Clarkson PLC, the world's largest shipbroker and shipping services group, has posted unaudited preliminary results for 2007 showing that operating profit from continuing operations, before an exceptional item, was GBP26.4 million (US$52.9 million), up 47 per cent over 2006.
Profit before taxation on continuing operations, before exceptional items, increased 43 per cent to GBP31.6 million.
The group said in a statement that the result was achieved in spite of the impact of a weak US dollar, one-off administrative expenses resulting from the initial acquisition cost of new teams (GBP2.4 million), and the legal costs incurred in defending the Russian litigation of GBP3.2 million.
Revenue for the 12-month period to December 31, 2007 rose 49 per cent year on year to GBP173.4 million, driven primarily by strong performances in the dry bulk, futures, and the sale and purchase broking businesses.
Strategic acquisitions during 2007 totalled GBP4 million, in a bid to broaden services in dry cargo, LNG and offshore broking.
"Given a strong start to 2008 and a record forward order book, we remain confident about the prospects for our business and believe the platform we have established leaves us well positioned to deliver another year of growth in 2008," said Clarkson chairman Tim Harris.
As announced in January, the board has decided, without any admission of liability, to make a provision of GBP6 million against the existing claims totalling US$67 million from Russian state-owned shipping companies Sovcomflot and Novoship. This provision has been treated as an exceptional item.
A breakdown of the results show that its container chartering business generated a 2007 revenue of US$7 million, up from US$5.4 million in 2006. The forward order book for 2008 currently stands at US$4 million.
"Despite concerns at the beginning of 2007 that the container market would fail to absorb the global newbuilding order book, trade expansion of approximately 10 per cent ensured that box ship rates steadied and firmed during the year. In fact, Far East/Europe trade was particularly buoyant," said Clarkson in a statement.
"The container market is rapidly expanding and is the largest gross earner of freight across all sectors. Very large post panamax vessels (8,000 TEU plus) are entering the market over the next few years in increasing numbers. Whilst these big ships are dominated by the major liner companies, who have their own marketing teams, the interaction between owners and the majors is significant and our teams will be built up to provide the same global coverage as we have elsewhere," a company statement said.
With regard to the group's port and agency services, this division earned revenue of GBP3.8 million in 2007, up from GBP1.9 million a year earlier. 2007 saw a full year's revenue and result for port and agency services, originally acquired in 2006 from Genchem.
The strong business came as Clarkson increased the number of ships' agency attendances, and the volume of grain exports and animal feed imports was significantly higher during the reporting period, the release said.
Profit before taxation on continuing operations, before exceptional items, increased 43 per cent to GBP31.6 million.
The group said in a statement that the result was achieved in spite of the impact of a weak US dollar, one-off administrative expenses resulting from the initial acquisition cost of new teams (GBP2.4 million), and the legal costs incurred in defending the Russian litigation of GBP3.2 million.
Revenue for the 12-month period to December 31, 2007 rose 49 per cent year on year to GBP173.4 million, driven primarily by strong performances in the dry bulk, futures, and the sale and purchase broking businesses.
Strategic acquisitions during 2007 totalled GBP4 million, in a bid to broaden services in dry cargo, LNG and offshore broking.
"Given a strong start to 2008 and a record forward order book, we remain confident about the prospects for our business and believe the platform we have established leaves us well positioned to deliver another year of growth in 2008," said Clarkson chairman Tim Harris.
As announced in January, the board has decided, without any admission of liability, to make a provision of GBP6 million against the existing claims totalling US$67 million from Russian state-owned shipping companies Sovcomflot and Novoship. This provision has been treated as an exceptional item.
A breakdown of the results show that its container chartering business generated a 2007 revenue of US$7 million, up from US$5.4 million in 2006. The forward order book for 2008 currently stands at US$4 million.
"Despite concerns at the beginning of 2007 that the container market would fail to absorb the global newbuilding order book, trade expansion of approximately 10 per cent ensured that box ship rates steadied and firmed during the year. In fact, Far East/Europe trade was particularly buoyant," said Clarkson in a statement.
"The container market is rapidly expanding and is the largest gross earner of freight across all sectors. Very large post panamax vessels (8,000 TEU plus) are entering the market over the next few years in increasing numbers. Whilst these big ships are dominated by the major liner companies, who have their own marketing teams, the interaction between owners and the majors is significant and our teams will be built up to provide the same global coverage as we have elsewhere," a company statement said.
With regard to the group's port and agency services, this division earned revenue of GBP3.8 million in 2007, up from GBP1.9 million a year earlier. 2007 saw a full year's revenue and result for port and agency services, originally acquired in 2006 from Genchem.
The strong business came as Clarkson increased the number of ships' agency attendances, and the volume of grain exports and animal feed imports was significantly higher during the reporting period, the release said.