10 March
2025
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
2024.
Summary
· Another record underlying profit before taxation*
of £115.3m (2023: £109.2m), an increase of 6%
· Underlying basic earnings per share* increased 4% to 286.9p
(2023: 275.0p)
· Full year dividend of 109p, an increase of 7% on 2023, giving
rise to a 22nd consecutive year of dividend
growth
· Forward order book as at 31 December 2024, for invoicing in
2025 was US$231m (31 December 2023: US$217m)
· Strong balance sheet with free cash resources* of
£216.3m (2023: £175.4m)
|
|
Year ended
|
Year
ended
|
|
|
31 December
2024
|
31
December 2023
|
|
Revenue
|
£661.4m
|
£639.4m
|
|
Underlying profit
before taxation*
|
£115.3m
|
£109.2m
|
|
Reported profit before
taxation
|
£112.1m
|
£108.8m
|
|
Underlying basic
earnings per share*
|
286.9p
|
275.0p
|
|
Reported basic earnings
per share
|
277.1p
|
275.2p
|
|
Dividend per
share
|
109p
|
102p
|
* 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:
"2024 was another year of disruption, complexity and
opportunity for global shipping markets and against this backdrop I
am immensely proud of the hard work and dedication of all my
colleagues in producing another record result."
"The geo-political outlook remains uncertain as we enter 2025,
with ongoing regional conflicts and trade tensions creating
uncertainty for markets reflected by freight rates and asset values
currently lower than 2024. The resolution or continuation of these
events during the year will provide potential headwinds and
tailwinds to the Group's performance as we support our clients
through this complexity."
"Irrespective of near-term headwinds, we remain committed to
investing in the business, across people, intelligence and
technology to ensure we maintain our market-leading position across
all sectors."
|
Enquiries:
|
|
|
Clarkson PLC:
Andi Case, Chief Executive
Officer
Jeff Woyda, Chief Financial Officer
& Chief Operating Officer
|
020
7334 0000
|
|
Camarco:
Billy Clegg
Jennifer Renwick
|
020
3757 4980
|
|
|
|
|
|
|
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 2,100 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
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.
Chair's review
As I reflect on 2024, I am extremely
proud of the way Clarksons has successfully navigated a landscape
marked by significant political, economic and environmental
change.
Our expert and market-leading global
teams have supported our clients through these turbulent times,
offering strategic insights to help overcome challenges and
capitalise on emerging opportunities.
The geo-political landscape has been
particularly fast-moving, with ongoing global conflicts
underscoring the critical importance of strong governance, deep
knowledge and high-quality data as we advise our clients on vital
decision-making against a backdrop of increasingly complex
international sanctions.
Results
This year marks the third
consecutive year that our business has achieved an underlying
profit before tax* of over £100m. Revenue increased by 3.4% to
£661.4m, driven by growth across the business. This outstanding
achievement underscores the importance, and success, of our
strategy to focus on global expansion, recognising opportunities,
entering new markets, hiring the best individuals and teams, and
building a business with the scale and leading market position to
deliver sustained growth.
Dividend
We are delighted that, for the
22nd consecutive year, and in line with our progressive
dividend policy, the Board is recommending an increased final
dividend of 77p per share, bringing the total dividend for 2024 to
109p per share, an increase of 7% compared to 2023.
People
We are now a global group of over
2,100 talented and diverse employees with an expanded breadth of
services and reach. We are proud of being able to attract and
retain the best talent in the industry.
Our people are unquestionably our
most important asset and the key to our success, and we thank each
and every member of Clarksons for their unstinting hard work and
dedication.
We know from employee feedback how
The Clarkson Foundation aligns to the culture of the Group and are
proud to be able to support its aim of making a meaningful positive
impact in the world.
Board
In August we welcomed Constantin
Cotzias to the Board as an independent Non-Executive Director, and
member of the Audit and Risk Committee.
Constantin is European Director at
Bloomberg, where he is Global Head of External Affairs, the Chair
of Bloomberg Tradebook and a Director of Bloomberg Multilateral
Trading Facility. Constantin brings a strong understanding of
financial markets, data and technology, and also experience in
growing data-focused businesses. His experience will be invaluable
as we continue to grow the business across all of these
areas.
Birger Nergaard stepped down from
the Board in May 2024 following the Company's AGM. We thank him for
nine years of valuable and dedicated service to the
Group.
Outlook
2024 has been a year of resilience
and growth for Clarksons. We have delivered strong financial
performance in a challenging environment and supported our clients
through extensive global change.
The opportunity before us remains
significant, as commodity demands combined with energy security and
environmental factors, provide a complex backdrop for market growth
in the medium term.
However, following a year of
extensive political change, ongoing conflicts in the Middle East
and Russia-Ukraine, adding further complexities, markets have
softened as economies grapple with the immediate impacts of this
phase of change.
We are uniquely positioned through
our global and regional expertise, accompanied by our exceptional
data insights, to respond to any changes that arise. We will focus
all our efforts on supporting our clients as they evolve their
strategies to meet these changes.
As we look ahead, we continue to
hire and build on our strengths, driving sustainable growth for our
shareholders. Our robust cash flow and forward order book ('FOB')
affords us agility and enables us to take swift and decisive
decisions to make investments to support the business.
Thank you for your continued
support.
Laurence Hollingworth
Chair
7 March 2025
Chief Executive Officer's review
2024 was another year of disruption,
complexity and opportunity for global shipping markets, and I am
immensely proud of, and grateful to, our colleagues across the
world for their unwavering commitment and exceptional
contributions, which have led to another record year for
Clarksons.
The fundamental supply and demand
dynamics of the industry remained in fine balance during the year,
with underlying trade volume growth and disruptions to trade
patterns increasing demand, while the supply side remained
challenged by low orderbooks in certain sectors and a tight
shipbuilding market. Seaborne trade grew by 2.4% in 2024, driven by
global economic consumption and rising energy and resource
requirements.
Conversely, despite a 13% increase
in global shipyard output in the year, the global fleet grew
steadily at 3.4%, weighted towards the containers and LNG sectors.
Prices for newbuild vessels remained high, reaching peak 2008
levels, following inflationary pressures at shipyards, firm forward
cover and strong ordering volume.
Ongoing conflicts in the Middle East
and Russia-Ukraine continued to underscore the importance and
fragility of global supply chains. An increasingly complex and
evolving sanctions environment added to challenges for shipowners
and charterers alike with some 1,300 ships in the global fleet now
sanctioned. These events led to significant shifts in the global
flows of energy and resources and the largest increase in tonne
miles in the sector for 15 years. Our position at the forefront of
the industry, bolstered by our global and regional expertise and
deep market intelligence, has enabled us to support our clients in
managing these complexities effectively.
The green transition remains a
significant underlying trend as the industry moves towards
alternative fuels and more efficient technology, and embarks on an
unprecedented fleet renewal programme to meet 2030 and 2050
emissions targets. Half of orders by tonnage in 2024 involved
alternative fuel and 7% of the global fleet is now fitted with
green or alternative fuel technology, a number which is forecast to
rise to 20% by 2030. Retrofitting has also been a key theme, with
34% of the fleet now equipped with energy-saving technology. Our
Green Transition and Research teams continue to provide clients
with the support, data and intelligence they need as they respond
to the opportunities and challenges the move towards
decarbonisation provides.
Broking
The Broking division had a very
strong year, supported by an active sale and purchase market across
newbuilding and secondhand transactions, and generally robust
conditions across all other sectors. The forward order book ('FOB')
continues to grow, both for invoicing in 2025 and further out over
the coming years. This FOB gives us good visibility of baseline
future earnings.
Geo-political disruptions, the
redistribution of energy flows and an underlying increase in
Atlantic to Pacific commodity trade resulted in significantly
increased tonne miles, supporting rates and activity in chartering.
The offshore sector also performed well during the year, with rates
reaching record levels on the back of investor sentiment following
a supply-side rebalancing and incremental demand gains.
Carbon emissions from the industry
increased slightly due to the increase in tonne miles. Our Broking
and Green Transition teams continue to advise clients on fleet
renewal programmes and the latest green technologies to achieve
longer-term environmental targets.
The Broking division continued to
invest in expanding its global footprint through the hiring of new
people and teams both in the UK and overseas. Key hires included
leaders from both competitors and principals, increasing the scope
and services we offer our clients, and extending the products we
cover in both the physical and derivative markets. The truly global
nature of the business is demonstrated by the fact that two-thirds
of our brokers are now based outside of the UK, with representation
in every major shipping geography and sector. We remain focused on
being best in class in every sector of shipping, servicing clients
with local expertise supported by the data, technology and insights
of a truly global business.
Segmental profit before taxation
from Broking was £122.6m at a margin of 23.2% (2023: £121.2m and
23.5%).
Financial
The Financial division faced a more
challenging year, with reduced investor risk appetite in certain
sectors amid geo-political uncertainty. Capital markets activity
was also tempered in shipping equities as companies continued to
focus on debt repayments and returns to shareholders. Investor
sentiment was more stable across the metals and minerals and
offshore sectors.
