Clarkson (CKN) Trading Update summary

Current trading and market environment

• Heightened uncertainty due to political changes, regional conflicts, trade tensions, tariffs, sanctions, inflation, and shifting monetary policy.

• US Government introduced extensive global tariffs on 2 April 2025, followed by a 90-day pause on most reciprocal tariffs except with China, and new fees on Chinese vessels.

• Escalating trade war fears have led to US dollar spot broking negotiations running 7% below expectations year-to-date.

• US dollar has declined against most global currencies, impacting broking revenue as most is earned in USD.

• If current exchange rates persist, profits could be reduced by £9.5m compared to previous expectations.

Financial outlook and guidance

• Board now expects 2025 underlying profit before tax to be in the range of £85m to £95m at current exchange rates.

• Results for 2025 are anticipated to be weighted towards the second half of the year.

• Demand for Clarksons research products is high as clients seek advice amid market turbulence.

• The Group remains committed to its established strategy and continues to support clients through market complexities.

Resilience and strategic positioning

• Clarksons is well positioned to navigate macroeconomic uncertainty due to strong customer relationships, market data, sector/geographic diversification, and a robust order book.

• Variable cost base, strong balance sheet, and high free cash flow support resilience.

• The business has a track record of navigating crises such as the global financial crisis, Covid-19, and Brexit.

• 22 years of consecutive dividend growth and continued investment position Clarksons to capitalize on market opportunities.