REG - Clarkson PLC - Trading Statement

ClarksonAnnouncement

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RNS Number : 9391G  Clarkson PLC  01 May 2025

 

 

CLARKSON PLC

("the Company" or "Clarksons")

 

This announcement contains inside information.

 

 

1 May 2025

 

AGM Trading Statement

 

At the Annual General Meeting to be held electronically by video webcast at 12
noon today, Laurence Hollingworth, Chair of Clarksons, will refer to the
following Trading Statement covering the period from 1 January to 30 April
2025.

Current Trading

The Chief Executive Officer's outlook statement issued with the 2024 results
on 10 March 2025 highlighted the heightened uncertainty arising from political
change, ongoing regional conflicts, increased trade tensions, tariffs,
sanctions, inflation and changing monetary policy across global economies. It
also stated that the fall in some freight rates and asset values had
negatively impacted spot business done in the first two months of the current
year.

Since that date:

·      On 2 April 2025, the US Government introduced extensive global
tariffs.

·      On 9 April 2025, there was a 90-day pause on reciprocal tariffs
above 10%, other than with China which were left at very elevated levels.

·      On 18 April 2025, there was a further announcement relating to
fees on Chinese vessels entering US ports.

As a consequence, uncertainty arising from the potential of a global trade war
has escalated. Year to date, US dollar spot negotiations in broking are
running 7% lower than anticipated on 10 March 2025.

In addition, the markets have seen a decline in the value of the US dollar
against most global currencies. Importantly, the impact is seen both when
compared to the same period in 2024, and when compared to the position at the
beginning of March 2025 when the outlook was being considered (see table
below). As the majority of broking revenue is earned in US dollars, if
exchange rates remain at current levels through to the end of 2025, the
average for the year would be US dollar 1.32 v GBP1 and profits would be
reduced by £9.5m compared to the Board's previous expectations.

 GBP/USD
              30-Apr-25     30-Apr-24     Variance      28-Feb-25     29-Feb-24     Variance
 Spot         1.3360        1.2516        (6.74%)       1.2681        1.2684        0.02%

 YTD Average  1.2890        1.2628        (2.07%)       1.2433        1.2681        1.96%

Outlook

Whilst the Board believes that the effect of current macro uncertainty has the
potential to be reversed once normality returns to the markets, it now expects
that the recent changes in US Government policy will impact results for 2025.
As a consequence, the Board now believes, that at current exchange rates,
underlying profit before tax will be within the range of £85m to £95m.

Further, as highlighted on 10 March 2025 and as seen consistently over the
years, the results for 2025 are expected to be second half weighted.

The Board remains committed to the strategy that has served Clarksons well and
the Group continues to help its clients navigate these ongoing complexities,
by providing the expertise, data and insights to enable them to make the right
decisions for their organisations. Demand for Clarksons research products is
currently high as clients seek trusted advice during the current market
turbulence.

The Group, which has successfully navigated the challenging markets seen
during the global financial crisis, the Covid-19 crisis and Brexit, continues
to be very well placed to navigate periods of macroeconomic uncertainty given:

·      the depth of our customer relationships, flow and market data,

·      our sector and geographic market positions and diversification,

·      the scale of our forward order book,

·      the variable nature of the Group's cost base,

·      the strength of our balance sheet and cash position,

·      the free cash flow generated by the business, and

·      the flight to quality that historically occurs during uncertain
times.

Details on how to join the AGM can be found in the Notice of Meeting.

Ends

For further details please contact:

 

Company enquiries:

Andi Case, Chief Executive Officer

Jeff Woyda, Chief Financial Officer & Chief Operating Officer

 

Tel: +44(0)20 7334 0000

 

Camarco:

Billy Clegg

Jennifer Renwick

 

Tel: +44(0)20 3757 4980

 

 

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
(file:///C%3A/Users/Elfie.Kent/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/84DDZM8W/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.

 

The person responsible for arranging its release on behalf of Clarkson PLC is
Deborah Abrehart, Company Secretary.

 

 

 

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