REG - Clarkson PLC - Preliminary results
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RNS Number : 8337V Clarkson PLC 09 March 2026
9 March 2026
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 2025.
Summary
· Underlying profit before taxation* of £90.6m (2024: £115.3m)
· Underlying basic earnings per share* was 225.8p (2024: 286.9p)
· Full year dividend of 112p, an increase of 3% on 2024, giving
rise to a 23rd consecutive year of dividend growth
· Forward order book as at 31 December 2025, for invoicing in 2026
was US$244m (31 December 2024: US$231m)
· Strong balance sheet with free cash resources* of £232.0m (2024:
£216.3m)
· Positive momentum built at the end of 2025 has continued into
2026, with new spot business negotiated being higher than the same period last
year
Year ended Year ended
31 December 2025 31 December 2024
Revenue £631.4m £661.4m
Underlying profit before taxation* £90.6m £115.3m
Reported profit before taxation £86.7m £112.1m
Underlying basic earnings per share* 225.8p 286.9p
Reported basic earnings per share 214.0p 277.1p
Dividend per share 112p 109p
* 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:
"2025 was a year that tested the resilience and adaptability of the global
shipping industry, and I am immensely proud of, and grateful to, my colleagues
across the world for their unwavering commitment and exceptional contribution.
Our people, culture and relentless focus on client service remain our greatest
strengths.
"Whilst it is still early In 2026, we have started with strong momentum,
supported by positive market sentiment and trading, and our diversified
strategy, healthy forward order book and commitment to innovation, position us
well for the year ahead, recognising that ongoing geo-political uncertainty
continues to drive complexity in our markets.
"We remain committed to long-term investment in our strategy, high-calibre
talent, cutting-edge technology and advanced market intelligence, ensuring we
remain well placed to support clients and provide them with leading solutions
across increasingly complex shipping markets."
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 2,250 people in over 60 different offices across its
four divisions.
The Company has delivered 23 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 (https://www.clarksons.com/)
Chair's review
As I reflect on 2025, it is clear that this has been a year defined by
extraordinary geo-political and economic complexity. The global business
environment was shaped by heightened uncertainty, with the first half of the
year marked by significant political shifts, escalating tariff regimes, and
the increase in use of sanctions by government authorities. These dynamics
created a period of significantly reduced activity across many industries,
with companies facing unprecedented challenges in decision-making and market
engagement.
Despite these headwinds, the second half of the year started to see renewed
momentum. Market sentiment improved, and businesses began to move beyond the
earlier standstill, as larger players actively re-engaged in transactions and
Clarksons supported its clients through turbulent times. Our ability to adapt,
invest and lead in this environment is a testament to the strength and
expertise of our global teams and the clarity of our strategic vision.
Results
In the year to 31 December 2025, Clarksons delivered an underlying profit
before taxation* of £90.6m, reflecting the robustness of our business model
in responding to the market uncertainty and complexity.
This performance underscores the success of our strategy to invest in growth,
broadening our geographic presence, expanding the products we service,
enhancing our technology and tools for trade and continuing to build the scale
and market leadership necessary for sustained success.
Our strong cash reserves have also enabled us to maintain a focus on
investment and strategic M&A activity throughout the year.
Dividend
In line with our progressive dividend policy, and reflecting our strong cash
position, the Board is recommending an increased final dividend of 79p per
share, bringing the total dividend for 2025 to 112p per share (2024: 109p), an
increase of 3% and the 23rd consecutive year of dividend increase.
People
Our people remain our most important asset and the foundation of our success.
In 2025, we continued to invest globally in talent, making key hires and
promotions across the business, strategically locating staff nearer to our
clients and expanding our product offering. Our strategy of diversifying
talent by geography, division and skill set has strengthened our capabilities
and deepened our expertise.
We are proud to attract and retain the best talent in the industry, and I
extend my sincere thanks to every member of the Clarksons team for their
dedication and hard work during what has been a challenging year.
Board
In September 2025, our CFO & COO, Jeff Woyda, announced his decision to
retire in 2026 after nearly 20 years of extraordinary service. Jeff has been
instrumental in transforming Clarksons into the global leader it is today, and
his legacy of strategic delivery, operational excellence and unwavering
commitment to our values will endure for years to come. On behalf of the Board
and the entire Group, I extend our deepest gratitude for his contribution.
We are undertaking a comprehensive search to appoint a new CFO and COO. We are
confident that the new appointee will build upon the strong foundations Jeff
has established and, working alongside Andi and the Board, drive our continued
growth and the successful execution of our strategy.
Outlook
Looking ahead, we recognise that macro-economic and geo-political
unpredictability will continue to shape the global landscape. However,
Clarksons' diversified footprint and strategic investments position us
exceptionally well to respond to evolving market conditions. Our strong
balance sheet, free cash flow and forward order book provide a solid
foundation for the year ahead and further into the future.
I would like to thank all our shareholders, clients, employees and partners
for their continued support and confidence in Clarksons. Together, we have
navigated a challenging year successfully, and I am optimistic about the
opportunities that lie ahead.
Laurence Hollingworth
Chair
6 March 2026
Chief Executive Officer's review
2025 was a year that tested the resilience and adaptability of the global
shipping industry like few before it. I am immensely proud of, and deeply
grateful to, my colleagues across the world for their unwavering commitment
and exceptional contributions during a period of extraordinary complexity and,
accordingly, opportunity.
Throughout 2025, shipping markets were buffeted by a series of material
geo-political shocks and economic headwinds. The imposition of new tariffs,
ongoing sanctions and regional conflicts disrupted established trade routes
and increased complexity across the sector.
Despite these challenges, seaborne trade remained resilient growing by 1.1% to
12.9bn tonnes. The uncertainty affecting market sentiment in the first half of
the year eased to some extent as the year progressed, supported by increased
trade volumes, a demand for commodities and stronger energy markets. As in
previous years, the industry's ability to adapt, using longer trade routes and
innovative solutions, ensured the continued flow of goods worldwide. The
resilience of seaborne trade activity, even in the face of uncertainty,
underscores the critical role shipping plays in the global economy.
Lack of clarity of outlook in the first half of the year, arising from
tariffs, changes in global priorities and the announcement of USTR,
contributed to a 27% reduction in newbuilding orders by CGT in 2025. It was
however an active year for newbuilding deliveries, up 6% to 43.8m CGT. The
global fleet grew by 3.5%, weighted towards container, LNG and PCC vessels.
Although slightly down compared to 2024, prices for newbuild vessels remain at
elevated levels driven by high labour costs and strong forward cover.
The evolving sanctions environment created complexity for shipping markets
during 2025. This has further continued into 2026, with nearly 1,000 vessels
in the global tanker fleet currently sanctioned. These challenges provided
some support for shipping markets in 2025, increasing both tonne-miles and
operational complexity. Clarksons' regional expertise and global insight
enabled us to support our clients in navigating these complexities with
confidence and clarity.
Although regulatory momentum around sustainability and green initiatives
slowed in some regions as governments' priorities and perspectives shifted,
the green transition remained in focus for our clients as the industry
continues to invest in green technologies. Regulatory pressure to effect
change is expected to return, and Clarksons is proactively investing in
long-term solutions.
Broking
2025 saw our Broking division make significant strides in both market reach
and product innovation, with a focus on growing our presence across both
physical and derivative platforms to deliver integrated solutions to clients.
