Interim Results 2000

Clarkson (Horace) PLC
30 August 2000


CHAIRMAN'S STATEMENT


INTRODUCTION 

THE UNAUDITED PRE-TAX PROFIT for the first six months increased to £1.9
million on a turnover 23% higher at £15.6 million, compared with £0.5 million
profit on a turnover of £12.7 million for the corresponding period of 1999.
Earnings per share more than quadrupled to 8.6 pence per share compared with
2.1 pence per share in the first half of 1999. Accordingly the directors are
recommending an increase in the interim dividend, to 2.50 pence per share
(1999 interim: 1.50 pence per share).

In the first half of 2000, all the traditional markets in which we operate
performed better than in recent years. In addition, in line with our stated
strategy we have expanded our activities to include the provision of shipping
financial services, the formation of a shipping fund manager and we have also
established a successful shipping information portal Shipping Intelligence
Network ('SIN').


REVIEW OF OPERATIONS 

THE SALE AND PURCHASE division has had an excellent six months especially in
the newbuildings sector which has been helped by the anticipated uplift in
newbuilding prices from their low point last year.  A number of large projects
have been concluded by the team, which will make a significant contribution to
future revenue.  Secondhand activity has been steady and the container desk is
benefiting from increased market penetration.

Freight rates in all the dry bulk markets have continued to rise considerably
during the first half of the year as a result of the improvement in the global
economy. This improvement, together with our increased market share, has
helped the dry cargo division record a 78% increase in turnover compared with
the same period of 1999. 

Following the low crude and product tanker rates experienced in 1999, the
trend dramatically reversed at the beginning of 2000 and average earnings in
the VLCC, Suezmax and Aframax single voyage markets are now at their highest
since 1973.  The gas and chemical markets whilst not experiencing such
dramatic increases as the crude and product tanker markets have also shown
some improvement.

Our ship management activities, in conjunction with Univan Ship Management
Limited, are making a positive contribution, which we are committed to develop
further. We hope to assist Univan to expand the pool of vessels under its
management through our determined marketing efforts and we are already in
dialogue with a number of clients who see the benefits of outsourcing
technical management to a qualified independent.

The securities division has had a satisfactory six months in a difficult
market due to a combination of a continuing decline in the 'biffex' market and
a lack of market volatility in the second quarter which has affected FFA
volumes. 

In a changing market, Clarkson Research performed well.  We have successfully
launched SIN, relaunched our Registers and other publications and completed
the Professional CD.  Revenue from digital products rose by over 30%.  SIN, in
conjunction with our new services section, has enabled us to win substantial
consultancy contracts, including one in the shipping eBusiness environment. We
are well placed to provide income growth in the near future.

All our overseas companies have operated profitably, with our Australian
subsidiary continuing to perform particularly well despite the loss of a major
sugar account.


FINANCIAL

WE ESTIMATE that the average tax rate that will apply for the full year in
2000 will be 35.0% (1999: 54.3%) and we have applied this rate for the first
half-year.  In the previous year the tax rate suffered from  UK disallowable
expenses accounting for a disproportionate share of a smaller figure for group
profits.

In line with our overall strategy we are acquiring interests in ventures
outside our existing core activities, including LevelSeas.com and
OceanConnect.com and have launched the Calypso Shipping Fund which will
undoubtedly absorb additional liquid resources during the year under review.  

PROSPECTS

CONTINUED EXPANSION of the world economy is likely to keep all major shipping
markets buoyant for the balance of this year and into 2001. Although there are
concerns about the influx of dry bulk newbuilding vessels during 2001 there is
a strong possibility that trade growth will absorb a significant proportion of
that tonnage.  Assuming we can maintain our current high level of market share
this will impact positively upon the results for the second half of this year.

The joint venture with Univan is proving to be successful in making a positive
contribution to our results, which hopefully will grow further. Additional
diversification has included the establishment of a financial services
division and a fund manager, adding yet more shipping services to those
already provided, and broadening the base of our income stream.   We have new
web-based products under development which will be delivered during the second
half of this year.  We anticipate these being well received by the shipping
industry.

Our involvement in two leading shipping related internet developments,
LevelSeas.com and OceanConnect.com, together with the successful launch of
Clarksons.net means we are well placed in the emerging shipping eBusiness
environment.

Our policy is to continue to expand both the core and other activities of the
group and to utilise and develop the Clarkson brand further. 

DIVIDEND

AN INTERIM DIVIDEND of 2.50 pence per share (1999: 1.50 pence per share) will
be paid on 29 September 2000 to shareholders on the register at 15 September
2000.


