Final Results - Clarksons · information contained in the presentation may be disclosed to, or used...
Transcript of Final Results - Clarksons · information contained in the presentation may be disclosed to, or used...
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Final Results 31 December 2014
9 March 2015
Clarkson PLC
Final Results
www.clarksons.com
Agenda
Clarksons 2014 results
The RS Platou acquisition
RS Platou 2014 performance
Business Model & Strategy
The market
Outlook
9 March 2015 Final Results 2
www.clarksons.com 3
Clarksons Results for 2014
9 March 2015 Final Results
www.clarksons.com 9 March 2015 Final Results 4
Results Summary
2014 £m
2013 £m
Change %
Revenue 237.9 198.0 +20%
Profit before taxation (Before exceptional item and acquisition costs) 33.8 25.1 +35%
Exceptional item (1.6) (1.0)
Acquisition costs (7.0) (2.1)
Profit before taxation (After exceptional item and acquisition costs) 25.2 22.0
Earnings per share (Before exceptional item and acquisition costs) 134.2p 98.0p +37%
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Revenue by half year
5
Broking, £73.4m
Broking, £86.9m Broking, £84.5m
Broking, £98.9m
Financial, £3.9m
Financial, £7.7m Financial, £8.4m
Financial, £7.1m
Support, £8.8m
Support, £10.9m Support, £15.7m
Support, £16.2m
Research, £4.6m
Research, £5.1m Research, £4.7m
Research, £5.7m
H1 2013 H2 2013 H1 2014 H2 2014
£90.7m
£110.6m £113.3m
£127.9m
9 March 2015 Final Results
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Revenue
6
£241.2m
£201.3m
Financial +£3.9m or 33.6%
Support +£12.2m or 61.9%
Broking +£23.1m or 14.4%
Research +£0.7m or 7.2%
9 March 2015 Final Results
£160.3m
£183.4m
£11.6m
£15.5m
£19.7m
£31.9m
£9.7m
£10.4m
2013 2014
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Divisional performance - Result
2013 £m
2014 £m
%
Broking 27.5 34.1 +24.0%
Financial (3.3) (1.4) +57.5%
Support 3.1 4.0 +29.0%
Research 3.0 3.5 +16.7%
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Net Funds
Dec 2014 £m
Dec 2013 £m
Cash and cash equivalents 152.9) 96.9
Current investments 25.3) 25.2
Reserved for bonus (full cost) (62.5) (47.1)
Net cash 115.7) 75.0
Borrowings -) -
Net available funds* 115.7) 75.0
Cash Consideration on Acquisition (23.4) -
Net available funds 92.3) 75.0
Reserved for dividend (11.7) (6.9)
9 March 2015 * Includes placing proceeds of £30.6m
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Movement in Net Funds
9
30.6
(7.7)
75.0 (10.8)
(2.0) (1.9)
3.7
33.3 (4.5)
115.7
Net Funds Dec13
Dividend Taxation Pension Capex Debtors /Creditors
Profit Acquisitions(net)
Placingproceeds
Net Funds Dec14
9 March 2015 Final Results Final Results
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Balance Sheet
2008
£m
2009
£m
2010
£m
2011
£m
2012
£m
2013
£m
2014
£m
Fixed Assets 29.1 27.4 21.6 21.3 23.5 21.9 23.4
Intangibles 32.3 32.5 32.7 40.3 39.8 40.2 40.4
61.4 59.9 54.3 61.6 63.3 62.1 63.8
Investments 16.1 14.9 13.2 1.9 1.9 1.8 1.9
Working Capital (22.0) (9.3) (12.8) (4.7) (5.0) 0.6 (3.8)
Net Funds 38.4 38.2 62.5 71.1 75.2 75.0 115.7
16.4 28.9 49.7 66.4 70.2 75.6 111.9
32.5 43.8 62.9 68.3 72.1 77.4 113.8
Net Assets before pensions 93.9 103.7 117.2 129.9 135.4 139.5 177.6
Pensions 8.5 (6.9) (0.8) (6.6) (9.4) (1.8) (10.3)
Net Assets 102.4 96.8 116.4 123.3 126.0 137.7 167.3
9 March 2015
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Dividends
6 7 9 10 12 14 16 16 17 18 18 19 21 9 11
16
22
24
26 26 27
30 32 33
37
39
0
5
10
15
20
25
30
35
40
45
50
55
60
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Pe
nce
pe
r S
ha
re
Interim Final
9 March 2015
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Forward Order Book (for invoicing in the following year)
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2014* US$m
2013* US$m
Total FOB 110 100
*Best estimates of deliverable FOB
Final Results
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Details of the Acquisition A reminder
9 March 2015 Final Results
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Details of the transaction
Clarksons acquired 100% of the issued share capital of Platou
Restrictions on sale 1/3rd released on 1st anniversary
1/3rd released on 2nd anniversary
1/3rd released on 3rd anniversary
Loan Notes ½ repayable on 30th June, 2016
½ repayable on 30th June, 2017
Conditions Regulatory approvals
Shareholder approval
Additional employment related retention mechanisms
% Amount £m
Shares 75.00% £210.83
Cash 8.34% £23.44
Loan Notes 16.66% £46.83
