Tclarke Regulatory News (CTO)

10 Mar 2006 07:01

Clarke(T.) PLC10 March 2006 Preliminary Results for the year ended 31 December 2005 T CLARKE UPBEAT ON PROGRESS T. Clarke plc, the electrical engineering and contracting company, has announcedits preliminary results for the year to 31 December 2005. •Profit Before Tax £8.6M (2004: £7.8M)•Profit Before Property Sale £7.6m (2004: £7.8m)•Turnover £194M (2004: £157M)•Basic EPS 14.30p (2004: 13.39p)•Final Dividend up to 7.0p (2004: 6.67 p)•Total Dividend for the year up to 10.5p (2004: 10p)•Two acquisitions made during the year for a combined value of £5.8m Major completions include: - Cardinal Place, Victoria, London- