Final Results

Clarke(T.) PLC
28 March 2008



            Preliminary Results for the year ended 31 December 2007

                  T CLARKE LOOKS TO THE FUTURE WITH CONFIDENCE
                          AS OUTLOOK REMAINS POSITIVE

T. Clarke plc, the electrical engineering and contracting company, has announced
its preliminary results for the year to 31 December 2007.

   • Profit Before Tax up 24.2% to £8.2m (2006: £6.6m)
   • Group Turnover up 4% to £193.8m (2006: £186.3m)
   • Basic EPS up 26.8% to 14.33p (2006: 11.30p)
   • Final Dividend up 10.2% to 8.10p (2006: 7.35p)
   • Total Dividend for the year up 8.8% to 12p (2006: 11.025p)

Contracts completed during the year included: 02 Arena; RBS, Aldgate Union; LUL
sidings, White City; Golden Jubilee National Hospital, Glasgow; Marks and
Spencer, Cheshunt; Bishop Auckland College; Huddersfield Media Centre; and
Waitrose stores at Rickmansworth, Maidstone and Sandhurst.

Contracts in progress during the year included: Westfield Shopping Development,
White City; BP2 Tower, Canary Wharf; Grand Arcade Shopping Centre, Cambridge;
Excelsior Academy, Newcastle and Kent International Airport.

New contracts secured include: Ropemaker Place, London; Central St Giles, 
London; Gloucester Quays; CSA HQ Falkirk; Aspire Defence, Tidworth Garrison; 
Medway Council Offices, Chatham and Waitrose stores at Kenilworth and St. Neots.

Pat Stanborough, Chief Executive commented:

' The Group is in good shape. We have a broad spread of businesses across the UK
which are trading well. Despite the wider turbulence in the financial markets,
we remain encouraged about the strength of the order book and the opportunities
for future work. We can see many opportunities and as the Olympic Games
development programme accelerates, we remain confident that this will lead to
further projects. Additionally, as we build the scale of our regional
operations, the group is benefiting from having a broader spread of our
activities by both sector and location. This is a positive feature as we are not
over reliant on any one client or particular sector.

' The trading result for 2007 is encouraging and, once again, we have increased
the dividend. We have taken action to turn round the small number of
underperforming businesses in the Group. We remain the market leader in our
sector and looking forward, the prospects for the whole Group remain
encouraging.'

                                     -ends-

Date: 28 March 2008 
For further information contact:

T. Clarke plc                            City Profile
Pat Stanborough, Chief Executive         Simon Courtenay
Victoria French, Finance Director        Tel: [phone]
Tel: [phone]
web: www.tclarke.co.uk





PRELIMINARY STATEMENT

The group made strong progress in 2007. The core London operations performed
very well and the improvements achieved in certain regional companies were
particularly pleasing. In light of this, we are able to report an advance of 4%
in group turnover to £193.8m (2006: £186.3m) and a 24.2% growth in pre-tax
profits to £8.2m (2006: £6.6m). Earnings per share increased by 26.8% to 14.33p
(2006: 11.30p).

In view of the strong results and the board's confidence, we are proposing a
final dividend of 8.10p per ordinary share making a total for the year of 12p.
This represents an increase of 8.8% over the previous year. The increase in
dividend is in line with our positive outlook.

The underlying organic growth confirms the group is in excellent shape. We are
experiencing strong demand for our services and our reputation remains first
class. There are a range of very good opportunities for future work with demand
from a variety of sectors, including the Olympic development programme that is
gathering momentum. We believe that the future prospects for the group remain
strong in spite of the current state of the UK financial markets.

MARKET DEVELOPMENT

Despite the recent banking credit crunch, we are not seeing any immediate
slowdown in demand for high density office space in the City of London and
Canary Wharf. We are reliably informed from our industry contacts and the major
developers that the new buildings, with which we are involved, either in
contract or early discussions, are fully funded and committed for development.
Many of the financial institutions continue to be busy in upgrading trading
space, enhancing their data centre capabilities (throughout the UK), and
updating the resilience of their electrical networks, all of which are important
parts of our London operations. There has been some slowing in new build
residential homes, particularly in Scotland, however our London and regional
businesses are still experiencing strong demand in the retail, leisure and
educational facilities sectors. We are also in early discussions with regard to
projects associated with the 2012 Olympics and other directly related work.

