REG - Clarkson PLC - Preliminary results
10/03/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250310:nRSJ9048Za&default-theme=true
RNS Number : 9048Z Clarkson PLC 10 March 2025
10 March 2025
Clarkson PLC ('Clarksons') is the world's leading provider of integrated
shipping services. From offices in 25 countries on six continents, we play a
vital intermediary role in the movement of the majority of commodities around
the world.
Preliminary results
Clarkson PLC today announces preliminary results for the 12 months ended 31
December 2024.
Summary
· Another record underlying profit before taxation(*) of £115.3m
(2023: £109.2m), an increase of 6%
· Underlying basic earnings per share* increased 4% to 286.9p
(2023: 275.0p)
· Full year dividend of 109p, an increase of 7% on 2023, giving
rise to a 22(nd) consecutive year of dividend growth
· Forward order book as at 31 December 2024, for invoicing in
2025 was US$231m (31 December 2023: US$217m)
· Strong balance sheet with free cash resources(*) of £216.3m
(2023: £175.4m)
Year ended Year ended
31 December 2024 31 December 2023
Revenue £661.4m £639.4m
Underlying profit before taxation* £115.3m £109.2m
Reported profit before taxation £112.1m £108.8m
Underlying basic earnings per share* 286.9p 275.0p
Reported basic earnings per share 277.1p 275.2p
Dividend per share 109p 102p
* Classed as an Alternative Performance Measure ('APM'). See 'Other
information' at the end of this announcement for further information.
Andi Case, Chief Executive Officer, commented:
"2024 was another year of disruption, complexity and opportunity for global
shipping markets and against this backdrop I am immensely proud of the hard
work and dedication of all my colleagues in producing another record result."
"The geo-political outlook remains uncertain as we enter 2025, with ongoing
regional conflicts and trade tensions creating uncertainty for markets
reflected by freight rates and asset values currently lower than 2024. The
resolution or continuation of these events during the year will provide
potential headwinds and tailwinds to the Group's performance as we support our
clients through this complexity."
"Irrespective of near-term headwinds, we remain committed to investing in the
business, across people, intelligence and technology to ensure we maintain our
market-leading position across all sectors."
Enquiries:
Clarkson PLC: 020 7334 0000
Andi Case, Chief Executive Officer
Jeff Woyda, Chief Financial Officer & Chief Operating Officer
Camarco: 020 3757 4980
Billy Clegg
Jennifer Renwick
Alternative performance measures ('APMs')
Clarksons uses APMs as key financial indicators to assess the underlying
performance of the Group. Management considers the APMs used by the Group to
better reflect business performance and provide useful information. Our APMs
include underlying profit before taxation and underlying earnings per share.
An explanation and reconciliation of the term 'underlying' and related
calculations are included within the 'Other information' section at the end of
this announcement. All APMs used within this announcement are denoted by an
asterisk (*).
About Clarkson PLC
Clarkson PLC is the world's leading provider of integrated services and
investment banking capabilities to the shipping and offshore markets,
facilitating global trade.
Founded in 1852, Clarksons offers its diverse and growing client base an
unrivalled range of shipbroking services, sector research, on-hand logistical
support and full investment banking capabilities in all key shipping and
offshore sectors. Clarksons continues to drive innovation across its business,
developing digital solutions which underpin the Group's unrivalled expertise
and knowledge with leading technology.
The Group employs over 2,100 people in over 60 different offices across its
four divisions.
The Company has delivered 22 years of consecutive dividend growth. The highly
cash-generative nature of the business, supported by a strong balance sheet,
has enabled Clarksons to continue to invest to position the business to
capitalise on opportunities in its markets.
Clarksons is listed on the main market of the London Stock Exchange under the
ticker CKN and is a member of the FTSE 250 Index.
For more information, visit www.clarksons.com (http://www.clarksons.com)
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as it forms part of domestic law of the United Kingdom
by virtue of the European Union (Withdrawal) Act 2018, as amended (together,
'MAR'). Upon the publication of this announcement, this inside information is
now considered to be in the public domain.
Chair's review
As I reflect on 2024, I am extremely proud of the way Clarksons has
successfully navigated a landscape marked by significant political, economic
and environmental change.
Our expert and market-leading global teams have supported our clients through
these turbulent times, offering strategic insights to help overcome challenges
and capitalise on emerging opportunities.
The geo-political landscape has been particularly fast-moving, with ongoing
global conflicts underscoring the critical importance of strong governance,
deep knowledge and high-quality data as we advise our clients on vital
decision-making against a backdrop of increasingly complex international
sanctions.
Results
This year marks the third consecutive year that our business has achieved an
underlying profit before tax* of over £100m. Revenue increased by 3.4% to
£661.4m, driven by growth across the business. This outstanding achievement
underscores the importance, and success, of our strategy to focus on global
expansion, recognising opportunities, entering new markets, hiring the best
individuals and teams, and building a business with the scale and leading
market position to deliver sustained growth.
Dividend
We are delighted that, for the 22(nd) consecutive year, and in line with our
progressive dividend policy, the Board is recommending an increased final
dividend of 77p per share, bringing the total dividend for 2024 to 109p per
share, an increase of 7% compared to 2023.
People
We are now a global group of over 2,100 talented and diverse employees with an
expanded breadth of services and reach. We are proud of being able to attract
and retain the best talent in the industry.
Our people are unquestionably our most important asset and the key to our
success, and we thank each and every member of Clarksons for their unstinting
hard work and dedication.
We know from employee feedback how The Clarkson Foundation aligns to the
culture of the Group and are proud to be able to support its aim of making a
meaningful positive impact in the world.
Board
In August we welcomed Constantin Cotzias to the Board as an independent
Non-Executive Director, and member of the Audit and Risk Committee.
Constantin is European Director at Bloomberg, where he is Global Head of
External Affairs, the Chair of Bloomberg Tradebook and a Director of Bloomberg
Multilateral Trading Facility. Constantin brings a strong understanding of
financial markets, data and technology, and also experience in growing
data-focused businesses. His experience will be invaluable as we continue to
grow the business across all of these areas.
Birger Nergaard stepped down from the Board in May 2024 following the
Company's AGM. We thank him for nine years of valuable and dedicated service
to the Group.
Outlook
2024 has been a year of resilience and growth for Clarksons. We have delivered
strong financial performance in a challenging environment and supported our
clients through extensive global change.
The opportunity before us remains significant, as commodity demands combined
with energy security and environmental factors, provide a complex backdrop for
market growth in the medium term.
However, following a year of extensive political change, ongoing conflicts in
the Middle East and Russia-Ukraine, adding further complexities, markets have
softened as economies grapple with the immediate impacts of this phase of
change.
We are uniquely positioned through our global and regional expertise,
accompanied by our exceptional data insights, to respond to any changes that
arise. We will focus all our efforts on supporting our clients as they evolve
their strategies to meet these changes.
As we look ahead, we continue to hire and build on our strengths, driving
sustainable growth for our shareholders. Our robust cash flow and forward
order book ('FOB') affords us agility and enables us to take swift and
decisive decisions to make investments to support the business.
Thank you for your continued support.
Laurence Hollingworth
Chair
7 March 2025
Chief Executive Officer's review
2024 was another year of disruption, complexity and opportunity for global
shipping markets, and I am immensely proud of, and grateful to, our colleagues
across the world for their unwavering commitment and exceptional
contributions, which have led to another record year for Clarksons.
The fundamental supply and demand dynamics of the industry remained in fine
balance during the year, with underlying trade volume growth and disruptions
to trade patterns increasing demand, while the supply side remained challenged
by low orderbooks in certain sectors and a tight shipbuilding market. Seaborne
trade grew by 2.4% in 2024, driven by global economic consumption and rising
energy and resource requirements.
Conversely, despite a 13% increase in global shipyard output in the year, the
global fleet grew steadily at 3.4%, weighted towards the containers and LNG
sectors. Prices for newbuild vessels remained high, reaching peak 2008 levels,
following inflationary pressures at shipyards, firm forward cover and strong
ordering volume.
Ongoing conflicts in the Middle East and Russia-Ukraine continued to
underscore the importance and fragility of global supply chains. An
increasingly complex and evolving sanctions environment added to challenges
for shipowners and charterers alike with some 1,300 ships in the global fleet
now sanctioned. These events led to significant shifts in the global flows of
energy and resources and the largest increase in tonne miles in the sector for
15 years. Our position at the forefront of the industry, bolstered by our
global and regional expertise and deep market intelligence, has enabled us to
support our clients in managing these complexities effectively.
The green transition remains a significant underlying trend as the industry
moves towards alternative fuels and more efficient technology, and embarks on
an unprecedented fleet renewal programme to meet 2030 and 2050 emissions
targets. Half of orders by tonnage in 2024 involved alternative fuel and 7% of
the global fleet is now fitted with green or alternative fuel technology, a
number which is forecast to rise to 20% by 2030. Retrofitting has also been a
key theme, with 34% of the fleet now equipped with energy-saving technology.
Our Green Transition and Research teams continue to provide clients with the
support, data and intelligence they need as they respond to the opportunities
and challenges the move towards decarbonisation provides.
Broking
The Broking division had a very strong year, supported by an active sale and
purchase market across newbuilding and secondhand transactions, and generally
robust conditions across all other sectors. The forward order book ('FOB')
continues to grow, both for invoicing in 2025 and further out over the coming
years. This FOB gives us good visibility of baseline future earnings.
Geo-political disruptions, the redistribution of energy flows and an
underlying increase in Atlantic to Pacific commodity trade resulted in
significantly increased tonne miles, supporting rates and activity in
chartering. The offshore sector also performed well during the year, with
rates reaching record levels on the back of investor sentiment following a
supply-side rebalancing and incremental demand gains.
