Final Results - Year Ended 31 December 1999

Clarke(T.) PLC 3 March 2000 INCREASING DEMAND FOR ELECTRICAL CONTRACTORS DRIVE T. CLARKE TO 38% PROFITS ADVANCE T.Clarke Plc, the electrical engineering and contracting company, has announced its preliminary results for the twelve months ended 31 December 1999. Highlights: * Operating profits up 38% to £4.0 million (1998: £2.9 million) * Pre-tax profits ahead to £4.4 million (1998: £3.8 million) * Turnover up 34% to £77.0 million (1998: £57.2 million) * EPS 38% to 24.24p (1998: 17.53p) * Major completions include: - British Airways London Eye - Citibank, Canary Wharf - Tate Gallery of Modern Art, Bankside * Major projects won include: - Goldman Sachs, Fleet Street - HSBC New Tower, Canary Wharf - Mobil Oil, Kingsway * Buoyant market conditions in London and regions * Strongest order book yet with visibility through 2001 * Ordinary dividend increased 50% to 12.2p (1998: 8.1p) * Russell Race to be appointed Chairman Patrick Stanborough, Chairman, commented: 'Once again I am pleased to report a most satisfactory year. In both New Build and Refurbishment work, the market for electrical engineering and contracting continues to be very buoyant. While demand is particularly high in London and the South, we are also seeing growing levels of activity in our Regional operations. We have already secured our best forward order book with visibility through 2001. 'Each and every installation completed during the year was carried out to our usual high standards, of which we are justly proud. The high esteem in which we are held by our many clients and partners, has resulted in significant increases in repeat work. 'Going forward, the market opportunities for T. Clarke are excellent. With commitment and hard work, shareholders can look forward to the year ahead with confidence.' Date: 3 March 2000 For further information contact: Patrick Stanborough, Chairman and Managing Director T. Clarke Plc 020 7252 7676 Robin Wyborn , Commercial Director T. Clarke Plc 020 7252 7676 Jonathan Shillington City Profile 020 7726 8588 Stephen Scott City Profile 020 7726 8588 CHAIRMAN'S STATEMENT Once again I am pleased to report a most satisfactory year with turnover up at £77 million (1998: £57.2 million) and pre-tax profit up at £4.4 million (1998: £3.8 million before exceptional costs of £0.4 million). With tight fiscal controls in place, the company has continued to be highly cash generative and after payment of a special dividend in the year and increased requirements in working capital, training and IT, cash balances at the year-end stood at £6 million. In view of this the Directors propose payment of a final dividend of 8.9 pence per share, which together with the paid interim of 3.3 pence per share represents an increase of 50% over the payment of ordinary dividends for 1998. The dividend will be paid on 10 April 2000 to shareholders on the register. The shares will go ex-dividend on 8 May 2000. Earnings per share were 24.34 pence (1998: 17.53 pence after exceptional costs). The overall performance in our core business in London was very good and the results from Peterborough and Newcastle were excellent. We are growing our business in Bristol and are confident that our investment in people will produce encouraging results this year. We are still actively pursuing work opportunities in Birmingham and in the absence of any acquisition, which is still part of our strategy, work will be undertaken from our Peterborough office. Meggit Marsh (Bournemouth) had a disappointing year with another small loss, we are currently reviewing our strategy with regard to management and marketing but remain confident of their future potential. I mentioned earlier increased funding of Training and I.T., whilst the annual cost comes straight off bottom line, this is an investment in people and technology, and is key to our continuing success. Among the many and varied projects completed during the year were: ABN Amro, Bishopsgate; Citibank, Canary Wharf; BT Workshop 2000, Brentwood; ARM Building, Cambridge; Avery Dennison Plant, Northumberland; The Bond Street Shopping Centre, Weymouth; and The Tate Gallery of Modern Art, Bankside. Millennium fever has now subdued and the industry is returning to something near normality. The British Airways, London Eye is opening to the Public during March and I am sure all associated with the construction consider it a spectacular achievement and an important London landmark. Each and every installation completed during the year was carried out to our usual high standards, of which we are justly proud. The high esteem in which we are held by our many clients and partners, has resulted in significant increases in repeat work. Ongoing work includes clients: LWT; Credit Suisse First Boston; Peter Jones; Deutsche Bank; National Gallery; British Museum; British Telecom; Ministry of Defence; Capital One Bank; Automobile Association; Procter and Gamble; Siemens; and Cambridge, Newcastle and Southampton Universities. Current Work in Progress includes: Merrill Lynch, New European Headquarters, London; Robert Fleming, Gresham Street; Schroders; Christchurch Court, Paternoster Square; Wessex Water Headquarters, Bath; Chiroscience, Cambridge; The Bridges Shopping Centre, Sunderland; Electronic Arts, Chertsey and the School of Nursing, Southampton. In both New Build and Refurbishment work, the market for electrical engineering and contracting continues to be very buoyant. While demand is particularly high in London and the South, we are also seeing growing levels of activity in our Regional operations. We are currently involved in discussions with regard to negotiation of some notable and important projects to be let during