Interim Results

Clarkson PLC
01 September 2004


CLARKSONS
Interim results for the six months ended 30 June 2004

Clarkson PLC ('Clarksons'), the world's leading shipping services group, today
announces interim results for the six months ended 30 June 2004.

* Turnover £41.7 million (2003: £28.2 million).
* Profit before tax £9.6 million (2003: £5.3 million).
* Earnings per share 39.8p (2003: 19.9p).
* Record freight markets in the first half of 2004.
* Interim dividend increased to 9.0p (2003: 7.0p).

Tim Harris, Chairman of Clarkson PLC, commented:

'I am delighted to announce such strong interim results in this my first review
as Chairman.

'These record results are a testament to the strength and quality of our
underlying business.'

1 September 2004

For further information please contact:

Richard Fulford-Smith, Chief Executive, Clarkson PLC: 0774 704 3139
Robert Ward, Finance Director, Clarkson PLC: 020 7334 0000

Chairman's statement and review

I am delighted to be presenting my first review as chairman particularly given
the record pre-tax half year profit of £9.6 million. This figure is testament to
the strength and quality of our principal businesses and illustrates our ability
to generate exceptional returns and cash flows despite the adverse affects of a
relatively weak dollar.

Our results show that the Clarkson brand, which is based on the key competitive
advantage of market intelligence, is extremely strong in world shipbroking. Our
strategy is to use this brand to maximum effect by product innovation, global
representation and attracting and keeping the best people to maintain our
leadership position. In addition it is, and increasingly will be, to develop
related shipping service activities which benefit from our competitive advantage
of market intelligence but are less directly influenced by the shipping cycle,
thereby improving the consistency and predictability of our earnings.
With Richard Fulford-Smith's appointment as chief executive in April and Dr
Martin Stopford's appointment as a director today, we have taken the opportunity
to accentuate our focus on expanding the group. We have a clear strategy to
build the group around a number of key businesses, led by our pre-eminent
shipbroking operation.

The four areas of competence upon which the company is currently focused are
Clarkson Shipbroking, Clarkson Securities (CSL), Clarkson Research Services
(incorporating IT, Research and Publications) (CRS) and Clarkson Logistics.

Review of operations

Clarkson Shipbroking

The ClarkSea Index (which tracks average earnings across the shipping market)
reached an all time high of US$32,630 per day during the first half of this
year. The strength of freight markets has contributed significantly to the
enhanced performance across all our broking divisions.

With dry bulk markets reaching record highs and given our increasingly
international spread, it has been a good half year for all areas of our global
dry cargo teams. Our commitment to growing our dry cargo presence in China,
Greece, Paris and Australia will further complement our dry cargo broking
activities around a global base of market knowledge.

Similarly, our tanker business is now focused upon our trio of centres in
Houston, London and Singapore. Our tanker team has benefited from the strong
freight market but also increasing market penetration. Our chemicals business
also is focused now on extending the global approach with rapid expansion of our
activities in Houston. This will add significantly to our overall tanker market
coverage.

Our sale and purchase activities have produced a solid result with notable
successes in corporate transactions. A significant amount of newbuilding
activity will continue to strengthen our forward order book, most notably the
success arising from our lead market position in LNG contracting.

Clarkson Securities

The first half of 2004 has been an exciting time for our forward freight
agreement (FFA) broking businesses where we arrange contracts between third
parties seeking to cover their freight cost exposure. The dramatic fluctuations
in the freight market have led to increasing recognition of the value of dry
cargo derivatives. Volatile trading conditions in the physical market have led
operators to utilise FFAs to hedge their increased exposures.

The first half of 2004 saw record levels of business written by CSL. We have
also witnessed a significant increase in our tanker derivatives broking activity
which we will further support with brokers based in Singapore.

Our fledgling Clarkson Capital has been providing freight and asset management
services to our clients with the aim of insuring a good understanding of how
best to utilise the derivative products available.

Clarkson Research Services

CRS had a strong start to the year, with the digital sales doing particularly
well. Revenues from Shipping Intelligence Network (SIN) were up by over a third
and now account for almost a quarter of research income. Consultancy has also
progressed well with overall sales 10% up on the half year.

CRS has developed a strong management team and is actively exploring new
opportunities to grow and develop the business and take advantage of its
expertise in database publishing and on-line information provision. The division
has assumed responsibility for management of IT, thereby giving new direction to
the group's global information management strategy.

Clarkson Logistics

Channel Freight Ferries commenced daily sailings between Southampton and
Radicatel in January 2004. It is performing broadly in line with expectations
after experiencing some delays with the development of the new linkspan in
Southampton. From September, we will commence twice daily sailings.
The logistics division also controls Pasir Bulk Carriers in Singapore which owns
two 75,000 dwt combination carriers. These vessels are trading profitably on
bareboat charter.