Carbon emissions from the industry increased slightly due to the increase in
tonne miles. Our Broking and Green Transition teams continue to advise clients
on fleet renewal programmes and the latest green technologies to achieve
longer-term environmental targets.
The Broking division continued to invest in expanding its global footprint
through the hiring of new people and teams both in the UK and overseas. Key
hires included leaders from both competitors and principals, increasing the
scope and services we offer our clients, and extending the products we cover
in both the physical and derivative markets. The truly global nature of the
business is demonstrated by the fact that two-thirds of our brokers are now
based outside of the UK, with representation in every major shipping geography
and sector. We remain focused on being best in class in every sector of
shipping, servicing clients with local expertise supported by the data,
technology and insights of a truly global business.
Segmental profit before taxation from Broking was £122.6m at a margin of
23.2% (2023: £121.2m and 23.5%).
Financial
The Financial division faced a more challenging year, with reduced investor
risk appetite in certain sectors amid geo-political uncertainty. Capital
markets activity was also tempered in shipping equities as companies continued
to focus on debt repayments and returns to shareholders. Investor sentiment
was more stable across the metals and minerals and offshore sectors.
Overall, our investment banking team supported and advised clients on
executing a number of mandates across, particularly, debt capital markets and
M&A.
Debt capital markets performed particularly well, supported by a record year
of activity in the Nordic high-yield bond market.
Investor interest in shipping project finance remained healthy, albeit real
estate market activity has continued to be challenged.
The division reported a segmental profit before taxation of £5.2m in 2024
compared with £6.6m in 2023.
Support
Our Support division had a record year despite the significant reduction in
transits through the Suez Canal. The division's increasingly diversified
offering across the offshore oil and gas, marine and renewable energy sectors,
and broadening client base, has enhanced performance during recent years.
The activities of Gibb Group, specialists in tools and supplies, and safety
and survival products, were enhanced further by the acquisition of Trauma
& Resuscitation Services Limited, now rebranded to Gibb Medical and
Rescue, in early 2024. The company is a leading provider of enhanced first aid
training, compliance and emergency response services and has performed beyond
management's expectations in its first year of ownership.
The Support division produced a segmental profit before taxation of £7.7m and
a 11.8% margin in 2024 (2023: £6.4m and 11.3%).
Research
As markets become more complex and the supply of data becomes increasingly key
to decision-making, our leading Research division plays a progressively more
important role in offering depth of knowledge and best-in-class insights
across the sector.
We continue to invest in providing market-leading intelligence which, combined
with our understanding of the shipping and offshore markets and digital
capabilities, is supporting over 3,500 clients globally. The division is
constantly evolving its products across geo-political trends, the energy
transition and fleet evolution. 2024 also saw increasing demand from clients
to embed data within workflows to support real-time information and
decision-making. The increasing demand from clients has resulted in recurring
revenue increasing to 90%.
The division increased segmental profit before taxation by 13% to £9.5m
(2023: £8.4m).
Sea
Our Sea platform continues to move forward, achieving growth in both customer
base and volumes. Sea Trade 2.0 was released in the second half of the year,
with all clients now successfully migrated to the new operating platform. This
more flexible technology base will enable our clients to benefit from
increasingly efficient workflows and data access to manage their pre-fixture
activities, and will provide the base for faster and more extensive
cross-market product releases in the future.
Outlook
For some years now we have started each new financial period with an uncertain
geo-political outlook; 2025 has started with more uncertainty than most due to
political change, ongoing regional conflicts, increased trade tensions,
tariffs and sanctions, inflation and changing monetary policy across global
economies. As I write this report, the impact of these uncertainties is that
freight rates and asset values have broadly fallen, which has meant that the
value of spot business done to date is less than the same period last year.
Our FOB continues to grow, both for 2025 and beyond, providing good visibility
of baseline future earnings. The FOB for invoicing in 2025, as at the end of
2024, amounted to US$231m, US$14m higher than at the beginning of 2024. The
invoicing profile of this FOB, together with the expected uptick in spot
revenues following a slow start to the year, means that 2025 is expected to be
second-half weighted, as it has been in most years.
Once the current uncertainty starts to recede, the markets will, over time,
rebalance, incorporating trade currently operated by the shadow fleet, and
clients will again be able to be more strategic in their forward planning,
including a focus on fleet renewal programmes. We will continue to invest in
our business to ensure we maintain market-leading positions across all
sectors, that we use value added technology, and that we have the best market
intelligence and insight to support and advise our clients.
The strength of our balance sheet, excellent cash generation and a healthy FOB
going forward many years gives us confidence to be at the forefront of
opportunities for growth and to consider opportunities for M&A where
accretive to the business. Clarksons is uniquely positioned to manage and
advise clients through these more volatile markets.
Andi Case
Chief Executive Officer
7 March 2025
Financial review
Revenue: £661.4m (2023: £639.4m)
Underlying profit before taxation*: £115.3m (2023: £109.2m)
Reported profit before taxation: £112.1m (2023: £108.8m)
Dividend per share: 109p (2023: 102p)
The Group delivered another outstanding set of results in 2024, with revenue
of £661.4m (2023: £639.4m) and underlying profit before taxation* of
£115.3m (2023: £109.2m), both ahead of the comparative period. The
performance was driven by a strong underlying operating result of £101.7m
(2023: £100.2m) and finance income of £14.9m (2023: £10.5m), which
benefited from the supportive interest rate environment. Underlying basic
earnings per share* grew 4.3% to 286.9p (2023: 275.0p).
Reported profit before taxation and basic earnings per share were £112.1m
(2023: £108.8m) and 277.1p (2023: 275.2p) respectively. Our performance has
enabled the Group to continue its progressive dividend policy, which is now in
its 22nd consecutive year. Accordingly, a full year dividend of 109p is
recommended as described in more detail below.
Free cash resources* increased to £216.3m (2023: £175.4m); the Group's
diversified portfolio of businesses continues to deliver strong
cash-generation across the cycle, which provides support for investment in the
best people, market intelligence and technology to support and advise our
clients. Where complementary to strategy, including establishing new teams,
setting up in new geographies, expanding our coverage or increasing market
presence, the Group actively pursues strategic and value-enhancing M&A
opportunities.
2024 performance overview
The Broking division had another successful year, reporting revenue of
£529.3m (2023: £516.8m), representing growth of 2.4%. Supply and demand
dynamics within the industry remained highly complex as global GDP growth and
disruptions to trade patterns increased demand, while the supply side remained
challenged by low orderbooks in certain sectors and a tight shipbuilding
market. The division generated a segmental profit of £122.6m (2023:
£121.2m), advising clients through complexity and enhancing its
market-leading position across all sectors of shipping.
Geo-political complexity, energy security and the green transition remained
consistent trends in 2024. Most sectors were impacted by disruption to key
trade routes, notably the Suez and Panama canals. Whilst conditions in Panama
eased towards the end of 2024, traffic through Suez remained at historically
low levels. This disruption, in addition to the ongoing redistribution of
energy flows following the Russia-Ukraine conflict, resulted in one of the
largest increases in tonne miles for 15 years and provided upward momentum to
rates across most sectors, in particular the dry cargo and containers sectors.
Offshore oil and gas markets also performed well during the year, with day
rates at record levels.
Newbuild sale and purchase activity across the industry was particularly
strong in 2024, reaching the third highest total on record. Healthy
cross-sector demand was supported by generally robust shipping markets, a
focus on green fleet renewal and competition for berths at shipyards.
Secondhand activity this year has also been positive, supported by bulker
sales volumes and strong tanker and container activity against a backdrop of
firm market conditions.
In the tankers and gases sectors, whilst market conditions were generally
supportive of rates during the year, these were below the levels experienced
in 2023. Both sectors experienced headwinds in the second half of the year
from a slowdown in global demand, cuts in production and delays to projects
coming online.
The Financial division faced a challenging economic backdrop in 2024,
including inflation, extended periods of high interest rates and reduced
investor confidence caused by geo-political tensions. Against this backdrop
and faced with increased competition, the division performed well, reporting
revenue of £42.6m (2023: £44.1m) and segmental profit before taxation of
£5.2m (2023: £6.6m).
Activity and investor sentiment in the shipping and offshore markets remained
generally positive throughout 2024 and the investment banking team remained
active, executing several deals as clients sought to restructure and
recapitalise their balance sheets or issue debt to support further investment
and growth. Revenue from commissions on secondary trading was lower than in
2023, driven mainly by weaker activity in the equity capital markets. There
was, however, strength in the debt capital markets, where favourable market
conditions, particularly in the Nordic high-yield bond market, increased both
revenue and the volumes of transactions executed.
Within the project finance business, positive investor sentiment enabled
shipping and offshore activities to perform well, although real estate
opportunities continue to be impacted by the prolonged high-interest rate
environment, a volatile bond market and challenging construction and rental
prices.
The Support division produced a record performance in 2024, delivering revenue
of £65.0m (2023: £56.6m) and a segmental profit of £7.7m (2023: £6.4m).
This was despite challenges in some sectors, including reduced transits
through the Suez Canal impacting Egyptian agency business, delays and reduced
activity in offshore energy projects in Northern Europe and pressure on
margins in UK agency business. The division continues to look for
opportunities to leverage its UK and Northern European footprint to support
clients, including initiatives such as the agreement with Norway-based Peak
Group to combine expertise in port agency logistics, expanding its reach
across the expanse of the North Sea.
