Interim Results

HORACE CLARKSON PLC
8 September 1999


CHAIRMAN'S STATEMENT                                                          
                                                                              
                                                                              
INTRODUCTION                                                                  
                                                                              
THE UNAUDITED PRE-TAX PROFIT for the first six months was £0.5 million on a
turnover of £12.7 million, compared with £1.2 million on a turnover of £14.4
million for the corresponding period of 1998.                                 
                                                                              
Despite the difficult market conditions which have continued to prevail across
most of the shipping sectors in which we operate, we continue to develop new
types of broking relationship which will allow us to add value to our clients'
business and we believe retain our pre-eminent market position.               
                                                                              
                                                                              
REVIEW OF OPERATIONS                                                          
                                                                              
IN THE FIRST HALF of 1999 tanker earnings decreased in all sectors compared to
the corresponding period last year.  Agreements to restrict production reduced
seaborne crude oil trades.  High newbuilding deliveries were partially offset
by high tanker scrapping in the first six months, which nearly equalled the
full year 1998 total.                                                         
                                                                              
The dry bulk market continued with lower average vessel earnings than seen in
the first half of last year.  Seaborne trade in dry bulk commodities is
estimated to be stable, with encouraging signs in steam coal and grain trades
offset by weakness elsewhere.  Demolition continued at similar levels to 1998.
                                                                              
Overall industry ordering of new vessels is at low levels, consistent with the
low freight markets.  A welcome exception for the newbuilding market has been
high contracting for Panamax bulkers.                                         
                                                                              
Our futures business benefited from market volatility at the start of the year
which resulted in increased Biffex and FFA volumes, relative to the
corresponding period of 1998 but market weakness has returned during the
summer period.                                                                
                                                                              
A flow of new products helped to maintain momentum in Clarkson Research.  The
launch in May of Container Intelligence Monthly took us another step towards
our goal of providing a comprehensive information service for the liner
industry and the new Clarkson Register CD was a major addition to our range of
digital products.                                                             
                                                                              
All our overseas companies, apart from Beijing, have generated profits, with
our Australian subsidiary continuing to perform particularly well.


FINANCIAL                                                                     
                                                                              
WE ESTIMATE that the average tax rate that will apply for the full year in
1999 will be 40.0% (1998: 34.8%) and we have applied this rate for the first
half-year.  The 1998 tax rate reflected the utilisation of brought forward
capital losses against exceptional profits.  The group continues to suffer a
higher than standard rate of tax principally as a result of disallowable
expenses in the UK.                                                           
                                                                              
In August the company announced that it had agreed to acquire 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
towards the company offering its clients worldwide a broader range of shipping
services.                                                                    


PROSPECTS                                                                     
                                                                              
DIFFICULT CONDITIONS continue to prevail in all major sectors of the company's
business.  Shipping market prospects remain linked to world demand.  Tanker
demand will continue to be affected by the amount and duration of crude oil
production cuts.  Indications of a nascent economic recovery in Asia provide
encouragement for commodity and oil demand later this year and into 2000.
However, we anticipate some improvement in the dry bulk market in the latter
part of this year although vessel order books remain a matter of concern in a
weak freight market, with continuation of high vessel scrapping possibly
offering some relief on the supply side.                                      

                                                                              
DIVIDEND                                                                      
                                                                              
AN INTERIM DIVIDEND of 1.50p per share (1998: 1.50p) will be paid on 8 October
1999 to shareholders on the register at 24 September 1999.                    
                                                                              
                                                                              
Michael Beckett                                                               
Chairman                                                                      
                                                                              
8 September 1999


CONSOLIDATED PROFIT AND LOSS ACCOUNT                                         
                                                                             
                                                                             
                                                                             
                                       Half year     Half year        Year to
                                      to 30 June    to 30 June    31 December
                                            1999          1998           1998
                                      (unaudited)   (unaudited)      (audited)
                                              £m            £m             £m
                                                                             
TURNOVER                                    12.7          14.4           28.4
                                                                             
                                                                             
OPERATING PROFIT                             0.2           0.7            0.5
                                                                             
Interest receivable and other income         0.3           0.5            0.7
                                                                             
Interest payable and similar charges          -             -            (0.1)
                                                                             
Profit on disposal of fixed assets            -             -             0.9
                                                                             
                                                                             
PROFIT BEFORE TAXATION                       0.5           1.2            2.0
                                                                             
Taxation                                    (0.2)         (0.5)          (0.7)
                                                                             
                                                                             
PROFIT AFTER TAXATION                        0.3           0.7            1.3 
                                                                             
Dividend                                                                     
                                                                             
     Interim proposed 1.50p (1998: 1.50p)   (0.2)         (0.2)          (0.2)
                                                                             
     Final    -  (1998: 2.50p)               -              -            (0.3)
                                                                             
                                                                             
                                            (0.2)         (0.2)          (0.5)
                                                                             
                                                                             
RETAINED PROFIT                              0.1           0.5            0.8 
                                                                             
                                                                            
EARNINGS PER SHARE                           2.1p          3.6p           7.9p




CONSOLIDATED BALANCE SHEET                                                   
                                                                             
                                                                             
                                                                             
