Final Results

Clarke(T.) PLC 07 March 2003 T. Clarke plc ROBUST T. CLARKE ON THE ACQUISITION TRAIL T. Clarke plc, the electrical engineering and contracting company, has announced its preliminary results for the year ended 31 December 2002. • Operating profit up to £10.18 million (2001: £7.86 million) • Pre-tax profits up 28% to £10.79 million (2001: £8.42 million) • Turnover increased by 9% to £143.99 million (2001: £131.79 million) • Acquisition of three regional businesses completed • Earnings per share up to 56p (2001: 43.8p) • Ordinary dividends up by 25% to 25p (2000: 20p) • Net cash balance £22.0 million Current work includes: BBC, White City BBC Mailbox, Birmingham Bank of America, Canary Wharf VISA, Paddington Central King's Academy, Middlesborough New work includes: RAF Lakenheath HM Treasury East 199 Knightsbridge Peter Jones, Sloane Square Wellcome Trust, Euston Road Russell Race, Chairman commented: ' 2002 was a cracking year for T. Clarke. We have delivered record results and built the scale and diversity of the Group considerably. We have strengthened our regional coverage with the acquisition of three thriving businesses and we anticipate growing the proportion of our work derived from the public sector. ' Looking to the future, the Group is confident that it will continue to win good quality work across all sectors. T. Clarke has an extremely strong Balance Sheet, which gives us the flexibility and resources to invest in acquisitions as opportunities arise, which will maintain the growth of the Group.' -ends- Date: 7 March 2003 For further information contact: T. Clarke plc City Profile Group Pat Stanborough, Chief Executive Simon Courtenay John Daly, Finance Director Ed Senior Tel: 020-7358-5000 Tel: 020-7448-3244 Web: www.tclarke.co.uk e-mail: simon.courtenay@city-profile.com Chairman's Statement Results for 2002 The last year witnessed further significant progress by the Group. Turnover increased by 9% to £143.99M (5% excluding new acquisitions), whilst profit before tax advanced by 28% to £10.79M. Operating profit is stated after allowing for costs of £938,000 in the year, including costs of acquiring new subsidiaries, amortisation of goodwill and a further £250,000 augmentation to the Group's pension fund. Earnings per share rose from 43.8p to 56p. Reflecting this encouraging performance, a final dividend of 18p per share (2001:15p) is recommended by the Board, making a total for the year of 25p (2001:20p), a 25% advance. Equally as pleasing as the trading progress was the further strengthening of our balance sheet during the year. Net cash balances grew from £13M to £22M during the twelve months under review. Operational Review We continued to benefit from buoyant trading conditions across the group during 2002, although some slowdown in order intake was evident towards the year end, particularly in the South-East. It is the stated ambition of the Group to grow the scale of the business and increase the geographical coverage of the Group's subsidiary businesses. Further positive progress was made in developing our regional network, with acquisitions adding to our presence in the North-West, South-East and Midlands. GDI Electrical, based in Altrincham, Cheshire was acquired for £1.53M; W. E. Manin, based in Sittingbourne, Kent for £1.55M; and Kestrel Electrical Systems, based in Rowley Regis, West Midlands for £0.69M. All of the acquired businesses have integrated well into the Group, and we welcome all their employees as members of the Clarke team. The newly acquired companies are already making positive contributions to our results, and I have every confidence that they will all become valued members of our Group. We decided during the year to close our Meggitt Marsh operation at Bournemouth. Having been bought from the Receivers in 1998 it had struggled to regain market share and despite the considerable effort expended on it, achieve a positive return. We concluded that our resources were best focused elsewhere. Major projects completed during the year included RBOS, Spitalfields; Vodafone Global Headquarters, Newbury; Bank of America, Galaxy House, Croydon and The Gate, Newcastle Upon Tyne. Current work in hand includes BBC, White City; BBC Mailbox, Birmingham; Bank of America, Canary Wharf; VISA, Paddington Central; King's Academy, Middlesborough; HMP Services at Preston and Coldingley; Westgate House, Leeds; Bannatyne Leisure, Wakefield and 2 new supermarkets for Waitrose at Kingsthorpe and Portishead. Looking at the longer term, projects commencing