Total £281.10
Completion took place on 2nd February, 2015 – 2 months earlier than anticipated due to quicker regulator response
Amount Shares
Shares before transaction 18,984,691
Shares issued in the placing 1,613,698
Shares issued at completion 9,518,369
Total Issued share capital 30,116,758
Issued Share Capital
Final Results 9 March 2015 14
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Board of Directors (post completion)
James Hughes-Hallett Non Executive Chairman
Andi Case Chief Executive Officer
Peter M. Anker President Broking & Banking
Jeff Woyda Chief Financial Officer
Peter Backhouse Non Executive Director
Senior Independent Director
Ed Warner Non Executive Director
Chair Remuneration Committee
James Morley Non Executive Director
Chair Audit Committee
Birger Nergaard Non Executive Director
Final Results 9 March 2015 15
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RS Platou Results for 2014
Final Results 9 March 2015
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Platou group underlying and continuing results
9 March 2015
Continuing
12 months to
31 Dec 2013
£m
Continuing
12 months to
31 Dec 2014 (unaudited)
£m
Revenue 132.7 115.3
Administrative expenses (99.1) (87.7)
Operating Profit 33.6 27.6
Finance revenue 1.2 2.1
Finance costs (2.0) (1.4)
Other finance costs - (0.6)
Profit before taxation 32.8 27.7
Taxation (10.2) (7.5)
Profit for the period 22.6 20.2
Minority interest (3.7) (2.0)
18.9 18.2
Minority interest acquired 1.0
Final Results 17
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Platou group underlying and continuing results
9 March 2015
Continuing
12 months to
31 Dec 2013
£m
Continuing
12 months to
31 Dec 2014 (unaudited)
£m
Continuing
12 months to
31 Dec 2013
Constant
Currency
£m
Continuing
12 months to
31 Dec 2014 (unaudited)
Constant
Currency
£m
Increase/
(Decrease)
%
Revenue 132.7 115.3 126.2 115.3
Administrative expenses (99.1) (87.7) (95.8) (87.7)
Operating Profit 33.6 27.6 30.3 27.6
Finance revenue 1.2 2.1 1.2 2.1
Finance costs (2.0) (1.4) (2.0) (1.4)
Other finance costs - (0.6) - (0.6)
Profit before taxation 32.8 27.7 29.5 27.7
Taxation (10.2) (7.5) (9.2) (7.5)
Profit for the period 22.6 20.2 20.4 20.2
Minority interest (3.7) (2.0) (3.3) (2.0)
18.9 18.2 17.1 18.2 + 6.4%
Minority interest acquired 1.0 1.0
Final Results 18
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Combined Results (Underlying)
9 March 2015 Final Results 19
Clarksons
12 months to
31 Dec 2014
£m
Platou
Continuing
12 months to
31 Dec 2014 (unaudited)
£m
Combined
Continuing
12 months to
31 Dec 2014
£m
Profit Before Tax 33.8 27.7 61.5
Profit after Tax 25.1 20.2 45.3
Minority Interest - (2.0) (2.0)
Minority Interest Acquired - 1.0 1.0
Retained Profit 25.1 19.2 44.3
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Business Model Reinforced…
Final Results 9 March 2015
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The heart of
global shipping…
Enabling global
trade
9 March 2015 Final Results
www.clarksons.com 22
Enhanced Global Presence
A Houston
B New York
C Casablanca
D London
E Rotterdam
F Geneva
G Genoa
H Oslo
I Uppsala
J Hamburg
K Athens
L Johannesburg
M Alexandria
N Cairo
O Dubai
P New Delhi
Q Singapore
R Hong Kong
S Shanghai
T Perth
U Melbourne
V Aberdeen
New Offices
X Rio De Janiero
Y Moscow
Z Cape Town
Final Results 9 March 2015
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The Markets
23 9 March 2015 Final Results
www.clarksons.com 24
ClarkSea Index
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
55.0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Average Maximum Minimum
Average
13,568
13,315
9,786
11,081
11,883
13,800
12,256
13,424
11,336
9,840
16,848
15,431
10,626
18,953
30,753
27,785
24,661
32,969
32,954
11,711
15,721
12,947
9,586
10,442 11,800
Maximum
17,736
18,185
12,040
12,023
15,116
14,456
13,609
15,098
12,250
11,150
23,160
24,350
16,720
28,390
44,140
33,910
29,330
50,710
50,690
16,320
20,420
15,890
12,485
17,141 16,684
Minimum
11,218
11,150
8,608
9,838
10,772
13,295
10,923
11,980
9,850
8,650
11,340
8,920
8,870
15,690
23,420
19,230
18,860
25,280
13,740
7,730
13,060
10,980
7,523
7,574 9,175
9 March 2015 Final Results
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Data Source: Clarkson Research Services
World Seaborne Trade
1990-2014
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Data Source: Clarkson Research Services, data prior to 1996 does not include retrospective changes and certain estimates.
