Tclarke Regulatory News (CTO)

11 Mar 2005 07:00

Clarke(T.) PLC11 March 2005 T. Clarke Plc Preliminary Results for the year ended 31 December 2004 ACQUISITIONS STRENGTHEN GROUP AS T. CLARKE PERFORMANCE REMAINS STRONG T. Clarke plc, the electrical engineering and contracting company, has announcedits preliminary results for the year to 31 December 2004. • Turnover £157m (2003: £143m) • Profit before Amortisation of Goodwill £7.95m (2003: £9.54m) • Earnings per share before Amortisation of Goodwill 41.04p (2003: 51.52p) • Profit Before Tax £6.88m (2003: £8.94m) • Earnings per share 32.8p (2003: 46.8p) • Final Dividend up to 20p (2003: 19p) • Total Dividend for the year 30p (2003: 27p) • Two acquisitions made during the year for a combined value of £6.9m • Acquisition announced, post year end, of Smith Contracting Services Ltd, based in Scotland for £4.2m Major completions include: - New London Stock Exchange - Treasury East, Whitehall - Bank of America, Canary Wharf - BBC Mailbox, Birmingham - Albion Towers, LeedsMajor projects won include: - Unilever House, Blackfriars - Royal Armouries New Archive Store, Leeds - Sainsbury Centre for Visual Arts - Vodafone, Apollo House, Newbury Pat Stanborough, Chief Executive commented: " T. Clarke has made very encouraging progress during 2004. Despite thechallenges we have faced, the prospects for the Group are excellent. Wepredicted that the second half of the year would remain tough, and so it proved,yet we finished the year strongly. Our pipeline of work is excellent and manynew projects are long-term assignments which are spread over a number of years. " We have continued to grow the scale of the group via acquisitions. We boughttwo businesses during the year. I am pleased that both have bedded down and aretrading well as part of the wider Group. Since the year end we have alsocompleted the acquisition of Smith Contracting Services in Scotland. Thisrepresents our first acquisition north of the border and demonstrates ourcommitment to widen the footprint of our regional operations. " Looking forward, we are very confident that we are well positioned to gainfrom the increase in demand in our core markets in London and the South East. Wehave started 2005 brightly. The order book continues to grow and our regionalbusinesses are reporting brisk trading. The Board remains confident that we willdeliver a further improvement in Group performance during 2005." -ends-Date: 11 March 2005For further information contact: T. Clarke plc City Profile GroupPat Stanborough, Chief Executive Simon CourtenayJohn Daly, Finance Director James CooperTel: 020-7358-5000 Tel: 020-7448-3244web: www.tclarke.co.uk Chairman's Statement Results for 2004 2004 proved to be a challenging yet rewarding year. Despite the demandingtrading conditions, which have been highlighted in our statements during thelast two years, we are pleased to report that Group turnover increased to £157m(£145m excluding acquisitions made during the year). Continued pressure ontrading margins, and increased amortisation charges on goodwill resulted in areduction in profit before tax to £6.88m (2003:£8.94m). Earnings per share fell commensurately from 46.8p to 32.8p. However, given theBoard's confidence in an improving medium term outlook, a final dividend of 20pper share is proposed (2003:19p). Together with the interim payment, this bringsthe total for the year to 30p per share (2003:27p). This represents the 9thsuccessive year that the company has increased the ordinary dividend paid toshareholders. The final dividend will be paid on 9 May 2005 to thoseshareholders on the Register on 15 April 2005. The shares will be markedex-dividend on 13 April 2005. Investment in new acquisitions, property purchases and working capitalrequirements resulted in a reduction in our net cash balances at the year end to£8m (December 2003:£14m). Operational Review At the interim stage we anticipated fulfilling the market's expectations for thefull year, and that proved to be the case. The upturn in order levelsprogressively through the second half was particularly evident in London and theHome Counties, but much of this will not be reflected in sales and profits untilthe latter part of the current year. The pressure on our operating marginscontinued to be felt during the latter months of 2004. In the London area major completions during the year included Treasury East,Whitehall; Bank of America, Canary Wharf; Wellcome Foundation Headquarters,Euston; New London Stock Exchange; and Barclays, Canary Wharf. In the regions completions included BBC Mailbox, Birmingham; Albion Towers,Leeds; Trowbridge Police Station; Newcastle College, MPAM Building; Tilda FoodProcessing