Interim Results

Clarkson PLC
04 September 2002

                                   CLARKSONS


             INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2002


Clarkson PLC ('Clarksons'), the holding company for Clarksons, the world's
largest shipbroker and shipping services group, today announces interim results
for the six months ended 30 June 2002.


* Turnover £16.6 million (2001: £23.3 million).

* Profit before tax £2.0 million (2001: £4.8 million).

* Earnings per share 8.5 pence (2001: 21.0 pence).

* Strong cash position of £11.8 million at 30 June 2002.

* Formation of Clarkson Logistics Limited and US$1.25 million investment in a
  land reclamation project in Singapore.

* Acquisitions of Beacon Chartering & Shipping Limited and Netco Europe Limited,
  two specialist brokers.

* Interim dividend maintained at 6.0 pence (2001: 6.0 pence).



MICHAEL BECKETT, CHAIRMAN OF CLARKSON PLC, COMMENTED:

'After the phenomenal shipping markets that we experienced in the early part of
2001, global economic trading conditions during the first half of 2002 were
significantly less favourable and this has taken its toll on our sector. Our
results, therefore, represent a reasonable performance in a difficult shipping
market.

'As market conditions change, so we are also seeking to ensure we have the right
blend of skills to deliver high quality research and value added services to the
shipping industry. We continue to focus on concluding improved quality of
business, which generates revenues well into the future, to ensure that the
company is less affected by lower freight rates and volatile market conditions.

'The company is well positioned to deal with the existing market conditions and
ideally placed to take advantage of any improvements in global shipping markets
when they arise.'

3 September 2002



FOR FURTHER INFORMATION PLEASE CONTACT:

Robert Ward, Finance Director, Clarkson PLC: 020 7334 0000

Sarah Bagnall/Rebecca Sly, RSB Consultancy: 020 7264 2080


CHAIRMAN'S STATEMENT AND REVIEW



INTRODUCTION

The unaudited pre-tax profit for the first six months was £2.0 million (2001
interim: £4.8 million). Turnover was £16.6 million (2001 interim: £23.3
million). Earnings per share were 8.5 pence per share (2001 interim: 21.0 pence
per share). These results represent a reasonable performance in a difficult
global shipping market.



After the phenomenal shipping markets that we experienced in the early part of
2001, global economic trading conditions during the first half of 2002 were
significantly less favourable and this has taken its toll on our sector. The
increased uncertainty has directly affected both freight rates and the
willingness of principals to instigate longer term deals. Average freight-rate
earnings during the period, as measured by the ClarkSea index which tracks
earnings across the shipping market, were only $9,116 per day (first half 2001:
$19,514 per day) having hit a low point of $8,630 per day at the start of the
year.



REVIEW OF OPERATIONS

Sale and purchase tanker transaction volumes were reduced by depressed tanker
earnings and the absorption of new tonnage in that sector. Dry bulk carrier
markets were more active, though major deals were rare. Despite these difficult
conditions we continue to achieve significant success in the LNG market and in
the newbuilding of product tankers.



The dry bulk market traded at historic lows for the first six months of the year
with the Baltic Dry Index averaging 1010 (first half 2001: 1470) with a low
point of 882 at the start of the year. Despite these freight rate levels we have
successfully continued to focus on generating profitable forward order book
business for 2003 and beyond.



Deep sea tanker freight rates were unable to sustain any prolonged upward
movement during the period, a situation compounded by reduced OPEC production
levels. Non-OPEC production increases helped the aframax and suezmax sectors but
rates were held back by the delivery of more efficient newbuildings.



The gas tanker market saw further consolidation and record vessel scrapping
during the first half of the year. However this activity failed to compensate
for lower demand and resulted in weaker spot and period freight rates. The
chemical and small tanker market also suffered reduced activity and freight
rates.



The futures division arranged 75% more forward freight agreements than in the
same period last year, but lower underlying freight rates hampered the financial
performance of the team. The first half of the year has seen increased numbers
of trades of longer duration, which will help underpin earnings from futures to
the end of 2003.



The research division increased overall sales steadily. Our digital information
products are becoming increasingly popular, with revenue from Shipping
Intelligence Network almost doubling and sales of the Professional CD growing by
over 35% relative to the first half of 2001. Such increases were partially
offset by reduced hard copy sales.



Our eBusiness section has continued to develop a communications system for use
by our brokers worldwide. This web-based system, which allows access to data
held securely offsite, has also generated interest from software providers and
other broking firms. In January 2002 we concluded the sale of our bunker broking
activity to OceanConnect.com.



Our overseas companies all encountered similarly difficult market conditions.
However, our offices in Australia, Singapore, South Africa and Shanghai
continued to generate satisfactory earnings.