OPERATIONAL REVIEW

Although operating at 80% of capacity, due in the main to the slippage on
the White City Shopping Centre development, our London operations contributed a 
very strong performance as a result of successful completions and a better 
quality order book. In the regions most companies performed well. The problems 
in two regions (Preston and King's Lynn), which we referred to at the interim 
stage, have since been addressed by management changes, the strengthening of 
reporting procedures and controls and the close supervision of specific 
contracts. The board is confident that all regions will show positive results 
going forward.

BOARD CHANGES

During 2007, Mike Crowder was appointed as an Executive Director on 1st January
2007, John Daly stood down from the board on 31st July 2007 and Victoria French
was appointed as Finance Director and Company Secretary on 1st August 2007.

Bob Campbell, formerly Managing Director of Waterman Group Plc (a leading quoted
engineering consultancy), was appointed as an additional Independent
Non-Executive Director on 1st January 2008. Len Arnold, having served a term of
10 years as an Independent Non-Executive Director, will stand down from the
board on 31st July 2008. It is the board's intention to appoint an additional
Independent Non-Executive Director during this year.

Pat Stanborough has previously announced his intention to retire from the board.
It is now his intention to retire at the end of 2009. The board is in the
process of considering succession plans and is currently of the opinion that an
appointment from within the company is most likely to best suit shareholders'
interests, as it will ensure a smooth handover. A further announcement will be
made in due course. It is not currently the board's intention to appoint another
executive director upon Pat Stanborough's retirement.

SUMMARY

2007 was a year of good progress. Our core London operations turned in an
excellent performance with several successful completions and a better quality
of business during the year. The underperforming businesses in 2006 (Derby and
Scotland) were successfully 'turned around' and both contributed good results.
The legacy issues and problem contracts in Preston and King's Lynn, referred to
when we announced our interim results, have been addressed and we are confident
that these businesses will show steady improvement going forward.

LONDON OPERATIONS

Revenue                  £77.2m                   (2006: £80.4m)
Profit from operations   £5.15m                   (2006: £3.7m)
Operating Margin %       6.7%                     (2006: 4.6%)
Order Book as at         £105m                    (2006: £110m)
31.12.07

Completions during the year included:

02 Arena; RBS, Aldgate Union; LUL sidings, White City

Current projects include:

Westfield Shopping Development, White City; BP2 Tower, Canary Wharf

Recently won contracts include:

Ropemaker Place, London; Central St Giles, London

UK REGIONAL BUSINESSES

Revenue                  £116.6m                  (2006: £105.9m)
Profit from operations   £2.5m                    (2006: £2.5m)
Operating Margin %       2.1%                     (2006: 2.4%)
Order Book as at         £110m                    (2006: £100m)
31.12.07

Completions during the year included:

Golden Jubilee National Hospital, Glasgow; Marks and Spencer, Cheshunt; Bishop
Auckland College; Huddersfield Media Centre; and Waitrose stores at
Rickmansworth, Maidstone and Sandhurst.

Current projects include:

Grand Arcade Shopping Centre, Cambridge; Excelsior Academy, Newcastle and Kent
International Airport.

Recently won contracts include:

Gloucester Quays; CSA HQ Falkirk; Aspire Defence, Tidworth Garrison; Medway
Council Offices, Chatham and Waitrose stores at Kenilworth and St. Neots.

PROPERTIES

Rental Income                   £0.61m           (2006: £0.66m)
Profit from operations          £0.46m           (2006: £0.51m)
Freehold Property (Book Values) £5.7m            (2006: £5.8m)

All properties are currently leased to group companies.


FINANCIAL REVIEW

Revenue and Operating Profit

The Group's revenue increased in 2007 by 4% to £193.8m (2006: £186.3m). Turnover
in the London business decreased to £77.2m (2006: £80.4m) as a result of some
slippage on major projects, but revenue in the UK regional businesses increased
to £116.6m (2006: £105.9m).