Despite a challenging first half, marked by extreme caution in the market due
to global political and economic uncertainty, the second half saw renewed
momentum across all segments as larger market participants re-entered the
market and transactional activity increased. Dry bulk and energy markets
rallied in the second half of the year, driven by increased demand, new
cargoes on longer-haul routes out of Latin America and Africa and a reversal
of OPEC+ supply cuts. Although asset market activity in newbuilding and sale
and purchase declined from the elevated levels of 2024, the team remained
fully engaged throughout the year, leading the market in successfully
executing mandates across all major sectors.
Throughout the year, we made significant investment in our broking
capabilities, strengthening our presence across multiple regions through new
hires and personnel relocation into the Middle East, Europe, Asia Pacific and
the Americas. The acquisition of Euro-America Shipping & Trade, Inc.
(since renamed Clarksons EAST LLC) at the start of the year provided access to
a new market segment in fulfilling freight contracts with US government
agencies across multiple shipping markets. South America is also emerging as
an increasingly important region for business; a trend reflected in the
continued expansion of our Brazil office.
We also strengthened our freight and commodity derivatives business through
targeted investments and strategic appointments in London, Dubai and
Singapore.
Our continued investment in all areas of broking is underpinned by its robust
performance across market-cycles and by the strength of our forward order book
('FOB'), which now extends for almost 20 years and provides substantial
visibility over future earnings. Operating profit from the Broking division
during the year was £93.9m (2024: £122.6m).
Financial
The Financial division delivered a record performance in 2025, supported by a
resilient and increasingly active capital markets environment. Debt capital
markets were particularly strong and buoyed by several sizeable transactions.
The team also remained active across M&A and equity mandates, advising
clients across all major sectors and demonstrating both their expertise and
long-standing relationships.
Our Project Finance shipping business experienced a good inflow of projects
and mandates towards the end of the year supported by improving investor
sentiment. In addition, the Group completed the buy-out of the minority
interest in the shipping and offshore business during the first half of the
year.
The Real Estate business continued to demonstrate resilient levels of activity
despite an evolving and cautious market environment. Looking ahead,
expectations for this area are positive as the interest rate environment
improves, which should stimulate deal activity and investment across the
sector.
The Financial division reported operating profit of £12.9m in 2025 compared
with £5.2m in 2024.
Support
Our Support division encountered a more challenging year, impacted by delays
in offshore wind and energy projects, particularly along the UK coastline.
Market conditions are expected to improve as projects progress, although this
remains contingent on UK government energy policy.
Activity in Northern Europe was more encouraging, with the Group entering into
a strategic 10-year agreement with a major client to support their port
operations, logistics and maintenance activities.
Throughout 2025, ongoing disruption to Suez Canal transits continued to pose
challenges for our Agency business in Egypt. Despite this, the team worked
diligently to support clients and is well positioned to benefit once activity
returns to more normal levels.
The division continues to invest in broadening its capabilities across the
offshore oil and gas, marine and renewable energy sectors, and is well
positioned to meet clients' needs globally as market conditions and demand
evolve.
The Support division delivered operating profit of £4.8m in 2025 (2024:
£7.7m).
Research
The Research division continued to perform strongly, delivering growth in both
revenue and profitability and underscoring the critical importance of
data-driven intelligence in today's complex and volatile market. Client demand
for high-quality data and actionable insights continues to rise which,
combined with the significantly recurring nature of revenue, is a major driver
in our ambition to continue to invest and broaden our product offering.
Our Research teams continue to expand coverage on critical topics which this
year included insights on geo-political disruption, US government policy and
tariffs and fleet evolution. We continue to invest strategically in the
division, integrating innovative technologies and advanced techniques, and are
focused on growing the team, particularly in Asian growth markets, in addition
to building synergies by partnering with our other divisions.
The division increased its operating profit to £10.6m (2024: £9.5m).
Investing in technology
Sea, our physical chartering market solution for pre and at trade workflow,
services clients and their brokers in the negotiation, execution, recording
and contracting of physical freight, and has added over 60 new customers in
2025.
In early 2026, the Group acquired Zuma Labs Limited ('Zuma'), bringing with it
Venetian, the market-leading platform for freight derivatives, servicing
brokers and their clients in the FFA markets. This investment alongside Sea,
reinforces the Group's commitment to provide the market with leading solutions
across both physical and derivative freight markets.
Zuma also brings Prism, its new AI capability, to meet growing demand for
intelligence alongside data as the complexity of the global trading
environment increases.
Outlook
Despite the lack of predictability in the geo-political backdrop, Clarksons'
diversified strategy, strong forward order book and commitment to innovation
position us well to continue to seize opportunities as they arise. Our people,
culture and relentless focus on client service remain our greatest strengths.
In the year to date, momentum from Q4 2025 has continued, market sentiment has
been positive and trading has been good, evidenced by new spot business
negotiated being higher than the same period last year.
As at the end of 2025, our FOB for invoicing in 2026 was US$244m, US$13m more
than at the beginning of 2025. In addition, the continued growth of our total
FOB, which goes forward many years, reflects newbuilding contracts, long-term
time charters and multi-year contract income, providing a good platform for
future earnings visibility.
The strength of our balance sheet, excellent cash generation and healthy FOB
gives us confidence to be at the forefront of opportunities for growth and to
actively consider opportunities for M&A where accretive to the business.
The market-leading position we hold today reflects sustained commitment and
long-term investment in our strategy. The Group remains at the forefront of
the industry and will continue to invest in high-calibre talent globally,
leading technology and advanced market intelligence, ensuring we are well
placed to advise and support clients across increasingly complex shipping
markets.
Finally, I would like to take this opportunity to thank Jeff Woyda, who
retires in September after nearly 20 years of outstanding service. Jeff has
been a key partner for me and a driving force in the transformation of
Clarksons into the global leader it is today. His wisdom, integrity and
dedication have left an indelible mark on our business and culture, and he has
been instrumental in driving forward The Clarkson Foundation and the
incredible contribution it has made in many areas. We wish Jeff the very best
for the future as we move forward in a strong position, in no small part due
to his contribution.
Andi Case
Chief Executive Officer
6 March 2026
Financial review
Revenue: £631.4m (2024: £661.4m)
Underlying profit before taxation*: £90.6m (2024: £115.3m)
Reported profit before taxation: £86.7m (2024: £112.1m)
Dividend per share: 112p (2024: 109p)
As I present the Financial review to shareholders for the final time, I would
like to express my gratitude to all the outstanding colleagues I have had the
pleasure to work alongside over the past two decades. I am equally grateful to
the Board and to our shareholders for their trust and support throughout my
tenure. It has been a privilege to serve as CFO since 2006, and to contribute
to the Group's evolution into the market-leading business it is today.
I am pleased to report a robust performance for the Group in 2025, which
delivered revenue of £631.4m (2024: £661.4m) and an underlying profit before
taxation(*) of £90.6m (2024: £115.3m). The well-documented geo‑political
headwinds facing shipping markets, particularly in the first half of the year,
resulted in a lower underlying operating profit of £78.0m (2024: £101.7m).
Finance income of £14.0m (2024: £14.9m) was also slightly down, as central
banks' review of monetary policy saw interest rates cut during the year. The
Group delivered underlying basic earnings per share* of 225.8p (2024: 286.9p).
Reported profit before taxation and basic earnings per share were £86.7m
(2024: £112.1m) and 214.0p (2024: 277.1p) respectively. In line with the
Group's commitment to a progressive dividend policy, which is now in its 23rd
consecutive year, a full year dividend of 112p is recommended.
Free cash resources* increased to £232.0m (2024: £216.3m) as the
Group continues to deliver strong cash generation across the cycle,
which underpins our continued investment in exceptional talent,
market-leading intelligence and enhanced technology. Aligned with
its strategic objectives, including the establishment of new teams, expansion
into additional geographies, broadening of our service offering and
strengthening of our market position, the Group also actively pursues M&A
opportunities.