We are taking steps to expand further our logistics activities. Investment in
this area will generate earnings which are more stable than those in the
volatile freight markets.

Financial

We estimate that the overall effective tax rate for the whole of 2004 will be
32.0% (2003: 33.7%) and we have applied this rate for the first half of the
year. This tax rate is higher than the standard rate of UK tax of 30.0% due to
the impact of disallowable trading expenses.

We will continue to monitor the position of the defined benefit element of the
pension scheme carefully. An actuarial valuation as at 31 March 2004 is
currently under way.

Directors

In April 2004, Richard Fulford-Smith was appointed director and chief executive
of the group. Richard joined Clarksons in 1992 and is managing director of the
group's main shipbroking subsidiary.

Also in April, Gary Weston resigned as a director of the company to pursue other
business interests. We wish him well in his new role and are grateful to him for
his services during his time on the board.

On behalf of the board I would like to extend our thanks to Michael Beckett who
retired at the Annual General Meeting.

Today we announce the appointment of Dr Martin Stopford to the board. Martin
first joined Clarksons in 1990 and heads up CRS.

Dividend

In light of the company's results the board has decided to increase the interim
dividend by 2.0p per share from 7.0p to 9.0p per share. The interim dividend
will be paid on 24 September 2004 to shareholders on the register at close of
business on 10 September 2004. This illustrates the board's confidence in the
company's ability to maintain a progressive dividend policy.

Outlook

Record freight rates at the start of 2004 enabled us to conclude business that
will benefit the group during the remainder of the year. Second half shipping
markets remain at historically high levels and we continue to take advantage of
these favourable conditions albeit, when translated from dollars to sterling, we
would benefit from a stronger dollar.

As regards 2005 and future years, although shipbroking earnings will always vary
with the shipping cycle there are two important factors which make them less
volatile than is sometimes supposed. The first is that we enjoy a substantial
forward order book which underpins earnings from year to year. The second is
that, unlike most businesses, our main overhead, being staff remuneration, is
variable due to 'profit-linked' bonuses.

We are committed to developing the right blend and depth of skills worldwide to
continue to grow our core businesses. It is our aim to use the strong Clarkson
brand to expand further by organic growth and acquisition of related maritime
services companies which will improve the quality of our earnings and thereby
create further value for our shareholders.

Tim Harris
Chairman
1 September 2004


Consolidated profit and loss account
                                                             Half year         Half year            Year to
                                                            to 30 June        to 30 June        31 December
                                                                  2004              2003               2003
                                                                    £m                £m                 £m
Turnover                                                          41.7              28.2               58.7
Operating profit                                                   8.1               5.9               11.7
Share of operating profit in associates                            0.3                 -                0.2
Amounts written off investments                                      -             (0.8)              (0.8)
Interest receivable and similar income                             1.2               0.3                1.2
Interest payable and similar charges                                 -             (0.1)              (0.2)
Profit before taxation                                             9.6               5.3               12.1
Taxation                                                         (3.1)             (2.0)              (4.1)
Profit after taxation                                              6.5               3.3                8.0
Equity minority interests                                        (0.2)             (0.2)              (0.4)
Profit attributable to members                                     6.3               3.1                7.6
Dividend
Interim proposed 9.0p (2003: 7.0p)                               (1.4)             (1.2)              (1.2)
Final - (2003: 10.5p)                                                -                 -              (1.6)
                                                                 (1.4)             (1.2)              (2.8)
Retained profit                                                    4.9               1.9                4.8
Earnings per share                                               39.8p             19.9p              48.1p
Comparatives have been restated where necessary to reflect the requirements of
UITF 38 (see note 1).

Consolidated balance sheet
                                                               30 June        30 June           31 December
                                                                  2004           2003                  2003
                                                                    £m             £m                    £m
Fixed assets                                                       9.8           11.0                  10.2
Current assets
Debtors                                                           14.9            9.1                  10.0
Cash and deposits                                                 33.8           21.7                  32.0
                                                                  48.7           30.8                  42.0
Creditors
Amounts falling due within one year                             (29.7)         (19.1)                (28.1)
Net current assets                                                19.0           11.7                  13.9
Total assets less current
liabilities                                                       28.8           22.7                  24.1
Creditors
Amounts falling due after more than
one year                                                         (1.3)          (3.2)                 (2.1)
Provisions for liabilities and
charges                                                          (0.6)          (0.2)                 (0.2)
Equity minority interests                                        (1.1)          (0.7)                 (0.9)
Equity shareholders' funds                                        25.8           18.6                  20.9
Comparatives have been restated where necessary to reflect the requirements of
UITF 38 (see note 1).


