There is disclosed an axial flow machine (10) comprising an annular flow path (23); a stator ring (38) comprising a plurality of stators mounted at their radially outer ends and extending into the annular flow path (23); a non-rotating body (24) axially adjacent the stator ring (38); and an annular shroud (42) disposed between the radially inner end of the stator ring (38) and the body (24). The shroud (42) is supported on the stator ring (38) and moveable relative the body (24); and the shroud (42) cooperates with the body (24) to inhibit a flow through a clearance pathway (78) therebetween.