Final Results - Year Ended 31 December 1999

Clarkson (Horace) PLC
22 March 2000


Horace Clarkson PLC, which is the holding company for Clarksons, the world's
largest shipbrokers, announces preliminary results for the twelve months ended
31 December 1999.



*       Turnover of £27.0 million (1998: £28.4 million)

*       Profit before tax of £1.3 million (1998: £1.1 million, excluding an
exceptional gain on asset sales of £0.9 million)

*       Launch of a unique, online market intelligence service covering the
world's shipping markets 'Shipping Intelligence Network' ('SIN')

*       Diversification of shipping services into ship management with
acquisition of a 50% interest in the parent company of Univan Ship Management
Limited.

*       Final dividend maintained at 2.5 pence per share, making a total for
the year of 4.0 pence (1998: 4.0 pence)


Michael Beckett, Chairman of Horace Clarkson PLC, commented:

'This was a good performance given the continued tough market conditions and
last year's heavy investment in developing the company's integrated eBusiness
strategy. This strategy will enable us to leverage off our successful legacy
business and position the company as a leader in the emerging shipping
eBusiness arena. 

'We are particularly pleased with the shipping community's early response to
our first eCommerce product, SIN, which only went on line earlier this month.
Building on the strong base SIN gives us, (our unique real-time and online
market intelligence service), we plan to launch a series of information and
trading platforms during the coming year. 

'Looking forward, with all the shipping markets that we operate in a state of
recovery, freight rates look set to firm in 2000. We are in a good position to
take advantage of this upturn, given our concentration over the last two years
on maintaining our critical mass in key markets and developing value added
services.'


                                                               22 March 2000


Enquiries:

Robert Ward   Finance Director       Horace Clarkson PLC   020-7334 0000
Sarah Bagnall Citigate Dewe Rogerson   020-7282 2939









CHAIRMAN'S STATEMENT

INTRODUCTION

PROFIT BEFORE TAX for the year ended 31 December 1999 was £1.3 million (1998:
£1.1 million, excluding an exceptional gain on asset sales of £0.9 million). 
Turnover was £27.0 million (1998: £28.4 million).

During the year the company has continued to develop and extend its broking
relationships with key clients by providing added value to the transactions
they are conducting and by staying at the forefront of its industry in
developing new products and providing relevant and timely advice.  In
addition, we have used our position as market leader to begin the
implementation of an eBusiness strategy that will enable us to maintain our
'best-of-brand' position.

REVIEW OF OPERATIONS

Market Overview

TURNOVER in US dollars, in which most of our business was done, decreased to
US$43.5 million (£27.0 million), from US$47.0 million (£28.4 million),
reflecting lower freight rates in most sectors.

Dry Cargo

The DRY CARGO sector experienced another very difficult year.  Average vessel
earnings for much of the year were weaker than in 1998, a year which in itself
saw returns fall to the lowest level since the mid 1980s.

An upturn in the global economy from the middle of the year however, led to a
sudden increase in rates from the third quarter onwards.  The recovery started
with the largest units, before effecting the Panamax and Handy sectors, with
Capesize earnings by the end of the year double the levels seen in the summer.

Whilst this recovery is a cause for optimism, it came too late to impact
significantly on the results for 1999.  The full effect of this change in our
earnings will be felt in the coming year.

Tankers

The TANKER sector felt the effects of OPEC's decision to restrict crude oil
production from the second quarter onwards.  VLCC rates in particular
suffered, with earnings 30% down in the second half of the year.  Suezmax and
Aframax rates also weakened, but the falls were not as great as for VLCC's and
both sectors enjoyed a healthy recovery towards the end of the year.  The
market is currently assessing the likely effect on chartering fixing practices
of the 'Erika' disaster. If charterers are forced to take more modern tonnage
then this will undoubtedly ensure higher freight rates in year 2000.

Having been squeezed by the Asian slowdown and increased refinery capacity
during 1999 which left earnings weak, product tanker rates also now look
poised to stage a recovery.  Consolidation in the fleet and rising demand were
the major factors accounting for an improved gas carrier market towards the
end of the year.  Meanwhile, an extended period of weakness in the chemical
tanker market came to an end in the second half of the year despite continued
fleet growth.