2025 performance overview
The Broking division performed positively during the year, reporting revenue
of £476.0m (2024: £529.3m) and an operating profit of £93.9m (2024:
£122.6m). The division's performance was shaped by the complex geo-political
landscape faced by shipping markets, including a shifting tariff and sanctions
environment, uncertainty caused by government policy changes and ongoing
regional conflicts. A weaker US dollar also provided a headwind to the
division's operating result.
Despite these challenges, the supply and demand dynamics which have shaped the
industry over recent years remained in fine balance. Seaborne trade continued
to grow, driven by increased economic consumption and a demand for
commodities. Freight rates in most sectors remained at or above their 10-year
average, with dry bulk markets experiencing a strong second half, due to
growth in long-haul Atlantic exports and increased import demand from China.
Energy markets also finished the year positively, with seasonal demand
supported by additional cargoes following a reversal of OPEC+ supply cuts and
increasingly complex sanctions requirements.
Despite an easing of asset market volumes compared to the historic high in
2024, the division's Sale & Purchase teams performed well. Prices for both
secondhand and newbuilding remained at elevated levels and clients continued
to value the teams' insight across all asset classes. The green transition
also continued to influence decision-making, with sustained interest in green
technologies and uncertainty surrounding new emissions regulations reinforcing
demand for specialist expertise.
The Financial division had a record year, reporting revenue of £60.1m (2024:
£42.6m) and an operating profit of £12.9m (2024: £5.2m), as a strong Nordic
high-yield bond market provided the backdrop for a significant number
of capital markets transactions. Debt capital markets were particularly
active, with the team advising on several corporate bond transactions in the
metals and minerals, offshore and energy sectors. Despite periods of
geo-political uncertainty affecting market confidence, revenues from
commissions on secondary trading activity also remained robust throughout the
year.
The Project Finance business continued to work with clients on mandates
throughout 2025, executing several deals towards the end of the year. In the
first half of the year, the Group completed the buy-out of the minority
interest in the shipping and offshore business and continues to invest in the
team's future success. The Real Estate business, where a minority interest is
retained, performed positively, despite challenges from uncertainty in the
Norwegian real estate market due to the high-interest rate environment and
subdued activity in secondary markets outside of prime segments.
The Support division delivered revenues of £68.1m (2024: £65.0m) and an
operating profit of £4.8m (2024: £7.7m), as the UK business experienced a
more challenging trading environment, in part due to government policy towards
new oil and gas field development and delays to offshore energy projects. The
division's Northern European business experienced comparatively favourable
market conditions, including signing a 10-year agreement with a major client
to support their port operations, logistics and maintenance activities. The
Egyptian Agency business continues to perform robustly given the challenges
arising from reduced Suez Canal transits and remains well positioned to
support clients when activity returns.
The division's tooling and supplies business, Gibb Group, faced similar
challenges from the reduction in offshore oil, gas and renewables activity,
although demand for medical and rescue expertise continued to increase with
both revenue and profits from this business segment increasing year on year.
The Research division delivered another excellent performance in 2025,
increasing revenue and operating profit to £27.2m (2024: £24.5m) and £10.6m
(2024: £9.5m) respectively. Recurring revenue continues to represent over 90%
of the division's sales and high client retention has allowed the business to
continue to scale and invest in its product set. New functionality and
content this year included economic impact assessments of US policy on
tariffs, the continued disruption in the Red Sea following regional conflict
and the impacts of an increasingly complex sanctions environment. Clients
continue to value the provision of high-quality market‑leading insights as
they navigate geo-political changes and complex shipping markets.
Administrative expenses
The Group incurred underlying administrative expenses(*) of £514.3m (2024:
£526.0m), driven by a reduction in the bonus charge for the year, aligned to
operating performance. Throughout the year, the Group continued to invest in
people, teams and technology, expanding our presence in new geographies and
markets, delivering improved technology and tools for trade and maintaining
our commitment to develop and train new talent. The Group remains focused on
investing across the business to ensure we have the best people, technology
and market insights to support our clients globally.
Finance income and costs
The Group reported finance income of £14.0m (2024: £14.9m); whilst the
business continues to generate strong levels of cash and actively manage its
treasury activities, interest rate cuts by central banks provided a headwind
to investment returns. Finance costs were £2.4m (2024: £1.9m) and are mainly
comprised of interest expenses on lease liabilities, which have increased
in line with the Group's continued investment in its global footprint
including new and extended office leases in key shipping locations.
Acquisitions
In March 2025, we were pleased to announce the acquisition of Euro‑America
Shipping & Trade, Inc. (since renamed Clarksons EAST LLC), a Washington
DC-based ship brokerage firm specialising in freight contracts with US
government agencies across multiple shipping markets. This acquisition adds
new capability to the Group by further expanding our presence within the
US and broadening our capabilities with this new market segment.
In January 2026, the Group completed the acquisition of Zuma Labs Limited
('Zuma'), a leading technology provider serving stakeholders in the Forward
Freight Agreement and commodities market. The acquisition of Zuma reinforces
the Group's commitment to technology-enhanced engagement with clients,
responding to the evolving needs of maritime markets in an increasingly
complex and competitive trading environment.
Acquisition-related costs of £3.9m (2024: £3.2m), 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
2026 to be £2.3m assuming no further acquisitions are made.
Taxation
The Group reported an underlying effective tax rate* of 22.4% (2024: 22.5%).
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 23.1% (2024: 23.0%).
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.
During the year, the US dollar moved sharply against most major currency pairs
following frequent geo-political-driven shocks. The sterling to US dollar
exchange rate started the year close to US$1.26 and ended at US$1.35, with an
average rate of US$1.32 (2024: US$1.28) providing an additional headwind to
this year's financial performance.
Dividend
The Board is recommending a final dividend in respect of 2025 of 79p (2024:
77p) which, subject to shareholder approval, will be paid on 22 May 2026 to
shareholders on the register at the close of business on 8 May 2026.
Together with the interim dividend in respect of 2025 of 33p (2024: 32p),
this would give a total dividend of 112p for 2025, an increase of 3% on 2024
(2024: 109p) and representing the 23rd consecutive year the Group has
increased returns to shareholders. In reaching its decision, the Board took
into consideration the Group's 2025 performance, balance sheet strength,
ability to generate cash and forward order book.
Free cash resources
The Group ended the year with cash balances of £401.1m (2024: £431.3m) and a
further £70.1m (2024: £62.0m) held in short-term deposit accounts and
government bonds, classified as current investments on the balance sheet.
Although the aggregate cash and investments position is lower than last year,
it remains extremely strong. In addition, the lower profit in 2025
has reduced the amounts reserved for bonus, and resulted in an overall
increase to the net cash and available funds(1) position.
Net cash and available funds*, being cash balances after the deduction of
the total cost of accrued bonuses, at 31 December 2025 were £260.1m (2024:
£243.7m). 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 2025 were £232.0m (2024: £216.3m).
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 2025 were £527.8m (2024: £495.7m). 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 £281.1m (2024: £257.7m).
The Group's pension schemes had a combined surplus before deferred tax
of £14.4m (2024: £12.3m).
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 2025, this estimate was US$244m (31 December 2024: US$231m).
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
cash and available funds, and free cash resources.
