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13 May 2009 11:00
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13Β May 2009
CLARKSON PLC
("Clarksons")
AGM and Interim Management Statement
Clarksons,Β the world's leading shipping services group,Β todayΒ announcesΒ its Interim Management StatementΒ published in accordance with the UK Listing Authority's Disclosure and Transparency Rules,Β forΒ the period from 1 January 2009Β toΒ 12Β May 2009.Β
At the Annual General Meeting to be held inΒ LondonΒ today,Β Bob Benton, Chairman of Clarksons,Β will make the following statement:
Trading
Trading conditions since our 2008Β PreliminaryΒ results,Β announcedΒ on 16Β March,Β have continued to remain challenging. Most of the world's largest economiesΒ areΒ in recessionΒ and theΒ resultantΒ declineΒ in international trade,Β combined with a lack of available finance,Β hasΒ affected theΒ Group'sΒ revenues throughΒ reducedΒ asset valuesΒ and freight rates. Β Notwithstanding this backdrop, the GroupΒ isΒ tradingΒ in line with management's expectationsΒ for theΒ currentΒ year.Β
Broking
Spot revenues inΒ the broking division continueΒ to be affected byΒ significantly reduced freight rates, although this has been partially offset by the strength of theΒ US$ againstΒ SterlingΒ and the forward order bookΒ brought forward at the start of 2009. The division hasΒ maintained volumes across most marketsΒ and increased themΒ in some, albeit at lower rates. WhilstΒ SaleΒ and Purchase has suffered in volume terms,Β we are encouraged thatΒ activity is now beginning to return to this market. Against this backdrop,Β we continue to benefit from a flight to quality, as ourΒ globalΒ networkΒ isΒ proving invaluable to clients.Β
FinancialΒ
Revenues from our futures broking business have also been affected by the fall in freight rates.Β Levels of activityΒ in dry forwardΒ freightΒ agreements have,Β however,Β increased modestly,Β reflectingΒ periods of volatilityΒ andΒ increasing market share. TheΒ ClarksonΒ ShippingΒ Hedge Fund has returned to positive performanceΒ for the year to dateΒ andΒ we continue toΒ actively market this product to new investors.
ClarksonΒ InvestmentΒ Services, our new investment banking operation,Β is makingΒ goodΒ progress. Although thisΒ new business is being developed inΒ challengingΒ market conditions, we areΒ veryΒ encouraged byΒ our clients' reception toΒ thisΒ newΒ operation.Β
Support
Port & Agency and Technical Services activities haveΒ shownΒ modestΒ revenueΒ growth during the year to dateΒ and continue to trade in line with our expectations.
Research
Research continues to be essential to the added valueΒ thatΒ Clarkson brings to its client baseΒ and the Group's ability to innovate. Β As globalΒ economic uncertainty continuesΒ andΒ asΒ shipping marketsΒ experienceΒ more rapidly changing demand and supply conditions,Β information isΒ even moreΒ vital to ourΒ clients. As a result,Β weΒ have experiencedΒ increasedΒ demandΒ forΒ theseΒ servicesΒ in 2009 to date.Β
Outlook
Although it continues to be difficult to anticipate how the broad number of markets in whichΒ weΒ operate will react to developments in global economies and financial marketsΒ over the coming months,Β there is little doubt that Clarkson is benefiting from the breadth of its global services and network, its forward order book, and the relative strength of the US$.Β WeΒ have maintained a tight discipline onΒ costsΒ and continue to benefit from the Group's stronglyΒ cash generativeΒ natureΒ andΒ solid financial position.
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