Overall, our investment banking team
supported and advised clients on executing a number of mandates
across, particularly, debt capital markets and M&A.
Debt capital markets performed
particularly well, supported by a record year of activity in the
Nordic high-yield bond market.
Investor interest in shipping
project finance remained healthy, albeit real estate market
activity has continued to be challenged.
The division reported a segmental
profit before taxation of £5.2m in 2024 compared with £6.6m in
2023.
Support
Our Support division had a record
year despite the significant reduction in transits through the Suez
Canal. The division's increasingly diversified offering across the
offshore oil and gas, marine and renewable energy sectors, and
broadening client base, has enhanced performance during recent
years.
The activities of Gibb Group,
specialists in tools and supplies, and safety and survival
products, were enhanced further by the acquisition of Trauma &
Resuscitation Services Limited, now rebranded to Gibb Medical and
Rescue, in early 2024. The company is a leading provider of
enhanced first aid training, compliance and emergency response
services and has performed beyond management's expectations in its
first year of ownership.
The Support division produced a
segmental profit before taxation of £7.7m and a 11.8% margin in
2024 (2023: £6.4m and 11.3%).
Research
As markets become more complex and
the supply of data becomes increasingly key to decision-making, our
leading Research division plays a progressively more important role
in offering depth of knowledge and best-in-class insights across
the sector.
We continue to invest in providing
market-leading intelligence which, combined with our understanding
of the shipping and offshore markets and digital capabilities, is
supporting over 3,500 clients globally. The division is constantly
evolving its products across geo-political trends, the energy
transition and fleet evolution. 2024 also saw increasing demand
from clients to embed data within workflows to support real-time
information and decision-making. The increasing demand from clients
has resulted in recurring revenue increasing to 90%.
The division increased segmental
profit before taxation by 13% to £9.5m (2023: £8.4m).
Sea
Our Sea platform continues to move
forward, achieving growth in both customer base and volumes. Sea
Trade 2.0 was released in the second half of the year, with all
clients now successfully migrated to the new operating platform.
This more flexible technology base will enable our clients to
benefit from increasingly efficient workflows and data access to
manage their pre-fixture activities, and will provide the base for
faster and more extensive cross-market product releases in the
future.
Outlook
For some years now we have started
each new financial period with an uncertain geo-political outlook;
2025 has started with more uncertainty than most due to political
change, ongoing regional conflicts, increased trade tensions,
tariffs and sanctions, inflation and changing monetary policy
across global economies. As I write this report, the impact of
these uncertainties is that freight rates and asset values have
broadly fallen, which has meant that the value of spot business
done to date is less than the same period last year.
Our FOB continues to grow, both for
2025 and beyond, providing good visibility of baseline future
earnings. The FOB for invoicing in 2025, as at the end of 2024,
amounted to US$231m, US$14m higher than at the beginning of 2024.
The invoicing profile of this FOB, together with the expected
uptick in spot revenues following a slow start to the year, means
that 2025 is expected to be second-half weighted, as it has been in
most years.
Once the current uncertainty starts
to recede, the markets will, over time, rebalance, incorporating
trade currently operated by the shadow fleet, and clients will
again be able to be more strategic in their forward planning,
including a focus on fleet renewal programmes. We will continue to
invest in our business to ensure we maintain market-leading
positions across all sectors, that we use value added technology,
and that we have the best market intelligence and insight to
support and advise our clients.
The strength of our balance sheet,
excellent cash generation and a healthy FOB going forward many
years gives us confidence to be at the forefront of opportunities
for growth and to consider opportunities for M&A where
accretive to the business. Clarksons is uniquely positioned to
manage and advise clients through these more volatile
markets.
Andi Case
Chief Executive Officer
7 March 2025
Financial review
Revenue: £661.4m (2023:
£639.4m)
Underlying profit before taxation*:
£115.3m (2023: £109.2m)
Reported profit before taxation:
£112.1m (2023: £108.8m)
Dividend per
share: 109p (2023:
102p)
The Group delivered another
outstanding set of results in 2024, with revenue of £661.4m (2023:
£639.4m) and underlying profit before taxation* of £115.3m (2023:
£109.2m), both ahead of the comparative period. The performance was
driven by a strong underlying operating result of £101.7m (2023:
£100.2m) and finance income of £14.9m (2023: £10.5m), which
benefited from the supportive interest rate environment. Underlying
basic earnings per share* grew 4.3% to 286.9p (2023:
275.0p).
Reported profit before taxation and
basic earnings per share were £112.1m (2023: £108.8m) and 277.1p
(2023: 275.2p) respectively. Our performance has enabled the Group
to continue its progressive dividend policy, which is now in its
22nd consecutive year. Accordingly, a full year dividend of 109p is
recommended as described in more detail below.
Free cash resources* increased to
£216.3m (2023: £175.4m); the Group's diversified portfolio of
businesses continues to deliver strong cash-generation across the
cycle, which provides support for investment in the best people,
market intelligence and technology to support and advise our
clients. Where complementary to strategy, including establishing
new teams, setting up in new geographies, expanding our coverage or
increasing market presence, the Group actively pursues strategic
and value-enhancing M&A opportunities.
2024 performance overview
The Broking division had another
successful year, reporting revenue of £529.3m (2023: £516.8m),
representing growth of 2.4%. Supply and demand dynamics within the
industry remained highly complex as global GDP growth and
disruptions to trade patterns increased demand, while the supply
side remained challenged by low orderbooks in certain sectors and a
tight shipbuilding market. The division generated a segmental
profit of £122.6m (2023: £121.2m), advising clients through
complexity and enhancing its market-leading position across all
sectors of shipping.
Geo-political complexity, energy
security and the green transition remained consistent trends in
2024. Most sectors were impacted by disruption to key trade routes,
notably the Suez and Panama canals. Whilst conditions in Panama
eased towards the end of 2024, traffic through Suez remained at
historically low levels. This disruption, in addition to the
ongoing redistribution of energy flows following the Russia-Ukraine
conflict, resulted in one of the largest increases in tonne miles
for 15 years and provided upward momentum to rates across most
sectors, in particular the dry cargo and containers sectors.
Offshore oil and gas markets also performed well during the year,
with day rates at record levels.
Newbuild sale and purchase activity
across the industry was particularly strong in 2024, reaching the
third highest total on record. Healthy cross-sector demand was
supported by generally robust shipping markets, a focus on green
fleet renewal and competition for berths at shipyards. Secondhand
activity this year has also been positive, supported by bulker
sales volumes and strong tanker and container activity against a
backdrop of firm market conditions.
In the tankers and gases sectors,
whilst market conditions were generally supportive of rates during
the year, these were below the levels experienced in 2023. Both
sectors experienced headwinds in the second half of the year from a
slowdown in global demand, cuts in production and delays to
projects coming online.
The Financial division faced a
challenging economic backdrop in 2024, including inflation,
extended periods of high interest rates and reduced investor
confidence caused by geo-political tensions. Against this backdrop
and faced with increased competition, the division performed well,
reporting revenue of £42.6m (2023: £44.1m) and segmental profit
before taxation of £5.2m (2023: £6.6m).
Activity and investor sentiment in
the shipping and offshore markets remained generally positive
throughout 2024 and the investment banking team remained active,
executing several deals as clients sought to restructure and
recapitalise their balance sheets or issue debt to support further
investment and growth. Revenue from commissions on secondary
trading was lower than in 2023, driven mainly by weaker activity in
the equity capital markets. There was, however, strength in the
debt capital markets, where favourable market conditions,
particularly in the Nordic high-yield bond market, increased both
revenue and the volumes of transactions executed.
Within the project finance business,
positive investor sentiment enabled shipping and offshore
activities to perform well, although real estate opportunities
continue to be impacted by the prolonged high-interest rate
environment, a volatile bond market and challenging construction
and rental prices.
The Support division produced a
record performance in 2024, delivering revenue of £65.0m (2023:
£56.6m) and a segmental profit of £7.7m (2023: £6.4m). This was
despite challenges in some sectors, including reduced transits
through the Suez Canal impacting Egyptian agency business, delays
and reduced activity in offshore energy projects in Northern Europe
and pressure on margins in UK agency business. The division
continues to look for opportunities to leverage its UK and Northern
European footprint to support clients, including initiatives such
as the agreement with Norway-based Peak Group to combine expertise
in port agency logistics, expanding its reach across the expanse of
the North Sea.
In addition to core agency activity,
the division continues to focus on supporting the offshore oil, gas
and renewables sectors through the provision of specialist tooling,
training and equipment. In February 2024, this offering was
extended further through the acquisition of Trauma &
Resuscitation Services Limited, which rebranded to Gibb Medical and
Rescue during the year.
