Final Results

Clarkson PLC
31 March 2004




                                   CLARKSONS

                              PRELIMINARY RESULTS

Clarkson PLC ('Clarksons'), the holding company for Clarksons, the world's
largest shipbroker and shipping services group, today announces preliminary
results for the twelve months ended 31 December 2003.


RESULTS FOR 2003
                                                    Year ended                Year ended
                                              31 December 2003          31 December 2002
                                                   (unaudited)                 (audited)

TURNOVER                                                £58.7m                    £35.7m

PROFIT BEFORE TAXATION                                  £12.2m                     £4.5m

EARNINGS PER SHARE                                      48.61p                    17.95p

DIVIDENDS PER SHARE                                     17.50p                    15.00p


•         Record turnover, profit before taxation and earnings per share.

•         Increase in dividend to 17.50 pence per share.

•         Formation of Channel Freight Ferries.

•         Strong shipping markets in the first quarter of 2004.



MICHAEL BECKETT, CHAIRMAN OF CLARKSON PLC, COMMENTED:

'In 2003 shipping experienced exceptional freight markets fuelled by demand in
the Far East (most notably in China). The record level of profit for the year
reflects not only an increasing share in our traditional shipbroking market but
also the spread of our business into wider areas of shipping services.

'In the first quarter of 2004, shipping market freight rates remained at high
levels. We continue to take advantage of these favourable trading conditions.

'At the annual general meeting I will hand over my role of chairman to Tim
Harris, with the company well placed both for 2004 and the longer term.'



FOR FURTHER INFORMATION PLEASE CONTACT ROB WARD, FINANCE DIRECTOR OF CLARKSON
PLC, ON 020 7334 0000.



CHAIRMAN'S STATEMENT AND REVIEW

INTRODUCTION

In 2003 shipping experienced exceptional freight markets fuelled by demand in
the Far East (most notably in China). The record level of profit for the year
reflects not only an increasing share in our traditional shipbroking market but
also the spread of our business into wider areas of shipping services. Shipping
markets ended the year strongly and this augurs well for 2004.

Turnover, which is derived primarily in US dollars, was up to £58.7 million in
2003 (2002: £35.7 million) reflecting the strong trading conditions throughout
most of the year. Profit before taxation rose to £12.2 million compared with
£4.5 million for 2002; these profits are also some 31% higher than the previous
record year - 2001 - and are the highest since the group was listed on the
London Stock Exchange in 1986. Earnings per share were 48.61 pence per share
(2002: 17.95 pence per share). The directors are recommending that the dividend
for the year increases to 17.50 pence per share (2002: 15.00 pence per share);
this dividend represents a 17% increase on last year and more than a threefold
increase over that declared in 1999.

2003 saw almost continuous increases in earnings across the freight markets. The
ClarkSea Index (which tracks average earnings across the shipping market)
averaged US$18,600 per day (2002: US$10,390 per day) and rose to nearly
US$28,000 per day at the end of the year. The previous highest level of the
Index was US$24,440 per day in January 2001.

The group consolidated its strong position in 2003. We continued to develop our
global network and we initiated a second major shipping logistics project,
Channel Freight Ferries, following the success of our earlier venture, Pasir
Bulk Carriers. We achieved record results in our futures and research
businesses. The results for the year illustrate the group's ability to generate
exceptional returns and cash flows.

REVIEW OF OPERATIONS

DRY CARGO

Industrial production in the Far East, in particular in China, maintained its
rapid rate of growth in 2003. This resulted in significant demand for raw
materials, much of which was sourced from further afield thereby increasing
tonne miles. The support we first identified in the fourth quarter of 2002 was
prevalent throughout the dry bulk market in 2003. Without a corresponding
expansion of the bulk carrier fleet to satisfy increased demand and with severe
congestion in some ports handling iron ore and coal, freight rates rose
throughout the year and dramatically in the last quarter.

The Baltic Dry Index, which covers the entire dry bulk sector, averaged 2067 in
the first three quarters of 2003 but had risen to 4765 by the end of the year;
the overall average for the year was 2617 (2002: 1137), an increase of 130%.

Capesize average earnings increased from US$24,800 per day at the start of the
year to US$82,500 per day by the end of the year. Year on year average earnings
for 2003 were US$41,250 per day (2002: US$13,400 per day) arising principally
from the increased demand for iron ore in China.

Average panamax earnings increased from US$11,900 per day at the start of the
year to close the year at US$36,750 per day. Average earnings for the year were
US$19,100 per day (2002: US$7,250 per day).