Jeff Woyda
Chief Financial Officer & Chief Operating Officer
6 March 2026
Business review
Broking
Revenue: £476.0m (2024: £529.3m)
Segmental operating profit: £93.9m (2024: £122.6m)
Forward order book for 2026: US$244m^ (At 31 December 2024 for 2025: US$231m^)
^ 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 5.9 billion
tonnes of cargo last year. 2025 was a slightly softer year for vessel
earnings, with Clarksons' weighted bulkcarrier earnings averaging
US$13,898/day, down 8% year on year, but still positive by historical
standards, and 5% above the 10-year average. Earnings were softer earlier in
the year but improved notably through the year, with Q4 being the strongest
quarter since 2022. The Capesize sector continued to 'outperform', with
earnings circa 40% above the 10-year average, while the sub-Cape segments
generally saw earnings in line with 10-year trends. Iron ore volumes started
2025 weakly amid softer demand from China and disruption to shipments from key
exporters, although volumes rebounded firmly from Q2 onwards and were joined
by an uplift in strong bauxite exports from West Africa. Chinese coal imports
slumped through the first half of the year and closed the year down overall
despite some improvements in the second half. Trade tariffs and US port fees
created operational disruption which provided some support for rates at points
during the year, while emerging market demand for a range of imports was firm
but also created some inefficiencies. Looking ahead to 2026, initial
projections suggest potential for fleet growth to outpace demand growth of 1
to 2% which looks likely to be led by the Capesize sector where the ramp-up
of iron ore shipments from Simandou, Republic of Guinea, should lend support.
Developments in China and the Red Sea are likely to remain in focus.
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 were
again strong in 2025 as resilient trade volumes and ongoing Red Sea
re-routing supported demand, despite geo-political disruption. Spot freight
markets saw particular volatility but eased back overall as firm fleet growth
continued, however remaining positive by historical standards (up 60% on
2023). Charter markets hit new post-COVID highs as the Clarksons' TC Rate
Index ended the year up 12% year on year amid firm liner demand to bolster
their networks and limited charter vessel availability, while asset markets
strengthened. Geo-politics, trade tensions and macro-economic uncertainty were
prevalent in 2025 but container trade grew robustly by more than 4% as impacts
on China to US trade in particular were offset by strong Asian exports
elsewhere and robust regional volumes. Red Sea re-routing continued to
underpin demand (circa 11% average haul 'uplift'), while fleet capacity grew
firmly (up 7% year on year). The sector remains in a period of firm newbuild
ordering, with 2025 seeing a record 4.8m TEU ordered, taking the orderbook to
34% of the fleet. An unwinding of Red Sea diversions remains the principal
near-term risk; timing is uncertain, but resuming Red Sea transits would drive
a softening in market fundamentals. Further ahead, a strong wave of vessel
deliveries is emerging for 2027/2028; vessel recycling, vessel speeds and
capacity management will likely be in focus.
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. The tanker market remained strong overall again in
2025, although vessel earnings diverged across different sub-segments.
Throughout the year, the market continued to be influenced by geo-political
developments which contributed to several spikes in the market.
Fleet-weighted average VLCC earnings rose 49% year on year to US$58,566/day,
the highest level in 10 years. The VLCC sector saw particular strength in Q4
on the back of increased oil production, refinery maintenance in producing
countries leading to higher exports and geo-political disruption, with Q4 2025
one of the strongest quarters on record for the segment. Suezmax earnings also
strengthened in Q4, with fleet-weighted Suezmax earnings averaging
US$54,313/day across 2025, up 15% year on year. Softer periods of earnings in
Q1 and Q3 saw average Aframax earnings soften 3% year on year in 2025, albeit
to a still-elevated US$43,806/day, 40% above long-term averages.
After three years of extreme volatility in the products tanker sector across
2022 to 2024, earnings showed a greater degree of stability in 2025, remaining
at high levels on average, albeit at lower levels than in 2024 when earnings
were initially affected by re-routing of vessels away from the Red Sea.
Average earnings for LR2s and LR1s on the benchmark Middle East to Far East
route both decreased by 26% year on year, while average MR earnings declined
by 24%.
The tanker fleet grew by a modest 2% in 2025, following very limited growth
in 2024. Newbuild deliveries are set to increase in 2026, however fleet growth
is likely to remain below long-run average levels, even if removals of older
tonnage remain at relatively low levels.
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.
2025 was a turbulent year for the specialised products tanker market as
depressed trade volumes saw freight rates soften overall across 2025, with
freight rates on the Middle East to Asia route down 20% year on year, though
rates remained above long-term averages. Markets continued to receive
underlying support from Cape of Good Hope transits and muted chemical tanker
fleet growth, while firmer conditions in the CPP segment also supported rates
in the second half of the year.
In what remains a challenging market to navigate, the Specialised Products
team provided proactive solutions and initiatives to its client base
supporting their decision-making during periods of market uncertainty. This
approach, combined with unique strategic analysis and ongoing investment in
technology-driven broking tools, makes it well positioned to confront
geo-political hurdles in 2026 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. Leveraging our
dedicated commercial analysis capacity, the LPG team strongly across 2025 and
maintained a leading market position. The VLGC market experienced volatility
across 2025, though the sector showed resilience, with earnings on the
Middle East to Japan route averaging US$49,669/day, up 18% year on year.
While US and China trade tensions caused significant levels of market
uncertainty in the first half of the year, the escalation of tariffs boosted
tonne-mile demand, with freight rates strengthening across Q2/Q3 2025.
While cuts to Saudi Arabian LPG pricing narrowed arbitrages early in Q4 and
saw freight rates edge back, VLGC markets saw renewed firming towards the end
of 2025 amidst strong winter import demand in Asia.
The petrochemical gas carrier markets remain under pressure amid numerous
cracker plant closures announced in Europe and Asia on the back of increased
Chinese production. Meanwhile, opportunities to transport ethane are also
diminishing for Handysize vessels, with deliveries of specialised very large
ethane carriers ('VLECs') now starting to ramp up (a record 11 newbuild VLECs
joined the fleet in 2025). Against this softening demand-side backdrop, rates
eased in 2025, with the timecharter rate for a 21,000 cbm handysize ethylene
carrier falling 16% across 2025, though fleet supply-side constraints continue
to provide underlying support across the petrochemical shipping sector.
LNG
The LNG carrier sector transported circa 440mt of liquefied natural gas in
2025 on a fleet of highly specialised vessels. This sector is critical to both
energy transition and energy security, with a major phase of expansion now
underway following record levels of investment in LNG vessels and LNG export
capacity in recent years.
LNG carrier spot rates dropped across 2025 amid strong fleet growth (79 units
were delivered in 2025 - an annual record for a second consecutive year) and
the impacts of export project delays ,while additional short-haul US-Europe
trade limited tonne-mile demand growth. Overall, LNG carrier spot rates for a
174,000 cbm vessel averaged US$37,188/day, down 31% year on year, with rates
falling to record lows in Q1 2025 (US$7,500/day), but briefly surging above
US$100,000/day in Q4 2025 amid tighter LNG carrier spot availability, strong
US LNG exports and a wider spot US LNG arbitrage.
13 new export projects with an aggregate capacity of 72mtpa reached FID in
2025, while over 60mtpa of capacity could be sanctioned in 2026. Around 40
large LNG carrier newbuild orders were placed in 2025, down year on year,
though further orders are expected to meet project and fleet renewal
requirements in 2026.
Sale & Purchase ('S&P')
Secondhand
The S&P market saw firm activity in 2025, with over 2,000 vessels of more
than 120m dwt and an estimated value above US$45bn reported sold, up over 10%
year on year in tonnage terms. Bulkcarrier sales reached a new record and
tanker volumes increased from 2024. Containership sales did ease back
following five years of very strong activity but remained historically firm.