The Research division also produced
another excellent financial performance generating revenue of
£24.5m (2023: £21.9m) and a segmental profit of £9.5m (2023:
£8.4m). Growth was achieved from new client penetration, and a
cross-selling of services. Recurring revenue continues to represent
over 90% of the division's sales, as clients value the
market-leading insights and intelligence provided by the team. The
division continues to innovate and invest in providing a consistent
flow of high-quality, market-leading insights which this year have
included a macro focus on decarbonisation and geo-political
disruption.
Administrative expenses
The Group incurred underlying
administrative expenses* of £526.0m (2023: £508.8m), representing
an increase of 3.4%. The main driver of the increase year on year
was continued investment in people and teams, which has enabled us
to expand our product offering across new markets and geographies
and to develop and train new talent across the business. Although
the Group is focused on disciplined expense management, it is not
immune from inflationary pressure and economic decisions affecting
the global economy. The announcement in the Autumn 2024 Budget that
UK employers' national insurance will rise by 1.2% is expected to
increase the Group's remuneration and variable incentive costs in
2025.
The Group remains committed to
investing across all areas of the business to ensure it has the
best people, technology and market intelligence to support and
service our clients globally.
Acquisitions
At the beginning of the year, the
Group completed the acquisition of Trauma & Resuscitation
Services Limited (since rebranded to Gibb Medical and Rescue) for
an initial consideration of £2.0m. The acquisition extends the
Group's offering to the oil and gas, marine and renewable energy
sectors by providing market-leading first aid training, compliance
and emergency response services. The business performed ahead of
management's expectations in its first year of ownership,
leveraging the breadth of the Group's network to generate new
business opportunities.
In May 2024, the Group completed an
asset purchase agreement with Independent Shipping Agencies Limited
to acquire selected assets for an initial consideration of £0.1m.
The investment increases the Support division's service offering to
the dry cargo sector through the provision of superintending
services.
In September 2024, the Support
division also completed an asset purchase agreement with Wind Farm
Equipment Limited for an initial consideration of £0.7m. This
transaction further enhances the capabilities of the tooling and
supplies business in the renewable energy sector.
Acquisition-related costs of £3.2m
(2023: £2.6m), 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 2025 to be £3.0m assuming no further acquisitions are
made.
Dividend
The Board is recommending a final
dividend in respect of 2024 of 77p (2023: 72p) which, subject to
shareholder approval, will be paid on 23 May 2025 to shareholders
on the register at the close of business on 9 May 2025.
Together with the interim dividend
in respect of 2024 of 32p (2023: 30p), this would give a total
dividend of 109p for 2024, an increase of 7% on 2023 (2023: 102p)
and representing the 22nd consecutive year the Group has increased
returns to shareholders. In reaching its decision, the Board took
into consideration the Group's 2024 performance, balance sheet
strength, ability to generate cash and forward order
book.
Finance income and costs
The Group reported finance income of
£14.9m (2023: £10.5m), as strong underlying cash generation from
the business and proactive treasury management enabled the Group to
capitalise on an extended period of high interest rates. Central
banks' review of monetary policy saw interest rates cut towards the
end of 2024, a trend which is forecast to continue in 2025. Finance
costs were £1.9m (2023: £2.2m) and are mainly comprised of interest
expenses on lease liabilities.
Taxation
The Group reported an underlying
effective tax rate* of 22.5% (2023: 21.4%). 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 23.0% (2023: 21.1%).
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. The
average sterling to US dollar exchange rate during the year was
US$1.28 (2023: US$1.25), providing a headwind to this year's
financial performance.
Free cash resources
The Group ended the year with cash
balances of £431.3m (2023: £398.9m) and a further £62.0m (2023:
£39.9m) held in short-term deposit accounts and government bonds,
classified as current investments on the balance sheet.
Net cash and available funds*, being
cash balances after the deduction of the total cost of accrued
bonuses, at 31 December 2024 were £243.7m (2023: £201.1m). 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 2024 were £216.3m (2023: £175.4m).
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 2024 were
£495.7m (2023: £456.6m). 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 £257.7m (2023: £206.5m). The Group's
pension schemes had a combined surplus before deferred tax of
£12.3m (2023: £13.4m).
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 2024, this
estimate was US$231m (31 December 2023: US$217m).
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 funds and free cash resources.
Jeff Woyda
Chief Financial Officer & Chief
Operating Officer
7 March 2025
Business review
Broking
Revenue: £529.3m (2023:
£516.8m)
Segmental split of underlying profit
before taxation: £122.6m (2023: £121.2m)
Forward order book for 2025:
US$231m^ (At 31 December 2023 for 2024: US$217m^)
^ 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 5.7bn tonnes of cargo last
year. Our dry cargo shipbroking team have a leading position across
all ship sizes, performing robustly in 2024 and including strong
growth in longer-term business. Overall, 2024 was a generally
positive year for the bulkcarrier sector, with Clarksons' weighted
earnings averaging over US$15,000/day, up 21% on 2023 and 18% on
the 10-year average. All sub-segments saw improved earnings year on
year but gains were most significant in the Capesize sector, where
spot earnings averaged over US$25,000/day, the second strongest
year since 2010. This was in part driven by strong trade volumes,
which grew by circa 3.3% to 5.7bn tonnes, led by strong demand from
China. Firm iron ore and bauxite exports from the Atlantic to Asia
were particularly supportive to the Capesize sector, while the
re-routing of vessels away from the Red Sea also added to vessel
demand, albeit to a lesser degree than some other sectors. The
bulkcarrier market ended the year on a softer note, as the typical
seasonal upswing in demand in the fourth quarter disappointed;
restrictions on Panama Canal transits (which provided some
disruption upside in the first half) eased; and steady fleet growth
(circa 3% in the full year) added to vessel supply. Looking ahead,
demand trends remain reasonable heading into 2025, although growth
rates could trend lower than 2024. Alongside another year of steady
fleet growth (circa 3% is expected), earnings overall could see a
softer tone with potential trade tariffs; the unwinding of Red Sea
re-routing; and developments in the Chinese economy potentially
impacting.
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 experienced high
freight and charter conditions across 2024, and our container
shipbroking team leveraged its expertise and global breadth to
successfully support clients on asset and chartering decisions in a
volatile market heavily impacted by geo-political events.
Diversions away from the Red Sea by major liner companies amid the
hostility in the region generated a significant increase in vessel
demand, amplified by underlying trade expansion and port congestion
hotspots. As a result, and despite rapid fleet capacity growth
(more than 10%) and record newbuilding deliveries, both box freight
rates and timecharter rates hit extremely strong levels. The SCFI
Spot Box Freight Index stood at 3,734 points in early July, the
highest level outside of the exceptional 2020-22 COVID-19 era. It
ended the year at 2,460 points after some erosion post-peak season
and amid ongoing fleet growth, although still 2.4 times the 2023
average. Containership charter markets had an exceptionally strong
year as liners sought 'extra-loaders' to cover Red Sea-related
disruption. Clarksons Containership Timecharter Rate Index hit 182
points in mid-July, up 258% versus the 2010-19 average, although
still lower than the all-time-high COVID-19 markets, and ended the
year at 178 points (up 165% versus the end of 2023). Looking ahead,
the short-term outlook for the sector is closely linked to trends
in the Red Sea, with any significant resumption of transits
expected to drive softer market conditions.
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. 2024 was another strong year for tanker markets
overall, and our tanker shipbroking team experienced another very
successful year, utilising its scale and deep expertise to support
clients through the volatile and complex markets. In general, the
second half of the year was softer than the first for the tanker
shipping market. There remained variation across sectors, with
Suezmaxes and Aframaxes outperforming VLCCs over the year, while LR
product tankers fared better than MRs. VLCC earnings were strong
across the first quarter, before easing seasonally across the
second and third quarters. However, the typical strong seasonal
increase in the fourth quarter failed to materialise. OPEC+
production cuts and a decline in Chinese crude imports impacted the
market. Overall, average VLCC earnings declined year on year with
our index averaging US$33,502/day, close to long-term averages.
Suezmaxes and Aframaxes earnings also eased, softening by 16% and
22% year on year respectively. However, markets overall remained
historically strong, boosted by the continued impact of altered
trade flows due to sanctions on Russia.
Products tanker earnings were driven
to high levels in early 2024, primarily boosted by the re-routing
of vessels via the Cape of Good Hope. This strength persisted
throughout the first half of the year. However, the third quarter
saw a notable increase in the use of crude oil tankers to transport
clean products cargoes, while softer refining margins also impacted
markets. In spite of the softer second half of the year, earnings
for LR2s and LR1s on the benchmark Middle East - Far East route
increased by 11% and 7% year on year respectively in 2024. However,
average MR earnings declined by 5% year on year across 2024 and
averaged US$16,501/day across the fourth quarter. Tanker fleet
growth was very low in 2024, falling below 1%, and while product
tanker fleet growth is expected to pick up in 2025, total crude
tanker fleet growth is set to remain supportively low.
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.
The specialised products tanker
market had a strong year overall, although trends varied across
2024. The first half of the year saw freight rates surge to new
record highs, largely on the back of re-routing around the Cape of
Good Hope which led to longer voyage distances. However, rates
eased across the second half of the year amid weaker consumer
demand, as well as softer trends in the adjacent clean petroleum
products market, although rate levels remained fairly healthy in a
historical context with supply side growth limited over recent
years. In a complex and evolving market, our specialised products
team navigated these shifts with confidence and grew market share.
