Clarkson Regulatory News (CKN)

4 July 2016

Clarkson PLC

Trading Update

Clarkson PLC ("Clarksons" or "The Group"), provides today the following trading update:

Since the AGM, the Clarksea index has fallen a further 10%, so that its average level for the first six months of 2016 was 30% lower than for the first half of 2015. The Baltic Dry Index has similarly fallen sharply year on year, testing all-time lows during the first quarter of 2016. This deterioration in freight rates reflects the increase in global economic uncertainty and the continuing imbalance between supply and demand in shipping and offshore.

The recent recovery in the oil price has driven the return of some activity within offshore broking, however the offshore industry remains depressed and will require this recovery to be sustained for some time before confidence returns and meaningful volumes start to come through.

Overall transaction volumes within the broking division have continued to grow, but the fall in freight rates and asset values has both impacted revenues and driven the market to be spot focussed with little newbuilding activity. This combined with quiet capital markets and weak investor confidence has reduced activity within the financial division.

Whilst recent strengthening of the US dollar against sterling, if sustained, will offer some limited enhancement to reported profits, the Board nevertheless now anticipates that as a consequence of the challenges referred to above profits for 2016 will be materially lower than the full year 2015.

The Clarksons business does however remain highly robust, evidenced by the significant growth in volumes within broking, sales growth in research, an encouraging mandate pipeline within the financial division and a strong balance sheet.

The Group will release its interim results for the six months ending 30 June 2016 on Monday 15 August 2016.