Average handymax earnings reached US$30,000 per day having risen steadily
throughout the year. Average handysize earnings for the year were US$9,950 per
day (2002: US$6,550 per day).

The high returns available to shipowners resulted in low rates of scrapping.
With deliveries of new tonnage in 2003 lower than those in 2002 the bulkcarrier
fleet grew by only 2.9% to 303 million deadweight tons.

The dry bulk division has benefited not only from increased rates but also from
the move by some principals to arrange longer term deals at rates discounted
from higher spot levels.

TANKERS - DEEP SEA

The deep sea tanker market in 2003 was volatile with large swings in freight
rates. Uncertainty in the Middle East before and after the hostilities in Iraq
and oil production problems in Venezuela resulted in considerable volatility in
the first quarter of the year. Resumption of production in Venezuela caused a
mid-year dip in freight rates but the autumn saw a strong recovery, partially
aided by demand from the Far East. Nearly 20 million deadweight tons of
scrapping of old tankers did not compensate for the volume of new vessels
delivered into the market and the tanker fleet grew by 3.3% to 305 million
deadweight tons during 2003. Consolidation in the sector and increasing
out-sourcing by oil companies helped to reinforce freight rates.

For the reasons indicated above, there was much volatility in VLCC freight rates
with earnings of over US$110,000 per day being achieved at the beginning of the
year, falling back to US$14,000 per day during the summer and then rebounding to
US$113,000 per day towards the end of the year. Average VLCC earnings for 2003
were US$52,000 per day (2002: US$23,000 per day).

The suezmax and aframax sectors also performed well. Both markets experienced a
similar collapse in earnings during the summer months, before rising sharply
towards the end of the year. Average suezmax earnings were up 111% from
US$19,700 per day to US$41,600 per day. Average earnings for aframax tankers
rose from US$19,300 per day to US$34,200 per day, an increase of 77% relative to
2002.

The clean and dirty products sectors saw increases in daily earnings of 57% and
73% respectively.

Increased market penetration in all the above sectors has enabled us to take
full advantage of high freight rates when they arise.

TANKERS - GAS AND SPECIALISED

The gas tanker division benefited from the effects of increased imports of
ammonia and liquid petroleum gas into the USA, driven by high natural gas
prices, which boosted overall employment of all ship sizes and freight rates.
The high levels of scrapping mitigated the deliveries of new vessels. Typical
spot earnings averaged US$23,300 per day in 2003 (2002: US$16,700 per day) for a
modern very large gas carrier.

The specialised tanker division also saw improved spot and timecharter rates for
all vessel sizes, assisted by the slowdown in fleet expansion and increased
demand.

Both sections of this division have benefited from improvements in rates and
have also added to the level of forward and regular business.

SALE AND PURCHASE

Sale and purchase secondhand market activity was significantly higher in 2003,
with customer sales reaching an estimated US$16.8 billion, a rise of 116%.
Strong freight markets increased buyer confidence in all sectors of the
secondhand market. The division increased its market share and concluded a
number of notable high value transactions.

Activity also increased in the newbuilding sector: a record 1,871 vessels were
contracted in the market with particularly aggressive ordering of container
vessels and tankers. 2003 saw newbuilding prices rise as the availability of
vessel newbuilding berths for 2004 and subsequent years declined. Following the
'Prestige' disaster in the autumn of 2002, we experienced a marked shift back to
the ordering of tankers and container vessels. Most major shipyards have little
spare capacity before 2007; however, we were successful in continuing to find
suitable opportunities for our clients to build new vessels despite the short
term limits on shipbuilding capacity. This enabled us to maintain our strong
forward order book though relatively little of the business negotiated actually
arises in the year the vessel is contracted.

The container team is now operating regularly on behalf of a number of major
shipping lines and spot income has increased. We have plans for expansion in
this area of the company's activity, particularly in Shanghai where we have now
also established a container presence.

LNG activity continued to be affected by a lack of new projects and concerns
over the number of new ships scheduled for delivery in the next few years. New
supplies of gas are expected to come to the market to meet the anticipated
increase in demand for LNG. Our joint-venture company, LNG Shipping Solutions,
is one of the few specialist companies engaged in this area of broking and is
well placed to take advantage of any such increase in activity.