FINANCIAL

We estimate that the average tax rate that will apply for the full year in 2002
will be 37.5% (2001: 35.0%) and we have applied this rate for the first half of
the year. In the previous year the tax rate benefited from the utilisation of
brought forward capital losses.



At 30 June 2002 the aggregate cash balance was £11.8 million (31 December 2001:
£19.4 million) of which approximately £0.9 million was short term funds held on
behalf of clients.



The US dollar is the major trading currency of the group. The average exchange
rate for the period was £1/$1.45 (first half 2001: £1/$1.43). As indicated in
our 2001 report and accounts, the group has used forward contracts to reduce its
exposure to variations in exchange rates thereby limiting the impact on our
sterling results of a weakening US dollar.



The pension scheme surplus of £5.0 million, as calculated under FRS 17, that
existed at 31 December 2001 had by 30 June 2002 been eliminated by the fall in
global stock markets. The company is evaluating a number of options that seek to
limit the open-ended commitment that operating a final salary scheme entails.



NEW BUSINESS

At the beginning of August 2002, the company announced the formation of Clarkson
Logistics Limited. Its first project has been the acquisition of a 51%
shareholding in Pasir Bulk Carriers Pte. Ltd. ('Pasir'), a company registered in
Singapore. Pasir is providing two OBO carriers for the Tuas land reclamation
project in Singapore. Singapore hopes to achieve a 15% increase in its land mass
by 2010 to cater for its increasing population. The company has invested $1.25
million cash in Pasir.



Also in August the company purchased the business and assets of Beacon
Chartering & Shipping Limited, a New Zealand based broker specialising in the
shipping of reefer and dry bulk cargoes. The company also acquired NetCo Europe
Limited, a UK based chemical and small tanker broking company. The consideration
for each transaction is deferred and largely comprised of newly issued shares in
the company.



DIRECTORS

In January 2002 we welcomed Martin Clark as a non-executive director of the
company. Martin is a non-executive director of Senior plc and BPB plc, and a
former group finance director of Caradon plc.



In March 2002 we welcomed Tim Harris as a non-executive director of the company.
Tim is chairman of James Fisher and Sons plc, and formerly chief executive of P&
O Nedlloyd.



As previously indicated in May 2002 Stephen James, having reached the age of 70,
stood down as a non-executive director at the annual general meeting.



In July 2002 Richard Fulford-Smith asked to step down as a Clarkson PLC director
in order to concentrate on his shipbroking role but continues as managing
director of H Clarkson & Company Limited. Richard has been a director for some
18 months and the board is grateful to him for his services during that time.



DIVIDEND

The board recommends maintaining the level of interim dividend, of 6.00 pence
per share (2001 interim: 6.00 pence per share), despite the current trading
conditions. This proposed distribution still allows the company to retain
sufficient resources within the group for future investment.



OUTLOOK

The world economy continued to recover, albeit slowly, during the second quarter
and further growth in industrial production is anticipated in the third quarter.
Under normal circumstances we might expect this to have a beneficial affect, in
particular on the dry bulk markets where the order book remains relatively low
at less than 9% of the existing fleet. However, recent financial market
weaknesses and volatility suggest rising uncertainty about the durability and
strength of the economic recovery. In particular if consumer and business
confidence in the US is damaged, reduced spending could jeopardise the US
recovery with the associated knock on affect on all of the world's major
economies.



On the supply side, with the order books for the container and tanker market at
19% and 22% of the current fleet respectively, we remain concerned about the
effect on freight rates of possible oversupply of new tonnage next year. The dry
cargo market, however, should be better placed to take advantage of any increase
in industrial activity.



As market conditions change, so we are also seeking to ensure we have the right
blend of skills to deliver high quality research and value added services to the
shipping industry. We continue to focus on concluding improved quality of
business, which generates revenues well into the future, to ensure that the
company is less affected by lower freight rates and volatile market conditions.



The company is well positioned to deal with the existing market conditions and
ideally placed to take advantage of any improvements in global shipping markets
when they arise.