10 Year CAGR (2004-2014)
6.6%
c. 200 Public
Companies
$1 trillion
fleet
37% of tonnage
public c. 300
companies
20% of
tonnage
public
Shipping Fleet Development
1990-2015
26 Final Results 9 March 2015
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Outlook
9 March 2015 Final Results 27
The heart of global shipping…
Enabling global trade
1. Execution of Strategy
2. Integration
3. Focus on further volume growth
4. Increased volatility
5. Increased FOB
6. Oil price caution
7. Capital markets opportunities
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Disclaimer
9 March 2015 Final Results 28
THIS PRESENTATION IS CONFIDENTIAL AND IS SOLELY FOR THE USE OF THE RECIPIENT. NEITHER THE WHOLE NOR ANY PART OF THE INFORMATION CONTAINED IN THE PRESENTATION MAY BE DISCLOSED TO, OR USED OR RELIED UPON BY, ANY OTHER PERSON OR USED FOR ANY OTHER PURPOSE WITHOUT THE PRIOR WRITTEN CONSENT OF CLARKSON PLC (CLARKSONS).
THE INFORMATION CONTAINED IN THE PRESENTATION, AND UPON WHICH THE PRESENTATION IS BASED, HAS BEEN DERIVED FROM PUBLICLY
AVAILABLE INFORMATION. NONE OF THE INFORMATION ON WHICH THE PRESENTATION IS BASED HAS BEEN INDEPENDENTLY VERIFIED BY ANY MEMBER OF CLARKSONS NOR ANY OF ITS CONNECTED PERSONS. ACCORDINGLY, NO MEMBER OF CLARKSONS NOR ANY OF ITS CONNECTED PERSONS MAKE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE ACCURACY OF THE INFORMATION CONTAINED IN THE PRESENTATION, OR ON WHICH THE PRESENTATION IS BASED, OR THAT THIS INFORMATION REMAINS UNCHANGED AFTER THE ISSUE OF THE PRESENTATION.
THE PRESENTATION IS NOT TO BE CONSTRUED AS CARRYING THE ENDORSEMENT OF CLARKSONS OR ANY OF ITS CONNECTED PERSONS.
CONSEQUENTLY, NEITHER CLARKSONS NOR ANY OF ITS CONNECTED PERSONS CAN BE HELD LIABLE TO ANY PERSON TO WHOM INFORMATION DERIVED FROM THE PRESENTATION IS MADE AVAILABLE FOR THE ACCURACY OF THE INFORMATION CONTAINED IN IT.
THE PRESENTATION IS NOT INTENDED TO RECOMMEND ANY STRATEGIC DECISION BY THE COMPANY AND SHOULD NOT BE CONSIDERED AS A
RECOMMENDATION SUPPORTING ANY OF THE OPTIONS DISCUSSED HEREIN BY ANY MEMBER OF CLARKSONS OR ANY OF ITS CONNECTED PERSONS TO ANY RECIPIENT OF THE INFORMATION. EACH PERSON TO WHOM THE INFORMATION IS MADE AVAILABLE MUST MAKE THEIR OWN INDEPENDENT ASSESSMENT OF THE OPTIONS AVAILABLE.
NOTHING IN THE PRESENTATION IS, OR SHOULD BE RELIED UPON AS, A PROMISE OR REPRESENTATION AS TO THE FUTURE.
Clarkson PLC ST. MAGNUS HOUSE, 3 LOWER THAMES STREET, LONDON, EC3R 6HE
TELEPHONE +44 (0) 207-334-0000