The team has expanded its regional presence to 13 offices globally
and using our strategic expertise, analytical insight and broking
experience, is uniquely positioned to participate in the global
chemical tanker market 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.
While VLGC markets softened in 2024,
rates were still relatively healthy for much of the year. Markets
started strongly in the early weeks of 2024, following on from
record levels in late 2023 when disruption at the Panama Canal
supported markets. However, rates began to soften as Panama
disruption eased, while continued firm fleet growth (VLGC fleet
capacity grew a further 6% in 2024) and higher terminal fees in the
US also impacted. Overall, spot earnings for a non-scrubber fitted
'eco' VLGC averaged circa US$42,000/day on the Ras Tanura-Chiba
route, down 54% year on year but standing in line with long-run
averages. The market started 2025 relatively balanced although
there are a range of uncertainties for the
year ahead.
2024 also proved to be another
healthy year for the petrochemical gas sector, with timecharter
rates generally continuing to climb as charterers sought to secure
term coverage. Rates for a 22.5k cbm Handysize fully ref. vessel
were up by 10% on 2023 on average, despite some challenges in
European and Asian petrochemical markets and a drop in US
ethylene exports.
Newbuilding activity was very strong
in 2024 with a record volume of LPG carrier tonnage ordered,
including the first orders for 'ULECs' (specialist ethane carriers
of circa 150,000 cbm).
LNG
The LNG carrier sector transported
circa 410mt of liquefied natural gas in 2024 on a fleet of highly
specialised vessels. This sector is critical to both energy
transition and energy security, and is set for a major phase of
expansion in the coming years following record levels of investment
in LNG vessels and LNG export capacity.
Spot LNG freight rates dropped
across 2024 as limited trade volume growth (amid delays in the
commissioning of several LNG export terminals in North America and
West Africa); strong LNG carrier fleet expansion (67 units were
delivered in 2024 - an annual record); and a narrow
Atlantic-Pacific arbitrage saw spot tonnage availability grow,
despite support to tonne-mile trade from re-routing of vessels away
from both the Suez and Panama canals. Overall, LNG carrier spot
rates for a 160k cbm TFDE vessel averaged circa US$42,000/day, down
57% year on year, with rates falling to record lows during Q4
2024.
Four new export projects with an
aggregate capacity of 30mtpa reached FID in 2024, and there is more
than 60mtpa of capacity that is scheduled to take FID in 2025.
Newbuild vessel ordering remained firm in 2024, led by Qatari
requirements, and further orders are expected from new projects and
for fleet renewal through 2025. Our LNG team continues to provide
excellent support to clients across spot, period, newbuilding and
Sale & Purchase.
Sale and purchase ('S&P')
Secondhand
S&P markets remained active in
2024, with over 2,000 vessels of over 115m dwt combined and an
estimated value of in excess of US$50bn reported sold in the full
year, down around 9% year on year in tonnage terms but still firm
by historical standards, with 2024 the fourth consecutive year with
sales volumes topping 100m dwt.
Activity was supported by near
record bulker sales volumes and strong tanker and container
activity. This was against a backdrop of firm charter market
conditions that supported buyer demand, high pricing offering a
return on assets for some sellers and with some owners using the
secondhand market to progress fleet renewal plans due to newbuild
prices and yard lead times being elevated. However, volumes varied
through the year, with the first half seeing particularly firm
trends amid strong sentiment in various shipping sectors, before
activity slowed by around a quarter in the second half of the year
as sentiment in some segments became more uncertain. Secondhand
prices were generally very firm, with our overall Secondhand Price
Index increasing by 22% between the start of 2024 and the end of
August, before easing back at the end of the year. Tanker and
bulker pricing eased by around 10-15% between the summer and
year-end, while containership prices continued to rise. Our S&P
team remained very active, with several key hires made during the
year.
Newbuilding
The newbuilding market was
incredibly active in 2024, with the largest order intake for 17
years. Contracts totalling 66m CGT and US$204bn were placed, with
appetite strong across segments. The containership sector saw
particularly firm activity (4.4m TEU ordered), while there was also
a good flow of gas carrier and tanker orders. The overall orderbook
increased by 26% across the year and average lead times lengthened.
Chinese builders consolidated their lead position, taking
two-thirds of orders, and are the only major producer expanding
capacity (through expansion of existing and reactivation of dormant
facilities). However, some much smaller players are looking
strategically at their shipbuilding positions. Newbuilding prices
remained close to record highs, edging up a further 6% across the
year with some softening in certain segments towards the year-end.
Meanwhile, half of orders by tonnage in 2024 involved alternative
fuel, with LNG dual fuel dominating.
Our global newbuilding broking team
had an excellent year, benefiting from its market-leading position
and strong cross-segment demand. We also remained very active
supporting clients with alternative fuel newbuild orders, as green
fleet renewal and an increasingly complex and evolving regulatory
backdrop drive investment decisions. The newbuilding team has
expanded through a number of key hires across our
offices.
Offshore and Offshore Renewables
Offshore oil and gas
The offshore oil and gas vessel
sector supports the development, production and support of offshore
oil and gas fields, with over 13,000 mobile vessels and rigs
playing a vital role in supporting operations across the lifecycle
of offshore energy projects. Our offshore broking team remained
very active through 2024, with markets strengthening further across
the first half of the year, before sentiment and rate levels eased
from all-time highs towards year-end. Overall, offshore project
investment remained relatively positive amidst a continued focus on
energy security, with oil projects in South America and West Africa
accounting for the majority of CAPEX (in total, an estimated
US$81bn). Rig vessel markets had a mixed 2024, with space in the
backlog and impacts from some contract suspensions being weathered
well initially, although dayrates eased across the second half amid
increased unit availability. However, underlying fleet supply
constraints should remain supportive in the medium and long term.
The OSV sector faced seasonal pressures in the second half,
following record markets earlier in the year. Subsea markets had
another strong year, and the backlog of leading EPC contractors is
today at record highs. Meanwhile, the MOPU sector made further
progress with a number of awards confirmed.
In the near term, there is some
uncertainty around demand trends and impacts from heightened
geo-political uncertainty. However, supply constraints are
generally set to remain a key supportive feature of offshore vessel
markets, with the newbuilding interest that materialised in 2024 in
some sectors relatively modest in scale.
Offshore renewables
The offshore renewables industry
continues to expand, and going forward is expected to account for a
growing share of the global energy mix supported by energy
transition and energy security trends. 2024 was generally a mixed
year for the offshore wind sector, with installed offshore wind
capacity continuing to expand but lower year-on-year project
sanctioning, with project economics becoming increasingly important
and political support being more varied across
geographies.
European wind vessel markets were
strong in 2024, with WTIV availability in the next few years
expected to remain tight, while C/SOV units were effectively fully
utilised in the summer. Although challenges remain, the long-term
outlook for the sector remains positive.
Our offshore renewables team
continued to utilise its expertise and network to support clients
through the evolving and growing market, and actively engaged in
discussions around technical green solutions and initiatives as
focus on the green transition continues to develop.
Futures
Our Futures business is a leading
provider of freight derivative products, helping shipping
companies, banks, investment houses and other institutions seeking
to manage freight exposure by increasing or reducing risk. The dry
futures market remains competitive but our team saw a strong end to
2024 and have increased market share in some key sectors. Our
tanker FFA team had a strong year, with disruption and volatility
supporting trading volumes, particularly in the first half of the
year.
Financial
Revenue: £42.6m (2023:
£44.1m)
Segmental split of underlying profit
before taxation: £5.2m (2023: £6.6m)
Securities
Clarksons Securities is a
sector-focused investment bank for the shipping, offshore energy,
renewables and minerals industries, with deep sector knowledge and
global reach driven by research and relationships. Despite facing a
more challenging economic backdrop, the division performed well
during the year. Increased activity in the debt and equity capital
markets offset some of the reduction in activity in M&A and
convertible bonds.
Secondary trading
Activity in the secondary trading
sector fell in the second half of the year on the back of reduced
investor risk appetite amid volatility and geo-political
uncertainty, as well as the ongoing strength in the primary credit
market. While total trading volumes for 2024 decreased on 2023, the
Clarksons Securities team was still able to execute an increased
number of blocks.
Shipping
The shipping industry experienced a
generally weak stock performance in 2024, whilst in terms of
capital market activity, listed shipping companies remained
disciplined and focused on returning capital to shareholders and
taking advantage of a strengthening bond market.
Energy services
The second half of the year began
with a sell-off in oil services stocks, erasing earlier gains, amid
lower oil prices and investor uncertainty. Capital markets activity
was lower in the second half, although Brazil's deepwater market
continued to show strength. Credit markets remained strong, and
M&A opportunities remained in focus.