Sale and Purchase

SALE AND PURCHASE activity was up significantly in 1999, particularly in the
area of bulkcarrier newbuildings.  Contracting of cargo vessels in 1999 rose
24% to 49 million dwt, with bulkers accounting for much of the ordering.

Total secondhand sales volume increased 30% to 822 vessels, though reduced
average size and value of each transaction resulted in a decline in the value
of reported sales to US$5.4 billion (1998: US$6.0 billion).  The demolition
market saw increased activity with 30 million dwt scrapped in 1999 as against
25 million dwt in 1998.

Although the division suffered from relatively weak spot earnings,
particularly during the first half of the year, it ordered on behalf of
clients a record number of ship newbuildings, surpassing the total number
ordered in any previous year in the company's history.

During the early part of the year the container market declined.  The
recovery, when it came in late spring, was faster than anticipated.  Shortage
of space, particularly on the TransPacific trade route, encouraged new and
existing operators to expand services on the back of low charter rates.  Trade
volumes continued to expand and, coupled with low deliveries, rates firmed. 
Reorganisation of our container department into an integrated team offering
chartering, sale and purchase and research capabilities has proved timely.

Futures

On the back of a weak dry cargo market, 'biffex' volumes declined.  Over the
counter swaps, however, continue to increase in popularity, albeit with lower
commission earnings than last year due to weaker rates in the underlying
market.  The division is expanding the range of products it offers to clients
in both dry bulk and tanker sectors.

Research and Publications

IN A YEAR of much activity, the Research and Publications division increased
its turnover.  Container Intelligence Monthly and the new Clarkson Register CD
were launched during the year and extended our market presence.  The division
reorganised to meet the new demands of our clients with a new research
services unit.

The establishment of new databases and digital products as well as the
development of web based delivery systems will help keep the division in the
forefront of information provision to the shipping industry.  The backbone of
these developments is the Shipping Intelligence Network, officially launched
in March 2000.

Overseas

OUR OVERSEAS companies again made a positive contribution to operating
profits.  In particular our Australian subsidiary, Austral Chartering (Pty)
Limited, performed well.  Clarkson Asia Singapore generated higher commission
levels from its exposure to the VLCC markets and our offices in China continue
to make steady progress.


Ship Management

DURING THE SECOND HALF of 1999 the group acquired a 50% interest in Vanlink
Group Limited, the parent company of Univan Ship Management Limited, a leading
Hong Kong based ship management company.  This move provides an entry into a
growing related business area and represents a further step in our objective
of providing our clients worldwide with a broader range of shipping services. 
The 1999 results include a useful contribution from this investment.

FINANCIAL

THE COMPANY implemented a plan to ensure that it was unaffected by any Year
2000 issues.  All the projects were completed during 1999 and no issues were
encountered either on 1 January or 29 February 2000.

Overall net cash balances stand at £4.5 million (1998: £4.6 million).  This is
sufficient to cover the working capital requirements of the group.

The overall effective tax rate for the year is 54.3% (1998: 34.8%).  In 1999
the combination of UK disallowable expenses with a lower level of
profitability has had a disproportionate affect on the overall rate.  The 1998
tax rate reflected the utilisation of brought forward capital losses against
exceptional profits.

The group only uses spot and forward foreign currency contracts to reduce the
group's exposure to variations in the Sterling / US dollar exchange rate.  As
stated above, the main operating currency for shipping is US dollars.  

PROSPECTS

With all the shipping markets in which we operate enjoying recovery, freight
rates look set to  firm in 2000. We are in a good position to take advantage
of this upturn, given our concentration over the last two years on maintaining
our critical mass in key markets and developing value added services.

In addition the group can now combine its unrivalled worldwide broking network
with the excellence of Univan's ship management operation to give shipowners
unique access to a wide range of shipping services in an independent manner. 
We believe the joint venture with Univan is capable of making a positive
contribution to the group's profit in future years and indeed the company is
focused on expanding its existing range of shipping related services.

Above all, the group has been quick to respond to developments in new
technology. We have invested heavily to develop an integrated eBusiness
strategy that will enable us to leverage off our successful legacy business
and position the company as a leading player in the emerging shipping
eBusiness environment. The first in a range of eCommerce products, creating a
shipping information portal, went on line in March 2000. We intend to launch a
series of innovative information and trading platforms during the coming year.