Michael Beckett
Chairman
30 August 2000


CONSOLIDATED PROFIT AND LOSS ACCOUNT



                                    Half year to  Half year to        Year to
                                         30 June       30 June    31 December
                                            2000          1999           1999
                                      (unaudited)   (unaudited)      (audited)
                                              £m            £m             £m
                                                                             
TURNOVER                                    15.6          12.7           27.0
                                                                             
                                                                             
OPERATING PROFIT                             1.2           0.2            0.5
                                                                             
Share of profits of associated undertakings  0.5            -             0.3
                                                                             
Interest receivable and other income         0.3           0.3            0.6
                                                                             
Interest payable and similar charges        (0.1)           -            (0.1)
                                                                             
                                                                             
PROFIT BEFORE TAXATION                       1.9           0.5            1.3
                                                                             
Taxation                                    (0.7)         (0.2)          (0.7)
                                                                             
                                                                             
PROFIT AFTER TAXATION                        1.2           0.3            0.6
                                                                             
Dividend
                                                                             
     Interim proposed 2.50p (1999: 1.50p)   (0.4)         (0.2)          (0.2)
                                                                             
     Final    -  (1999: 2.50p)                -             -            (0.4)
                                                                             
                                                                             
                                            (0.4)         (0.2)          (0.6)
                                                                             
                                                                             
RETAINED PROFIT                              0.8           0.1             -
                                                                             
                                                                             
EARNINGS PER SHARE                           8.6p          2.1p           4.1p
                                                                             




CONSOLIDATED BALANCE SHEET



                                         30 June        30 June   31 December
                                            2000           1999          1999
                                      (unaudited)    (unaudited)     (audited)
                                              £m             £m            £m
                                                                             
FIXED ASSETS                                 5.2            4.8           4.6
                                                                             
                                                                             
CURRENT ASSETS

Debtors                                      7.7            7.1           7.1

Cash and deposits                            6.3            4.6           6.9


                                            14.0           11.7          14.0

CREDITORS

Amounts falling due within one year         (9.1)          (7.3)         (9.7)


NET CURRENT ASSETS                           4.9            4.4           4.3


TOTAL ASSETS LESS CURRENT LIABILITIES       10.1            9.2           8.9


PROVISIONS FOR LIABILITIES AND CHARGES      (0.1)          (0.1)            -


SHAREHOLDERS' FUNDS                         10.0            9.1           8.9




CONSOLIDATED CASH FLOW STATEMENT


                                      Half year to  Half year to      Year to
                                           30 June       30 June  31 December
                                              2000          1999         1999
                                        (unaudited)   (unaudited)    (audited)
                                                £m            £m           £m

NET CASH FLOW FROM OPERATING ACTIVITIES        0.4          (1.1)         1.0


DIVIDENDS FROM ASSOCIATES                      0.1             -          0.1


RETURNS ON INVESTMENTS                         0.2           0.3          0.4


TAXATION                                      (0.1)         (0.1)        (0.6)


CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT  (0.7)         (0.3)        (0.5)


EQUITY DIVIDENDS PAID                         (0.4)         (0.3)        (0.6)


MANAGEMENT OF LIQUID RESOURCES                 0.6          (0.1)        (0.1)


NET CASH FLOW BEFORE FINANCING                 0.1          (1.6)        (0.3)


INCREASE / (DECREASE) IN FUNDS                 0.1          (1.6)        (0.3)




CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                      Half year to  Half year to      Year to
                                           30 June       30 June  31 December
                                              2000          1999         1999
                                        (unaudited)   (unaudited)    (audited)
                                                £m            £m           £m


PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION   1.2           0.3          0.6

Foreign exchange differences                   0.3           0.2          0.1

Total recognised gains relating to the year    1.5           0.5          0.7


MOVEMENT IN SHAREHOLDERS' FUNDS

                                      Half year to  Half year to      Year to
                                           30 June       30 June  31 December
                                              2000          1999         1999
                                        (unaudited)   (unaudited)    (audited)
                                                £m            £m           £m

PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION   1.2           0.3          0.6

Foreign exchange differences                   0.3           0.2          0.1

Dividends                                     (0.4)         (0.2)        (0.6)

Total movements during the year                1.1           0.3          0.1

Shareholders' funds at start of period         8.9           8.8          8.8

Shareholders' funds at end of period          10.0           9.1          8.9





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 1999, 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 £1.16 million (1999: £0.28 million) and 13,453,630 (1999:
13,125,522) 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 2000 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 1999, upon which the auditors have given an unqualified report, have
been delivered to the Registrar of Companies in England & Wales.