RNS Number:4204I
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
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