DIVIDEND

THE BOARD will be recommending a final dividend of 2.50 pence per share to be
paid on 23 June 2000 to shareholders on the register at the close of business
on 9 June 2000. This final dividend, together with the interim dividend paid
in October 1999, makes a total of 4.00 pence per share, the same as last year.

STAFF

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





Michael Beckett
Chairman

22 March 2000

Horace Clarkson PLC










CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                                        Year to        Year to
                                                    31 December    31 December
                                                           1999           1998
                                                    (unaudited)      (audited)
                                                            £m            £m


TURNOVER                                                   27.0          28.4


OPERATING PROFIT                                            0.5           0.5

Share of profits of associated undertakings                 0.3           0.1

Interest receivable and similar income                      0.6           0.6

Interest payable and similar charges                       (0.1)         (0.1)

Profit on disposal of fixed assets                             -          0.9


PROFIT BEFORE TAXATION                                      1.3           2.0

Taxation                                                   (0.7)         (0.7)


PROFIT AFTER TAXATION                                       0.6           1.3
              
       
Dividend

       Interim 1.50p (1998: 1.50p)                         (0.2)         (0.2)
        
       Final proposed 2.50p (1998: 2.50p)                  (0.4)         (0.4)

                     
                                                           (0.6)         (0.6)
              

RETAINED PROFIT                                               -           0.7


EARNINGS PER SHARE                                          4.1p          7.9p





CONSOLIDATED BALANCE SHEET



                                                        Year to       Year to
                                                    31 December   31 December
                                                           1999          1998
                                                     (unaudited)     (audited)
                                                             £m            £m



FIXED ASSETS                                                4.6           4.9


CURRENT ASSETS       

Debtors                                                     7.1           7.0

Cash and deposits                                           6.9           4.8

                                                           14.0          11.8
                

CREDITORS

Amounts falling due within one year                        (9.7)         (7.8)
       

NET CURRENT ASSETS                                          4.3           4.0


TOTAL ASSETS LESS CURRENT LIABILITIES                       8.9           8.9


PROVISIONS FOR LIABILITIES AND CHARGES                        -          (0.1)


SHAREHOLDERS' FUNDS                                         8.9           8.8







CONSOLIDATED CASH FLOW STATEMENT



                                                        Year to       Year to
                                                    31 December   31 December
                                                           1999          1998
                                                     (unaudited)     (audited)
                                                             £m            £m


NET CASH FLOW FROM OPERATING ACTIVITIES                     1.0           1.1

DIVIDENDS FROM ASSOCIATES                                   0.1           0.1

RETURNS ON INVESTMENTS                                      0.4           0.6

TAXATION                                                   (0.6)         (2.5)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT               (0.5)          0.4

EQUITY DIVIDENDS PAID                                      (0.6)         (0.7)

MANAGEMENT OF LIQUID RESOURCES                             (0.1)          9.1


NET CASH FLOW BEFORE FINANCING                             (0.3)          8.1

FINANCING                                                     -          (8.4)


DECREASE IN FUNDS                                          (0.3)         (0.3)




CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES




                                                        Year to       Year to
                                                    31 December    31 December
                                                           1999          1998
                                                     (unaudited)     (audited)
                                                             £m            £m

PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                0.6           1.3

Foreign exchange differences                                0.1          (0.3)


Total recognised gains relating to the year                 0.7           1.0



MOVEMENT IN SHAREHOLDERS' FUNDS




                                                       Year to        Year to
                                                   31 December    31 December
                                                          1999           1998
                                                    (unaudited)      (audited)
                                                            £m             £m


PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                0.6           1.3

Foreign exchange differences                                0.1          (0.3)

Dividends                                                  (0.6)         (0.6)

Tender offer                                                  -          (8.3)


Total movements during the year                             0.1          (7.9)

Shareholders' funds at start of period                      8.8          16.7


Shareholders' funds at end of period                        8.9           8.8




NOTES



EARNINGS PER SHARE


The earnings per ordinary share is based on profit after tax for the financial
period of £0.55 million (1998: £1.29 million) and 13,239,700 (1998:
16,278,314) shares in issue throughout the period.  This is after excluding
the shares and income of the Executive Share Purchase Trust.

ACCOUNTS

It is anticipated that full accounts will be posted to shareholders on 7 April
2000.  The figures for the year ended 31 December 1999 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 1998 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 report.