CKN Clarkson Plc

    RNS Number : 9629H
  Clarkson PLC
  12 November 2008
   

    




    12 November 2008

    Clarkson PLC
    ("Clarksons" or "the Group")

    Interim Management Statement


    Clarkson PLC, the world's leading integrated shipping services group, is today providing the following interim management statement
published in accordance with the UK Listing Authority's Disclosure and Transparency Rules, covering the period from 1 July to 11 November
2008.

    Underlying Trading for 2008

    Following the onset of the financial and credit crisis, trading has been more challenging in certain shipping markets.  Nonetheless,
since we reported interim results on 28 August, performance across each of our broking businesses has remained ahead of the prior year.  The
Board is confident, therefore, that the Group will meet expectations for the full year and deliver another year of record growth in 2008.

    Outlook for 2009

    The exceptional conditions in the financial and credit markets over the last couple of months, combined with the risk of a global
economic downturn, have created uncertainty in some shipping markets, reflected in the decline in freight rates.  Although it is too early
to anticipate how each of the markets in which we operate will react in 2009, the Board currently anticipates a rather more challenging
trading environment in 2009 than 2008.

    Sale and Purchase (S&P):  The recent restrictions on the availability of credit in this capital intensive business, combined with lower
operating returns in some markets has already put pressure on activity and values in the sale and contracting of vessels and we expect this
will continue into 2009.  However, the speed and extent of the market correction in some sectors is likely to accelerate scrapping, which
when combined with the anticipated delays and/or cancellations in newbuilding deliveries, should mitigate to some extent current pressures
and create the conditions for a renewed improvement in volumes to the S&P markets as 2009 progresses.  

    Furthermore, we anticipate that there will be a period of consolidation in most shipping markets. The investment Clarkson has made in
the past couple of years in growing its S&P and Investor Services teams means that we are well positioned to take advantage of this period
of consolidation going forward.  

    Dry cargo: Freight rates have experienced large declines in recent weeks.  Whilst it is difficult to anticipate when this situation
might be reversed, we do not believe that current levels will remain.   Once credit markets ease, particularly through the renewed
availability of letters of credit for regular business, we believe a new equilibrium in rates will be reached, leading to a renewal of
activity in this market.   

    Deep Sea Chartering:  Global volumes shipped have held steady to date, although rates in crude and refined markets appear to be coming
under pressure.  However, given the likelihood of an acceleration in the scrapping of single hull tonnage, we expect satisfactory returns
from this business in 2009. 

    Despite the challenging conditions of the past couple of years, our Gas chartering business has made good progress by expanding its
market share and customer base and we currently anticipate further progress in 2009.  Furthermore, we believe our growing Specialised
Products business is likely to remain relatively unaffected by the current situation in credit markets due to the longer term contractual
nature of this business.  

    Futures:  We currently predict that the lower timecharter levels currently being experienced in the dry cargo market will linger into
early 2009.  This is expected to result in a shift in forward freight agreement (FFA) volumes from financial institutions and "technical"
traders to shipping and "fundamental" traders.  Cleared FFA swap and options contracts are, however, likely to remain the most reliable
methods for owners, operators and charterers to manage their freight risk.  For this reason, we expect volumes will continue to grow over
the longer term.

    Prospects

    Notwithstanding the severity of the short-term effects of the credit crisis and the global economic outlook, Clarkson's market
leadership both geographically and across a broad range of shipping services leaves the Group well placed to deal with the challenges ahead.
 2009 is not expected to provide the same level of revenue generation as recently, although this will to some extent be mitigated by our
forward order book and US$ exchange rates, should these rates remain at current levels. In addition, our proven ability to expand into new
segments of the shipping market, sound financial position, market leading teams and unrivalled research, provide us with the opportunity to
grow market share further and capitalise on the opportunities that we believe these trading conditions will create.


 Enquiries:                                 
                                            
 Clarkson PLC:                                020 7334 0000
 Andi Case, Chief Executive                 
 Jeff Woyda, Finance Director               
                                            
 Hudson Sandler:                              020 7796 4133
 Jessica Rouleau / Fran Read                
                                            


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