Robust cross-sector transaction levels were supported by a positive earnings
environment, trends in asset prices and fleet renewal activity. Market
uncertainty relating to US policy impacted sentiment in the first half of the
year, with activity stronger in the second half (tonnage sold up around 20% on
the first half). Secondhand pricing was generally elevated in 2025, with
Clarksons' Secondhand Price Index increasing by 9% across the year to its
highest level outside of the 2006 to 2008 and 2022 'boom' periods. Notably,
tanker and bulkcarrier prices increased in the second half after softening in
the first half. Our S&P team remained very active and maintained strong
market share.
Newbuilding
Newbuild market activity was strong in 2025, with contracts totalling 58m CGT
and an estimated US$186bn, down from the 15-year high in 2024 but still 30%
above the 10-year average in tonnage terms. Containership ordering reached a
record 4.8m TEU, supporting overall volumes amid softer bulkcarrier and tanker
ordering and slower gas carrier contracting. The global orderbook grew 8% in
CGT terms in 2025, while lead times remain elevated. Chinese yards continued
to lead order volumes, winning around two-thirds of contracts in CGT terms,
and announced further shipyard capacity expansion, while there has also been
an increased focus on national shipbuilding programmes in smaller builder
countries. Newbuild pricing remained elevated. While developments at the IMO
confirmed heightened uncertainty around emissions regulation, around a third
of tonnage ordered was alternative-fuel capable, with LNG dual-fuel the
leading choice. Our global Newbuilding broking team had a very active year,
supporting clients through the uncertain and complex market backdrop.
Offshore and Offshore Renewables
Offshore Oil and Gas
The offshore oil and gas vessel sector facilitates the development, production
and support of offshore oil and gas fields, with over 13,000 mobile vessels
and rigs playing a vital role in enabling operations across the lifecycle of
offshore energy projects.
Our team remained market leaders in both chartering and asset markets, with
global coverage and leveraging strong synergies with Clarksons Support and
Financial divisions.
The global offshore market saw mixed trends in 2025. The global Clarksons
Offshore Index declined 6% across last year, though remains strong overall at
50% above the 10-year average, while variation continues to exist across both
region and asset class.
Markets in South America and the Middle East showed resilience, despite
a softer tone emerging towards the end of the year. However, North Sea
markets continued to face some pressures last year, particularly in the UK
sector against the backdrop of an unsupportive tax regime and reduced oil
company investment.
Rig markets remained relatively soft for most of 2025, weighed down by weaker
energy prices, with the Clarksons Rig Rate Index falling 13% across the year
though overall utilisation held relatively stable at 86%, supported by supply
constraints.
Meanwhile, OSV demand fell 3% across last year and global OSV utilisation
eased to 72% by the end of the year with the Clarksons OSV Rate Index
now down 8% since the mid-2024 record high.
Global offshore oil and gas capital expenditure ('capex') commitments reached
US$110bn in 2025, up 17% year on year following a strong finish to the year,
though investment in new FIDs could ease back slightly this year.
Offshore Renewables
The offshore renewables sector supports the development, production and
maintenance of offshore wind farms, and going forward is expected to account
for a growing share of the global energy mix in the longer-term despite
current headwinds.
While the offshore wind sector continues to expand globally, the industry
faced headwinds in 2025. Inflation, higher interest rates and political
uncertainty have made the investment landscape more challenging with new
offshore wind capex commitments falling 10% year on year to US$39bn, and some
high-profile auction rounds seeing low participation or zero bids. In Europe,
which remains the core region for offshore wind, activity has held up better,
but developers are taking a more cautious and risk-aware approach.
However, the long-term outlook remains positive, though growth expectations
are lower than previously with financing conditions and policy frameworks now
playing a larger role in shaping forward activity.
Derivatives
Our teams of shipping futures and options brokers are the leading provider of
freight derivative products, positioned at the forefront of the sector and
providing best-in-class executive services to the freight, iron ore, LNG, LPG,
fuel oil, battery metals and carbon markets. 2025 was a positive year for the
wet FFA market, with volumes increasing and a record number of new entrants to
the market, setting up a positive outlook heading into 2026. The Dry FFA team
also had a good year, with the overall dry FFA market becoming more mature and
more liquid, while our market share in the options market increased further.
The team continues to grow its presence in Dubai, which is becoming an
increasingly important location and is well positioned to grow business
further over the year ahead. We continue to see Derivatives as an important
growth area for the Group.
Financial
Revenue: £60.1m (2024: £42.6m)
Segmental split of underlying profit before taxation: £12.9m (2024: £5.2m)
Securities
Clarksons Securities is a sector-focused investment bank serving the shipping,
offshore energy, metals and minerals, renewables and E&P industries. The
division combines deep sector expertise with global reach, supported by strong
research capabilities and long-standing client relationships. In 2025, the
division maintained its position as a market leader and delivered a record
year, driven by high activity across sectors and products.
Secondary Trading
Secondary trading remained robust in 2025, increasing year on year. Although
geo-political uncertainty and market volatility created a challenging
environment, these conditions also generated unique opportunities. Equity
block execution remained the most profitable and strategically important
activity, while bond secondary trading increased.
Shipping
Shipping equities performed strongly in 2025, with median returns of 24%.
Listed shipping companies remained disciplined, prioritising shareholder
returns. Despite this, several companies accessed the resilient bond market,
while others returned to a recovering equity market in the second half of
2025.
Offshore Energy Services
Offshore oil services traded largely sideways, amid slow contracting activity,
global instability, and declining oil prices. Capital markets sentiment was
volatile, although improved later in the year. The offshore wind outlook was
more uncertain, especially in the US. M&A activity was subdued, though
consolidation appetite is rising into 2026.
Metals and Minerals
The metals and minerals sector experienced positive momentum in 2025,
supported by higher precious metals prices and demand from the energy
transition, geo-politics, tariffs and evolving trade patterns. Our team was
active, especially in debt capital markets and M&A, and saw rising repeat
client engagement.
Renewable Energies
Renewables and energy transition markets remained active despite broader
challenges affecting project timelines and capital allocation. Investment was
supported by decarbonisation targets, energy security, regulatory frameworks,
and the competitive cost base of renewables. Valuation expectations reset,
improving transaction alignment heading into 2026.
Exploration and Production ('E&P')
Consolidation continued across the E&P sector, while capex and debt
issuance remained stable. Oil and gas prices weakened. The E&P team built
on positive momentum, from 2024 participating in transactions across ECM, DCM
and M&A.
Debt Capital Markets ('DCM')
The Nordic high-yield bond market maintained strong momentum during the year.
This positive backdrop enabled established and new issuers to access capital
efficiently and our teams were particularly active across all sectors,
delivering another record year in volumes and revenues.
Project Finance
Our Project Finance business is a leading Nordic player within shipping and
real estate project finance.
Our Project Finance team saw a good flow of projects in 2025 and a strong end
to the year, whilst a change in leadership has positioned the team for future
growth opportunities. Investor interest was centred around deals with solid
charter coverage and cashflow visibility, and there was increased private
placement activity.
Our Real Estate group maintained robust activity levels and strengthened its
position in an evolving and cautious market environment. The Norwegian
commercial real estate market in 2025 continued to be characterised by
uncertainty, driven by elevated finance costs, pricing gaps outside prime
segments, and subdued activity in secondary markets, though financial
conditions gradually improved through the year.
Structured Asset Finance
Our Structured Asset Finance team provide advice and support on financing and
reporting requirements, helping industrial clients and shipowners structure
bespoke financial solutions and assess how changing accounting and
environmental regulations affect their shipping finance requirements. 2025 was
a successful year for the team, with several completed mandates, a solid
pipeline, and broadened product offering and geographical reach.
