Interim Results

Clarkson PLC
31 August 2005


CLARKSONS


Interim results for the six months ended 30 June 2005

Clarkson PLC ('Clarksons'), the world's leading shipping services group, today
announces interim results for the six months ended 30 June 2005.

* Revenue £57.7 million (2004: £41.7 million).

* Underlying profit before tax (excluding the profit on the sale of fleet
  interests) £12.0 million (2004: £10.1 million).

* Underlying earnings per share (excluding the earnings attributable to the sale
  of fleet interests) 46.2p (2004: 42.2p).

* Interim dividend increased to 10.0p (2004: 9.0p).

Tim Harris, Chairman of Clarkson PLC, commented:

'I am delighted to announce a record interim result.

'The result reflects the significant growth of our businesses worldwide.'

31 August 2005

For further information please contact:
Richard Fulford-Smith, Chief Executive, Clarkson PLC: 0774 704 3139
Rob Ward, Finance Director, Clarkson PLC: 020 7334 0000


Overview

Clarksons has generated a record interim pre-tax profit of £23.0 million.
Included within this figure is 100% of the £11.0 million profit on the sale of
the two combination carriers in which it had a 58% interest. Clarksons'
underlying pre-tax profit excluding the ship sales still comfortably exceeds the
corresponding period of last year. Earnings per share, which include 31.3 pence
per share attributable to the sale of fleet interests, were a record 77.5 pence
per share compared with 42.2 pence for the first half of 2004. Revenue, which is
unaffected by the vessel sales, has increased to £57.7 million from £41.7
million during the comparable period last year.

The result reflects the significant growth of our businesses worldwide. The
company has grown both organically and through acquisition.

The company's successful strategy of growing its shipbroking activities
globally, following our customers to where the business is best served and
broadening our product range is, and will continue to be, instrumental in
building market share and maintaining our ability to generate good results for
our shareholders.

Review of operations

Shipbroking

The ClarkSea Index (which tracks average earnings across the shipping market)
averaged US$28,100 during the first half of 2005 which compares to US$29,800 for
the whole of 2004.

Despite the falling dry bulk markets, our increasingly international spread has
meant that it has been a good half year for our dry cargo teams. Our acquisition
of Ferrobulk in Genoa in March 2005 has been successfully integrated and is
performing ahead of expectations. The expanding offices in Greece and China are
also generating excellent results.

Our deep sea, product, chemicals and gas teams, operating from Houston, London
and Singapore have performed well, increasing their overall presence in this
market. In May 2005 we strengthened our liquid petroleum gas team. With the
benefit of the support of Clarkson Research division, we continue to offer an
unrivalled service to all our energy sector clients.

Sale and purchase had an excellent first six months of 2005 with notable success
in a number of major corporate transactions. The new sale and purchase teams in
Greece and China are doing well. Whilst newbuilding capacity in shipyards is
reported to be limited before the end of 2008 we continuously benefit from
excellent relationships with key shipyards and owners which have assisted us in
completing a number of transactions for relatively early deliveries.

Futures

2005 is proving to be a more challenging year for the futures broking market.
The futures broking team is considering other ways of distinguishing from
competitors the services it offers clients in the FFA market including the
initiation of alternative clearing facilities to key players in the dry bulk FFA
market.

Research

Research has had a strong first half of 2005. The group continues to work on
leveraging the information it has available on a global basis with a view to
improving communications between the Clarkson offices worldwide. Research has
successfully integrated the Oilfield Publications Limited operation which it
acquired in December 2004. Shipping Intelligence Network (SIN 2005) was launched
in June 2005 representing a substantial upgrade to the previous version.

Logistics

Logistics has a 58% equity stake in Pasir Bulk Carriers (Pasir) in Singapore.
During the first half of 2005, Pasir sold its two 75,000 dwt combination
carriers. Pasir's profit on sale arising on these two vessels was £11.0 million;
£3.4 million after tax is due to the minority shareholders in Pasir.

Following this successful transaction, Clarkson Logistics continues to identify
investment projects which provide innovative marine transport solutions to
industry and commerce, with particular focus on the growing economy of Hong Kong
and the Pearl River Delta. The company has recently entered into a long term
agreement to transport jet fuel to Hong Kong International Airport, for which a
modern specialised tanker will be required, commencing employment in October. A
combination of the group's financial strength and global presence makes us well
placed to take advantage of such opportunities as they arise.

Its other principal investment, Channel Freight Ferries (CFF), continues to
operate a regular daily service between Southampton and Radicatel. In May 2005
we acquired the 'CFF Seine' for €4.7 million, thereby guaranteeing the
continuity of service for CFF. Over the coming months there are likely to be
substantial changes to the provision of freight services in and around the
Western Channel. We will watch these developments closely.

Financial

These interim statements have been prepared in accordance with accounting
policies which are consistent with International Financial Reporting Standards
(IFRS). Details of the effects of the transition to IFRS were released on 25
August 2005 and are available on the Clarkson PLC website (www.clarksons.com).
IFRS continue to evolve and may require further adjustments when the group
issues its first complete set of IFRS financial statements.

