produce...
- Don't expect sympathy when the crypto bubble bursts - and...
- Celebrity skincare favourites help boost sales at Boots...
- Disgraced crypto tycoon Sam Bankman-Fried sentenced to 25...
- Bidding war erupts for UK telecoms firm Spirent as...
- Superdry founder Julian Dunkerton ends his pursuit of the...
- The turning of the tide for luxury e-commerce? Shoppers...
- Cost of Baltimore bridge disaster will run into multi...
- Interest rate cuts still 'a long way off' despite falling...
- Quiz founder Tarak Ramzan steps down as fashion firm...
- My friends say I'm a shopaholic but I'm 34, single and...
- Stocks and shares Isa transfer and cashback deals you can...
- AO World shares surge as online retailer electronics...