In addition to core agency activity, the division continues to focus on
supporting the offshore oil, gas and renewables sectors through the provision
of specialist tooling, training and equipment. In February 2024, this offering
was extended further through the acquisition of Trauma & Resuscitation
Services Limited, which rebranded to Gibb Medical and Rescue during the year.
The Research division also produced another excellent financial performance
generating revenue of £24.5m (2023: £21.9m) and a segmental profit of £9.5m
(2023: £8.4m). Growth was achieved from new client penetration, and a
cross-selling of services. Recurring revenue continues to represent over 90%
of the division's sales, as clients value the market-leading insights and
intelligence provided by the team. The division continues to innovate and
invest in providing a consistent flow of high-quality, market-leading insights
which this year have included a macro focus on decarbonisation and
geo-political disruption.
Administrative expenses
The Group incurred underlying administrative expenses* of £526.0m (2023:
£508.8m), representing an increase of 3.4%. The main driver of the increase
year on year was continued investment in people and teams, which has enabled
us to expand our product offering across new markets and geographies and to
develop and train new talent across the business. Although the Group is
focused on disciplined expense management, it is not immune from inflationary
pressure and economic decisions affecting the global economy. The announcement
in the Autumn 2024 Budget that UK employers' national insurance will rise by
1.2% is expected to increase the Group's remuneration and variable incentive
costs in 2025.
The Group remains committed to investing across all areas of the business to
ensure it has the best people, technology and market intelligence to support
and service our clients globally.
Acquisitions
At the beginning of the year, the Group completed the acquisition of Trauma
& Resuscitation Services Limited (since rebranded to Gibb Medical and
Rescue) for an initial consideration of £2.0m. The acquisition extends the
Group's offering to the oil and gas, marine and renewable energy sectors by
providing market-leading first aid training, compliance and emergency response
services. The business performed ahead of management's expectations in its
first year of ownership, leveraging the breadth of the Group's network to
generate new business opportunities.
In May 2024, the Group completed an asset purchase agreement with Independent
Shipping Agencies Limited to acquire selected assets for an initial
consideration of £0.1m. The investment increases the Support division's
service offering to the dry cargo sector through the provision of
superintending services.
In September 2024, the Support division also completed an asset purchase
agreement with Wind Farm Equipment Limited for an initial consideration of
£0.7m. This transaction further enhances the capabilities of the tooling and
supplies business in the renewable energy sector.
Acquisition-related costs of £3.2m (2023: £2.6m), which include the above
transactions, have been disclosed separately in the consolidated income
statement, and relate to the amortisation of intangibles and costs linked to
ongoing employment obligations. We estimate acquisition-related costs for 2025
to be £3.0m assuming no further acquisitions are made.
Dividend
The Board is recommending a final dividend in respect of 2024 of 77p (2023:
72p) which, subject to shareholder approval, will be paid on 23 May 2025 to
shareholders on the register at the close of business on 9 May 2025.
Together with the interim dividend in respect of 2024 of 32p (2023: 30p), this
would give a total dividend of 109p for 2024, an increase of 7% on 2023 (2023:
102p) and representing the 22nd consecutive year the Group has increased
returns to shareholders. In reaching its decision, the Board took into
consideration the Group's 2024 performance, balance sheet strength, ability to
generate cash and forward order book.
Finance income and costs
The Group reported finance income of £14.9m (2023: £10.5m), as strong
underlying cash generation from the business and proactive treasury management
enabled the Group to capitalise on an extended period of high interest rates.
Central banks' review of monetary policy saw interest rates cut towards the
end of 2024, a trend which is forecast to continue in 2025. Finance costs were
£1.9m (2023: £2.2m) and are mainly comprised of interest expenses on lease
liabilities.
Taxation
The Group reported an underlying effective tax rate* of 22.5% (2023: 21.4%).
The Group's underlying effective tax rate remains stable and is reflective of
the broad international operations of the Group. The Group's reported
effective tax rate was 23.0% (2023: 21.1%).
Foreign exchange
The Group is exposed to adverse movements in foreign exchange as its revenue
is mainly denominated in US dollars whereas operating expenses are denominated
in local currencies and financial performance is reported in sterling. The
average sterling to US dollar exchange rate during the year was US$1.28 (2023:
US$1.25), providing a headwind to this year's financial performance.
Free cash resources
The Group ended the year with cash balances of £431.3m (2023: £398.9m) and a
further £62.0m (2023: £39.9m) held in short-term deposit accounts and
government bonds, classified as current investments on the balance sheet.
Net cash and available funds*, being cash balances after the deduction of the
total cost of accrued bonuses, at 31 December 2024 were £243.7m (2023:
£201.1m). The Board uses this figure as a better representation of the net
cash available to the business since bonuses are typically paid after the
year-end, hence an element of the year-end cash balance is earmarked for this
purpose. It should be noted that accrued bonuses include amounts relating to
the current year and amounts held back from previous years which will be
payable in the future.
A further measure used by the Board in taking decisions over capital
allocation is free cash resources*, which deducts monies held by regulated
entities from the net cash and available funds* figure. Free cash resources*
at 31 December 2024 were £216.3m (2023: £175.4m).
In addition to these free cash resources*, the Group has a strong balance
sheet and has consistently generated an underlying operating profit and good
cash inflow. Management has stress tested a range of scenarios from the base
case, modelling different assumptions with respect to the Group's cash
resources and, as a result, continues to adopt the going concern basis in
preparing the financial statements.
Balance sheet
Net assets at 31 December 2024 were £495.7m (2023: £456.6m). The balance
sheet remains strong, with net current assets and investments exceeding
non-current liabilities (excluding pension assets and lease liabilities as
accounted for under IFRS 16 'Leases') by £257.7m (2023: £206.5m). The
Group's pension schemes had a combined surplus before deferred tax of £12.3m
(2023: £13.4m).
Forward order book ('FOB')
The Group earns some of its commissions on contracts where the duration
extends beyond the current year. Where this is the case, amounts that can be
invoiced during the current financial year are recognised as revenue
accordingly. Those amounts which are not yet invoiced, and therefore not
recognised as revenue, are held in the FOB. In challenging markets, such
amounts may be cancelled or deferred into later periods.
The Directors review the FOB at the year-end and only publish the FOB items
which will, in their view, be invoiced in the following 12 months. At 31
December 2024, this estimate was US$231m (31 December 2023: US$217m).
Alternative Performance Measures ('APMs')
Clarksons uses APMs as key financial indicators to assess the underlying
performance of the Group. Management considers the APMs used by the Group to
better reflect business performance and provide useful information. Our APMs
include underlying profit before taxation, underlying earnings per share, net
funds and free cash resources.
Jeff Woyda
Chief Financial Officer & Chief Operating Officer
7 March 2025
Business review
Broking
Revenue: £529.3m (2023: £516.8m)
Segmental split of underlying profit before taxation: £122.6m (2023:
£121.2m)
Forward order book for 2025: US$231m^ (At 31 December 2023 for 2024: US$217m^)
^ Directors' best estimate of deliverable forward order book ('FOB')
Dry cargo
The dry cargo sector supports a range of important industrial sectors
including construction, energy and agriculture, moving a record 5.7bn tonnes
of cargo last year. Our dry cargo shipbroking team have a leading position
across all ship sizes, performing robustly in 2024 and including strong growth
in longer-term business. Overall, 2024 was a generally positive year for the
bulkcarrier sector, with Clarksons' weighted earnings averaging over
US$15,000/day, up 21% on 2023 and 18% on the 10-year average. All sub-segments
saw improved earnings year on year but gains were most significant in the
Capesize sector, where spot earnings averaged over US$25,000/day, the second
strongest year since 2010. This was in part driven by strong trade volumes,
which grew by circa 3.3% to 5.7bn tonnes, led by strong demand from China.
Firm iron ore and bauxite exports from the Atlantic to Asia were particularly
supportive to the Capesize sector, while the re-routing of vessels away from
the Red Sea also added to vessel demand, albeit to a lesser degree than some
other sectors. The bulkcarrier market ended the year on a softer note, as the
typical seasonal upswing in demand in the fourth quarter disappointed;
restrictions on Panama Canal transits (which provided some disruption upside
in the first half) eased; and steady fleet growth (circa 3% in the full year)
added to vessel supply. Looking ahead, demand trends remain reasonable heading
into 2025, although growth rates could trend lower than 2024. Alongside
another year of steady fleet growth (circa 3% is expected), earnings overall
could see a softer tone with potential trade tariffs; the unwinding of Red Sea
re-routing; and developments in the Chinese economy potentially impacting.
Containers
The container sector facilitates the transportation of a wide range of
typically manufactured goods, including consumer and industrial goods,
foodstuffs, chemicals and other manufactures. Container shipping markets
experienced high freight and charter conditions across 2024, and our container
shipbroking team leveraged its expertise and global breadth to successfully
support clients on asset and chartering decisions in a volatile market heavily
impacted by geo-political events. Diversions away from the Red Sea by major
liner companies amid the hostility in the region generated a significant
increase in vessel demand, amplified by underlying trade expansion and port
congestion hotspots. As a result, and despite rapid fleet capacity growth
(more than 10%) and record newbuilding deliveries, both box freight rates and
timecharter rates hit extremely strong levels. The SCFI Spot Box Freight Index
stood at 3,734 points in early July, the highest level outside of the
exceptional 2020-22 COVID-19 era. It ended the year at 2,460 points after some
erosion post-peak season and amid ongoing fleet growth, although still 2.4
times the 2023 average. Containership charter markets had an exceptionally
strong year as liners sought 'extra-loaders' to cover Red Sea-related
disruption. Clarksons Containership Timecharter Rate Index hit 182 points in
mid-July, up 258% versus the 2010-19 average, although still lower than the
all-time-high COVID-19 markets, and ended the year at 178 points (up 165%
versus the end of 2023). Looking ahead, the short-term outlook for the sector
is closely linked to trends in the Red Sea, with any significant resumption of
transits expected to drive softer market conditions.