We estimate that the overall effective tax rate for the whole of 2005 will be
30% (2004: 32%) and we have applied this rate for the first half of the year.
The tax rate reflects the impact of disallowable trading expenses offset by
lower rates arising on the sale of the Pasir vessels.

As at 30 June 2005 the pension scheme deficit after tax had been reduced to £1.1
million representing approximately 1% of the scheme's assets, following a £10.0
million special contribution in January 2005.

Cash generation remains strong. This has enabled us to finance the payment of
£21.9 million in staff bonuses relating to 2004 and the £10.0 million special
contribution to the pension scheme referred to above.

The London office successfully moved in May 2005 to new offices on the River
Thames at St Magnus House.

Dividend

In light of the company's results the board has decided to increase the interim
dividend by 1.0p per share from 9.0p to 10.0p per share. The interim dividend
will be paid on Friday 23 September 2005 to shareholders on the register at
close of business on Friday 9 September 2005. This illustrates the board's
confidence in the company's ability to maintain a progressive dividend policy.

Directors

In May 2005 Bob Benton was appointed a non-executive director of the company.
Bob Benton is the group chief executive of Bridgewell Group Limited. Prior to
joining Bridgewell, Bob was chairman and chief executive of Charterhouse
Securities, global head of sales at ABN AMRO and was managing director of HSBC
James Capel.

Outlook

Historically high freight rates which peaked at the end of 2004 enabled us to
conclude business that will benefit the group during the remainder of 2005 and
beyond. Although historically high, freight markets are currently weaker than
they were in the first half of the year. While the demand for shipping services
will continue to grow strongly, it is not possible to forecast the timing or
exact balance between demand and supply which has such an immediate effect on
freight rates. Nor is it realistic to predict the relative strength of the US
dollar, the currency of international shipping, which has a significant effect
on our profitability.

Our recent strong results confirm our ability to grow globally, both organically
with new locations, new services and increased market share and by acquisition.
This international strength should enable us to continue to prosper as a
business whatever the short-term state of the market or currency. Our most
valuable asset is our staff. New offices in Athens, Dubai, London, Shanghai and
Singapore reflect the importance we place on continuing to service our customers
where their business is. We wish to ensure our employees achieve their business
potential in the best working environment. Our main overhead, being staff
remuneration, remains variable due to profit linked bonuses. We also enjoy a
substantial forward order book which underpins earnings from year to year.

It remains our aim to exploit the strong Clarkson brand through organic growth
and acquisition of related maritime service activities thereby ensuring that we
can continue to generate increased returns for our shareholders.

Your company is well placed to produce another excellent result in 2005. Whilst
2006 is unlikely to benefit from one-off asset sales, we are focussed on
enhancing the sustainable level of profitability of the group over the shipping
cycle.

Tim Harris, Chairman

Richard Fulford-Smith, Chief Executive

31 August 2005


Consolidated income statement
CONDENSED

                                                       Half year            Half year               Year to
                                                      to 30 June           to 30 June           31 December
                                                            2005                 2004                  2004
                                                              £m                   £m                    £m
Revenue                                                     57.7                 41.7                  87.4
Operating profit                                            10.8                  8.7                  17.5
Disposal of fleet interests                                 11.0                    -                     -
Share of profits of associates                               0.2                  0.3                   0.6
Finance income                                               3.6                  3.6                   7.3
Finance costs                                              (2.6)                (2.5)                 (5.0)
Profit before taxation                                      23.0                 10.1                  20.4
Taxation                                                   (6.9)                (3.2)                 (6.4)
Profit after taxation                                       16.1                  6.9                  14.0
Attributable to:
Equity holders of the parent                                12.7                  6.7                  13.7
Minority interests                                           3.4                  0.2                   0.3
                                                            16.1                  6.9                  14.0
Earnings per share                                         77.5p                42.2p                 85.7p


Comparatives have been restated where necessary to reflect the requirements of
International Financial Reporting Standards.


Consolidated balance sheet
CONDENSED

                                                          30 June          30 June              31 December
                                                             2005             2004                     2004
                                                               £m               £m                       £m
Non-current assets                                           30.6             13.6                     17.1
Current assets
Other current assets                                         22.5             14.3                     17.0
Cash and cash equivalents                                    37.6             33.8                     44.1
                                                             60.1             48.1                     61.1
Current liabilities                                        (45.4)           (28.5)                   (40.9)
Net current assets                                           14.7             19.6                     20.2
Total assets less current
liabilities                                                  45.3             33.2                     37.3
Non-current liabilities                                     (3.1)           (12.2)                    (9.2)
Net assets                                                   42.2             21.0                     28.1
Equity attributable to equity
holders of the parent                                        40.0             19.9                     26.9
Minority interests                                            2.2              1.1                      1.2
Total equity                                                 42.2             21.0                     28.1


Comparatives have been restated where necessary to reflect the requirements of
International Financial Reporting Standards.