Group operating profit increased by 20.8% to £8.1m (2006: £6.7m) and operating
margin increased to 4.2% from 3.6% in 2006. The London business achieved a 6.7%
operating margin (2006: 4.6%) and showed a 39% increase in operating profit to
£5.2m (2006: £3.7m) due to favourable final account completions and an
improvement in margins. Regional operating profit was flat at £2.5m (2006:
£2.5m) due to the problems flagged at the half year in two regional companies
(Anglia Electrical Services Limited and J.J. Cross Limited). As a result,
regional operating margins decreased slightly from 2.4% to 2.1% in 2007 and
management changes and closer monitoring of specific projects were put in place
to address the problems. Group administrative expenses were broadly static
compared with 2006.

Profit Before and After Tax

Group profit before tax was £8.2m (2006: £6.6m), a 24.2% increase from prior
year. Group profit after tax increased £1.2m (26.8%) to £5.7m (2006: £4.5m)
after taxation of £2.4m (2006: £2.1m). The effective tax rate was 30% (2006:
31%). Net profit margin was 2.95% in 2007 compared with 2.42% in the prior year.

Earnings per Share and Dividends

Earnings per share increased 3.03p (26.8%) to 14.33 pence per share (2006:
11.30p) in 2007. The board has taken into consideration the increased earnings
and improved cash position of the group and proposes a final dividend of 8.10p
(2006: 7.35p). This brings the total dividend in 2007 to 12p (2006: 11.025p), an
8.84% increase from 2006. The dividend per share is covered 1.2 times by
earnings per share (2006: 1 times). The final dividend will be paid, subject to
shareholder approval, on 9th May 2008 in respect of shareholders on the register
as at 11th April 2008. Further information regarding a dividend reinvestment
plan (DRIP) which is available to shareholders is included in Note 5.

Cash flow

Cash generation is improved, with net cash from operating activities generated
during the year increasing £5.8m to £11m for the year ended 31st December 2007.
Cash and cash equivalents as at 31st December 2007 were £9.0m compared with 
£2.9m net of overdrafts as at 31st December 2006.

Equity and Capital Structure

Equity was £26.2m (2006: £22.8m) with £2.2m of the £3.4m increase in total 
equity as at 31st December 2007 due to the actuarial gain on the defined benefit
pension scheme, net of deferred tax. The number of shares in issue at 31st
December 2007 was 39,947,889 (2006: 39,947,889).






Consolidated income statement
for the year ended 31st December 2007

                                                      2007          2006
                                                      £000          £000
--------------------------------------------------------------------------
Revenue                                            193,845       186,334
Cost of sales                                    (165,326)     (159,217)
--------------------------------------------------------------------------
Gross profit                                        28,519        27,117
Other operating income                                  90            17
Administrative expenses                           (20,493)      (20,411)
--------------------------------------------------------------------------
Profit from operations                               8,116         6,723
Investment income                                      266           114
Finance costs                                        (216)         (261)
--------------------------------------------------------------------------
Profit before taxation                               8,166         6,576
--------------------------------------------------------------------------
Taxation                                           (2,441)       (2,063)
--------------------------------------------------------------------------
Profit for the period from continuing operations     5,725         4,513
--------------------------------------------------------------------------
Earnings per share                             14.33 pence   11.30 pence
--------------------------------------------------------------------------
All the revenue & profit arose from continuing operations.




Group statement of recognised income & expense
for the year ended 31st December 2007

                                                       2007         2006
                                                       £000         £000
--------------------------------------------------------------------------
Actuarial gains/ (losses) on defined
benefit pension scheme                                3,173         (85)
--------------------------------------------------------------------------
Tax on items taken directly to equity               (1,006)           25
--------------------------------------------------------------------------
Net income/ (expense) recognised directly in equity   2,167         (60)
--------------------------------------------------------------------------
Profit for the period                                 5,725        4,513
--------------------------------------------------------------------------
Total recognised income & expenses for the period     7,892        4,453
--------------------------------------------------------------------------




Consolidated balance sheet
at 31st December 2007
                                                      2007          2006
                                                      £000          £000
--------------------------------------------------------------------------
Non current assets

Goodwill                                            14,385        14,385
Tangible fixed assets                                7,768         7,965
Deferred taxation                                       88            66
--------------------------------------------------------------------------
                                                    22,241        22,416
--------------------------------------------------------------------------
Current assets

