Interim Results

Clarke(T.) PLC 24 August 2001 T. Clarke plc T. CLARKE REPORTS SIGNIFICANT NEW WORK AND LOOKS TO THE FUTURE WITH CONFIDENCE T. Clarke plc, the electrical engineering and contracting company, has announced its interim results for the six months to 30 June 2001. * Pre-tax profits up 63% to £3.4 million (2000: £2.1 million) * Turnover up 48% to £63.8 million (2000: £43.1 million) * EPS up 56% to 18.26p (2000: 11.67p) * Net Cash Balances £12.8 million * Market conditions continue to be buoyant * Increasing level of activity in regional operations * £2.1 million acquisition of J.J Cross Ltd and J.J. Cross Services Ltd completed successfully Major completions include: - Merrill Lynch, New European Headquarters - University of West of England - Easynet, Switching Centre - Arthur Anderson, Birmingham Major projects won in first half include: - CSFB New Tower, Canary Wharf - Gateway, Newcastle Upon Tyne - Deutsche Bank, Hayes Data Centre - Hartson Mill, Cambridge * Interim dividend increased 32% to 5.0p (2000: 3.8p) * Special dividend to be paid of 10p per share Russell Race, Chairman commented: ' This is another set of very creditable results for T. Clarke. The business is performing well and generating cash that we are putting to good use, by rewarding shareholders with a 10p special dividend and expanding our regional presence with the acquisition of J. J. Cross in Lancashire. ' Looking to the future, an encouraging sign is that many of the projects that we are working on and winning, extend well into 2002 and in some cases beyond. Although we will keep a close eye on the wider economy and our future workload, our principal markets show no signs of slowing down. The future for T. Clarke remains very bright.' Date: 24 August 2001 For further information contact: T. Clarke plc City Profile Group Pat Stanborough, Managing Director Simon Courtenay Tel: 020-7358-5000 Ed Senior web: www.tclarke.co.uk Tel: 020-7726-8588 e-mail: sc@profilecomms.co.uk T. CLARKE PLC CHAIRMAN'S STATEMENT Interim Results I am pleased to report that trading in the first half of 2001 produced a further significant advance in turnover and profits for the group. Turnover rose by 48% to £63.8m. (2000 : £43.1m) whilst pre-tax profit increased by 63% to £3.4m. (2000 : £2.1m). In view of this performance the Board is declaring an interim dividend of 5.0p per share (2000: 3.8p), an increase of 32%. Additionally, in light of continued strong cash generation during the first half, the Board is proposing to pay a special interim dividend of 10p per share. These dividends will be paid on 17th September 2001 to shareholders on the Register on 7th September 2001. The shares will be marked ex-dividend on 5th September 2001. At the end of June we announced the acquisition of J.J. Cross Ltd. and J.J. Cross Services Ltd., for a cash consideration of £2m, which may be increased to a maximum of £2.15m, dependent on audited net assets at completion. Based in Preston, the Cross companies are engaged in both electrical and mechanical contracting services. At 30th April 2001 the acquired companies had net assets of £1.086m, and in the year to that date achieved pre-tax profit of £352,080. This acquisition is in line with stated policy of developing our regional strength and I have no doubt that it will prove to be an excellent fit. We welcome the employees of the Cross companies to the group. Current Trading As reported at our recent AGM, the market place for our electrical and mechanical services has continued to be extremely active during the first half of the year. Buoyant conditions prevailed in all areas, although the strength of demand in London and the South East was particularly marked. With some major completions during the half and renewed emphasis on cash generation, our balance sheet position remains strong. We anticipate that, even after allowing for the payment of the special interim dividend noted above, our year end cash balance will be very satisfactory. Among major completions in the first half year were:- Merrill Lynch, new European Headquarters; University of West of England, Bath; Easynet Switching Centre; Arthur Andersen, Birmingham. Current projects in hand include:- HM Treasury; Mid City Place, High Holborn; Southampton University; Bristol & West Building Society, Bristol; Capital One Bank, Nottingham. Among the many projects won during the first half, and due to be commenced later this year or early next, are:- CSFB New Tower, Canary Wharf; Gateway Centre, Newcastle-upon-Tyne; Deutsche Bank, London; Hayes Data Centre; Harston Mill, Cambridge. Prospects The principal markets in which we operate show no signs of slowing down, and many of the projects on which we are currently involved, or where future work is secured, extend well into 2002 and in some cases beyond. Whilst we continue to keep a vigilant eye for any indications of reduced activity, our main focus is on servicing our customers' requirements to the very highest standards. We will continue to seek out further opportunities for profitable expansion of the group, which can be met from our existing resources. Meanwhile the strength of our core operations gives me every confidence for the full year out-turn. Russell Race 24th August 2001 GROUP PROFIT & LOSS ACCOUNT ProForma Unaudited 6 Months 6 Months 12 Months to to to 30 June 30 June 31 December 2001 2000 2000 £,000 £,000 £,000 Turnover 63,845 43,163 98,364 ________ _________ _________ Operating Profit 3,244 1,952 4,396 Goodwill Amortisation (95) - (95) Interest 287 155 277 ________ _________ _________ Profit on Ordinary Activities 3,436 2,107 4,578 Before Taxation Taxation (1,095) (673) (1,485) ________ _________ _________ Profit on Ordinary Activities 2,341 1,434 3,093 After Taxation Dividends (1,923) (487) (1,987) ________ _________ _________ Surplus