The global shipping finance market saw lower leverage and re-financing volumes
amid improved earnings. Competition among financiers for top quality credits
has intensified, pushing margins lower. The mortgage-backed debt market
remains a tiered market, with Poseidon Principles banks continuing to support
green projects, Non-Poseidon banks remaining a competitive source of finance
with fewer constraints and 'alternative finance' providers (offering
higher-margin, cashflow-driven leverage for a wider range of tonnage). Leasing
remains a key financing product. Chinese lessors saw some impacts from US
policy, and new entrants further increased competition.
Support
Revenue: £68.1m (2024: £65.0m)
Segmental operating profit: £4.8m (2024: £7.7m)
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. The teams in the UK experienced several headwinds in 2025, including
slower dry bulk volumes and project delays and cancellations in offshore oil,
gas and wind. Market conditions in Northern Europe were more positive, as
offshore wind projects received approval and agency and logistics activity
increased. Despite the challenging backdrop, the business continues to invest;
multi-year contracts were signed with major clients in dry bulk and offshore
energy, and our service offering continued to broaden and deepen.
Egypt Agency
2025 was a year of operational resilience for the agency business in Egypt,
which was faced by challenges from geo-politics, including reduced Suez Canal
transits, volatile freight markets and cost inflation. Despite this, the team
maintained market penetration across key segments and increased revenue with
some clients.
Gibb Group
Gibb Group is the industry's leading provider of PPE and MRO products and
services into the renewable energy sector. The business faced more challenging
conditions in 2025, in part linked to the project delays and cancellations for
offshore wind, oil and gas projects in the UK. The Medical & Rescue
business delivered another record year for both revenue and profit with demand
from European clients remaining strong.
Shortsea Broking
During the year, the team established new Shortsea desks in Hamburg and
Santander, with knowledge and expertise across key commodities and regions
continuing to grow and deepen. Amid changing dry bulk market conditions during
2025, the focus remained on supporting clients to navigate market complexities
and ensuring tonnage and cargo kept moving.
Stevedoring
Our Stevedoring business, highly experienced in loading and discharging bulk
cargoes, again saw impacts from weak UK grain exports amid unsettled domestic
weather conditions and a competitive global market, although import volumes
again lent support. Our Sentinel terminal in Ipswich continues to play
a central role in the region's maritime supply chains.
Research
Revenue: £27.2m (2024: £24.5m)
Segmental operating profit: £10.6m (2024: £9.5m)
Clarksons Research, the data and intelligence arm of Clarksons, performed
strongly in 2025 with underlying sales growing an encouraging 14% year on year
and operating profit increasing 12% year on year to £10.6m (2024: £9.5m).
Recurring revenue grew by 15% year on year, now representing 91% of overall
sales, and client retention remained high, allowing the business to continue
to scale. Clarksons Research is a global market leader in the provision of
trusted maritime intelligence, supporting data-driven decision-making to over
3,500 companies across the maritime ecosystem. Research also provides
important differentiating data, research and profile to the Broking,
Financial, Support and Technology business units of Clarksons, helping support
the Group's digitalisation programme.
Research made significant investments in 2025. In addition to functionality
and content enhancements to each core product, there was expansion to its
wide-ranging proprietary database and a constant flow of market-leading
insights. Analysis of increasingly complex supply and demand conditions within
shipping markets, including economic impact assessments of US policy on
tariffs and port fees, geo‑political disruption such as Red Sea re-routing
and impacts of an accelerating sanction regime, were released onto Shipping
Intelligence Network ('SIN'). Data around the tracking of the world fleet,
maritime decarbonisation, emission regulation, alternative fuels and green
technology was enhanced and released onto the World Fleet Register ('WFR').
Sales of Offshore Intelligence Network ('OIN') were supported by significant
product enhancements during 2025, while Renewables Intelligence Network
('RIN'), our offering tracking the offshore wind industry, also experienced
growth in sales despite a competitive landscape. Facilitated by our expanded
business development and account management team, there was strong client
adoption of our API solution, typically via multi-year data contracts with key
corporates. We also executed a number of consultancy projects for key clients,
successfully working with other divisions. Clarksons Valuations, our
market-leading provider of valuation services to shipowners and financiers,
has seen increasing traction with its new analysis and technology tools
developed to support financial institutions.
Research also continues to make strategic investments to support and
accelerate future growth. Headcount, now approaching 200, is being globalised
with a strong focus in Asian growth markets. Workflow digitalisation is well
advanced, including adoption of digital rate collection and client onboarding
in 2025. Innovative technology investments are allowing the processing of
billions of data points daily and, utilising a range of advanced techniques,
the creation of layers of derived output with the support of cloud processing
capacity and proprietary algorithms. Artificial Intelligence ('AI') is being
leveraged in a balanced way, with client-facing features planned for 2026. We
are making significant strategic data and intelligence investments around AIS
processing.
Sea
During 2025, Sea strengthened its position as a central platform for the
global chartering ecosystem.
The business welcomed over 60 new customers across Fixture Management,
Contract Management, Carbon and Intelligence, bringing more charterers,
brokers, and shipowners and operators into our ever-expanding network of
market participants. Furthermore, Recap Manager (the recap and charter
party platform for the tanker market) achieved +20% volume growth, cementing
our leadership in the tanker market.
The team also made significant progress in connecting Trade and Contracts into
a seamless, intelligence-driven workflow. While the work is ongoing, these
developments are moving us closer to a more integrated chartering ecosystem,
enabling teams to make smarter decisions.
2025 was also the year where we launched the first AI-enabled features in The
Intelligent Marketplace for Fixing Freight. Our AI work focuses on bringing
the value of our customers historic data to the decision-makers, at the point
of fixture.
In addition, Sea has adopted AI across its development teams, and we believe
this will reap significant benefits in our software development in the
coming years.
