Clarkson Shares Tumble Despite Record Profit as Geo-Political Outlook Remains Uncertain

Clarkson PLC’s (LON: CKN) share price fell on Friday despite the shipping services firm posting record profits for 2024. 

Investors appeared cautious about the company’s outlook, as CEO Andi Case warned of ongoing geopolitical uncertainty impacting freight rates and asset values.

The company’s stock fell by more than 17% to around 3,660p per share.

Clarkson reported an underlying profit before tax of £115.3 million, up 6% from £109.2 million in 2023, with revenue rising 3.4% to £661.4 million. 

Underlying basic earnings per share increased 4% to 286.9p, while the company announced a full-year dividend of 109p per share, marking its 22nd consecutive year of dividend growth.

Despite the strong financial results, the company flagged concerns over the global shipping market in 2025. 

“2024 was another year of disruption, complexity and opportunity for global shipping markets and against this backdrop,” said Case. “The geopolitical outlook remains uncertain as we enter 2025, with ongoing regional conflicts and trade tensions creating uncertainty for markets.” 

He added that freight rates and asset values have softened compared to 2024, making the company’s performance dependent on the resolution or continuation of global disruptions.

Clarkson’s forward order book grew to $231 million as of 31 December 2024, up from $217 million a year earlier, providing some revenue visibility for 2025. The company remains committed to investing in its business despite near-term headwinds.