FUTURES

The futures broking division has built on last year's success. Broking
commissions from this division arise from arranging contracts between third
parties seeking to cover their forward freight cost exposures. The combination
of high freight rates, new clients and a further expansion in market volumes
enabled the division to record its best ever year. Whilst the level of income in
2003 was historically high, significant financial benefit will also arise in
2004 and 2005 from business negotiated in 2003.

RESEARCH, CONSULTANCY AND PUBLICATIONS

Our strategy of combining a new generation of digital products with traditional
hard copy reports continues to work well with an increase in income of over 17%.
New product launches increased periodical and hard copy sales by 10%. The online
Shipping Intelligence Network grew revenues by over 20% and is now equal to
periodicals in terms of sales volumes. Consultancy service revenues, including
projects, were ahead by over 50%.

WORLDWIDE OFFICES

Clarksons is one of the best known names in shipping worldwide and in recent
years the company's shipping research and statistical data have significantly
enhanced its status.

It is the company's declared intention to use its reputation in this area to
continue to expand its network of international offices each providing a focus
for the local shipping community they serve.

Our relatively new offices in Houston, Genoa and Piraeus are becoming
established and seeking to expand further into their respective markets.

Elsewhere our Asia offices, based in Hong Kong, Shanghai and Singapore, make a
growing contribution to profit, most notably our tanker business in Singapore
and dry cargo business in Shanghai.

Our Australasian operation is also poised to expand beyond its existing
operations in Melbourne, Sydney and Auckland. Johannesburg maintains its good
market position and our joint ventures in Paris and San Francisco continue to
contribute to the group's profits.

LOGISTICS

In September 2003 we announced the launch of Channel Freight Ferries. This
wholly owned subsidiary has chartered in tonnage - the CFF Seine and CFF Solent
- to operate a regular daily service of sailings between Southampton in the UK
and Radicatel (part of the Port of Rouen complex) in France. The service, which
is concentrating on driver unaccompanied and specialist cargoes, began in
January 2004. This sailing route is of particular commercial interest to the
road haulage sector because it offers substantial reductions in mileage when
compared to the normal Dover to Calais alternative.

The logistics division operates, through Pasir Bulk Carriers, our two 75,000 dwt
combination carriers. These vessels are trading under the names Pasir 1 and
Ariela and are on bareboat charter to a subsidiary of Sembcorp Industries of
Singapore and continue to operate profitably.

The logistics activity within our business is anticipated to expand further and
will reduce the group's reliance on high freight rates.

FINANCIAL

The overall effective tax rate was 33.7% (2002: 37.1%). This tax rate is higher
than the standard rate of UK tax of 30.0% due to the impact of disallowable
trading expenses.

The US dollar is the major trading currency of the group. The average sterling
exchange rate for the period was US$1.65 (2002: US$1.51). By the end of the year
the exchange rate had reached US$1.79. The group has used forward contracts to
mitigate its exposure to variations in currency exchange rates thereby reducing
the adverse impact of the weaker US dollar on our sterling results.

The amount of goodwill on the balance sheet at 31 December 2003 was £2.1 million
(2002: £2.2 million). Goodwill arose from acquisitions made in 2001 and 2002,
and is being amortised over a period of 20 years.

At the end of the financial year the aggregate cash balance was £32.0 million
(2002: £16.3 million). Subsequent to the end of our financial year £15.2 million
(2002: £5.2 million) will be paid in respect of employee bonus entitlements and
UK taxation relating to performance in 2003. Trade creditors, which are payable
on demand, were £4.0 million at the end of the financial year (2002: £2.0
million).

Work is continuing to ensure that the group is in a position to make the
transition to International Accounting Standards with effect from 1 January
2005. Whilst certain modifications and additional disclosures will be required,
the principal impact will be the incorporation of the net pension scheme
position into the accounts.

The recovery in global stock markets had by the end of the financial year
reduced the pension scheme deficit, as calculated under FRS 17, to £1.8 million
(31 December 2002: £8.7 million). This represents approximately 2% of pension
scheme liabilities against approximately 10% of pension scheme liabilities as at
the end of the previous financial year. The pension scheme's actuaries Hewitt
Bacon & Woodrow estimate that, when spread over the average scheme member
working life and based on the assumptions indicated, the deficit should not
require any further increase in pension contributions by the company which are
now 30% of pensionable salaries.

The company will continue to evaluate the appropriate level of future company
and individual pension contributions. On 31 March 2003 the company closed its
existing final salary scheme to new entrants; new entrants now participate in a
new defined contribution scheme. The costs of this new scheme are limited to the
contributions paid; this measure should reduce the volatility of pension funding
costs over the long term.