Risk management
Full details of our principal risks and how we manage them will be included in
the risk management section of the 2025 Annual Report, together with our going
concern and viability 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
2025. 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 Group 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 6
March 2026 and is signed on its behalf by:
Laurence Hollingworth
Chair
6 March 2026
Consolidated income statement
for the year ended 31 December
2025 2024
Before acquisition- Acquisition-related After acquisition- Before Acquisition- After
related costs related acquisition- related acquisition-
costs £m costs related costs related
£m £m costs £m costs
£m £m
Revenue 631.4 - 631.4 661.4 - 661.4
Cost of sales (39.1) - (39.1) (33.7) - (33.7)
Trading profit 592.3 - 592.3 627.7 - 627.7
Administrative expenses (514.3) (3.7) (518.0) (526.0) (3.2) (529.2)
Operating profit 78.0 (3.7) 74.3 101.7 (3.2) 98.5
Finance income 14.0 - 14.0 14.9 - 14.9
Finance costs (2.2) (0.2) (2.4) (1.9) - (1.9)
Other finance income - pensions 0.8 - 0.8 0.6 - 0.6
Profit before taxation 90.6 (3.9) 86.7 115.3 (3.2) 112.1
Taxation (20.3) 0.2 (20.1) (26.0) 0.2 (25.8)
Profit for the year 70.3 (3.7) 66.6 89.3 (3.0) 86.3
Attributable to:
Equity holders of the Parent Company 69.4 (3.7) 65.7 87.9 (3.0) 84.9
Non-controlling interests 0.9 - 0.9 1.4 - 1.4
Profit for the year 70.3 (3.7) 66.6 89.3 (3.0) 86.3
Earnings per share
Basic 225.8p 214.0p 286.9p 277.1p
Diluted 224.6p 212.9p 284.9p 275.2p
Included in the consolidated income statement are net impairment losses on
financial assets amounting to £4.2m (2024: £1.3m)
Consolidated statement of comprehensive income
for the year ended 31 December
2025 2024
£m £m
Profit for the year 66.6 86.3
Other comprehensive income/(loss):
Items that will not be reclassified to profit or loss:
Actuarial gain/(loss) on employee benefit schemes - net of 1.4 (0.9)
tax
Items that may be reclassified subsequently to profit or loss:
Foreign exchange differences on retranslation of foreign (1.5) (12.4)
operations
Foreign currency hedges recycled to profit or loss - net of tax (4.1) 0.1
Foreign currency hedge revaluations - net of tax 10.3 (4.9)
Other comprehensive income/(loss) 6.1 (18.1)
Total comprehensive income for the year 72.7 68.2
Attributable to:
Equity holders of the Parent Company 71.6 67.2
Non-controlling interests 1.1 1.0
Total comprehensive income for the year 72.7 68.2
Consolidated balance sheet
as at 31 December
2025 2024
£m £m
Non-current assets
Property, plant and equipment 27.0 28.5
Investment properties 0.9 1.0
Right-of-use assets 51.0 32.0
Intangible assets 177.4 172.6
Trade and other receivables 3.3 1.0
Investments 2.0 1.9
Investments in associates and joint ventures 1.9 -
Employee benefits 14.4 12.4
Deferred tax assets 16.9 18.1
294.8 267.5
Current assets
Inventories 4.5 4.3
Trade and other receivables 201.2 130.5
Income tax receivable 6.5 4.5
Investments 70.4 62.2
Cash and cash equivalents 401.1 431.3
683.7 632.8
Current liabilities
Trade and other payables (354.0) (326.4)
Lease liabilities (9.9) (10.6)
Income tax payable (19.4) (20.7)
Provisions (0.8) (1.0)
(384.1) (358.7)
Net current assets 299.6 274.1
Non-current liabilities
Trade and other payables (6.3) (6.8)
Lease liabilities (46.1) (27.5)
Provisions (3.6) (3.6)
Employee benefits - (0.1)
Deferred tax liabilities (10.6) (7.9)
(66.6) (45.9)
Net assets 527.8 495.7
Capital and reserves
Share capital 7.7 7.7
Other reserves 91.8 89.0
Retained earnings 425.6 395.3
Equity attributable to shareholders of the Parent Company 525.1 492.0
Non-controlling interests 2.7 3.7
Total equity 527.8 495.7
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 2025 7.7 89.0 395.3 492.0 3.7 495.7
Profit for the year - - 65.7 65.7 0.9 66.6
Other comprehensive income - 4.5 1.4 5.9 0.2 6.1
Total comprehensive income for the year - 4.5 67.1 71.6 1.1 72.7
Transactions with owners:
Share issues - 3.0 - 3.0 - 3.0
Employee share schemes - (4.7) (1.5) (6.2) - (6.2)
Dividends paid - - (33.0) (33.0) (1.9) (34.9)
Acquisition of non-controlling interests - - (2.3) (2.3) (0.2) (2.5)
Total transactions with owners - (1.7) (36.8) (38.5) (2.1) (40.6)
Balance at 31 December 2025 7.7 91.8 425.6 525.1 2.7 527.8
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 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
Dividends 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
Consolidated cash flow statement
for the year ended 31 December
2025 2024
£m £m
Cash flows from operating activities
Profit before taxation 86.7 112.1
Adjustments for:
Foreign exchange differences 2.9 (5.7)
Depreciation 16.2 15.0
Share-based payment expense 2.4 2.5
Gain on sale of property, plant and equipment (0.1) (0.2)
Gain on sale of investments - (0.4)
Share of losses of associates and joint ventures 0.3 -
Amortisation of intangibles 5.8 5.2
Difference between pension contributions paid and amount recognised in the 0.5 0.4
income statement
Finance income (14.0) (14.9)
Finance costs 2.4 1.9
Other finance income - pensions (0.8) (0.6)
Increase in inventories (0.2) (0.8)
(Increase)/decrease in trade and other receivables (67.5) 14.9
(Decrease)/increase in bonus accrual (13.8) 32.4
Increase/(decrease) in trade and other payables 65.8 (22.2)
Increase in provisions - 2.3
Cash generated from operations 86.6 141.9
Income tax paid (22.2) (27.2)
Net cash flow from operating activities 64.4 114.7
Cash flows from investing activities
Interest received 13.9 14.8
Purchase of property, plant and equipment (5.5) (5.7)
Purchase of intangible assets (1.9) (1.6)
Purchase of investments (0.1) (0.9)
Proceeds from sale of investments - 0.7
Proceeds from sale of property, plant and equipment 1.3 0.4
Transfer to current investments (cash on deposit and government bonds) (8.1) (22.1)
Investments in associates and joint ventures (2.2) -
Acquisition of subsidiaries, net of cash acquired (2.3) (2.5)
Dividends received from investments - 0.1
Net cash flow from investing activities (4.9) (16.8)
Cash flows from financing activities
Interest paid and other charges (2.4) (1.8)
Dividends paid (33.0) (31.5)
Dividends paid to non-controlling interests (1.9) (1.5)
Principal elements of lease payments (11.2) (10.9)
Proceeds from shares issued 3.0 1.2
(Acquisition of)/contributions from non-controlling interests (1.7) 0.2
ESOP shares acquired (33.4) (26.4)
Net cash flow from financing activities (80.6) (70.7)
Net (decrease)/increase in cash and cash equivalents (21.1) 27.2
Cash and cash equivalents at 1 January 431.3 398.9
Net foreign exchange differences (9.1) 5.2
Cash and cash equivalents at 31 December 401.1 431.3
Notes to the preliminary financial statements
1 Corporate information
The preliminary financial statements of Clarkson PLC for the year ended 31
December 2025 were authorised for issue in accordance with a resolution of the
Directors on 6 March 2026. Clarkson PLC is a Public Limited Company, listed on
the London Stock Exchange, incorporated in the UK, 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 2024 and 2025, but is derived from
those financial statements. Statutory financial statements for 2024 have been
delivered to the Registrar of Companies and those for 2025 will be delivered
following the Company's Annual General Meeting. The External Auditor has
reported on the financial statements for 2024 and 2025; 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 material 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
acquisition-related costs; this is referred to as 'underlying profit'. 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 4.
Going concern
The Group has considerable financial resources available to it, a strong
balance sheet and has consistently generated a profit. 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 2028, modelling different
assumptions with respect to the Group's cash resources. Three different
scenarios were considered:
· Management modelled the impact of a reduction in annual 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 significant 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 2025, 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 significant 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
from the date of signing the financial statements. 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 2025 financial statements and has been prepared on a going concern
basis.
New and amended standards adopted by the Group
The Group has applied the following amendment for the first time for the
annual reporting period commencing 1 January 2025:
· Lack of Exchangeability - Amendments to IAS 21.
The amendment listed above did not have any impact on the amounts recognised
in prior periods and is not expected to significantly affect the current or
future periods.
New standards, amendments and interpretations issued but not yet effective for
the financial year beginning 1 January 2025 and not early adopted
IFRS 18 'Presentation and Disclosure in Financial Statements' will replace IAS
1 'Presentation of Financial Statements',
introducing new requirements that will help to achieve comparability of the
financial performance of similar entities and provide more relevant
information and transparency to users.
Management is currently assessing the detailed implications of applying the
new standard on the Group's consolidated financial statements, but does not
expect the presentational changes on the primary financial statements to be
material. Additionally, the Group does not expect there to be a significant
change in the information that is currently disclosed in the notes, other than
new disclosures in relation to management-defined performance measures,
because the requirement to disclose material information remains unchanged;
however, the way in which the information is grouped might change as a result
of the aggregation/disaggregation principles.