Metals and minerals
2024 saw generally more positive and
stable trends in the metals and minerals sector after a volatile
2023. Clarksons Securities was actively engaged in several
transactions, particularly within the strong credit market and
M&A segment in the mining industry.
Renewable energies
Despite some challenges around
investor appetite in the renewables segment, underlying activity
continued to grow strongly, and investments generally continued to
be made, with clients valuing assistance in navigating growth and
financing options. Despite some delays to transaction execution in
certain subsectors, the renewables coverage team completed various
private M&A and equity transactions during 2024.
Exploration & Production ('E&P')
Capital market transactions in the
E&P sector were robust, encompassing both M&A and debt
activities. Clarksons Securities participated in several
transactions, and there is good momentum going into
2025.
Debt capital markets
The Nordic high-yield bond market
experienced strong growth in 2024, marking a record year in terms
of issuance volume and market activity, and both existing bond
issuers and new entrants capitalised on the favourable window.
Across the year, Clarksons Securities participated in transactions
across shipping, offshore and natural resources.
Project finance
Our project finance business is a
leading Nordic player within shipping and real estate project
finance, which has in recent years offered investment opportunities
in modern fuel (and carbon) efficient shipping and offshore assets,
with an overall focus on assisting the shipping and offshore
industry in transitioning to more sustainable and less
carbon-intensive transportation.
Our project finance team recorded
good results in 2024, with healthy investor interest in both
shipping and offshore projects supporting activity in the Norwegian
market. The attractions of the Norwegian partnership model
encouraged more shipowners to participate in the sector, and
projects were concluded across a range of vessel segments. There
remains good availability of competitive bank finance for
non-recourse projects, and investor interest remains
promising.
Structured asset finance
Our structured asset finance
business provides clients with both general advice and support on
specific financing and reporting requirements, helping industrial
clients and cargo owners to structure bespoke financial solutions
and evaluate the impact of changing accounting and environmental
regulations on the fulfilment of their shipping finance
requirements.
2024 was a successful year for our
structured asset finance team, with our expertise helping clients
to navigate the wide range of available financing choices and weigh
up various financial, legal, accounting, tax and risk transfer
implications. Our position as expert independent financial advisers
with a first-class execution track record helped us to develop new
capital sources and products to support our clients in a
fast-changing world.
The ship finance market generally in
2024 was characterised by owners lowering leverage and re-financing
existing facilities on lower margins as they reacted to having more
liquidity on improved earnings. This was countered slightly by a
higher interest rate environment during the first half, increased
liquidity costs and upward pressure on margins for some mainstream
traditional shipping banks.
The mortgage-backed debt market
appears as a three-tier market. The Poseidon Principles banks offer
lower margins than other sources but access to funding is usually
limited to blue chip borrowers for green vessels and/or projects.
However, savings remain relatively modest compared to more
conventional financing. Non-Poseidon banks remain a competitive
source of finance with fewer constraints, although pressure is
still growing to reduce portfolio emissions. Restrictions on
'financeable' assets have resulted in a growing third group of debt
lenders, represented by credit funds and providers of private
credit facilities, typically seeking higher margins and returns but
offering cashflow-driven leverage and with appetite for a wider
range of tonnage (including older vessels).
Leasing remains the other main
asset-backed finance product supporting the shipping sector, and
here too a tiered market is apparent. In the first tier are
products offered by some larger Chinese leasing companies, and
French and Japanese tax-based products. Generally attractive terms
led to a stable flow of leasing transactions through 2024. However,
many lessors were focused on preservation rather than active growth
of portfolios. The market also continues to be served by some of
the smaller Chinese and European leasing companies and some credit
funds. With typically higher margins, this sector has seen some of
the largest pre-payments over recent years, and financier responses
have included retrenching domestically and diversifying sectors (eg
offshore oil transactions).
Overall, there are plenty of
financing sources currently available for investments in
newbuilding and secondhand tonnage, with a focus on optimisation of
financing arrangements rather than securing funds. From a macro
perspective, the credit outlook in 2025 appears broadly neutral,
but there are a range of risks from Chinese and European economic
trends, uncertainty around US policy and geo-political
flashpoints.
Support
Revenue: £65.0m (2023:
£56.6m)
Segmental split of underlying profit
before taxation: £7.7m (2023: £6.4m)
Shortsea broking
Our specialist shortsea broking team
saw significantly increased revenue in 2024 despite softer freight
rates, with support from stronger UK grain imports amid a poor
harvest. The client base and team also continue to grow and
collaboration with the dry cargo shipbroking team within the
Broking division was enhanced.
Gibb Group
Gibb Group, the industry's leading
provider of PPE and MRO products and services and an experienced
supplier into the renewable energy sector, made very good progress
during 2024. This included expanding the business' offering in
several UK and mainland European locations, opening facilities in
the Far East to service regional offshore wind activity and
continued growth in recently opened facilities. Performance by Gibb
Medical and Rescue, which was acquired in early 2024, has exceeded
initial expectations.
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. Record
profits were achieved in 2024, supported by project income, strong
UK grain imports, growth in the aggregates business, oil and gas
decommissioning and offshore windfarm maintenance.
Stevedoring
Our stevedoring business, highly
experienced in loading and discharging bulk cargoes, saw impacts in
2024 from weaker UK grain exports, although increased rental income
from storage volumes of imported grain helped to offset the
decline.
Egypt agency
2024 was a challenging year for our
Egypt agency business, although the team still delivered solid
results. While the drop in Suez Canal transits due to vessel
attacks in the Red Sea impacted, increased Egyptian port calls, a
new strategic regional partnership and increased chartering
fixtures provided some support.
Research
Revenue: £24.5m (2023:
£21.9m)
Segmental split of underlying profit
before taxation: £9.5m (2023: £8.4m)
Clarksons Research, the data and
analytics arm of Clarksons, are market leaders in the provision of
independent data and intelligence around shipping, trade, offshore
and the maritime energy transition.
Millions of data points are
processed and analysed each day to provide trusted and insightful
intelligence to thousands of organisations across maritime,
supporting decision-making across our increasingly complex
markets.
Research performed encouragingly
over 2024. This continues a long-term growth trajectory,
facilitated by ongoing investments into our proprietary database,
the delivery of trusted insights and in the development of our
market-leading digital platform. Recurring revenue has now reached
90% of sales across a client base involving over 3,500 companies
and 15,000 platform users. Research has developed excellent client
penetration across all aspects of the maritime ecosystem, including
owners, financiers, yards, equipment suppliers, government
agencies, energy, cargo, traders, insurance and developers while
also expanding its position in Asia and other emerging
markets.
Besides its role as a
cash-generative and industry-leading intelligence provider,
Research also continues to support the Broking, Financial and
Support divisions and the Technology business with differentiating
data, research and profile. These synergies were successfully
enhanced in 2024.
Digital
Developments across our digital
platform included:
Shipping Intelligence Network
('SIN'), our
market-leading offering providing data and analysis tracking and
projecting shipping market supply and demand, freight, vessel
earnings, asset values and macro-economic data around trade flows
and global economic developments, experienced strong sales growth
in 2024. This was supported by well-received intelligence briefings
on the market impacts of Red Sea disruption, tariffs on car
imports, US East and Gulf Coast port strikes and the building
geo-political complexities in a seaborne trade matrix that reached
12.6bn tonnes in 2024 and experienced the fastest growth in
distance of trade for over 10 years. Our intelligence flow also
tracked many of the major themes in the shipping markets in 2024:
cross-market strength in dayrates, albeit with a softer tone in
some segments towards year-end; an energy security and energy
transition focus; volume growth in the 'gases'; additional tonne
mile demand from geo-political disruption; active S&P markets;
a strong flow of newbuild orders; and continued supply side
constraints despite some reactivation of shipyard
capacity.
World Fleet Register ('WFR') sales also grew strongly, as client interest in shipbuilding
capacity, alternative fuels and energy saving technologies
strengthened. Besides providing granular data on the world fleet,
vessel equipment, companies, shipyards and ports, the WFR focuses
on the tracking of green technology and decarbonisation across the
shipping industry, aligning with the broader Group's investments
around the green transition. New data and functionality around
ports, liner services, incidents and vessel deployment were added
to this offering in 2024.
Offshore Intelligence Network ('OIN')
provides data and analysis of utilisation,
dayrates and market supply and demand of the offshore oil and gas
fleet including rigs, OSVs, subsea and floating production.
Supported by strong client appetite as market conditions reached
all-time highs in some segments, sales also benefited from the
roll-out of regional and country profiles leveraging newly
developed utilisation and deployment data. Although market
conditions have softened in early 2025, offshore oil and gas still
supplies over 16% of global energy supply.
Renewables Intelligence Network ('RIN')
provides comprehensive data, intelligence and
analysis around every offshore wind farm in the world and the fleet
of vessels that support development and maintenance of offshore
wind farms. Despite mixed market conditions in 2025, with project
sanctioning down but vessel dayrates firm, offshore wind's
contribution to global energy supply has reached 0.4% and is
expected to play a key long-term role in global needs for both
energy transition and energy security. New data on cable
interconnectors, Power Purchase Agreements and vessel sector
utilisation, alongside a series of country briefings, were added to
the offering. Despite a strong competitive landscape, sales grew in
2024.
