6th Mar 2023 15:22
(Alliance News) - Clarkson's annual results were praised on Monday, as the company beat analyst expectations across the board.
Clarkson raised its shareholder payout for the 20th year in a row, amid a "record" performance with revenue and profit both rising by double-digit percentages.
In 2022, the London-based integrated shipping services provider said revenue jumped by 36% to GBP603.8 million from GBP443.3 million, driven mainly by the Broking division.
Pretax profit increased by 45% to GBP100.1 million from GBP69.1 million, as operating profit rose to GBP582.0 million from GBP426.8 million a year ago.
Underlying pretax profit was GBP100.9 million, up 45% from GBP69.4 million a year ago.
Basic earnings per share was 247.9 pence, up 51% from 164.6p. Underlying earnings per share was 250.3p, up 51% from 250.3p a year ago.
The firm increased its final dividend by 12% to 64 pence per share from 57p, resulting in a full-year payout of 93 pence per share, up 11% from 84p a year prior.
Peel Hunt Analyst Alexander Paterson said these results were ahead of its expectations of revenue at GBP602.4 million and pretax profit at GBP98.3 million. Paterson said it expected the dividend to be 90p per share.
However, Paterson noted that free cash resources were below Peel Hunt's expectations of GBP144 million, coming in at GBP130.9 million. "We remain positive," Paterson added.
Liberum analyst Gerald Khoo said Clarkson also beat its expectations. "The results for the year to December 2022 were modestly ahead of our forecasts, by 3% at the PBT level and by 7% at the EPS level," Khoo noted.
Chief Executive Officer Andi Case said: "2022 was a record year for Clarksons, and I thank all my colleagues across every area of the business for their hard work, dedication and commitment. Whilst the global geo-political outlook for 2023 and beyond remains uncertain, the strength of business and balance between supply and demand, supported by our record level of forward order book, gives us confidence in the outlook for Clarksons."
Looking ahead, Clarkson said it starts 2023 with confidence, despite uncertainties in the geo-political landscape.
For 2023, Liberum expects Clarkson to generate GBP648 million in sales and pretax profit GBP103 million. It also anticipates a dividend of 98p.
"Shipping market conditions were supportive, but the strength of the results also reflects the group's market leadership and strategic positioning. The medium-term demand/supply outlook remains supportive, underpinned by shipbuilding constraints and decarbonisation initiatives," Khoo said.
Shares were up 1.1% at 3,450.00 pence each on Monday afternoon in London.
Peel Hunt rates Clarkson at 'buy' with a target price of 4,400p. Liberum reiterated its 'buy' recommendation, and upped its target price to 5,000p from 4,800p.
By Sophie Rose, Alliance News reporter
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