                                         30 June       30 June    31 December
                                            1999          1998           1998
                                      (unaudited)   (unaudited)      (audited)
                                              £m            £m             £m
                                                                             
FIXED ASSETS                                 4.8           5.2            4.9
                                                                             
                                                                             
CURRENT ASSETS                                                                
                                                                             
Debtors                                      7.1           6.4            7.0
                                                                             
Cash and deposits                            4.6          13.5            4.8 
                                                                             
                                                                             
                                            11.7          19.9           11.8 
                                                                             
CREDITORS                                                                     
                                                                             
Amounts falling due within one year         (7.3)         (8.1)          (7.8)
                                                                             
                                                                             
NET CURRENT ASSETS                           4.4          11.8            4.0 
                                                                             
                                                                             
TOTAL ASSETS LESS CURRENT LIABILITIES        9.2          17.0            8.9 
                                                                             
                                                                             
PROVISIONS FOR LIABILITIES AND CHARGES      (0.1)         (0.2)          (0.1)
                                                                             
                                                                             
SHAREHOLDERS' FUNDS                          9.1          16.8            8.8 
                                                                             
                                                                             
                                                                             


CONSOLIDATED CASH FLOW STATEMENT                                             
                                                                             
                                                                             
                                                                             
                                       Half year     Half year        Year to
                                      to 30 June    to 30 June    31 December
                                            1999          1998           1998
                                      (unaudited)   (unaudited)     (audited)
                                              £m            £m            £m
                                                                             
NET CASH FLOW FROM OPERATING ACTIVITIES      (1.1)        (0.1)           1.2
                                                                             
                                                                             
RETURNS ON INVESTMENTS                        0.3          0.5            0.6 
                                                                             
                                                                             
TAXATION                                     (0.1)        (0.4)          (2.5)
                                                                             
                                                                             
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT (0.3)        (0.1)           0.4 
                                                                              
                                                                             
EQUITY DIVIDENDS PAID                        (0.3)        (0.5)          (0.7)
                                                                             
                                                                             
MANAGEMENT OF LIQUID RESOURCES               (0.1)        (0.1)           9.1 
                                                                             
                                                                             
NET CASH FLOW BEFORE FINANCING               (1.6)        (0.7)           8.1 
                                                                             
                                                                             
REPURCHASE OF ORDINARY SHARE CAPITAL          -             -            (8.4)
                                                                             
                                                                             
DECREASE IN FUNDS                            (1.6)        (0.7)          (0.3)
                                                                              
                                                                             


CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES                   

                                                                             
                                                                             
                                        Half year    Half year        Year to
                                       to 30 June   to 30 June    31 December
                                             1999         1998           1998
                                       (unaudited)  (unaudited)      (audited)
                                               £m           £m             £m
                                                                             
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION  0.3          0.7            1.3
                                                                             
Foreign exchange differences                  0.2         (0.4)          (0.3)
                                                                             
                                                                             
Total recognised gains relating to the year   0.5          0.3            1.0 
                                                                             
                                                                             
                                                                             
MOVEMENT IN SHAREHOLDERS' FUNDS                                              
                                                                             
                                                                             
                                       Half year    Half year          Year to
                                      to 30 June   to 30 June      31 December
                                            1999         1998             1998
                                      (unaudited)  (unaudited)       (audited)
                                              £m           £m              £m
                                                                             
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 0.3          0.7            1.3 
                                                                             
Foreign exchange differences                 0.2         (0.4)          (0.3)
                                                                             
Dividends                                   (0.2)        (0.2)          (0.5)
                                                                             
Tender offer                                  -            -            (8.4)
                                                                             
                                                                             
Total movements during the year              0.3          0.1           (7.9)
                                                                             
Shareholders' funds at start of period       8.8         16.7           16.7 
                                                                             
                                                                             
Shareholders' funds at end of period         9.1         16.8            8.8 
                                                                             


NOTES TO THE INTERIM FINANCIAL REPORT                                         
                                                                              
                                                                              
                                                                              
1  ACCOUNTING POLICIES AND BASIS OF PREPARATION OF INTERIM REPORT     
The principal accounting policies of the group, which are set out in the
Annual Report and Accounts for the year ended 31 December 1998, are unchanged.
Fixed annual charges are apportioned to the interim period on the basis of
time elapsed.  Other expenses are accrued in accordance with the same
principles used in the preparation of the annual accounts.  The taxation
charge is calculated by applying the directors' best estimate of the annual
effective tax rate to the profit for the period.                              
                                                                              
2  EARNINGS PER SHARE                                                         
The earnings per ordinary share is based on profit after tax for the financial
period of £0.28 million (1998: £0.70 million) and 13,125,522 (1998:
19,279,368) shares in issue throughout the period.  This is after excluding
the shares and income of the Executive Share Purchase Trust.
                                                                              
3  ACCOUNTS                                                                   
The figures for the six months ended 30 June 1999 are unaudited and do not
constitute full accounts within the meaning of Section 240(5) of the Companies
Act 1985.  The statutory audited accounts of the group for the year ended 31
December 1998, upon which the auditors have given an unqualified report, have
been delivered to the Registrar of Companies in England & Wales.