STAFF

The board wishes to place on record its thanks to all members of staff at home
and abroad, who have contributed to the group's continuing success.

DIVIDEND

In light of the company's results, the board is recommending an increase in the
level of dividend to 17.50 pence per share (2002: 15.00 pence per share). This
distribution still allows the company to retain sufficient resources within the
group for future investment.

OUTLOOK

Record freight rates at the end of the year provided us with an opportunity to
enhance the group's earnings performance in 2004. Demand for raw materials and
oil, particularly in the Far East, has maintained the strength of all shipping
freight markets during the first part of 2004.

In the first quarter of 2004, shipping market earnings remained at high levels
with the ClarkSea Index averaging above US$30,000 per day against a year end
close of nearly US$28,000 per day and an average of US$18,600 per day for 2003.
We have taken advantage of these favourable trading conditions to conclude
business which will benefit 2004 and also future years.

Sustained US dollar weakness against sterling will moderate our improving dollar
income flow as existing forward foreign exchange cover taken at favourable rates
expires.

The boom in the Chinese trading has particularly benefited both dry bulk and
container sectors. The relatively low deliveries of new dry bulk carriers should
not result in any significant growth in that fleet. Whilst the sustainability of
freight rates at current levels is in question, we remain confident that these
may continue for some time.

The tanker market has not reacted as quickly to the growth in China. There is an
expectation that energy demands will continue to increase. This increase in
activity may enable the tanker sector to absorb new tonnage equal to 9% of the
existing fleet especially as part of this tonnage replaces certain pre-1981
built tankers currently being phased out before 2005. Consolidation within the
VLCC and suezmax markets will also help support freight rates as oil companies
increasingly outsource their requirements.

Clarksons is and intends to remain the world's leading shipping services
provider. We will ensure that we have the right blend and depth of skills to
continue to grow our core businesses.

As the undisputed leader in the provision of publications and research to the
shipping industry we believe we have a sound base for developing new products
and concepts. Building on these skills and strengths the company is establishing
a network of international offices each providing a focus for the local markets
they serve.

Although the company's core shipbroking activities are strongly cash generative
and have this year amply demonstrated their ability to produce record returns in
good markets, the results will inevitably continue to vary with the shipping
cycle. Management remains committed to diversification opportunities such as the
logistics activities, which are consistent with and build upon the company's
core expertise of shipping intelligence.

The company remains well placed both for 2004 and the longer term.

CHAIRMAN

Finally, as I indicated last year, I have been a non-executive director of your
company since 1988 and its chairman for the past 10 years. I am now delighted to
hand over my role of chairman to Tim Harris and wish him and everyone at
Clarksons every success in the future.

Michael Beckett

Chairman

30 March 2004



CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                                      Year to               Year to
                                                             31 December 2003      31 December 2002
                                                               (unaudited) £m          (audited) £m
TURNOVER                                                                 58.7                  35.7

Administrative expenses                                                (46.8)                (31.9)

OPERATING PROFIT                                                         11.9                   3.8

Share of operating profit in associates                                   0.1                   0.1

TOTAL OPERATING PROFIT                                                   12.0                   3.9

(Loss)/gain on sale of fixed assets                                     (0.1)                   0.6

Amounts written off investments                                         (0.8)                 (0.7)

Interest receivable and similar income                                    1.2                   0.7

Interest payable and similar charges                                    (0.1)                     -

PROFIT BEFORE TAXATION                                                   12.2                   4.5

Taxation                                                                (4.1)                 (1.7)

PROFIT AFTER TAXATION                                                     8.1                   2.8

Equity minority interests                                               (0.4)                     -

PROFIT AFTER TAXATION

ATTRIBUTABLE TO THE GROUP                                                 7.7                   2.8

Dividends

Interim 7.00p (2002: 6.00p)                                             (1.2)                 (1.0)

Final proposed 10.50p (2002: 9.00p)                                     (1.7)                 (1.5)

                                                                        (2.9)                 (2.5)

RETAINED PROFIT FOR THE YEAR                                              4.8                   0.3

EARNINGS PER SHARE                                                     48.61p                17.95p



CONSOLIDATED BALANCE SHEET
                                                                          As at               As at
                                                               31 December 2003    31 December 2002
                                                                 (unaudited) £m        (audited) £m

FIXED ASSETS                                                               10.7                13.3

CURRENT ASSETS

Debtors                                                                    10.0                 7.0