Michael Beckett

Chairman



3 September 2002







CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                            Half year          Half year            Year to
                                                           to 30 June         to 30 June        31 December
                                                                 2002               2001               2001
                                                          (unaudited)        (unaudited)          (audited)
                                                                   £m                 £m                 £m

TURNOVER                                                         16.6               23.3               42.6
OPERATING PROFIT                                                  1.5                4.4                7.4
Share of results of associated undertakings                         -              (0.1)                0.2
Profit on sale of fixed assets                                    0.1                0.1                0.9
Interest receivable and other income                              0.4                0.4                0.8
PROFIT BEFORE TAXATION                                            2.0                4.8                9.3
Taxation                                                        (0.7)              (1.8)              (3.3)
PROFIT AFTER TAXATION                                             1.3                3.0                6.0
Dividend
Interim proposed 6.00p (2001: 6.00p)                            (1.0)              (0.9)              (1.0)
Final - (2001: 9.00p)                                               -                  -              (1.3)
                                                                (1.0)              (0.9)              (2.3)
RETAINED PROFIT                                                   0.3                2.1                3.7
EARNINGS PER SHARE                                               8.5p              21.0p              42.3p







CONSOLIDATED BALANCE SHEET
                                                            30 June             30 June         31 December
                                                               2002                2001                2001
                                                        (unaudited)         (unaudited)           (audited)
                                                                 £m                  £m                  £m

FIXED ASSETS                                                    5.8                 5.5                 7.3
CURRENT ASSETS
Debtors                                                         8.2                 8.5                 6.8
Cash and deposits                                              11.8                15.8                19.4
                                                               20.0                24.3                26.2
CREDITORS
Amounts falling due within one year                           (9.5)              (15.6)              (18.2)
NET CURRENT ASSETS                                             10.5                 8.7                 8.0
TOTAL ASSETS LESS CURRENT LIABILITIES                          16.3                14.2                15.3
PROVISIONS FOR LIABILITIES AND CHARGES                            -                   -                   -
SHAREHOLDERS' FUNDS                                            16.3                14.2                15.3







CONSOLIDATED CASH FLOW STATEMENT
                                                            Half year          Half year            Year to
                                                           to 30 June         to 30 June        31 December
                                                                 2002               2001               2001
                                                          (unaudited)        (unaudited)          (audited)
                                                                   £m                 £m                 £m
NET CASH FLOW FROM OPERATING ACTIVITIES
(Decrease)/increase in creditors                                (5.6)                1.1                3.7
Other operating activity cash flows                               1.2                6.0               10.2
DIVIDENDS FROM ASSOCIATES                                         0.1                0.2                0.2
RETURNS ON INVESTMENTS                                            0.4                0.3                0.7
TAXATION                                                        (1.6)              (0.8)              (2.6)
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT                                            (1.5)              (1.2)              (2.0)
EQUITY DIVIDENDS PAID                                           (1.4)              (1.1)              (2.0)
MANAGEMENT OF LIQUID RESOURCES
Decrease/(increase) in short term deposits                        3.4              (3.2)              (6.0)
FINANCING                                                         0.7                0.5                0.5
(DECREASE)/INCREASE IN FUNDS                                    (4.3)                1.8                2.7







CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                                              Half year         Half year           Year to
                                                             to 30 June        to 30 June       31 December
                                                                   2002              2001              2001
                                                            (unaudited)       (unaudited)         (audited)
                                                                     £m                £m                £m
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION                                                      1.3               3.0               6.0
Foreign exchange differences                                          -               0.4             (0.1)
Total recognised gains relating to the period                       1.3               3.4               5.9







MOVEMENT IN SHAREHOLDERS' FUNDS
                                                          Half year           Half year             Year to
                                                         to 30 June          to 30 June         31 December
                                                               2002                2001                2001
                                                        (unaudited)         (unaudited)           (audited)
                                                                 £m                  £m                  £m
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION                                                  1.3                 3.0                 6.0
Foreign exchange differences                                      -                 0.4               (0.1)
Dividends                                                     (1.0)               (0.9)               (2.3)
New shares issued                                               0.7                 0.5                 0.5
Total movements during the period                               1.0                 3.0                 4.1
Shareholders' funds at start of period                         15.3                11.2                11.2
Shareholders' funds at end of period                           16.3                14.2                15.3


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 2001, 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 PROFIT ON SALE OF FIXED ASSETS

The profit on sale of fixed assets represents the net gain arising from various
asset disposals of £984,000 less provision for permanent diminution in the value
of long term investments amounting to £857,000.



3 DIVIDEND

The interim dividend of 6.00 pence per share will be paid on 27 September 2002
to shareholders on the register at the close of business on 13 September 2002.



4 EARNINGS PER SHARE

The earnings per ordinary share is based on earnings of £1.20 million (2001:
£2.95 million) and 14,076,641 (2001: 14,065,630) shares being the weighted
average number of ordinary shares in issue during the period. This is after
excluding 1,017,484 (2001: 401,247) weighted average number of shares and £0.09
million (2001: £0.05 million) income arising thereon owned by the Executive
Share Purchase Trust. During the period 535,893 shares were issued to cover
obligations arising under various share option and profit sharing schemes.



5 ACCOUNTS

The figures for the six months ended 30 June 2002 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 2001, upon which the auditors have given an unqualified report, have
been delivered to the Registrar of Companies in England & Wales.



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