Seanet has been developed in
conjunction with the Clarksons technology business, Maritech. This
vessel movement system blends satellite, vessel and land-based AIS
data with the Clarksons Research database of vessels, ports and
berths. Investments into our underlying AIS data sources,
our processing stack and the expansion of cloud capacity were
made.
Services
Our dedicated services team,
managing data contracts and multi-year research agreements across
key corporates operating in maritime, was very active in 2024.
There was strong demand and uptake of our API offering, allowing
our powerful data to be embedded within the workflows of clients,
and also of our modelling of forecasts for trade, fleet
development, shipbuilding capacity and sector earning potential.
Our valuation offering remains the industry benchmark for trusted
valuations to the ship finance market, leveraging the expertise of
the world's largest shipbroker with the diligence and technology of
shipping's leading research unit. Investments into our valuation
technology offer has supported our banking and leasing clients in
monitoring of their portfolios and in meeting the needs of
regulators.
Investments into headcount focused
on our Asian operations, with expansion of our teams in Shanghai,
Singapore and Delhi. Our data analytics, digital development,
market analyst and business development teams were also expanded,
in part through our highly effective graduate programme. There have
been investments to fully digitalise workflows across business
development, account management, renewals, invoicing and KYC.
Research is actively pursuing investment opportunities.
Sea
Our technology arm, Sea, saw
continued progress and growth in its client base through 2024. Our
platform driving the digitalisation of freight and fixtures ('The
Intelligent Marketplace For Fixing Freight') is enabling
charterers, brokers and owners to benefit from seamless workflows,
access to the right data at the right time, and integrated
governance, leading to better optimisation of both dollars and
carbon when fixing freight.
A new Trade solution was launched in
2024, with existing clients migrated to a more modern technology
base, forming a solid foundation for the Sea platform and offering
a seamless workflow, faster iterations and one data structure.
Compliance Manager was also introduced in 2024, allowing users to
ensure compliance with increasingly complex regulations within the
fixture workflow.
The client base continued to grow
across our Intelligence, Contracts and Trade solutions, increasing
the benefits for all participants. The remaining clients from the
Mardocs acquisition in 2023 migrated to Recap Manager, providing
the tanker industry with a unified contract management system.
AI-powered features are being developed, which will act as
cognitive amplifiers throughout the platform, leaving users to
focus on the vital fixing process.
Meanwhile, our business unit
dedicated to contract management for commodity transactions (ICP
commodities) made inroads into new segments and onboarded a major
new grains client, while expanding the platform's functionality and
gearing for further expansion.
Risk management
Full details of our principal risks
and how we manage them will be included in the risk management
section of the 2024 Annual Report, together with our viability and
going concern 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 2024.
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
consolidated 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 7 March 2025 and is signed on
its behalf by:
Laurence Hollingworth
Chair
7 March 2025
Consolidated income statement
for the year ended 31
December
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
|
|
2023
|
|
|
|
Before
acquisition-
related
costs
£m
|
Acquisition-related
costs
£m
|
After
acquisition-
related
costs
£m
|
Before
exceptional items and
acquisition-
related
costs
£m
|
Exceptional items
£m
|
Acquisition-
related
costs
£m
|
After
Exceptional items and acquisition-
related
costs
£m
|
|
|
Revenue
|
661.4
|
-
|
661.4
|
639.4
|
-
|
-
|
639.4
|
|
|
Cost of sales
|
(33.7)
|
-
|
(33.7)
|
(30.4)
|
-
|
-
|
(30.4)
|
|
|
Trading profit
|
627.7
|
-
|
627.7
|
609.0
|
-
|
-
|
609.0
|
|
|
Administrative expenses
|
(526.0)
|
(3.2)
|
(529.2)
|
(508.8)
|
2.2
|
(2.6)
|
(509.2)
|
|
|
Operating profit/(loss)
|
101.7
|
(3.2)
|
98.5
|
100.2
|
2.2
|
(2.6)
|
99.8
|
|
|
Finance income
|
14.9
|
-
|
14.9
|
10.5
|
-
|
-
|
10.5
|
|
|
Finance costs
|
(1.9)
|
-
|
(1.9)
|
(2.2)
|
-
|
-
|
(2.2)
|
|
|
Other finance income -
pensions
|
0.6
|
-
|
0.6
|
0.7
|
-
|
-
|
0.7
|
|
|
Profit/(loss) before taxation
|
115.3
|
(3.2)
|
112.1
|
109.2
|
2.2
|
(2.6)
|
108.8
|
|
|
Taxation
|
(26.0)
|
0.2
|
(25.8)
|
(23.4)
|
0.3
|
0.1
|
(23.0)
|
|
|
Profit/(loss) for the year
|
89.3
|
(3.0)
|
86.3
|
85.8
|
2.5
|
(2.5)
|
85.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
Equity holders of the Parent
Company
|
87.9
|
(3.0)
|
84.9
|
83.8
|
2.5
|
(2.5)
|
83.8
|
|
|
Non-controlling interests
|
1.4
|
-
|
1.4
|
2.0
|
-
|
-
|
2.0
|
|
|
Profit/(loss) for the year
|
89.3
|
(3.0)
|
86.3
|
85.8
|
2.5
|
(2.5)
|
85.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
Basic
|
286.9p
|
|
277.1p
|
275.0p
|
|
|
275.2p
|
|
|
Diluted
|
284.9p
|
|
275.2p
|
273.5p
|
|
|
273.6p
|
|
Included in the consolidated income
statement are net impairment losses on financial assets amounting
to £1.3m (2023: £3.9m)
Consolidated statement of comprehensive
income
for the year ended 31
December
|
|
|
|
|
|
|
|
2024
£m
|
2023
£m
|
|
Profit for the year
|
|
86.3
|
85.8
|
|
Other comprehensive loss:
|
|
|
|
|
Items that will not be reclassified to
profit or loss:
|
|
|
|
|
Actuarial loss on employee benefit schemes
- net of tax
|
|
(0.9)
|
(1.6)
|
|
Items that may be reclassified subsequently
to profit or loss:
|
|
|
|
|
Foreign exchange differences on retranslation of foreign
operations
|
|
(12.4)
|
(17.5)
|
|
Foreign currency hedges recycled to
profit or loss - net of tax
|
|
0.1
|
2.1
|
|
Foreign currency hedge revaluations
- net of tax
|
|
(4.9)
|
5.7
|
|
Other comprehensive loss
|
|
(18.1)
|
(11.3)
|
|
Total comprehensive income for the year
|
|
68.2
|
74.5
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the Parent
Company
|
|
67.2
|
72.8
|
|
Non-controlling interests
|
|
1.0
|
1.7
|
|
Total comprehensive income for the year
|
|
68.2
|
74.5
|
Consolidated balance sheet
as at 31 December
|
|
|
2024
£m
|
2023
£m
|
|
Non-current assets
|
|
|
|
|
Property, plant and
equipment
|
|
28.5
|
28.5
|
|
Investment properties
|
|
1.0
|
1.0
|
|
Right-of-use assets
|
|
32.0
|
35.9
|
|
Intangible assets
|
|
172.6
|
182.9
|
|
Trade and other
receivables
|
|
1.0
|
4.4
|
|
Investments
|
|
1.9
|
1.3
|
|
Employee benefits
|
|
12.4
|
13.8
|
|
Deferred tax assets
|
|
18.1
|
16.8
|
|
|
|
267.5
|
284.6
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
|
4.3
|
3.3
|
|
Trade and other
receivables
|
|
130.5
|
147.5
|
|
Income tax receivable
|
|
4.5
|
1.2
|
|
Investments
|
|
62.2
|
40.1
|
|
Cash and cash equivalents
|
|
431.3
|
398.9
|
|
|
|
632.8
|
591.0
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
(326.4)
|
(339.4)
|
|
Lease liabilities
|
|
(10.6)
|
(10.4)
|
|
Income tax payable
|
|
(20.7)
|
(20.9)
|
|
Provisions
|
|
(1.0)
|
(0.6)
|
|
|
|
(358.7)
|
(371.3)
|
|
Net
current assets
|
|
274.1
|
219.7
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Trade and other payables
|
|
(6.8)
|
(3.2)
|
|
Lease liabilities
|
|
(27.5)
|
(32.8)
|
|
Provisions
|
|
(3.6)
|
(1.9)
|
|
Employee benefits
|
|
(0.1)
|
(0.4)
|
|
Deferred tax liabilities
|
|
(7.9)
|
(9.4)
|
|
|
|
(45.9)
|
(47.7)
|
|
Net
assets
|
|
495.7
|
456.6
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
|
Share capital
|
|
7.7
|
7.7
|
|
Other reserves
|
|
89.0
|
104.9
|
|
Retained earnings
|
|
395.3
|
340.0
|
|