Consolidated cash flow statement
CONDENSED

                                                             Half year         Half year            Year to
                                                            to 30 June        to 30 June        31 December
                                                                  2005              2004               2004
                                                                    £m                £m                 £m
Net cash flow from operating
activities
Operating activities                                              23.5              15.9               32.0
Prior year related bonus payments                               (21.9)            (12.4)             (12.4)
Investing activities
Dividends from associates                                            -                 -                0.2
Returns on investments                                             0.8               1.1                2.0
Capital expenditure and financial investment                       3.2             (0.4)              (1.5)
Special contribution to pension scheme                          (10.0)                 -                  -
Acquisitions                                                     (2.6)                 -              (3.3)
Financing activities
Dividends paid                                                   (2.6)             (1.6)              (3.1)
Borrowings                                                         2.5             (0.6)              (0.9)
(Decrease)/increase in cash
and cash equivalents                                             (7.1)               2.0               13.0
Cash and cash equivalents
at start of period                                                44.1              32.0               32.0
Foreign exchange differences                                       0.6             (0.2)              (0.9)
Cash and cash equivalents
at end of period                                                  37.6              33.8               44.1


Comparatives have been restated where necessary to reflect the requirements of
International Financial Reporting Standards.


Consolidated statement of recognised income and expense
CONDENSED

                                                              30 June        30 June            31 December
                                                                 2005           2004                   2004
                                                                   £m             £m                     £m
Profit for the period                                            16.1            6.9                   14.0
Net actuarial (loss)/gain on defined
benefit scheme                                                  (2.7)            1.4                    2.6
Foreign exchange differences                                      1.0          (0.1)                  (0.4)
Total recognised income and
expense                                                          14.4            8.2                   16.2
Attributable to:
Equity holders of the parent                                     11.0            8.0                   15.9
Minority interests                                                3.4            0.2                    0.3
                                                                 14.4            8.2                   16.2
Reconciliation of total equity
CONDENSED
Total equity at start of period                                  28.1           14.4                   14.4
Remeasurement of financial assets                                 0.1              -                      -
                                                                 28.2           14.4                   14.4
Total recognised income and expense                              14.4            8.2                   16.2
Issue of shares                                                   6.7              -                    0.5
Dividend paid                                                   (2.6)          (1.7)                  (3.1)
ESOP share (purchases)/sales                                    (2.1)            0.1                    0.1
Monies paid to minorities                                       (2.4)              -                      -
Total equity at end of period                                    42.2           21.0                   28.1


IAS 39 'Financial Instruments' was adopted with effect from 1 January 2005. The
opening equity for 2005 is increased by £0.1 million to reflect the
remeasurement of financial assets.

Comparatives have been restated where necessary to reflect the requirements of
International Financial Reporting Standards.


Notes to the interim financial report

1 Accounting policies and basis of preparation of interim report

The company issued an announcement on 25 August 2005 entitled 'Restatement of
2004 Report and Accounts'. A copy of this announcement is available from
www.clarksons.com. This announcement includes a description of the significant
accounting policies to be adopted under IFRS. These interim accounts have been
prepared using those accounting policies.

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 £12.7 million (2004:
£6.7 million) and 16,414,998 (2004: 15,969,351) shares being the weighted
average number of ordinary shares in issue during the period. This is after
excluding 387,176 (2004: 273,963) weighted average number of shares owned by the
Executive Share Purchase Trust.

4 Segmental information

Revenue, group profit before taxation and net assets by class of business are
analysed as follows:

Revenue
                                                 30 June              30 June                   31 December
                                                    2005                 2004                          2004
                                                      £m                   £m                            £m
Shipping services                                   53.7                 39.4                          82.4
Shipping logistics                                   4.0                  2.3                           5.0
                                                    57.7                 41.7                          87.4


Profit/(loss) before taxation
                                                 30 June              30 June                   31 December
                                                    2005                 2004                          2004
                                                      £m                   £m                            £m
Shipping services                                   13.4                 10.6                          22.7
Shipping logistics                                   9.6                (0.5)                         (2.3)
                                                    23.0                 10.1                          20.4


Net assets
                                                 30 June              30 June                   31 December
                                                    2005                 2004                          2004
                                                      £m                   £m                            £m
Shipping services                                   31.4                 19.5                          27.7
Shipping logistics                                  10.8                  1.5                           0.4
                                                    42.2                 21.0                          28.1


5 30 June 2004 reconciliations

Operating profit of £8.7 million includes £0.1 million arising from the
writeback of goodwill previously written off under UK GAAP and an adjustment of
£0.5 million on the difference between the UK GAAP pension charge and current
service cost under IFRS. Finance income and finance costs include IFRS pension
charge adjustments of £2.4 million and £2.5 million respectively. Taxation
increased by £0.1 million to reflect these increases in profitability.

Total equity of £21.0 million incorporates the net pension obligation of £7.2
million, the goodwill writeback of £0.1 million, an increase in the deferred tax
liability of £0.2 million and the reversal of the 2004 interim dividend of £1.4
million.

6 Accounts

The figures for the six months ended 30 June 2005 and 30 June 2004 are unaudited
and do not constitute full accounts within the meaning of Section 240(5) of the
Companies Act 1985. The statutory audited accounts (as prepared under UK GAAP)
for the year ended 31 December 2004, upon which the auditors have given an
unqualified report, have been delivered to the Registrar of Companies in England
& Wales.


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