23rd May 2007 11:00
Clarkson PLC23 May 2007 23 May 2007 CLARKSON PLC AGM Trading Update At the Annual General Meeting to be held in London today, the Chief ExecutiveRichard Fulford-Smith will make the following statement: Trading Since we announced our Preliminary Results on 26 March, trading conditions havecontinued to exceed management's expectations. Our ship-broking business isbenefiting from the record forward order book at the beginning of the year andcontinues to see good volumes of business being written at freight rates whichhave exceeded expectations in most market segments. Our strengthened presencein sale and purchase is already generating significantly more new business bothfor invoicing this year and in future years. We were pleased to announce on 17 May, the acquisition of the remaining 51%interest in Cofimar that we did not already own. With our complementary clientbases, the full integration of this business will benefit the group's dry cargooperations. Today, we are announcing that the Group has signed an agreement to acquire theremaining 50% interest in LNG Shipping Solutions Limited from Barry RoglianoSalles for a total consideration of US$2.0 million to be settled in cash. Thisarea of business was highlighted in our Report & Accounts as being a growthbusiness for the future. In addition to strengthening our core broking business, we continue to make goodprogress on our strategy to further spread our base of business, always withinshipping and shipping related products. The fund management operation hascontinued to grow and now has US$63 million under management. In addition tothe new investors the fund has attracted since the end of March, we are verypleased to announce that it has yielded 19.23%, net of fees, in its first fullyear of operations. We are very encouraged by both the fund's performance andcontinued interest from new investors. In addition to launching our hedge fund, we have spread further our base throughthe establishment of a financial and technical services business. Our marketleading position in global shipping services, combined with our extensive marketintelligence and research operations, provides Clarkson with a uniqueopportunity to leverage this position. We expect further developments in thisarea over the coming months. Board Rob Ward retired as Finance Director on 31 December after nearly 16 years withClarksons. I am sure you will all join me in expressing our thanks andappreciation for his sterling work in that period. As you will also be aware,Jeff Woyda joined the company and the Board on 1 November and assumed Rob's roleas Finance Director from 1 January. As announced on 20 April, Martin Watson, the Senior Non Executive Director, feltit appropriate to resign due to a possible conflict of interest arising from theSovcomflot threatened legal action. Martin Clark has taken over the position ofSenior Non-Executive Director and Bob Benton has become Chairman of theRemuneration Committee. Litigation As announced on 20 April, Clarkson's subsidiary H Clarkson & Company was placedon notice that it would be joined as a defendant in High Court action brought bythe Russian state-owned shipping company, Sovcomflot. Additionally, the Companywas served notice of a claim against it brought by a subsidiary of Novoship, theRussian shipping company which has recently announced it will merge withSovcomflot. The total amended claims in these cases are now US$67 million(previously US$54 million) and Clarksons will strongly defend its positionagainst both. We continue to build our defence against these cases as our viewis that both are about litigation between powerful Russian interests in whichClarksons has been caught up as a third party. We will continue to update themarket as appropriate. Conclusion Our business activities are performing in line with expectations and we remainwell placed to deliver renewed growth in 2007. Enquiries: Clarkson PLC 020 7334 0000Richard Fulford-Smith, Chief Executive OfficerJeff Woyda, Finance Director Quiller Consultants 020 7233 9444John Eisenhammer/Nick Dunne This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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