Consolidated cash flow statement
                                                              Half year        Half year            Year to
                                                             to 30 June       to 30 June        31 December
                                                                   2004             2003               2003
                                                                     £m               £m                 £m
Net cash flow from operating
activities                                                          5.1              8.6               22.4
Dividends from associates                                             -                -                0.1
Returns on investments                                              1.1              0.2                1.0
Taxation                                                          (1.6)            (1.0)              (2.6)
Capital expenditure and
financial investment                                              (0.4)            (0.6)              (0.9)
Equity dividends paid                                             (1.6)            (1.5)              (2.6)
Management of liquid resources
Decrease/(increase) in short term deposits                          1.9              1.0              (6.0)
Financing                                                         (0.6)            (0.1)              (0.9)
Increase in cash                                                    3.9              6.6               10.5
Comparatives have been restated where necessary to reflect the requirements of
UITF 38 (see note 1).


Consolidated statement of total recognised gains and losses
                                                               Half year        Half year           Year to
                                                              to 30 June       to 30 June       31 December
                                                                    2004             2003              2003
                                                                      £m               £m                £m
Profit attributable to members                                       6.3              3.1               7.6
Foreign exchange differences                                       (0.1)            (0.1)             (0.8)
Total recognised gains relating to the period                        6.3              3.0               6.8
Comparatives have been restated where necessary to reflect the requirements of
UITF 38 (see note 1).


Movement in equity shareholders' funds
                                                               Half year        Half year           Year to
                                                              to 30 June       to 30 June       31 December
                                                                    2004             2003              2003
                                                                      £m               £m                £m
Profit attributable to members                                       6.3              3.1               7.6
Foreign exchange differences                                       (0.1)            (0.1)             (0.8)
Dividends                                                          (1.4)            (1.2)             (2.8)
Issue of new shares                                                    -              0.5               0.5
ESOP share consideration                                             0.1                -               0.1
Total movements during the period                                    4.9              2.3               4.6
Equity shareholders' funds at start of period                       20.9             16.3              16.3
Equity shareholders' funds at end of period                         25.8             18.6              20.9
Comparatives have been restated where necessary to reflect the requirements of
UITF 38 (see note 1).

Notes to the interim financial report

1 Accounting policies and basis of preparation of interim report

The interim report has been prepared in accordance with the accounting policies
set out in the group's annual report and accounts for the year ended 31 December
2003 except for the adoption of Urgent Issues Task Force abstract 38 'Accounting
for ESOP trusts' (UITF 38). In accordance with UITF 38, shares in Clarkson PLC
held by the Executive Share Purchase Trust are now deducted within consolidated
shareholders' funds. Previously, such shares were included within fixed asset
investments. Within the consolidated cash flow statement, the purchase and sale
of such shares is now presented as a financing transaction and not within
returns on investments. Dividend income arising on such shares has been excluded
from the group's profit and loss account and deducted from dividends paid and
proposed. The comparatives shown on pages five to eight have been restated
accordingly.

2 Taxation

The taxation charge is calculated by applying the directors' best estimate of
the annual effective tax rate to the profit for the period.

3 Earnings per share

The earnings per ordinary share is based on earnings of £6.36 million (2003:
£3.10 million) and 15,969,351 (2003: 15,620,913) shares being the weighted
average number of ordinary shares in issue during the period. This is after
excluding 273,963 (2003: 462,439) weighted average number of shares owned by the
Executive Share Purchase Trust.

4 Analysis of net funds
                                                                                      Foreign
                            31 December                                              exchange       30 June
                                   2003     Reallocation      Cash flow           differences          2004
                                     £m               £m             £m                    £m            £m
Cash                               14.2                -            3.9                 (0.2)          17.9
Deposits                           17.8                -          (1.9)                     -          15.9
                                   32.0                -            2.0                 (0.2)          33.8
Debt due within one year          (1.3)            (0.7)            0.7                     -         (1.3)
Debt due beyond one year          (1.9)              0.7              -                     -         (1.2)
Deferred consideration            (0.3)                -              -                   0.1         (0.2)
Net funds                          28.5                -            2.7                 (0.1)          31.1

5 Accounts

The figures for the six months ended 30 June 2004 and 30 June 2003 are unaudited
and do not constitute full accounts within the meaning of Section 240(5) of the
Companies Act 1985. The statutory audited accounts for the year ended 31
December 2003, upon which the auditors have given an unqualified report and
which have been delivered to the Registrar of Companies in England & Wales, have
been restated in this report where necessary to reflect the requirements of UITF
38 (see note 1).


                      This information is provided by RNS
            The company news service from the London Stock Exchange