this year and have already secured our best forward order book with visibility through 2001. New Orders Secured include: Goldman Sachs, Fleet Street; HSBC New Tower, Canary Wharf; Mobil Oil, St. Catherine's House, Kingsway, WC2; Faculty of Education, University of West England; Nokia, Cambridge; Bannatyne Leisure Centre, Aberdeen; Seaham Hall Hotel, Durham; Liberty House, Southampton: and Waitrose , Cambridge and Staines. Following the AGM I shall be standing down as Chairman, I have enjoyed the past 8 years, but now feel that shareholders interests are better served with a split in the roles of Chairman and Chief Executive. Russell Race has agreed to take up the position of Non-Executive Chairman. Russell, along with Len Arnold, has learned a lot about our business during the past two years and I am confident that he will look to the best interests of shareholders and also the well being of our loyal staff. I close with my thanks to our Directors, Senior Management and Staff for their ongoing support. A lot of business was put through during the year, well done all. Going forward, the market opportunities for T. Clarke are excellent. With commitment and hard work, Shareholders can look forward to the year ahead with considerable confidence. 3 March 2000 P. E. Stanborough Chairman Group Profit and loss account for the year ended 31 December 1999 1999 1998 £ £ Turnover 77,029,078 57,158,053 Cost of sales 68,012,467 45,586,768 ---------- ---------- Gross profit 9,016,611 7,571,285 Administrative expenses 4,967,658 4,240,572 Operating profit before exceptional administrative expenses 4,048,953 3,330,713 Exceptional administrative expenses Goodwill arising on acquisition written off - 394,136 ---------- ---------- 4,048,953 2,936,577 Operating profit Interest receivable (net) 375,885 445,692 ---------- ---------- Profit on ordinary activities before taxation 4,424,838 3,382,269 Taxation on profit on ordinary activities 1,447,000 1,229,129 ---------- ---------- Profit on ordinary activities after taxation 2,977,838 2,153,140 Dividends 1,500,000 2,500,000 Profit/ (loss) for the financial year 1,477,838 (346,860) ========== ========== Earnings per share 24.24p 17.53p In 1998 and 1999 the group had no recognised gains or losses other than the result for the financial year. Balance sheets for the year ended 31 December 1999 Group Company 1999 1998 1999 1998 £ £ £ £ Fixed assets Tangible assets 2,473,229 2,583,631 168,242 190,542 Investments - - 66,697 66,697 --------- --------- --------- --------- 2,473,229 2,583,631 234,939 257,239 Deferred taxation 35,000 10,650 43,000 43,000 --------- --------- --------- --------- Current assets Work in progress 3,924,925 2,730,537 2,874,722 2,203,401 Debtors 12,069,042 8,327,850 12,485,181 8,492,096 Cash at bank and in hand 7,910,915 9,349,836 7,004,449 8,741,730 --------- --------- --------- --------- 23,904,882 20,408,223 20,474,239 19,437,227 Creditors, amounts falling due within one year (17,377,726)(15,444,957)(14,872,821)(13,302,746) --------- --------- --------- --------- --------- --------- --------- --------- Net current assets 6,527,156 4,963,266 7,491,531 6,134,481 Total assets less current liabilities 9,035,385 7,557,547 7,769,470 6,434,720 ========= ========= ========= ========= Capital and reserves Called up equity share capital 1,228,500 1,228,500 1,228,500 1,228,500 Revaluation reserve 41,298 42,630 - - Profit and loss account 7,765,587 6,286,417 6,540,970 5,206,220 --------- --------- --------- --------- Equity Shareholders' funds 9,035,385 7,557,547 7,769,470 6,434,720 ========= ========= ========= ========= These financial statements were approved by the board on 2 March 2000. P.E. STANBOROUGH ) ) Directors J.H. NIXON ) Group cash flow statement for the year ended 31 December 1999 1999 1998 £ £ £ £ Net cash inflow from operating activities 544,739 5,398,608 Returns on investments and servicing of finance Interest received 374,640 470,021 Interest paid (6,755) (12,261) --------- --------- Net cash inflow from returns on investments and servicing of finance 367,885 457,760 Taxation UK corporation tax paid (1,241,934) (978,960) Capital expenditure and financial investment Purchase of tangible fixed assets (269,414) (268,180) Sale of tangible fixed assets 36,840 15,605 --------- --------- Net cash outflow from capital expenditure and financial investment (232,574) (252,575) Acquisitions and disposals Purchase of a subsidiary undertaking - (225,000) Net cash acquired with subsidiary - 68,566 --------- --------- - (156,434) Equity dividends paid (2,593,750) (812,500) --------- --------- Cash outflow before use of liquid resources (3,155,634) 3,655,899 Management of liquid resources Cash placed on short term deposits (7,000,000) (9,000,000) Cash received from short term deposits 9,000,000 6,000,000 --------- --------- Net cash inflow from management of liquid resources 2,000,000 (3,000,000) --------- --------- Decrease in cash in the year (1,155,634) 655,899 ========= ========= Notes:- 1. Earnings per share have been calculated using the profit on ordinary activities after taxation of £2,977,838 (1998: £2,153,140) and by reference to the number of shares in issue for the period of 12,285,000 (1998: 12,285,000). 2. The figures for the year ended 31 December 1999 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 1998 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 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 5th May at 12:00 noon. 5. Subject to the approval of shareholders, the final dividend of 8.901313 pence per share will be paid to those shareholders on the register on 8 May 2000. The shares will be quoted ex-dividend on 10 April 2000.

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