The Group will apply the new standard from its mandatory effective date of 1
January 2027. Retrospective application is required, and so the comparative
information for the financial year ending 31 December 2026 will be restated in
accordance with IFRS 18.
Other new accounting standards, amendments to accounting standards, and
interpretations have been published that are not mandatory for 31 December
2025 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.
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
2025 2024 2025 2024
£m £m £m £m
Broking 476.0 529.3 93.9 122.6
Financial 60.1 42.6 12.9 5.2
Support 68.1 65.0 4.8 7.7
Research 27.2 24.5 10.6 9.5
Segment revenue/operating profit 631.4 661.4 122.2 145.0
Head office costs (44.2) (43.3)
Operating profit before acquisition-related costs 78.0 101.7
Acquisition-related costs (3.7) (3.2)
Operating profit 74.3 98.5
Finance income 14.0 14.9
Finance costs (2.4) (1.9)
Other finance income - pensions 0.8 0.6
Profit before taxation 86.7 112.1
Taxation (20.1) (25.8)
Profit for the year 66.6 86.3
4 Acquisition-related costs
Acquisition-related costs include £1.0m (2024: £0.8m) of amortisation of
intangibles, £0.4m (2024: £0.1m) of transaction costs,
£0.2m (2024: £nil) of interest cost on liabilities and £2.3m (2024: £2.3m)
of other charges linked to acquisitions.
From the above, £0.3m of amortisation of intangibles, £0.2m of transaction
costs and £0.2m of interest cost on liabilities relates
to acquisitions in the year.
5 Taxation
The major components of the income tax charge in the consolidated income
statement are:
2025 2024
£m £m
Profit before taxation at UK average standard rate of corporation tax of 25.0% 21.7 28.0
(2024: 25.0%)
Expenses not deductible for tax purposes 2.3 2.7
Lower tax rates on overseas earnings (5.1) (4.9)
Other 1.2 -
Total tax charge in the income statement 20.1 25.8
6 Earnings per share
Basic earnings per share amounts are calculated by dividing profit for the
year attributable to equity holders of the Parent Company by the weighted
average number of ordinary shares in issue during the year, excluding share
purchase trusts' shares.
Diluted earnings per share amounts are calculated by dividing profit for the
year attributable to equity holders of the Parent Company by the weighted
average number of ordinary shares in issue during the year, excluding share
purchase trusts' shares, 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 calculation of diluted earnings per share
does not assume conversion, exercise, or other issue of potential ordinary
shares that would have an anti-dilutive effect on earnings per share.
The following reflects the income and share data used in the basic and diluted
earnings per share computations:
2025 2024
£m £m
Underlying profit for the year attributable to equity holders of the Parent 69.4 87.9
Company*
Reported profit for the year attributable to equity holders of the Parent 65.7 84.9
Company*
2025 2024
Million
Million
Weighted average number of ordinary shares - basic 30.7 30.7
Weighted average number of ordinary shares - diluted 30.9 30.9
7 Dividends
The Board is recommending a final dividend of 79p (2024: 77p), giving a total
dividend of 112p (2024: 109p).
8 Intangible assets
On 31 March 2025, Clarksons USA Inc. acquired 100% of the share capital of
Euro-America Shipping & Trade, Inc. (subsequently renamed Clarksons EAST
LLC), for initial consideration of £2.3m, plus a further £0.1m subsequently
paid. Deferred contingent consideration with an initial fair value of £2.3m,
is payable based on the achievement of revenue and profits targets in the
three years post-acquisition.
The above acquisition resulted in goodwill of £2.0m.
9 Investments
Included within current investments are deposits totalling £64.8m (2024:
£62.0m) with maturity periods greater than three months and £5.3m of
government bonds (2024: £nil).
10 Cash and cash equivalents
2025 2024
£m £m
Cash at bank and in hand 218.6 234.5
Short-term deposits 182.5 196.8
401.1 431.3
11 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
2025 2024
£m £m
Fair value of schemes' assets 117.2 119.4
Present value of funded defined benefit obligations (102.8) (105.3)
14.4 14.1
Effect of asset ceiling in relation to the Plowrights scheme - (1.8)
Net benefit asset recognised in the balance sheet 14.4 12.3
The above is recognised on the balance sheet as an asset of £14.4m (2024:
£12.4m) and a liability of £nil (2024: £0.1m).
A deferred tax liability on the benefit asset of £3.6m (2024: £3.1m) is also
recognised on the balance sheet.
Recognised in the income statement
2025 2024
£m £m
Recognised in other finance income - pensions:
Expected return on schemes' assets 6.4 6.1
Interest cost on benefit obligation and asset ceiling (5.6) (5.5)
Recognised in administrative expenses:
Schemes' administrative expenses (0.9) (0.8)
Net benefit charge recognised in the income statement (0.1) (0.2)
12 Share capital
2025 2024
Million £m Million £m
Ordinary shares of 25p each, issued and fully paid 30.9 7.7 30.8 7.7
During the year, the Company issued 134,817 shares (2024: 52,737) in relation
to the ShareSave scheme.
13 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.
14 Related party disclosures
The Group's significant related parties will be disclosed in the 2025 Annual
Report. There were no material differences in related parties or related party
transactions in the year, from the year ended 31 December 2024.
15 Events occurring after the reporting period
In January 2026, Clarkson Shipping Investments Limited, a wholly-owned
subsidiary in the Group, acquired 100% of the share capital of Zuma Labs
Limited for cash consideration of £7.5m. A purchase price allocation exercise
has not yet been completed; therefore, it is not currently possible to
estimate the impact on the Group's assets and liabilities.
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 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.
2025 2024
£m £m
Reported profit before taxation 86.7 112.1
Add back acquisition-related costs 3.9 3.2
Underlying profit before taxation 90.6 115.3
Underlying effective tax rate
Reconciliation of reported effective tax rate to underlying effective tax
rate.
2025 2024
% %
Reported effective tax rate 23.1 23.0
Adjustment relating to acquisition-related costs (0.7) (0.5)
Underlying effective tax rate 22.4 22.5
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.
2025 2024
£m £m
Reported profit attributable to equity holders of the Parent Company 65.7 84.9
Add back acquisition-related costs 3.7 3.0
Underlying profit attributable to equity holders of the Parent Company 69.4 87.9
Underlying basic earnings per share
Reconciliation of reported basic earnings per share to underlying basic
earnings per share.
2025 2024
Pence Pence
Reported basic earnings per share 214.0 277.1
Add back acquisition-related costs 11.8 9.8
Underlying basic earnings per share 225.8 286.9
Underlying administrative expenses
Reconciliation of reported administrative expenses to underlying
administrative expenses for the year.
2025 2024
£m £m
Reported administrative expenses 518.0 529.2
Less acquisition-related costs (3.7) (3.2)
Underlying administrative expenses 514.3 526.0
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.
2025 2024
£m £m
Cash and cash equivalents as reported 401.1 431.3
Add cash on deposit and government bonds included within current investments 70.1 62.0
Less amounts reserved for bonuses included within current trade and other (211.1) (249.6)
payables
Net cash and available funds 260.1 243.7
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.
2025 2024
£m £m
Cash and cash equivalents as reported 401.1 431.3
Add cash on deposit and government bonds included within current investments 70.1 62.0
Less amounts reserved for bonuses included within current trade and other (211.1) (249.6)
payables
Less net cash and available funds held in regulated entities (28.1) (27.4)
Free cash resources 232.0 216.3
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Copyright 2019 Regulatory News Service, all rights reservedRecent news on Clarkson
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