Transferred to 418 947 1,106 Reserves ________ _________ _________ Earnings per Share 18.26p 11.67p 24.69p ________ _________ _________ Dividend per Share 15p 3.8p 15.5p ________ _________ _________ GROUP BALANCE SHEET Unaudited Unaudited 12 Months at at to 30 June 30 June 31 December 2001 2000 2000 £,000 £,000 £,000 Fixed Assets Goodwill 2,710 - 1,805 Tangible Fixed Assets 2,461 2,395 2,480 ________ _________ _________ 5,171 2,395 4,285 ________ _________ _________ Deferred Taxation 43 49 49 ________ _________ _________ Current Assets Work in Progress 14,408 15,191 3,253 Debtors 7,234 5,426 17,680 Cash at Bank and in Hand 15,849 2,581 10,575 ________ _________ _________ 37,491 23,198 31,508 ________ _________ _________ Current Liabilities Bank Overdraft 3,051 - 1,579 Creditors and Accruals 26,517 15,660 21,512 ________ _________ _________ 29,568 15,660 23,091 ________ _________ _________ Net Current Assets 7,923 7,538 8,417 ________ _________ _________ Total Assets Less Current 13,137 9,982 12,751 Liabilities Provision for Liabilities 1,478 - 1,510 and Charges ________ _________ _________ 11,659 9,982 11,241 ________ _________ _________ Capital and Reserves Share Capital 1,282 1,229 1,282 Share Premium 1,047 - 1,047 Profit and Loss Account 9,290 8,712 8,872 Revaluation Reserve 40 41 40 ________ _________ _________ Equity Shareholders Funds 11,659 9,982 11,241 ________ _________ _________ CASH FLOW STATEMENT Unaudited Unaudited The Year Ended Six Months Six Months 31 December Ended Ended 2000 30 June 2001 30 June 2000 £,000 £,000 £,000 Net Cash Inflow (Outflow) from 5,939 (3,894) 5,398 Operating Activities Returns on Investments and Servicing of Finance Interest received (Net) 288 155 277 Taxation (610) (420) (1,370) Capital Expenditure and Financial Investment Purchase of Tangible Fixed Assets (114) (77) (178) Acquisitions and Disposals Purchase of Subsidiary Undertaking (1,850) - Net Cash Acquired with Subsidiary 1,649 (201) - 505 505 ______ ___ Equity Dividends Paid (1,500) (1,094) (1,581) ________ ________ ________ Cash Inflow (Outflow) Before Financing 3,802 (5,330) 3,051 Financing Cash Placed on Short Term Deposits (14,000) (5,000) (9,800) Cash Received from Short Term Deposits 9,800 7,000 7,000 ________ ________ ________ Net Cash Inflow (Outflow) from Financing 4,200) 2,000 (2,800) ________ ________ ________ Increase (Decrease) in Cash in The Period (398) (3,330) 251 ________ ________ ________ Reconciliation of Operating Profit to Net Cash Inflow (Outflow) from Operating Activities:- Operating Profit 3,244 1,952 4,300 Goodwill Amortisation 95 - 95 Depreciation Charges 143 155 396 (Increase) Decrease in Work in (709) (4,624) (2,573) Progress and Debtors Increase (Decrease) in Creditors 3,166 (1,377) 3,180 ________ ________ ________ 5,939 (3,894) 5,398 ________ ________ ________ NOTES: 1. The results for the half year are unaudited. 2. The accounts have been prepared using accounting policies consistent with those adopted for the year ended 31st December 2000. 3. Earnings per share are calculated on the basis of the weighted average of 12,818,980 ordinary shares in issue (2000 : 12,285,000) and profit attributable to shareholders of £2,341,000 (2000 : £1,434,000). 4. An interim ordinary dividend of 5.0p per share is proposed together with a special dividend of 10p per share payable on 17th September 2001 to shareholders on the register on 7th September 2001. The shares will go ex-dividend on 5th September 2001. 5. This interim report will be circulated to members on 30th August 2001 from which date copies will be available to the public at or on application to the company's registered office: T. Clarke plc, Stanhope House, 116-118 Walworth Road, London SE17 1JY, telephone number 020-7358-5000 (Ext. 211). To: All the members of the Company Notification of directors' resolution relating to the CREST system This is to give you notice, in accordance with the Uncertificated Securities Regulations 1995 ('the Regulations'), that, on 19th July 2001, the Company resolved by a resolution of its directors that title to the ordinary shares of 10p each in the capital of the Company, in issue or to be issued, may be transferred by means of a relevant system. The resolution of the directors will become effective immediately prior to CREST Co. Limited granting permission for the shares concerned to be transferred by means of the CREST system. Explanatory note The above notice is the notice that the Company is obliged to give to its members, under the Regulations, of the passing of a 'directors' resolution' (as defined in the Regulations) in relation to its ordinary shares. The directors' resolution will enable the Company's ordinary shares to join CREST in due course. The shares have not become transferable by means of the CREST system merely by virtue of the passing of the directors' resolution; the permission of the Operator of the system, CREST Co. Limited, must also be given before the shares can become so transferable. It is anticipated that the shares will become transferable by means of the CREST system by early October. The effect of the directors' resolution is to disapply, in relation to the ordinary shares, those provisions of the Company's articles of association that are inconsistent with the holding and transfer of those shares in CREST and any provision of the Regulations, as and when the shares concerned enter the CREST system. Shareholders should note that, under the Regulations, they have the right by ordinary resolution to resolve that the directors of the Company shall take the necessary steps to ensure that title to the shares concerned shall cease to be transferable by means of the CREST system and that the directors' resolution shall cease to have effect. ENs IR EANPDALKFEFE

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