Cash and deposits                                                          32.0                16.3
                                                                           42.0                23.3
CREDITORS

Amounts falling due within one year                                      (28.0)              (15.1)

NET CURRENT ASSETS                                                         14.0                 8.2

TOTAL ASSETS LESS CURRENT LIABILITIES                                      24.7                21.5
CREDITORS

Amounts falling due after more than one year                              (2.1)               (3.9)

PROVISIONS FOR LIABILITIES AND CHARGES                                    (0.2)               (0.1)
                                                                          (2.3)               (4.0)

                                                                           22.4                17.5

CAPITAL AND RESERVES

Equity shareholders' funds                                                 21.5                17.0

Equity minority interests                                                   0.9                 0.5

                                                                           22.4                17.5



CONSOLIDATED CASH FLOW STATEMENT
                                                                    Year to                  Year to
                                                           31 December 2003         31 December 2002
                                                             (unaudited) £m             (audited) £m

NET CASH INFLOW FROM

OPERATING ACTIVITIES                                                   22.4                      1.4

DIVIDENDS FROM ASSOCIATES                                               0.1                      0.1

RETURNS ON INVESTMENTS AND

SERVICING OF FINANCE                                                    1.1                      0.6

TAXATION                                                              (2.6)                    (2.9)

CAPITAL EXPENDITURE AND

FINANCIAL INVESTMENT                                                  (0.9)                    (7.7)

EQUITY DIVIDENDS PAID                                                 (2.6)                    (2.4)

MANAGEMENT OF LIQUID RESOURCES

Increase in short term deposits                                       (6.0)                    (3.8)

FINANCING                                                             (1.0)                      7.9

INCREASE/(DECREASE) IN CASH                                            10.5                    (6.8)



CONSOLIDATED STATEMENT OF
TOTAL RECOGNISED GAINS AND LOSSES
                                                                            Year to               Year to
                                                                   31 December 2003      31 December 2002
                                                                     (unaudited) £m          (audited) £m

PROFIT ON ORDINARY ACTIVITIES

AFTER TAXATION                                                                  7.7                   2.8

Foreign exchange differences                                                  (0.8)                 (0.5)

Total recognised gains relating to the year                                     6.9                   2.3



MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS
                                                                           Year to               Year to
                                                                  31 December 2003      31 December 2002
                                                                    (unaudited) £m          (audited) £m

PROFIT ON ORDINARY ACTIVITIES

AFTER TAXATION                                                                 7.7                   2.8

Issue of new shares                                                            0.5                   1.9

Foreign exchange differences                                                 (0.8)                 (0.5)

Dividends                                                                    (2.9)                 (2.5)

Total movements during the year                                                4.5                   1.7

Equity shareholders' funds at 1 January                                       17.0                  15.3

Equity shareholders' funds at 31 December                                     21.5                  17.0


NOTES TO THE ACCOUNTS


DIVIDENDS

The directors will be recommending a final dividend of 10.50 pence per share,
payable on 18 June 2004 to shareholders on the register at the close of business
on 4 June 2004, making a total dividend for the year of 17.50 pence per share
(2002: 15.00 pence per share).



EARNINGS PER SHARE

The earnings per ordinary share is based on profit after tax for the financial
period of £7.65 million (2002: £2.62 million) and 15,729,514 (2002: 14,580,607)
shares in issue throughout the period. This is after excluding 433,820 weighted
average number of shares and £0.07 million income of the Executive Share
Purchase Trust.



ANALYSIS OF NET FUNDS
                                                                              Foreign
                                        1 January                            exchange       31 December
                                             2003         Cash flow       differences              2003
                                        (audited)       (unaudited)       (unaudited)       (unaudited)
                                               £m                £m                £m                £m

Cash                                          4.5              10.5             (0.8)              14.2

Deposits                                     11.8               6.0                 -              17.8

                                             16.3              16.5             (0.8)              32.0

Debt                                        (5.1)               1.5               0.4             (3.2)

Deferred consideration                      (0.4)               0.2             (0.1)             (0.3)

                                             10.8              18.2             (0.5)              28.5



ACCOUNTS

It is anticipated that full accounts will be posted to shareholders on 7 April
2004. The figures for the year ended 31 December 2003 included in this
announcement are unaudited and do not constitute full accounts within the
meaning of Section 240(5) of the Companies Act 1985. The figures for the year
ended 31 December 2002 have been extracted from the full accounts for that year
which have been delivered to the Registrar of Companies and on which the
auditors have issued an unqualified audit report.


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