Factory, Kent; McCarthy & Stone, Urmston, Lancs; Keele UniversityBusiness Park; and Clayton Phoenix Special School, Peterborough. Current major projects include Romford and Havering Hospital; BBC West One;Cardinal Place, Victoria; Bishops Square, Bishopsgate; National Science andLearning Centre, York University; Drakes Circus Shopping Development, Plymouth;Trinity Academy, Doncaster; Howlands Farm, Durham University; Brunel University,Student Accommodation; and Dalmarnock Waste Water Treatment Works, Glasgow. Recently won contracts include Unilever House, Blackfriars; Hilton Hotel, MoreLondon; Royal Armouries New Archive Store, Leeds; Cross Keys Homes,Peterborough; Sainsbury Centre for Visual Arts; Vodafone, Apollo House, Newbury;Dickinson Dees, Newcastle; Canterbury High School; Bromyard Avenue, BerkeleyHomes; and Cala Homes, Jordan Hill South, Glasgow. Our regional operations continue to see increases in the volume of smallercontracts ranging from Affordable Homes, Educational Buildings, H.M. Prisons;Retail Outlets; Health Facilities and MOD Installations. Acquisitions Part of the Group's strategy is to improve the geographical coverage of the UKand to bolt-on strong local businesses into the T. Clarke group. In March wewelcomed into the Group Mitchell & Hewitt Ltd, based in Derby, which we acquiredfor a consideration of £4.9m. Further development of our regional network camewith the purchase in September of Anglia Electrical Services Ltd, which operatesfrom Kings Lynn, for £2m. Since the year end, in January, Smith ContractingServices Ltd, based in Falkirk and Aberdeen, was purchased for a considerationof £4.2m. We are delighted to welcome the directors and staff of all thesecompanies to the T. Clarke Group. These newly acquired companies improve both our regional coverage and businessmix and I am sure they will make a very positive contribution to our earningsflow in the current year and beyond. We will continue to consider making furtheracquisitions where this would strengthen our regional presence. Staff Development I would refer you to our newly published report on Non-Financial Performance,which can be found on our website. The report embraces all matters relating tostaff development, Health & Safety, Community Relations and EnvironmentalIssues. Corporate Governance I would refer you to our Statement of Corporate Governance, which will bepublished in the Annual Report & Accounts. We were delighted to welcome Mrs. Beverley Stewart to the Board as anon-executive director at the beginning of January this year. Mrs. Stewartbrings considerable experience to our deliberations, having co-owned her ownBuilding Services, Cost Planning and Asset Management consultancy practice for13 years. In addition to her overall responsibilities, she will sit on the Auditand Remuneration committees of the Board. On a sad note we are sorry to inform members that since the last report JohnNixon, who had served the group for over forty years and as a main boarddirector for twenty-six years, having retired in 2003 on the grounds of illhealth, passed away after a lengthy illness. He will be greatly missed. Prospects We have seen a marked upturn in activity levels in the London area in the lastfew months, particularly in our core business activities. Our confidence istherefore growing, both as regards the quality of business opportunitiesavailable to us and the level of margins achievable. Given the nature of thebusiness cycle in which we operate, it is expected that the upturn will spanthrough 2005 and for the following two years. Although we therefore anticipatethat the full benefit of any margin improvement will not be felt until 2006, wenonetheless are confident of an improved performance during the current year. I close once again with thanks to our loyal staff, and for the continued supportof our clients and suppliers. R. J. RaceChairman10th March 2005 Group profit and loss accountFor the year ended 31st December 2004 Continuing 2004 Total 2003 Total Acquisitions Operations £ £ Turnover 11,677,999 144,948,909 156,626,908 143,265,296 Cost of sales 9,237,243 125,232,513 134,469,756 122,689,335 ------------- ------------- ------------- ------------- - - - - Gross Profit 2,440,756 19,716,396 22,157,152 20,575,961 Administrative expenses 2,281,139 13,258,137 15,539,276 12,291,005 ------------- ------------- ------------- ------------- Operating profit 159,617 6,458,259 6,617,876 8,284,956 ============= ============= Interest receivable (net) 264,803 655,569 ------------- ------------- Profit on ordinary activities before taxation 6,882,679 8,940,525 Taxation on profit on ordinary activities 2,597,429 2,941,000 ------------- ------------- Profit