Tankers
The tanker sector plays a crucial role in global energy supply chains, moving
crude oil and refined oil products to facilitate their eventual use as
transportation fuels, for heating and electricity generation, and as
industrial feedstocks. 2024 was another strong year for tanker markets
overall, and our tanker shipbroking team experienced another very successful
year, utilising its scale and deep expertise to support clients through the
volatile and complex markets. In general, the second half of the year was
softer than the first for the tanker shipping market. There remained variation
across sectors, with Suezmaxes and Aframaxes outperforming VLCCs over the
year, while LR product tankers fared better than MRs. VLCC earnings were
strong across the first quarter, before easing seasonally across the second
and third quarters. However, the typical strong seasonal increase in the
fourth quarter failed to materialise. OPEC+ production cuts and a decline in
Chinese crude imports impacted the market. Overall, average VLCC earnings
declined year on year with our index averaging US$33,502/day, close to
long-term averages. Suezmaxes and Aframaxes earnings also eased, softening by
16% and 22% year on year respectively. However, markets overall remained
historically strong, boosted by the continued impact of altered trade flows
due to sanctions on Russia.
Products tanker earnings were driven to high levels in early 2024, primarily
boosted by the re-routing of vessels via the Cape of Good Hope. This strength
persisted throughout the first half of the year. However, the third quarter
saw a notable increase in the use of crude oil tankers to transport clean
products cargoes, while softer refining margins also impacted markets. In
spite of the softer second half of the year, earnings for LR2s and LR1s on the
benchmark Middle East - Far East route increased by 11% and 7% year on year
respectively in 2024. However, average MR earnings declined by 5% year on year
across 2024 and averaged US$16,501/day across the fourth quarter. Tanker fleet
growth was very low in 2024, falling below 1%, and while product tanker fleet
growth is expected to pick up in 2025, total crude tanker fleet growth is set
to remain supportively low.
Specialised products
The specialised products tanker market moves a diverse range of liquid cargoes
derived from natural gas, crude oil, agricultural crops (including biofuels)
and other manufacturing processes. All are intrinsically linked to end
consumer demand and play a crucial part in global supply chains for finished
goods and products.
The specialised products tanker market had a strong year overall, although
trends varied across 2024. The first half of the year saw freight rates surge
to new record highs, largely on the back of re-routing around the Cape of Good
Hope which led to longer voyage distances. However, rates eased across the
second half of the year amid weaker consumer demand, as well as softer trends
in the adjacent clean petroleum products market, although rate levels remained
fairly healthy in a historical context with supply side growth limited over
recent years. In a complex and evolving market, our specialised products team
navigated these shifts with confidence and grew market share. The team has
expanded its regional presence to 13 offices globally and using our strategic
expertise, analytical insight and broking experience, is uniquely positioned
to participate in the global chemical tanker market and support our clients.
Gas
LPG/PCG
The gas shipping markets move liquefied petroleum and other gases such as
ammonia and ethane, supporting a wide range of sectors from plastics and
rubber production to industrial and domestic energy markets.
While VLGC markets softened in 2024, rates were still relatively healthy for
much of the year. Markets started strongly in the early weeks of 2024,
following on from record levels in late 2023 when disruption at the Panama
Canal supported markets. However, rates began to soften as Panama disruption
eased, while continued firm fleet growth (VLGC fleet capacity grew a further
6% in 2024) and higher terminal fees in the US also impacted. Overall, spot
earnings for a non-scrubber fitted 'eco' VLGC averaged circa US$42,000/day on
the Ras Tanura-Chiba route, down 54% year on year but standing in line with
long-run averages. The market started 2025 relatively balanced although there
are a range of uncertainties for the year ahead.
2024 also proved to be another healthy year for the petrochemical gas sector,
with timecharter rates generally continuing to climb as charterers sought to
secure term coverage. Rates for a 22.5k cbm Handysize fully ref. vessel were
up by 10% on 2023 on average, despite some challenges in European and Asian
petrochemical markets and a drop in US ethylene exports.
Newbuilding activity was very strong in 2024 with a record volume of LPG
carrier tonnage ordered, including the first orders for 'ULECs' (specialist
ethane carriers of circa 150,000 cbm).
LNG
The LNG carrier sector transported circa 410mt of liquefied natural gas in
2024 on a fleet of highly specialised vessels. This sector is critical to both
energy transition and energy security, and is set for a major phase of
expansion in the coming years following record levels of investment in LNG
vessels and LNG export capacity.
Spot LNG freight rates dropped across 2024 as limited trade volume growth
(amid delays in the commissioning of several LNG export terminals in North
America and West Africa); strong LNG carrier fleet expansion (67 units were
delivered in 2024 - an annual record); and a narrow Atlantic-Pacific arbitrage
saw spot tonnage availability grow, despite support to tonne-mile trade from
re-routing of vessels away from both the Suez and Panama canals. Overall, LNG
carrier spot rates for a 160k cbm TFDE vessel averaged circa US$42,000/day,
down 57% year on year, with rates falling to record lows during Q4 2024.
Four new export projects with an aggregate capacity of 30mtpa reached FID in
2024, and there is more than 60mtpa of capacity that is scheduled to take FID
in 2025. Newbuild vessel ordering remained firm in 2024, led by Qatari
requirements, and further orders are expected from new projects and for fleet
renewal through 2025. Our LNG team continues to provide excellent support to
clients across spot, period, newbuilding and Sale & Purchase.
Sale and purchase ('S&P')
Secondhand
S&P markets remained active in 2024, with over 2,000 vessels of over 115m
dwt combined and an estimated value of in excess of US$50bn reported sold in
the full year, down around 9% year on year in tonnage terms but still firm by
historical standards, with 2024 the fourth consecutive year with sales volumes
topping 100m dwt.
Activity was supported by near record bulker sales volumes and strong tanker
and container activity. This was against a backdrop of firm charter market
conditions that supported buyer demand, high pricing offering a return on
assets for some sellers and with some owners using the secondhand market to
progress fleet renewal plans due to newbuild prices and yard lead times being
elevated. However, volumes varied through the year, with the first half seeing
particularly firm trends amid strong sentiment in various shipping sectors,
before activity slowed by around a quarter in the second half of the year as
sentiment in some segments became more uncertain. Secondhand prices were
generally very firm, with our overall Secondhand Price Index increasing by 22%
between the start of 2024 and the end of August, before easing back at the end
of the year. Tanker and bulker pricing eased by around 10-15% between the
summer and year-end, while containership prices continued to rise. Our S&P
team remained very active, with several key hires made during the year.
Newbuilding
The newbuilding market was incredibly active in 2024, with the largest order
intake for 17 years. Contracts totalling 66m CGT and US$204bn were placed,
with appetite strong across segments. The containership sector saw
particularly firm activity (4.4m TEU ordered), while there was also a good
flow of gas carrier and tanker orders. The overall orderbook increased by 26%
across the year and average lead times lengthened. Chinese builders
consolidated their lead position, taking two-thirds of orders, and are the
only major producer expanding capacity (through expansion of existing and
reactivation of dormant facilities). However, some much smaller players are
looking strategically at their shipbuilding positions. Newbuilding prices
remained close to record highs, edging up a further 6% across the year with
some softening in certain segments towards the year-end. Meanwhile, half of
orders by tonnage in 2024 involved alternative fuel, with LNG dual fuel
dominating.
Our global newbuilding broking team had an excellent year, benefiting from its
market-leading position and strong cross-segment demand. We also remained very
active supporting clients with alternative fuel newbuild orders, as green
fleet renewal and an increasingly complex and evolving regulatory backdrop
drive investment decisions. The newbuilding team has expanded through a number
of key hires across our offices.
Offshore and Offshore Renewables
Offshore oil and gas
The offshore oil and gas vessel sector supports the development, production
and support of offshore oil and gas fields, with over 13,000 mobile vessels
and rigs playing a vital role in supporting operations across the lifecycle of
offshore energy projects. Our offshore broking team remained very active
through 2024, with markets strengthening further across the first half of the
year, before sentiment and rate levels eased from all-time highs towards
year-end. Overall, offshore project investment remained relatively positive
amidst a continued focus on energy security, with oil projects in South
America and West Africa accounting for the majority of CAPEX (in total, an
estimated US$81bn). Rig vessel markets had a mixed 2024, with space in the
backlog and impacts from some contract suspensions being weathered well
initially, although dayrates eased across the second half amid increased unit
availability. However, underlying fleet supply constraints should remain
supportive in the medium and long term. The OSV sector faced seasonal
pressures in the second half, following record markets earlier in the year.
Subsea markets had another strong year, and the backlog of leading EPC
contractors is today at record highs. Meanwhile, the MOPU sector made further
progress with a number of awards confirmed.
In the near term, there is some uncertainty around demand trends and impacts
from heightened geo-political uncertainty. However, supply constraints are
generally set to remain a key supportive feature of offshore vessel markets,
with the newbuilding interest that materialised in 2024 in some sectors
relatively modest in scale.
Offshore renewables
The offshore renewables industry continues to expand, and going forward is
expected to account for a growing share of the global energy mix supported by
energy transition and energy security trends. 2024 was generally a mixed year
for the offshore wind sector, with installed offshore wind capacity continuing
to expand but lower year-on-year project sanctioning, with project economics
becoming increasingly important and political support being more varied across
geographies.