later in the year which will carry through into 2004 include HM Treasury, East; 199 Knightsbridge, London SW1; Peter Jones, Sloane Square and Wellcome Trust, Euston Road. Strategic Review The company's strategy is to grow the scale of the business organically, where possible, and by acquisition where desirable. We have progressed well in delivering this strategy through our recent acquisitions and we now have a broad platform from which we can pursue organic sector growth in infrastructure, and public sector work in health, education and regeneration projects. We anticipate that an increasing proportion of our workload will derive from these sectors. We are seeking a larger acquisition to compliment our strategy but only if the business meets our strict criteria. An opportunity, if it were to arise, must 'fit' with our core business, have a strong brand, good key management and long term prospects. Staff Development The effort the company puts into training and staff development is well recognised throughout the industry, and in particular by our clients and trade unions. Health and safety is of paramount importance and in 2001 a commitment was given by the Major Contractors Group, supported by the government to provide a fully competent and qualified workforce by January 2004. Part of this initiative is to ensure that all operatives receive training under the construction skill certification scheme and to be holders of the CSCS card. In November 2002 we became a licensed assessor and commenced our programme to internally train all our engineering staff and operatives to meet these objectives. Our apprentice intake is being maintained; several excelled during the year and received industry awards. The investment the company makes is more than matched by its staff. Our congratulations to them and thanks to all for their commitment to the aims and goals of the company. We continue to focus much of our efforts on this area as we are keen to retain our staff and develop their skills yet further. Prospects The Group has been operating in buoyant markets and we have taken advantage of these markets and grown the scale and capabilities of the Group considerably. As already indicated, in the last few months, there is some evidence of order deferral and cancellation, particularly with respect to larger commercial projects in the South-East. This is likely to mean that our record of steady progress in turnover and profits will be broken this year. However, we anticipate winning a good share of the available work and, coupled with our regional presence, I would regard the current year as representing only a temporary break in our progress. We also derive considerable comfort from the strength of our balance sheet, which we see being sustained during the current year. In fact the Board is confident that during the current market conditions, opportunities will arise that will contribute to the ongoing growth of the Group. I would like to pay particular credit to my executive colleagues, led by Pat Stanborough, and all the staff for their dedication and commitment which has enabled the Group to achieve such outstanding results. The contributions of Michael Fairman and Barry DeFalco have been recognised by their appointment as Joint Managing Directors, reporting to Pat Stanborough as Chief Executive. We also welcome to the Board at the conclusion of the AGM Mark Lawrence, one of our Technical Directors, and we look forward to his wider contribution to our deliberations. 2003 will be a demanding year for the Group, but I have no doubt that our team will rise to the challenge and once again produce a quality service to our many valued clients and a satisfactory return for our shareholders. R. J. Race Chairman March 2003 Group profit and loss account For the year ended 31st December 2002 2002 2001 Continuing £ £ Acquisitions Operations Total Total Turnover 5,496,712 138,493,611 143,999,323 131,795,328 Cost of sales 4,299,824 118,205,478 122,505,302 114,830,966 __________ __________ __________ __________ Gross Profit 1,196,888 20,288,133 21,485,021 16,964,362 Administrative expenses 1,029,626 10,273,761 11,303,387 9,104,028 __________ __________ __________ __________ Operating profit 167,262 10,014,372 10,181,634 7,860,334 ========== ========== Interest receivable (net) 614,806 564,352 __________ __________ Profit on ordinary activities before 10,796,440 8,424,686 taxation Taxation on profit on ordinary activities 3,612,818 2,807,254 __________ __________ Profit on ordinary activities after 7,183,622 