About Clarkson PLC & my KCQs 2

Clarkson PLC  Annual Reports 2012, 2011 & 2010

http://www.clarksons.com/media/938463/Annual%20Report%202012.pdf
http://www.clarksons.com/media/2220/2011_annual_report.pdf
http://www.clarksons.com/media/21072/2010_annual_report.pdf

Annual Reports: What does it mean to me ???

Results from a specific year activities of an entity.  Also, the entity follows the game of rules such as accounting standards for preparing their annual report each year.  This company is an English public company.  Thus, they have to follow some specific accounting standards based on international standards.  Their Annual Report can be relevance, comparability, verifiability, timeliness and understandability.  These concepts help for users who are employees, investors, creditors, banks, governments and more external people for general purpose.  In addition, Annual Report does not only show profits and loss in a year but also demonstrates external influences activities such as environmental issues, corporate governance and their facing challenges for the entity's responsibilities.  I think an annual report is crucial role of an entity for representing whole the entity's result.  The annual report is influenced by whole society and numerous elements that very interesting and complicated. 

Clarkson PLC challenges

Clarkson PLC faces tough situations were impacted by global economic crisis.  In 2012 this
company annual report, they said that broking division's demands were decline.  Thus, this section influenced the section revenue related in other divisions' demands and revenue were decline.  However, their business does not only provide shipping services.  They will be able to provide other related good services.  They did not understand their clients and their market's demands and supplies well.  They have to understand it, too for providing good services.  They expect Gases such as LPG and LGC demands are increase more.  Their financial division is very tough at the moment.  They are trying to develop a variety of alternative financing structures and investment services for unique and true value to provide their clients. 

In their annual report, there are various risks. 
Credit : collecting accounting receivables from their clients
Liquidity: they need strong cash flow for foreseeable requirements.
Foreign exchange: their business operates with foreign currency.  Changing foreign currency impacts on their assets revaluation and borrowings.
Interest rate: The group has no borrowings.  Monies held on longer 95 and 100 day notice accounts earn interest based on a margin above LIBOR, the actual interest rate is reset each month.
This risk does not make sense for me.  What does it mean, actually?
Reputations: they are trying to operate ethically and legally through trainings employees
Operational: Numerous causes such as people, systems, external influences or failed processes create direct or indirect losses.


Clarkson PLC strategy

They have a clear strategy based on 6 key objectives.

1. Breadth: they provide a wide range of integrated services
2. Reach: they support their clients in all the world's key regions
3. Trust: they are the trusted source of essential shipping information
4. Understanding: they build long-term relationships with their clients
5. People: they empower everybody at Clarksons to fulfill their potential
6. Growth: they grow value for shareholders

Their strategy is for their stakeholders such as employees, customers and shareholders.  Company has to make positive benefits for stakeholders in particularly shareholders.  However, they should not provide untrust information and treat employees unfair just for making positive benefits of the company.