European wind vessel markets were strong in 2024, with WTIV availability in
the next few years expected to remain tight, while C/SOV units were
effectively fully utilised in the summer. Although challenges remain, the
long-term outlook for the sector remains positive.
Our offshore renewables team continued to utilise its expertise and network to
support clients through the evolving and growing market, and actively engaged
in discussions around technical green solutions and initiatives as focus on
the green transition continues to develop.
Futures
Our Futures business is a leading provider of freight derivative products,
helping shipping companies, banks, investment houses and other institutions
seeking to manage freight exposure by increasing or reducing risk. The dry
futures market remains competitive but our team saw a strong end to 2024 and
have increased market share in some key sectors. Our tanker FFA team had a
strong year, with disruption and volatility supporting trading volumes,
particularly in the first half of the year.
Financial
Revenue: £42.6m (2023: £44.1m)
Segmental split of underlying profit before taxation: £5.2m (2023: £6.6m)
Securities
Clarksons Securities is a sector-focused investment bank for the shipping,
offshore energy, renewables and minerals industries, with deep sector
knowledge and global reach driven by research and relationships. Despite
facing a more challenging economic backdrop, the division performed well
during the year. Increased activity in the debt and equity capital markets
offset some of the reduction in activity in M&A and convertible bonds.
Secondary trading
Activity in the secondary trading sector fell in the second half of the year
on the back of reduced investor risk appetite amid volatility and
geo-political uncertainty, as well as the ongoing strength in the primary
credit market. While total trading volumes for 2024 decreased on 2023, the
Clarksons Securities team was still able to execute an increased number of
blocks.
Shipping
The shipping industry experienced a generally weak stock performance in 2024,
whilst in terms of capital market activity, listed shipping companies remained
disciplined and focused on returning capital to shareholders and taking
advantage of a strengthening bond market.
Energy services
The second half of the year began with a sell-off in oil services stocks,
erasing earlier gains, amid lower oil prices and investor uncertainty. Capital
markets activity was lower in the second half, although Brazil's deepwater
market continued to show strength. Credit markets remained strong, and M&A
opportunities remained in focus.
Metals and minerals
2024 saw generally more positive and stable trends in the metals and minerals
sector after a volatile 2023. Clarksons Securities was actively engaged in
several transactions, particularly within the strong credit market and M&A
segment in the mining industry.
Renewable energies
Despite some challenges around investor appetite in the renewables segment,
underlying activity continued to grow strongly, and investments generally
continued to be made, with clients valuing assistance in navigating growth and
financing options. Despite some delays to transaction execution in certain
subsectors, the renewables coverage team completed various private M&A and
equity transactions during 2024.
Exploration & Production ('E&P')
Capital market transactions in the E&P sector were robust, encompassing
both M&A and debt activities. Clarksons Securities participated in several
transactions, and there is good momentum going into 2025.
Debt capital markets
The Nordic high-yield bond market experienced strong growth in 2024, marking a
record year in terms of issuance volume and market activity, and both existing
bond issuers and new entrants capitalised on the favourable window. Across the
year, Clarksons Securities participated in transactions across shipping,
offshore and natural resources.
Project finance
Our project finance business is a leading Nordic player within shipping and
real estate project finance, which has in recent years offered investment
opportunities in modern fuel (and carbon) efficient shipping and offshore
assets, with an overall focus on assisting the shipping and offshore industry
in transitioning to more sustainable and less carbon-intensive transportation.
Our project finance team recorded good results in 2024, with healthy investor
interest in both shipping and offshore projects supporting activity in the
Norwegian market. The attractions of the Norwegian partnership model
encouraged more shipowners to participate in the sector, and projects were
concluded across a range of vessel segments. There remains good availability
of competitive bank finance for non-recourse projects, and investor interest
remains promising.
Structured asset finance
Our structured asset finance business provides clients with both general
advice and support on specific financing and reporting requirements, helping
industrial clients and cargo owners to structure bespoke financial solutions
and evaluate the impact of changing accounting and environmental regulations
on the fulfilment of their shipping finance requirements.
2024 was a successful year for our structured asset finance team, with our
expertise helping clients to navigate the wide range of available financing
choices and weigh up various financial, legal, accounting, tax and risk
transfer implications. Our position as expert independent financial advisers
with a first-class execution track record helped us to develop new capital
sources and products to support our clients in a fast-changing world.
The ship finance market generally in 2024 was characterised by owners lowering
leverage and re-financing existing facilities on lower margins as they reacted
to having more liquidity on improved earnings. This was countered slightly by
a higher interest rate environment during the first half, increased liquidity
costs and upward pressure on margins for some mainstream traditional shipping
banks.
The mortgage-backed debt market appears as a three-tier market. The Poseidon
Principles banks offer lower margins than other sources but access to funding
is usually limited to blue chip borrowers for green vessels and/or projects.
However, savings remain relatively modest compared to more conventional
financing. Non-Poseidon banks remain a competitive source of finance with
fewer constraints, although pressure is still growing to reduce portfolio
emissions. Restrictions on 'financeable' assets have resulted in a growing
third group of debt lenders, represented by credit funds and providers of
private credit facilities, typically seeking higher margins and returns but
offering cashflow-driven leverage and with appetite for a wider range of
tonnage (including older vessels).
Leasing remains the other main asset-backed finance product supporting the
shipping sector, and here too a tiered market is apparent. In the first tier
are products offered by some larger Chinese leasing companies, and French and
Japanese tax-based products. Generally attractive terms led to a stable flow
of leasing transactions through 2024. However, many lessors were focused on
preservation rather than active growth of portfolios. The market also
continues to be served by some of the smaller Chinese and European leasing
companies and some credit funds. With typically higher margins, this sector
has seen some of the largest pre-payments over recent years, and financier
responses have included retrenching domestically and diversifying sectors (eg
offshore oil transactions).
Overall, there are plenty of financing sources currently available for
investments in newbuilding and secondhand tonnage, with a focus on
optimisation of financing arrangements rather than securing funds. From a
macro perspective, the credit outlook in 2025 appears broadly neutral, but
there are a range of risks from Chinese and European economic trends,
uncertainty around US policy and geo-political flashpoints.
Support
Revenue: £65.0m (2023: £56.6m)
Segmental split of underlying profit before taxation: £7.7m (2023: £6.4m)
Shortsea broking
Our specialist shortsea broking team saw significantly increased revenue in
2024 despite softer freight rates, with support from stronger UK grain imports
amid a poor harvest. The client base and team also continue to grow and
collaboration with the dry cargo shipbroking team within the Broking division
was enhanced.
Gibb Group
Gibb Group, the industry's leading provider of PPE and MRO products and
services and an experienced supplier into the renewable energy sector, made
very good progress during 2024. This included expanding the business' offering
in several UK and mainland European locations, opening facilities in the Far
East to service regional offshore wind activity and continued growth in
recently opened facilities. Performance by Gibb Medical and Rescue, which was
acquired in early 2024, has exceeded initial expectations.
Vessel agency, project logistics and customs clearance
Through exceptional port agency and first-class logistics services, our
business provides a range of solutions for clients in the marine and energy
sectors. Record profits were achieved in 2024, supported by project income,
strong UK grain imports, growth in the aggregates business, oil and gas
decommissioning and offshore windfarm maintenance.
Stevedoring
Our stevedoring business, highly experienced in loading and discharging bulk
cargoes, saw impacts in 2024 from weaker UK grain exports, although increased
rental income from storage volumes of imported grain helped to offset the
decline.
Egypt agency
2024 was a challenging year for our Egypt agency business, although the team
still delivered solid results. While the drop in Suez Canal transits due to
vessel attacks in the Red Sea impacted, increased Egyptian port calls, a new
strategic regional partnership and increased chartering fixtures provided some
support.
Research
Revenue: £24.5m (2023: £21.9m)
Segmental split of underlying profit before taxation: £9.5m (2023: £8.4m)
Clarksons Research, the data and analytics arm of Clarksons, are market
leaders in the provision of independent data and intelligence around shipping,
trade, offshore and the maritime energy transition.
Millions of data points are processed and analysed each day to provide trusted
and insightful intelligence to thousands of organisations across maritime,
supporting decision-making across our increasingly complex markets.
Research performed encouragingly over 2024. This continues a long-term growth
trajectory, facilitated by ongoing investments into our proprietary database,
the delivery of trusted insights and in the development of our market-leading
digital platform. Recurring revenue has now reached 90% of sales across a
client base involving over 3,500 companies and 15,000 platform users. Research
has developed excellent client penetration across all aspects of the maritime
ecosystem, including owners, financiers, yards, equipment suppliers,
government agencies, energy, cargo, traders, insurance and developers while
also expanding its position in Asia and other emerging markets.
Besides its role as a cash-generative and industry-leading intelligence
provider, Research also continues to support the Broking, Financial and
Support divisions and the Technology business with differentiating data,
research and profile. These synergies were successfully enhanced in 2024.
Digital
Developments across our digital platform included:
Shipping Intelligence Network ('SIN'), our market-leading offering providing
data and analysis tracking and projecting shipping market supply and demand,
freight, vessel earnings, asset values and macro-economic data around trade
flows and global economic developments, experienced strong sales growth in
2024. This was supported by well-received intelligence briefings on the market
impacts of Red Sea disruption, tariffs on car imports, US East and Gulf Coast
port strikes and the building geo-political complexities in a seaborne trade
matrix that reached 12.6bn tonnes in 2024 and experienced the fastest growth
in distance of trade for over 10 years. Our intelligence flow also tracked
many of the major themes in the shipping markets in 2024: cross-market
strength in dayrates, albeit with a softer tone in some segments towards
year-end; an energy security and energy transition focus; volume growth in the
'gases'; additional tonne mile demand from geo-political disruption; active
S&P markets; a strong flow of newbuild orders; and continued supply side
constraints despite some reactivation of shipyard capacity.