Equity attributable to shareholders of the Parent
Company
|
|
492.0
|
452.6
|
|
Non-controlling interests
|
|
3.7
|
4.0
|
|
Total equity
|
|
495.7
|
456.6
|
Consolidated statement of changes in equity
for the year ended 31
December
|
|
Attributable to equity holders of the Parent
Company
|
|
|
|
|
Share
capital
£m
|
Other
reserves
£m
|
Retained
earnings
£m
|
Total
£m
|
Non-controlling
interests
£m
|
Total
equity
£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
|
|
Dividend
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
|
|
|
Attributable to equity holders of
the Parent Company
|
|
|
|
|
Share
capital
£m
|
Other
reserves
£m
|
Retained
earnings
£m
|
Total
£m
|
Non-controlling interests
£m
|
Total
equity
£m
|
|
Balance at 1 January 2023
|
7.7
|
114.8
|
287.2
|
409.7
|
3.5
|
413.2
|
|
Profit for the year
|
-
|
-
|
83.8
|
83.8
|
2.0
|
85.8
|
|
Other comprehensive loss
|
-
|
(9.4)
|
(1.6)
|
(11.0)
|
(0.3)
|
(11.3)
|
|
Total comprehensive (loss)/income
for the year
|
-
|
(9.4)
|
82.2
|
72.8
|
1.7
|
74.5
|
|
Transactions with owners:
|
|
|
|
|
|
|
|
Share
issues
|
-
|
1.9
|
-
|
1.9
|
-
|
1.9
|
|
Employee share
schemes
|
-
|
(2.4)
|
(1.1)
|
(3.5)
|
-
|
(3.5)
|
|
Tax on other
employee benefits
|
-
|
-
|
(0.2)
|
(0.2)
|
-
|
(0.2)
|
|
Tax on other
items in equity
|
-
|
-
|
0.1
|
0.1
|
-
|
0.1
|
|
Dividend
paid
|
-
|
-
|
(28.3)
|
(28.3)
|
(1.1)
|
(29.4)
|
|
Other
movements
|
-
|
-
|
0.1
|
0.1
|
(0.1)
|
-
|
|
Total transactions with
owners
|
-
|
(0.5)
|
(29.4)
|
(29.9)
|
(1.2)
|
(31.1)
|
|
Balance at 31 December
2023
|
7.7
|
104.9
|
340.0
|
452.6
|
4.0
|
456.6
|
Consolidated cash flow statement
for the year ended 31
December
|
|
|
|
|
|
|
|
2024
£m
|
2023
£m
|
|
Cash flows from operating activities
|
|
|
|
|
Profit before taxation
|
|
112.1
|
108.8
|
|
Adjustments for:
|
|
|
|
|
Foreign exchange
differences
|
|
(5.7)
|
6.8
|
|
Depreciation
|
|
15.0
|
14.7
|
|
Share-based payment
expense
|
|
2.5
|
1.9
|
|
Gain
on sale of property, plant and
equipment
|
|
(0.2)
|
(3.6)
|
|
Gain on sale of
investments
|
|
(0.4)
|
-
|
|
Amortisation of
intangibles
|
|
5.2
|
4.8
|
|
Difference between pension
contributions paid and amount recognised in the income
statement
|
|
0.4
|
0.6
|
|
Finance income
|
|
(14.9)
|
(10.5)
|
|
Finance costs
|
|
1.9
|
2.2
|
|
Other finance income -
pensions
|
|
(0.6)
|
(0.7)
|
|
Increase in
inventories
|
|
(0.8)
|
(0.9)
|
|
Decrease in trade and other
receivables
|
|
14.9
|
2.0
|
|
Increase in bonus
accrual
|
|
32.4
|
58.7
|
|
Decrease in trade and other payables
|
|
(22.2)
|
(7.2)
|
|
Increase in
provisions
|
|
2.3
|
0.1
|
|
Cash generated from operations
|
|
141.9
|
177.7
|
|
Income tax paid
|
|
(27.2)
|
(22.4)
|
|
Net
cash flow from operating activities
|
|
114.7
|
155.3
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Interest received
|
|
14.8
|
10.3
|
|
Purchase of property, plant and
equipment
|
|
(5.7)
|
(8.0)
|
|
Purchase of intangible
assets
|
|
(1.6)
|
(2.8)
|
|
Purchase of investments
|
|
(0.9)
|
(0.3)
|
|
Proceeds from sale of
investments
|
|
0.7
|
0.3
|
|
Proceeds from sale of property,
plant and equipment
|
|
0.4
|
3.9
|
|
Transfer to current investments
(cash on deposit and government bonds)
|
|
(22.1)
|
(36.8)
|
|
Acquisition of subsidiaries, net of
cash acquired
|
|
(2.5)
|
(5.3)
|
|
Dividends received from
investments
|
|
0.1
|
0.1
|
|
Net
cash flow from investing activities
|
|
(16.8)
|
(38.6)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Interest paid and other
charges
|
|
(1.8)
|
(2.0)
|
|
Dividend paid
|
|
(31.5)
|
(28.3)
|
|
Dividend paid to non-controlling
interests
|
|
(1.5)
|
(1.1)
|
|
Repayment of borrowings
|
|
-
|
(0.5)
|
|
Principal elements of lease
payments
|
|
(10.9)
|
(10.5)
|
|
Proceeds from shares
issued
|
|
1.2
|
1.9
|
|
Contributions from non-controlling
interests
|
|
0.2
|
-
|
|
ESOP shares acquired
|
|
(26.4)
|
(49.5)
|
|
Net
cash flow from financing activities
|
|
(70.7)
|
(90.0)
|
|
|
|
|
|
|
Net
increase in cash and cash equivalents
|
|
27.2
|
26.7
|
|
Cash and cash equivalents at 1
January
|
|
398.9
|
384.4
|
|
Net foreign exchange
differences
|
|
5.2
|
(12.2)
|
|
Cash and cash equivalents at 31 December
|
|
431.3
|
398.9
|
Notes to the preliminary financial
statements
1
Corporate information
The preliminary financial statements
of Clarkson PLC for the year ended 31 December 2024 were authorised
for issue in accordance with a resolution of the Directors on 7
March 2025. Clarkson PLC is a public limited company, listed on the
London Stock Exchange, incorporated and 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 2023 and 2024, but is derived from
those financial statements. Statutory financial statements for 2023
have been delivered to the Registrar of Companies and those for
2024 will be delivered following the Company's Annual General
Meeting. The External Auditor has reported on the financial
statements for 2023 and 2024; 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 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 exceptional items
and acquisition-related costs; this is referred to as 'underlying
profit'. Items which are non-recurring in nature and considered to
be material in size are shown as 'exceptional items'. 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
5.
Going concern
The Group has considerable financial
resources available to it, a strong balance sheet and has
consistently generated a profit and good cash inflows. 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 2027, modelling different assumptions with
respect to the Group's cash resources. Three different scenarios
were considered:
· Management
modelled the impact of a reduction in 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 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 2024, 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 positive 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. 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 2024
financial statements and has been prepared on a going concern
basis.
The Group has applied the following
amendments for the first time for the annual reporting period
commencing 1 January 2024:
·
Classification of Liabilities as Current or
Non-Current and Non-current liabilities with covenants - Amendments
to IAS 1;
·
Lease Liability in Sale and Leaseback - Amendments
to IFRS 16; and
·
Supplier Finance Arrangements - Amendments to IAS
7 and IFRS 7.
The amendments listed above did not
have any impact on the amounts recognised in prior periods and are
not expected to significantly affect the current or future
periods.
Certain new accounting standards,
amendments to accounting standards, and interpretations have been
published that are not mandatory for 31 December 2024 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, however, the way
information is presented in the primary statements may change with
the adoption of IFRS 18.
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
|
|
|
2024
£m
|
2023
£m
|
2024
£m
|
2023
£m
|
|
Broking
|
529.3
|
516.8
|
122.6
|
121.2
|
|
Financial
|
42.6
|
44.1
|
5.2
|
6.6
|
|
Support
|
65.0
|
56.6
|
7.7
|
6.4
|
|
Research
|
24.5
|
21.9
|
9.5
|
8.4
|
|
Segment revenue/profit
|
661.4
|
639.4
|
145.0
|
142.6
|
|
Head office costs
|
|
|
(43.3)
|
(42.4)
|
|
Operating profit before exceptional
items and acquisition-related costs
|
|
|
101.7
|
100.2
|
|
Exceptional items
|
|
|
-
|
2.2
|
|
Acquisition-related costs
|
|
|
(3.2)
|
(2.6)
|
|
Operating profit after exceptional
items and acquisition-related costs
|
|
|
98.5
|
99.8
|
|
Finance income
|
|
|
14.9
|
10.5
|
|
Finance costs
|
|
|
(1.9)
|
(2.2)
|
|
Other finance income -
pensions
|
|
|
0.6
|
0.7
|
|
Profit before taxation
|
|
|
112.1
|
108.8
|
|
Taxation
|
|
|
(25.8)
|
(23.0)
|
|
Profit for the year
|
|
|
86.3
|
85.8
|
4
Exceptional items
There were no exceptional items in
2024.