Inventories                                            287           370
Construction contracts                              11,096        14,001
Debtors                                             25,072        23,025
Cash and cash equivalents                           10,762         5,182
--------------------------------------------------------------------------
                                                    47,217        42,578
--------------------------------------------------------------------------
Total assets                                        69,458        64,994
--------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------
Bank overdraft and loans                             1,811         2,274
Creditors and accruals                              36,934        33,127
Corporation tax liabilities                          1,660         1,768
Obligations under finance leases                       259           311
--------------------------------------------------------------------------
                                                    40,664        37,480
--------------------------------------------------------------------------
Net current assets                                   6,553         5,098
--------------------------------------------------------------------------
Non current liabilities

Retirement benefit obligation                        2,395         4,441
Deferred taxation                                        -            74
Obligations under finance leases                       222           220
--------------------------------------------------------------------------
                                                     2,617         4,735
--------------------------------------------------------------------------
Total liabilities                                   43,281        42,215
--------------------------------------------------------------------------
Net assets                                          26,177        22,779
--------------------------------------------------------------------------
Equity

Share capital                                        3,995         3,995
Share premium                                        1,234         1,234
Revaluation reserve                                      -            32
Profit and loss account                             20,948        17,518
--------------------------------------------------------------------------
Total equity                                        26,177        22,779
--------------------------------------------------------------------------









Consolidated cash flow statement
for the year ended 31st December 2007

                                                      2007          2006
                                                      £000          £000
--------------------------------------------------------------------------
Net cash from operating activities                  10,998         5,201
--------------------------------------------------------------------------
Investing activities

Interest received                                      266           115
Purchase of tangible fixed assets                    (595)         (471)
Receipts on disposal of fixed assets                   122           195
--------------------------------------------------------------------------
Net cash used in investing activities                (207)         (161)
--------------------------------------------------------------------------
Financing activities

Equity dividends paid                              (4,494)       (4,264)
Repayments of obligations under finance leases       (254)         (385)
--------------------------------------------------------------------------
Net cash used in financing activities              (4,748)       (4,649)
--------------------------------------------------------------------------
Net increase in cash and cash equivalents            6,043           391
Cash and cash equivalents at beginning of period     2,908         2,517
--------------------------------------------------------------------------
Cash and cash equivalents at end of period           8,951         2,908
--------------------------------------------------------------------------
Cash and cash equivalents comprise:  
Cash and cash equivalents                           10,762         5,182
Bank overdrafts                                    (1,811)       (2,274) 
--------------------------------------------------------------------------  
                                                     8,951         2,908
--------------------------------------------------------------------------  



Consolidated statement of changes in equity
for the year ended 31st December 2007

                                                      2007          2006
                                                      £000          £000
--------------------------------------------------------------------------
Balance at start of period                          22,779        22,590
Profit for period                                    5,725         4,513
Interim dividend paid                              (1,558)       (1,468)
Prior year final dividend paid                     (2,936)       (2,796)
Actuarial gain / (loss) on defined benefit              
pension scheme                                       3,173          (85)             
Corporation tax provision on pension benefits        (888)            25
Effect of change in tax rate on deferred tax           
recognised through equity                            (118)             -
--------------------------------------------------------------------------
Balance at end of period                            26,177        22,779
--------------------------------------------------------------------------




Notes :-

1. The earnings per share figure 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 39,947,889 (2006: 39,947,889).

2. The figures for the year ended 31 December 2007 have been extracted from the
unaudited financial statements of T. Clarke plc for the year ended 31st December
2007 which will be delivered to the Registrar of Companies in due course. The
auditors expect to give an unqualified opinion on the financial statements of T.
Clarke plc for the year ended 31 December 2007. The figures have been prepared
and compiled in accordance with International Financial Reporting Standards. The
comparative figures for the year ended 31 December 2006 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 have been
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 at Savoy Place, 2
Savoy Place, London WC2R 0BL on Friday 2nd May 2008 at 12 noon.

5. Subject to the approval of shareholders the final dividend of 8.10
pence per share will be paid on 9th May 2008. The shares will go ex-dividend on
9th April 2008. The records will close on 11th April 2008. A dividend
reinvestment plan is available to shareholders. Those shareholders who have not
elected to participate in the plan, and who would like to do so in respect of
the 2007 final payment, may do so by contacting Capita Registrars on 0875 162
3151 (calls cost 10 p per minute plus network charges). The last day for the
final dividend reinvestment election is 14th April 2008 and any requests should
be made in good time ahead of that date.












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