World Fleet Register ('WFR') sales also grew strongly, as client interest in
shipbuilding capacity, alternative fuels and energy saving technologies
strengthened. Besides providing granular data on the world fleet, vessel
equipment, companies, shipyards and ports, the WFR focuses on the tracking of
green technology and decarbonisation across the shipping industry, aligning
with the broader Group's investments around the green transition. New data and
functionality around ports, liner services, incidents and vessel deployment
were added to this offering in 2024.
Offshore Intelligence Network ('OIN') provides data and analysis of
utilisation, dayrates and market supply and demand of the offshore oil and gas
fleet including rigs, OSVs, subsea and floating production. Supported by
strong client appetite as market conditions reached all-time highs in some
segments, sales also benefited from the roll-out of regional and country
profiles leveraging newly developed utilisation and deployment data. Although
market conditions have softened in early 2025, offshore oil and gas still
supplies over 16% of global energy supply.
Renewables Intelligence Network ('RIN') provides comprehensive data,
intelligence and analysis around every offshore wind farm in the world and the
fleet of vessels that support development and maintenance of offshore wind
farms. Despite mixed market conditions in 2025, with project sanctioning down
but vessel dayrates firm, offshore wind's contribution to global energy supply
has reached 0.4% and is expected to play a key long-term role in global needs
for both energy transition and energy security. New data on cable
interconnectors, Power Purchase Agreements and vessel sector utilisation,
alongside a series of country briefings, were added to the offering. Despite a
strong competitive landscape, sales grew in 2024.
Seanet has been developed in conjunction with the Clarksons technology
business, Maritech. This vessel movement system blends satellite, vessel and
land-based AIS data with the Clarksons Research database of vessels, ports and
berths. Investments into our underlying AIS data sources, our processing
stack and the expansion of cloud capacity were made.
Services
Our dedicated services team, managing data contracts and multi-year research
agreements across key corporates operating in maritime, was very active in
2024. There was strong demand and uptake of our API offering, allowing our
powerful data to be embedded within the workflows of clients, and also of our
modelling of forecasts for trade, fleet development, shipbuilding capacity and
sector earning potential. Our valuation offering remains the industry
benchmark for trusted valuations to the ship finance market, leveraging the
expertise of the world's largest shipbroker with the diligence and technology
of shipping's leading research unit. Investments into our valuation technology
offer has supported our banking and leasing clients in monitoring of their
portfolios and in meeting the needs of regulators.
Investments into headcount focused on our Asian operations, with expansion of
our teams in Shanghai, Singapore and Delhi. Our data analytics, digital
development, market analyst and business development teams were also expanded,
in part through our highly effective graduate programme. There have been
investments to fully digitalise workflows across business development, account
management, renewals, invoicing and KYC. Research is actively pursuing
investment opportunities.
Sea
Our technology arm, Sea, saw continued progress and growth in its client base
through 2024. Our platform driving the digitalisation of freight and fixtures
('The Intelligent Marketplace For Fixing Freight') is enabling charterers,
brokers and owners to benefit from seamless workflows, access to the right
data at the right time, and integrated governance, leading to better
optimisation of both dollars and carbon when fixing freight.
A new Trade solution was launched in 2024, with existing clients migrated to a
more modern technology base, forming a solid foundation for the Sea platform
and offering a seamless workflow, faster iterations and one data structure.
Compliance Manager was also introduced in 2024, allowing users to ensure
compliance with increasingly complex regulations within the fixture workflow.
The client base continued to grow across our Intelligence, Contracts and Trade
solutions, increasing the benefits for all participants. The remaining clients
from the Mardocs acquisition in 2023 migrated to Recap Manager, providing the
tanker industry with a unified contract management system. AI-powered features
are being developed, which will act as cognitive amplifiers throughout the
platform, leaving users to focus on the vital fixing process.
Meanwhile, our business unit dedicated to contract management for commodity
transactions (ICP commodities) made inroads into new segments and onboarded a
major new grains client, while expanding the platform's functionality and
gearing for further expansion.
Risk management
Full details of our principal risks and how we manage them will be included in
the risk management section of the 2024 Annual Report, together with our
viability and going concern statements.
Our principal risks are:
· Macro-economic and geo-political factors
· Changes in the broking industry
· Adverse movements in foreign exchange
· Financial loss arising from failure of a client to meet its
obligations
· Cyber risk and data security
· Breaches in rules and regulations
· Loss of key personnel - normal course of business
· Loss of key personnel - Board members
Directors' responsibilities statement
The statement of Directors' responsibilities below has been prepared in
connection with the Group's full Annual Report for the year ended 31 December
2024. Certain parts of the Annual Report have not been included in this
announcement as set out in note 1 of the financial information.
We confirm that:
• to the best of our knowledge, the consolidated financial statements, which
have been prepared in accordance with UK-adopted international accounting
standards, give a true and fair view of the assets, liabilities and financial
position of the Group; and
• to the best of our knowledge, the Strategic Report includes a fair review
of the development and performance of the business and the position of the
Group, together with a description of the principal risks and uncertainties
that it faces; and
• we consider the Annual Report, taken as a whole, is fair, balanced and
understandable and provides the information necessary for shareholders to
assess the Company's performance, business model and strategy.
This responsibilities statement was approved by the Board of Directors on 7
March 2025 and is signed on its behalf by:
Laurence Hollingworth
Chair
7 March 2025
Consolidated income statement
for the year ended 31 December
2024 2023
Before acquisition- Acquisition-related After acquisition- Before exceptional items and Acquisition- After
related costs related acquisition- related Exceptional items and acquisition-
costs £m costs related costs related
£m £m costs £m costs
£m Exceptional items £m
£m
Revenue 661.4 - 661.4 639.4 - - 639.4
Cost of sales (33.7) - (33.7) (30.4) - - (30.4)
Trading profit 627.7 - 627.7 609.0 - - 609.0
Administrative expenses (526.0) (3.2) (529.2) (508.8) 2.2 (2.6) (509.2)
Operating profit/(loss) 101.7 (3.2) 98.5 100.2 2.2 (2.6) 99.8
Finance income 14.9 - 14.9 10.5 - - 10.5
Finance costs (1.9) - (1.9) (2.2) - - (2.2)
Other finance income - pensions 0.6 - 0.6 0.7 - - 0.7
Profit/(loss) before taxation 115.3 (3.2) 112.1 109.2 2.2 (2.6) 108.8
Taxation (26.0) 0.2 (25.8) (23.4) 0.3 0.1 (23.0)
Profit/(loss) for the year 89.3 (3.0) 86.3 85.8 2.5 (2.5) 85.8
Attributable to:
Equity holders of the Parent Company 87.9 (3.0) 84.9 83.8 2.5 (2.5) 83.8
Non-controlling interests 1.4 - 1.4 2.0 - - 2.0
Profit/(loss) for the year 89.3 (3.0) 86.3 85.8 2.5 (2.5) 85.8
Earnings per share
Basic 286.9p 277.1p 275.0p 275.2p
Diluted 284.9p 275.2p 273.5p 273.6p
Included in the consolidated income statement are net impairment losses on
financial assets amounting to £1.3m (2023: £3.9m)
Consolidated statement of comprehensive income
for the year ended 31 December
2024 2023
£m £m
Profit for the year 86.3 85.8
Other comprehensive loss:
Items that will not be reclassified to profit or loss:
Actuarial loss on employee benefit schemes - net of tax (0.9) (1.6)
Items that may be reclassified subsequently to profit or loss:
Foreign exchange differences on retranslation of foreign (12.4) (17.5)
operations
Foreign currency hedges recycled to profit or loss - net of tax 0.1 2.1
Foreign currency hedge revaluations - net of tax (4.9) 5.7
Other comprehensive loss (18.1) (11.3)
Total comprehensive income for the year 68.2 74.5
Attributable to:
Equity holders of the Parent Company 67.2 72.8
Non-controlling interests 1.0 1.7
Total comprehensive income for the year 68.2 74.5
Consolidated balance sheet
as at 31 December
2024 2023
£m £m
Non-current assets
Property, plant and equipment 28.5 28.5
Investment properties 1.0 1.0
Right-of-use assets 32.0 35.9
Intangible assets 172.6 182.9
Trade and other receivables 1.0 4.4
Investments 1.9 1.3
Employee benefits 12.4 13.8
Deferred tax assets 18.1 16.8
267.5 284.6
Current assets
Inventories 4.3 3.3
Trade and other receivables 130.5 147.5
Income tax receivable 4.5 1.2
Investments 62.2 40.1
Cash and cash equivalents 431.3 398.9
632.8 591.0
Current liabilities
Trade and other payables (326.4) (339.4)
Lease liabilities (10.6) (10.4)
Income tax payable (20.7) (20.9)
Provisions (1.0) (0.6)
(358.7) (371.3)
Net current assets 274.1 219.7
Non-current liabilities
Trade and other payables (6.8) (3.2)
Lease liabilities (27.5) (32.8)
Provisions (3.6) (1.9)
Employee benefits (0.1) (0.4)
Deferred tax liabilities (7.9) (9.4)
(45.9) (47.7)
Net assets 495.7 456.6
Capital and reserves
Share capital 7.7 7.7
Other reserves 89.0 104.9
Retained earnings 395.3 340.0
Equity attributable to shareholders of the Parent Company 492.0 452.6
Non-controlling interests 3.7 4.0
Total equity 495.7 456.6
Consolidated statement of changes in equity
for the year ended 31 December
Attributable to equity holders of the Parent Company
Non-controlling interests
Share Other reserves Retained earnings £m Total
capital £m £m Total equity
£m £m £m
Balance at 1 January 2024 7.7 104.9 340.0 452.6 4.0 456.6
Profit for the year - - 84.9 84.9 1.4 86.3
Other comprehensive loss - (16.8) (0.9) (17.7) (0.4) (18.1)