In December 2023, the Group
completed the sale of an industrial unit, which resulted in a gain
of £3.5m, after transaction fees and costs. The Group donated £1.3m
of the proceeds to The Clarkson Foundation. The net gain of £2.2m
is shown as an exceptional item in 2023.
5
Acquisition-related costs
Included in acquisition-related
costs is £0.5m (2023: £0.2m) relating to the amortisation of
intangibles acquired and £1.2m (2023: £0.3m) of charges relating to
previous acquisitions.
Also included is £0.3m (2023: £0.3m)
relating to the amortisation of intangibles acquired and £1.1m
(2023: £1.6m) of charges relating to current year
acquisitions.
Included in administrative expenses
is £0.1m (2023: £0.2m) of transaction costs relating to
acquisitions in the current year.
6
Taxation
The major components of the income
tax charge in the consolidated income statement are:
|
|
2024
£m
|
2023
£m
|
|
Profit before taxation at UK average
standard rate of corporation tax of 25.0% (2023: 23.5%)
|
28.0
|
25.6
|
|
Expenses not deductible for tax
purposes
|
2.7
|
2.4
|
|
Non-taxable income
|
-
|
(1.2)
|
|
Lower tax rates on overseas
earnings
|
(4.9)
|
(3.3)
|
|
Other
|
-
|
(0.5)
|
|
Total tax charge in the income
statement
|
25.8
|
23.0
|
7
Earnings per share
Basic earnings per share amounts are
calculated by dividing profit for the year attributable to ordinary
equity holders of the Parent Company by the weighted average number
of ordinary shares in issue during the year.
Diluted earnings per share amounts
are calculated by dividing profit for the year attributable to
ordinary equity holders of the Parent Company by the weighted
average number of ordinary shares in issue during the year, 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 following reflects the income
and share data used in the basic and diluted earnings per share
computations:
|
|
2024
£m
|
2023
£m
|
|
Underlying profit for the year
attributable to ordinary equity holders of the Parent
Company*
|
87.9
|
83.8
|
|
Reported profit for the year
attributable to ordinary equity holders of the Parent
Company*
|
84.9
|
83.8
|
|
|
2024
Million
|
2023
Million
|
|
Weighted average number of ordinary
shares - basic
|
30.7
|
30.5
|
|
Weighted average number of ordinary
shares - diluted
|
30.9
|
30.7
|
8
Dividends
The Board is recommending a final
dividend of 77p (2023: 72p), giving a total dividend of 109p (2023:
102p).
9
Intangible assets
On 5
February 2024, Gibb Group Limited acquired 100% of the share
capital of Trauma & Resuscitation Services Limited. The initial
cash consideration was £2.0m, with a further £0.3m paid during the
year. An additional maximum deferred consideration (including
earn-out) of £3.3m is payable.
On 31
May 2024, Clarkson Port Services Limited entered into an Asset
Purchase Agreement with Independent Shipping Agencies Limited. The
initial cash consideration was £0.1m, with additional maximum
deferred consideration (including earn-out) of £0.2m.
On 20
September 2024, Gibb Group Limited entered into an Asset Purchase
Agreement with Wind Farm Equipment Limited. The initial
consideration was £0.7m.
The
above acquisitions resulted in goodwill of £0.3m.
10 Investments
Included
within current investments are deposits totalling £62.0m (2023:
£37.8m) with maturity periods greater than three
months.
11 Cash and cash equivalents
|
|
|
|
2024
£m
|
2023
£m
|
|
Cash at bank and in hand
|
|
|
234.5
|
281.2
|
|
Short-term deposits
|
|
|
196.8
|
117.7
|
|
|
|
|
431.3
|
398.9
|
12
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
|
|
|
2024
£m
|
2023
£m
|
|
Fair value of schemes'
assets
|
|
119.4
|
131.3
|
|
Present value of funded defined
benefit obligations
|
|
(105.3)
|
(115.5)
|
|
|
|
14.1
|
15.8
|
|
Effect of asset ceiling in relation
to the Plowrights scheme
|
|
(1.8)
|
(2.4)
|
|
Net benefit asset recognised in the
balance sheet
|
|
12.3
|
13.4
|
The above is recognised on the
balance sheet as an asset of £12.4m (2023: £13.8m) and a liability
of £0.1m (2023: £0.4m).
A deferred tax asset on the benefit
liability amounting to £nil (2023: £nil) and a deferred tax
liability on the benefit asset of £3.1m (2023: £3.5m) is also
recognised on the balance sheet.
Recognised in the income
statement
|
|
|
|
|
|
2024
£m
|
2023
£m
|
|
Recognised in other finance income -
pensions:
|
|
|
|
Expected return on
schemes' assets
|
6.1
|
6.5
|
|
Interest cost on
benefit obligation and asset ceiling
|
(5.5)
|
(5.8)
|
|
Recognised in administrative
expenses:
|
|
|
|
Schemes' administrative
expenses
|
(0.8)
|
(1.0)
|
|
Net benefit charge recognised in the
income statement
|
(0.2)
|
(0.3)
|
13
Share capital
|
|
Million
|
2024
£m
|
Million
|
2023
£m
|
|
Ordinary shares of
25p each, issued and fully
paid
|
30.8
|
7.7
|
30.7
|
7.7
|
During the year, the Company issued
52,737 shares (2023: 103,388) in relation to the ShareSave
scheme.
14
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.
15
Related party disclosures
The Group's significant related
parties will be disclosed in the 2024 Annual Report. There were no
material differences in related parties or related party
transactions in the year, from the year ended 31 December
2023.
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 exceptional items and 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.
|
|
|
2024
|
2023
|
|
|
|
£m
|
£m
|
|
Reported profit before taxation
|
|
112.1
|
108.8
|
|
Less exceptional items
|
|
-
|
(2.2)
|
|
Add back acquisition-related
costs
|
|
3.2
|
2.6
|
|
Underlying profit before taxation
|
|
115.3
|
109.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying effective tax
rate
Reconciliation of reported effective tax rate to underlying
effective tax rate.
|
|
|
2024
|
2023
|
|
|
|
%
|
%
|
|
Reported effective tax rate
|
|
23.0
|
21.1
|
|
Adjustment relating to exceptional
items
|
|
-
|
0.7
|
|
Adjustment relating to
acquisition-related costs
|
|
(0.5)
|
(0.4)
|
|
Underlying effective tax rate
|
|
22.5
|
21.4
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
2024
|
2023
|
|
|
|
£m
|
£m
|
|
Reported profit attributable to equity holders of the Parent
Company
|
|
84.9
|
83.8
|
|
Less exceptional items
|
|
-
|
(2.5)
|
|
Add back acquisition-related
costs
|
|
3.0
|
2.5
|
|
Underlying profit attributable to equity holders of the Parent
Company
|
|
87.9
|
83.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying basic earnings per
share
Reconciliation of reported basic earnings per share to
underlying basic earnings per share.
|
|
|
2024
|
2023
|
|
|
|
Pence
|
Pence
|
|
Reported basic earnings per share
|
|
277.1
|
275.2
|
|
Less exceptional items
|
|
-
|
(8.4)
|
|
Add back acquisition-related
costs
|
|
9.8
|
8.2
|
|
Underlying basic
earnings per share
|
|
286.9
|
275.0
|
|
|
|
|
|
|
Underlying administrative
expenses
Reconciliation of reported administrative expenses to
underlying administrative expenses for the year.
|
|
|
2024
|
2023
|
|
|
|
£m
|
£m
|
|
Reported administrative expenses
|
|
529.2
|
509.2
|
|
Add back exceptional
items
|
|
-
|
2.2
|
|
Less acquisition-related
costs
|
|
(3.2)
|
(2.6)
|
|
Underlying administrative expenses
|
|
526.0
|
508.8
|
|
|
|
|
|
|
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.
|
|
|
2024
|
2023
|
|
|
|
£m
|
£m
|
|
Cash and cash equivalents as reported
|
|
431.3
|
398.9
|
|
Add cash on deposit and government
bonds included within current investments
|
|
62.0
|
39.9
|
|
Less amounts reserved for bonuses
included within current trade and other payables
|
|
(249.6)
|
(237.7)
|
|
Net
cash and available funds
|
|
243.7
|
201.1
|
|
|
|
|
|
|
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.
|
|
|
2024
|
2023
|
|
|
|
£m
|
£m
|
|
Cash and cash equivalents as reported
|
|
431.3
|
398.9
|
|
Add cash on deposit and government
bonds included within current investments
|
|
62.0
|
39.9
|
|
Less amounts reserved for bonuses
included within current trade and other payables
|
|
(249.6)
|
(237.7)
|
|
Less net cash and available funds
held in regulated entities
|
|
(27.4)
|
(25.7)
|
|
Free cash resources
|
|
216.3
|
175.4
|
|
|
|
|
|
|