5,617,432 taxation Dividends 3,204,745 3,845,694 __________ __________ Profit for the financial year 3,978,877 1,771,738 ========== ========== Earnings per share 56.04 pence 43.82 pence ========== ========== In 2001 and 2002 the group had no recognised gains or losses other than the result for the financial year. Group balance sheet At 31st December 2002 2002 2001 £ £ Fixed assets Goodwill 4,158,645 2,554,645 Tangible assets 3,297,857 2,404,180 __________ __________ 7,456,502 4,958,825 __________ __________ Deferred taxation 25,461 48,877 __________ __________ Current assets Work in progress 4,594,849 5,320,421 Debtors 15,598,865 15,548,121 Cash at bank and in hand 24,930,060 16,439,833 __________ __________ 45,123,774 37,308,375 Creditors, amounts falling due within one (35,601,036) (29,303,301) year __________ __________ Net current assets 9,522,738 8,005,074 __________ __________ Total assets less current liabilities 17,004,701 13,012,776 Creditors, amounts falling due after more (13,047) - than one year __________ __________ 16,991,654 13,012,776 ========== ========== Capital and reserves Called up equity share capital 1,281,898 1,281,898 Share premium 1,046,602 38,634 Revaluation reserve 37,303 1,046,602 Profit and loss account 14,625,851 10,645,642 __________ __________ Equity Shareholders' funds 16,991,654 13,012,776 ========== ========== These financial statements were approved by the board on 6th March 2003 P.E. STANBOROUGH ) ) Directors R.J. RACE ) Group cash flow statement For the year ended 31st December 2002 2002 2001 £ £ £ £ Net cash inflow from operating activities 18,760,375 9,712,907 Returns on investments and servicing of finance Interest received 711,279 670,727 Interest paid (96,473) (106,375) __________ __________ Net cash inflow from returns on 614,806 564,352 investments and servicing of finance Taxation UK corporation tax paid (3,464,995) (2,067,287) Capital expenditure and financial investment Purchase of tangible fixed assets (892,594) (292,933) Sale of tangible fixed assets 89,555 99,014 __________ __________ Net cash outflow from capital expenditure (803,039) (193,919) and financial investment Acquisitions and disposals (2,668,592) (2,150,000) Net cash acquired with subsidiary 1,178,615 1,606,811 __________ __________ (1,489,977) (543,189) Equity dividends paid (2,820,176) (3,422,668) __________ __________ Cash inflow before use of liquid 10,796,995 4,050,196 resources Management of liquid resources Cash placed on short term deposits (22,802,492) (15,000,000) Cash received from short term deposits 15,000,000 9,800,000 __________ __________ Net cash outflow from management of (7,802,492) (5,200,000) liquid resources __________ __________ Increase/(decrease) in cash in the year 2,994,503 (1,149,804) before financing Financing Finance lease payments (8,739) - (59,000) Repayment of loan notes (1,478,500) - __________ __________ (1,487,239) (59,000) __________ __________ Increase in cash in the year 1,507,264 (1,208,804) ========== ========== Notes :- 1. The earnings per share represents the profit for the year on ordinary activities after taxation divided by the number of ordinary shares in issue. The numbers of ordinary shares, being a weighted average, for the purpose of this calculation, is 12,818,980 (2001: 12,818,980). 2. The figures for the year ended 31 December 2002 have been extracted from the full audited accounts for the year, which have not yet been delivered to the Registrar of Companies. The figures have been prepared and compiled in accordance with applicable accounting standards under the historical cost convention. The comparative figures for the year ended 31 December 2001 have been taken from, but do not constitute, the group's statutory accounts for the year. Those statutory accounts have been reported on by the group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. 3. Copies of the annual report and accounts will be posted to shareholders shortly. Further copies can be obtained from the Company's registered office; Stanhope House, 116-118 Walworth Road, London, SE17 1JY. 4. The Company's Annual General Meeting will be held in the Bishops Room, Simpsons, The Strand, London WC2 on Friday 2 May 2002 at 12:00 noon. 5. Subject to the approval of shareholders the final dividend of 18 pence per share will be paid on 6 May 2003. The shares will go ex-dividend on 9 April 2003. The records will close on 11 April 2003. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Tclarke (CTO)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today