Total comprehensive (loss)/income for the year - (16.8) 84.0 67.2 1.0 68.2
Transactions with owners:
Share issues - 1.2 - 1.2 - 1.2
Employee share schemes - (0.3) (0.3) (0.6) - (0.6)
Tax on other employee benefits - - 3.1 3.1 - 3.1
Dividend paid - - (31.5) (31.5) (1.5) (33.0)
Other movements - - - - 0.2 0.2
Total transactions with owners - 0.9 (28.7) (27.8) (1.3) (29.1)
Balance at 31 December 2024 7.7 89.0 395.3 492.0 3.7 495.7
Attributable to equity holders of the Parent Company
Non-controlling interests
Share capital Other reserves Retained earnings £m
£m £m £m Total Total equity
£m £m
Balance at 1 January 2023 7.7 114.8 287.2 409.7 3.5 413.2
Profit for the year - - 83.8 83.8 2.0 85.8
Other comprehensive loss - (9.4) (1.6) (11.0) (0.3) (11.3)
Total comprehensive (loss)/income for the year - (9.4) 82.2 72.8 1.7 74.5
Transactions with owners:
Share issues - 1.9 - 1.9 - 1.9
Employee share schemes - (2.4) (1.1) (3.5) - (3.5)
Tax on other employee benefits - - (0.2) (0.2) - (0.2)
Tax on other items in equity - - 0.1 0.1 - 0.1
Dividend paid - - (28.3) (28.3) (1.1) (29.4)
Other movements - - 0.1 0.1 (0.1) -
Total transactions with owners - (0.5) (29.4) (29.9) (1.2) (31.1)
Balance at 31 December 2023 7.7 104.9 340.0 452.6 4.0 456.6
Consolidated cash flow statement
for the year ended 31 December
2024 2023
£m £m
Cash flows from operating activities
Profit before taxation 112.1 108.8
Adjustments for:
Foreign exchange differences (5.7) 6.8
Depreciation 15.0 14.7
Share-based payment expense 2.5 1.9
Gain on sale of property, plant and equipment (0.2) (3.6)
Gain on sale of investments (0.4) -
Amortisation of intangibles 5.2 4.8
Difference between pension contributions paid and amount recognised in the 0.4 0.6
income statement
Finance income (14.9) (10.5)
Finance costs 1.9 2.2
Other finance income - pensions (0.6) (0.7)
Increase in inventories (0.8) (0.9)
Decrease in trade and other receivables 14.9 2.0
Increase in bonus accrual 32.4 58.7
Decrease in trade and other payables (22.2) (7.2)
Increase in provisions 2.3 0.1
Cash generated from operations 141.9 177.7
Income tax paid (27.2) (22.4)
Net cash flow from operating activities 114.7 155.3
Cash flows from investing activities
Interest received 14.8 10.3
Purchase of property, plant and equipment (5.7) (8.0)
Purchase of intangible assets (1.6) (2.8)
Purchase of investments (0.9) (0.3)
Proceeds from sale of investments 0.7 0.3
Proceeds from sale of property, plant and equipment 0.4 3.9
Transfer to current investments (cash on deposit and government bonds) (22.1) (36.8)
Acquisition of subsidiaries, net of cash acquired (2.5) (5.3)
Dividends received from investments 0.1 0.1
Net cash flow from investing activities (16.8) (38.6)
Cash flows from financing activities
Interest paid and other charges (1.8) (2.0)
Dividend paid (31.5) (28.3)
Dividend paid to non-controlling interests (1.5) (1.1)
Repayment of borrowings - (0.5)
Principal elements of lease payments (10.9) (10.5)
Proceeds from shares issued 1.2 1.9
Contributions from non-controlling interests 0.2 -
ESOP shares acquired (26.4) (49.5)
Net cash flow from financing activities (70.7) (90.0)
Net increase in cash and cash equivalents 27.2 26.7
Cash and cash equivalents at 1 January 398.9 384.4
Net foreign exchange differences 5.2 (12.2)
Cash and cash equivalents at 31 December 431.3 398.9
Notes to the preliminary financial statements
1 Corporate information
The preliminary financial statements of Clarkson PLC for the year ended 31
December 2024 were authorised for issue in accordance with a resolution of the
Directors on 7 March 2025. Clarkson PLC is a public limited company, listed on
the London Stock Exchange, incorporated and registered in England and Wales
and domiciled in the UK.
The preliminary financial information ('financial information') set out in
this announcement does not constitute the consolidated statutory financial
statements for the years ended 31 December 2023 and 2024, but is derived from
those financial statements. Statutory financial statements for 2023 have been
delivered to the Registrar of Companies and those for 2024 will be delivered
following the Company's Annual General Meeting. The External Auditor has
reported on the financial statements for 2023 and 2024; their reports were
unqualified, did not draw attention to any matters by way of emphasis without
qualifying their report and did not contain statements under s498(2) or (3)
Companies Act 2006.
2 Statement of accounting policies
2.1 Basis of preparation
The financial information set out in this announcement is based on the
consolidated financial statements, which are prepared in accordance with
UK-adopted international accounting standards in conformity with the
requirements of the Companies Act 2006 as applicable to companies reporting
under those standards and the Disclosure Guidance and Transparency Rules
Sourcebook of the United Kingdom's Financial Conduct Authority.
The consolidated income statement is shown in columnar format to assist with
understanding the Group's results by presenting profit for the year before
exceptional items and acquisition-related costs; this is referred to as
'underlying profit'. Items which are non-recurring in nature and considered to
be material in size are shown as 'exceptional items'. The column
'acquisition-related costs' includes the amortisation of acquired intangible
assets, the costs of acquiring new businesses and the expensing of the cash
and share-based elements of consideration linked to ongoing employment
obligations on acquisitions, see note 5.
Going concern
The Group has considerable financial resources available to it, a strong
balance sheet and has consistently generated a profit and good cash inflows.
As a result of this, the Directors believe that the Group is well placed to
manage its business risks successfully.
Management has stress tested a range of scenarios, using the Board-approved
budget and monthly cash flows to 31 December 2027, modelling different
assumptions with respect to the Group's cash resources. Three different
scenarios were considered:
· Management modelled the impact of a reduction in profitability to £30m (a
level of profit the Group has exceeded in every year since 2013), whilst
taking no mitigating actions.
· Management assessed the impact of a reduction in world seaborne trade
similar to that experienced in the global financial crisis in 2008, the
pandemic in 2020 and the Ukraine conflict in 2022: seaborne trade recovered in
2009, 2021 and 2023. Since 1990, no two consecutive years have seen reductions
in world seaborne trade.
· Management undertook a reverse stress test over a period of three years to
determine what it might take for the Group to encounter financial
difficulties. This test was based on current levels of overheads, the net cash
and available funds* position at 31 December 2024, the collection of debts and
the invoicing and collection of the forward order book.
Under the first two scenarios, the Group is able to generate profits and cash,
and has positive net cash and available funds* available to it. In the third
scenario, current net cash and available funds*, together with the collection
of debts and the forward order book, would leave sufficient cash resources to
cover at least the next 12 months without any new business.
Accordingly, the Directors have a reasonable expectation that the Group has
sufficient resources to continue in operation for at least the next 12 months.
For this reason, they continue to adopt the going concern basis in preparing
the financial statements.
2.2 Accounting policies
The financial information is in accordance with the accounting policies set
out in the 2024 financial statements and has been prepared on a going concern
basis.
The Group has applied the following amendments for the first time for the
annual reporting period commencing 1 January 2024:
· Classification of Liabilities as Current or Non-Current and
Non-current liabilities with covenants - Amendments to IAS 1;
· Lease Liability in Sale and Leaseback - Amendments to IFRS 16; and
· Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7.
The amendments listed above did not have any impact on the amounts recognised
in prior periods and are not expected to significantly affect the current or
future periods.
Certain new accounting standards, amendments to accounting standards, and
interpretations have been published that are not mandatory for 31 December
2024 reporting periods and have not been early adopted by the Group. These
standards, amendments or interpretations are not expected to have a material
impact on the entity in the current or future reporting periods and on
foreseeable future transactions, however, the way information is presented in
the primary statements may change with the adoption of IFRS 18.
2.3 Accounting judgements and estimates
The preparation of the preliminary financial statements requires management to
make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities and the disclosure of contingent
liabilities at the reporting date. However, uncertainty about these
assumptions and estimates could result in outcomes that could require a
material adjustment to the carrying amount of the asset or liability affected
in the future.
2.4 Forward-looking statements
Certain statements in this announcement are forward-looking. Although the
Group believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that these expectations
will prove to have been correct. Because these statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements. The Group undertakes no
obligation to update any forward-looking statements whether as a result of new
information, future events or otherwise.
3 Segmental information
Business segments Revenue Results
2024 2023 2024 2023
£m £m £m £m
Broking 529.3 516.8 122.6 121.2
Financial 42.6 44.1 5.2 6.6
Support 65.0 56.6 7.7 6.4
Research 24.5 21.9 9.5 8.4
Segment revenue/profit 661.4 639.4 145.0 142.6
Head office costs (43.3) (42.4)
Operating profit before exceptional items and acquisition-related costs 101.7 100.2
Exceptional items - 2.2
Acquisition-related costs (3.2) (2.6)
Operating profit after exceptional items and acquisition-related costs 98.5 99.8
Finance income 14.9 10.5
Finance costs (1.9) (2.2)
Other finance income - pensions 0.6 0.7
Profit before taxation 112.1 108.8
Taxation (25.8) (23.0)
Profit for the year 86.3 85.8
4 Exceptional items
There were no exceptional items in 2024.