on ordinary activities after taxation 4,285,250 5,999,525 Dividends 3,984,390 4,743,007 ------------- ------------- Profit for the financial year 300,860 1,256,518 ============= =============Earnings per share 32.84 pence 46.80 pence ============= ============= In 2003 and 2004 the group had no recognised gains or losses other than the result forthe financial year. Group balance sheetAt 31st December 2004 2004 2003 £ £Fixed assets Goodwill 9,468,394 5,653,644 Tangible assets 6,903,146 4,685,182 ------------- ------------- 16,371,540 10,338,826 ------------- ------------- Deferred taxation 21,251 39,984 ------------- ------------- Current assets Work in progress 4,981,170 4,617,142 Debtors 25,289,448 14,737,627 Cash at bank and in hand 11,210,672 17,064,594 ------------- ------------- 41,481,290 36,419,363 Creditors, amounts falling due within one year (37,161,427) (28,452,194) ------------- ------------- Net current assets 4,319,863 7,967,169 ------------- ------------- Total assets less current liabilities 20,712,654 18,345,979 Creditors, amounts falling due after more than one year (263,623) (97,808) ------------- ------------- 20,449,031 18,248,171 ------------- -------------Capital and reserves Called up equity share capital 1,314,710 1,281,898 Share premium 2,913,790 1,046,602 Revaluation reserve 34,639 35,971 Profit and loss account 16,185,892 15,883,700 ------------- ------------- Equity Shareholders' funds 20,449,031 18,248,171 ============= ============= These financial statements were approved by the board on 10 March 2005 P.E. STANBOROUGH Directors R.J. RACE Group cash flow statementFor the year ended 31st December 2004 2004 2003 £ £ Net cash inflow from operating activities 7,019,961 4,740,695 Returns on investments and servicing of finance Interest received 305,229 714,152Interest paid (40,426) (58,583) ------------ ------------ Net cash inflow from returns on investments and servicing of finance 264,803 655,569 Taxation UK corporation tax paid (2,749,275) (3,386,317) Capital expenditure and financial investment Purchase of tangible fixed assets (2,091,042) (1,508,006)Sale of tangible fixed assets 137,425 41,569 ------------ ------------ Net cash outflow from capital expenditure and financial investment (1,953,590) (1,466,437) Acquisitions and disposals Purchase of subsidiaries (4,992,988) (3,287,931)Net cash acquired with subsidiaries 711,197 234,688 ------------ ------------ Net cash outflow from acquisitions (4,281,791) (3,053,243) Equity dividends paid (3,790,561) (4,614,832) ------------ ------------ Cash outflow before use of liquid resources (5,490,453) (7,124,569) Management of liquid resources Cash placed on short term deposits (8,250,000) (13,500,000)Cash received from short term deposits 13,500,000 22,802,492 ------------ ------------ Net cash inflow from management of liquid resources 5,250,000 9,302,492 ------------ ------------ Increase/(decrease) in cash in the year before financing (240,453) 2,177,923 FinancingFinance lease payments 51,191 (15,808)Repayment of loan notes - (1,109,897) ------------ ------------ 51,191 (1,125,705) ------------ ------------Increase / (decrease) in cash in the year (189,262) 1,052,218 ============ ============ Notes :- 1. The earnings per share represents the profit for the year on ordinaryactivities after taxation divided by the number of ordinary shares in issue. Thenumbers of ordinary shares, being a weighted average, for the purpose of thiscalculation, is 13,045,852 (2003: 12,818,980). 2. The figures for the year ended 31 December 2004 have been extracted from thefull audited accounts for the year, which have not yet been delivered to theRegistrar of Companies. The figures have been prepared and compiled inaccordance with applicable accounting standards under the historical costconvention. The comparative figures for the year ended 31 December 2003 havebeen taken from, but do not constitute, the group's statutory accounts for theyear. Those statutory accounts have been reported on by the group's auditors andwill be delivered to the Registrar of Companies. The report of the auditors wasunqualified and did not contain a statement under section 237 (2) or (3) of theCompanies Act 1985. 3. Copies of the annual report and accounts will be posted to shareholdersshortly. 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, London, WC2on Friday 6 May 2005 at 12:00 noon. 5. Subject to the approval of shareholders the final dividend of 20 pence pershare will be paid on 9 May 2005. The shares will go ex-dividend on 13 April2005. The records will close on 15 April 2005. This information is provided by RNS The company news service from the London Stock Exchange