Clarkson: Shares in shipbroker plummet after tariff profit warning
Shares in Clarkson plummeted on Thursday after the shipbroker lowered its annual profit forecast, citing the impact of US tariffs.
Underlying pre-tax profit is expected to fall in the range of £85m to £95m, down 18 per cent from prior full-year guidance.
The stock was down around 11 per cent in early trading.
Clarkson cited “uncertainty” arising from the potential of a global trade war, with tariffs of over 100 per cent going both ways between China and the US.
“Whilst the Board believes that the effect of current macro uncertainty has the potential to be reversed once normality returns to the markets, it now expects that the recent changes in US government policy will impact results for 2025,” it said in a statement to markets ahead of its annual general meeting (AGM) on Thursday.
It comes after the FTSE 250 firm lost around a fifth of its value in one day in March following a warning from boss Andi Case of the impact of “uncertain” geopolitics and “trade tensions” on freight rates.
As of mid-March, year-to-date US dollar spot negotations in broking were running seven per cent lower than anticipated.
Clarkson also said it may see a further £10m hit to profits should exchange rates remain at current levels through 2025, given the value of the US dollar has declined against most global currencies.
“The Board remains committed to the strategy that has served Clarksons well and the group continues to help its clients navigate these ongoing complexities, by providing the expertise, data and insights to enable them to make the right decisions for their organisations.
“Demand for Clarksons research products is currently high as clients seek trusted advice during the current market turbulence.”