In December 2023, the Group completed the sale of an industrial unit, which
resulted in a gain of £3.5m, after transaction fees and costs. The Group
donated £1.3m of the proceeds to The Clarkson Foundation. The net gain of
£2.2m is shown as an exceptional item in 2023.
5 Acquisition-related costs
Included in acquisition-related costs is £0.5m (2023: £0.2m) relating to the
amortisation of intangibles acquired and £1.2m (2023: £0.3m) of charges
relating to previous acquisitions.
Also included is £0.3m (2023: £0.3m) relating to the amortisation of
intangibles acquired and £1.1m (2023: £1.6m) of charges relating to current
year acquisitions.
Included in administrative expenses is £0.1m (2023: £0.2m) of transaction
costs relating to acquisitions in the current year.
6 Taxation
The major components of the income tax charge in the consolidated income
statement are:
2024 2023
£m £m
Profit before taxation at UK average standard rate of corporation tax of 25.0% 28.0 25.6
(2023: 23.5%)
Expenses not deductible for tax purposes 2.7 2.4
Non-taxable income - (1.2)
Lower tax rates on overseas earnings (4.9) (3.3)
Other - (0.5)
Total tax charge in the income statement 25.8 23.0
7 Earnings per share
Basic earnings per share amounts are calculated by dividing profit for the
year attributable to ordinary equity holders of the Parent Company by the
weighted average number of ordinary shares in issue during the year.
Diluted earnings per share amounts are calculated by dividing profit for the
year attributable to ordinary equity holders of the Parent Company by the
weighted average number of ordinary shares in issue during the year, plus the
weighted average number of ordinary shares that would be issued on the
conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the basic and diluted
earnings per share computations:
2024 2023
£m £m
Underlying profit for the year attributable to ordinary equity holders of the 87.9 83.8
Parent Company*
Reported profit for the year attributable to ordinary equity holders of the 84.9 83.8
Parent Company*
2024 2023
Million
Million
Weighted average number of ordinary shares - basic 30.7 30.5
Weighted average number of ordinary shares - diluted 30.9 30.7
8 Dividends
The Board is recommending a final dividend of 77p (2023: 72p), giving a total
dividend of 109p (2023: 102p).
9 Intangible assets
On 5 February 2024, Gibb Group Limited acquired 100% of the share capital of
Trauma & Resuscitation Services Limited. The initial cash consideration
was £2.0m, with a further £0.3m paid during the year. An additional maximum
deferred consideration (including earn-out) of £3.3m is payable.
On 31 May 2024, Clarkson Port Services Limited entered into an Asset Purchase
Agreement with Independent Shipping Agencies Limited. The initial cash
consideration was £0.1m, with additional maximum deferred consideration
(including earn-out) of £0.2m.
On 20 September 2024, Gibb Group Limited entered into an Asset Purchase
Agreement with Wind Farm Equipment Limited. The initial consideration was
£0.7m.
The above acquisitions resulted in goodwill of £0.3m.
10 Investments
Included within current investments are deposits totalling £62.0m (2023:
£37.8m) with maturity periods greater than three months.
11 Cash and cash equivalents
2024 2023
£m £m
Cash at bank and in hand 234.5 281.2
Short-term deposits 196.8 117.7
431.3 398.9
12 Employee benefits
The Group operates three final salary defined benefit pension schemes, being
the Clarkson PLC scheme, the Plowrights scheme and the Stewarts scheme.
The following tables summarise amounts recognised in the Consolidated balance
sheet and the components of the net benefit charge recognised in the
Consolidated income statement.
Recognised in the balance sheet
2024 2023
£m £m
Fair value of schemes' assets 119.4 131.3
Present value of funded defined benefit obligations (105.3) (115.5)
14.1 15.8
Effect of asset ceiling in relation to the Plowrights scheme (1.8) (2.4)
Net benefit asset recognised in the balance sheet 12.3 13.4
The above is recognised on the balance sheet as an asset of £12.4m (2023:
£13.8m) and a liability of £0.1m (2023: £0.4m).
A deferred tax asset on the benefit liability amounting to £nil (2023: £nil)
and a deferred tax liability on the benefit asset of £3.1m (2023: £3.5m) is
also recognised on the balance sheet.
Recognised in the income statement
2024 2023
£m £m
Recognised in other finance income - pensions:
Expected return on schemes' assets 6.1 6.5
Interest cost on benefit obligation and asset ceiling (5.5) (5.8)
Recognised in administrative expenses:
Schemes' administrative expenses (0.8) (1.0)
Net benefit charge recognised in the income statement (0.2) (0.3)
13 Share capital
2024 2023
Million £m Million £m
Ordinary shares of 25p each, issued and fully paid 30.8 7.7 30.7 7.7
During the year, the Company issued 52,737 shares (2023: 103,388) in relation
to the ShareSave scheme.
14 Contingencies
From time to time, the Group is engaged in litigation in the ordinary course
of business. The Group carries professional indemnity insurance. There is
currently no litigation that is expected to have a material adverse financial
impact on the Group's consolidated results or net assets.
15 Related party disclosures
The Group's significant related parties will be disclosed in the 2024 Annual
Report. There were no material differences in related parties or related party
transactions in the year, from the year ended 31 December 2023.
Other information
Alternative Performance Measures
The Directors believe that alternative performance measures can provide users
of the financial statements with a better understanding of the Group's
underlying financial performance, if used properly. Directors' judgement is
required as to what items qualify for this classification.
Adjusting items
The Group excludes adjusting items from its underlying earnings metrics with
the aim of removing the impact of one-offs which may distort period-on-period
comparisons.
The term 'underlying' excludes the impact of exceptional items and
acquisition-related costs, which are shown separately on the face of the
income statement. Management separates these items due to their nature and
size and believes this provides further useful information, in addition to
statutory measures, to assist readers of the Annual Report to understand the
results for the year.
Underlying profit before taxation
Reconciliation of reported profit before taxation to underlying profit before
taxation for the year.
2024 2023
£m £m
Reported profit before taxation 112.1 108.8
Less exceptional items - (2.2)
Add back acquisition-related costs 3.2 2.6
Underlying profit before taxation 115.3 109.2
Underlying effective tax rate
Reconciliation of reported effective tax rate to underlying effective tax
rate.
2024 2023
% %
Reported effective tax rate 23.0 21.1
Adjustment relating to exceptional items - 0.7
Adjustment relating to acquisition-related costs (0.5) (0.4)
Underlying effective tax rate 22.5 21.4
Underlying profit for the year attributable to equity holders of the Parent
Company
Reconciliation of reported profit attributable to equity holders of the Parent
Company to underlying profit attributable to equity holders of the Parent
Company.
2024 2023
£m £m
Reported profit attributable to equity holders of the Parent Company 84.9 83.8
Less exceptional items - (2.5)
Add back acquisition-related costs 3.0 2.5
Underlying profit attributable to equity holders of the Parent Company 87.9 83.8
Underlying basic earnings per share
Reconciliation of reported basic earnings per share to underlying basic
earnings per share.
2024 2023
Pence Pence
Reported basic earnings per share 277.1 275.2
Less exceptional items - (8.4)
Add back acquisition-related costs 9.8 8.2
Underlying basic earnings per share 286.9 275.0
Underlying administrative expenses
Reconciliation of reported administrative expenses to underlying
administrative expenses for the year.
2024 2023
£m £m
Reported administrative expenses 529.2 509.2
Add back exceptional items - 2.2
Less acquisition-related costs (3.2) (2.6)
Underlying administrative expenses 526.0 508.8
Operational metrics
The Group monitors its cash and liquidity position by adjusting gross balances
to reflect the payment of obligations to staff and restricted monies held by
regulated entities.
Net cash and available funds
The Board uses net cash and available funds as a better representation of the
net cash available to the business, since bonuses are typically paid after the
year-end, hence an element of the year-end cash balance is earmarked for this
purpose. It should be noted that accrued bonuses include amounts relating to
the current year and amounts held back from previous years which will be
payable in the future.
Reconciliation of reported cash and cash equivalents to net cash and available
funds reported.
2024 2023
£m £m
Cash and cash equivalents as reported 431.3 398.9
Add cash on deposit and government bonds included within current investments 62.0 39.9
Less amounts reserved for bonuses included within current trade and other (249.6) (237.7)
payables
Net cash and available funds 243.7 201.1
Free cash resources
Free cash resources is a further measure used by the Board in taking decisions
over capital allocation. It deducts monies held by regulated entities from the
net cash and available funds figure.
Reconciliation of reported cash and cash equivalents to reported free cash
resources.
2024 2023
£m £m
Cash and cash equivalents as reported 431.3 398.9
Add cash on deposit and government bonds included within current investments 62.0 39.9
Less amounts reserved for bonuses included within current trade and other (249.6) (237.7)
payables
Less net cash and available funds held in regulated entities (27.4) (25.7)
Free cash resources 216.3 175.4
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR PKOBDCBKDFNKRecent news on Clarkson
See all newsREG - Clarkson PLC - Total Voting Rights
AnnouncementREG - Clarkson PLC - Director/PDMR Shareholding
AnnouncementREG - Clarkson PLC - Director/PDMR Shareholding
AnnouncementREG - Clarkson PLC - Result of AGM
AnnouncementREG - Clarkson PLC - Director/PDMR Shareholding
Announcement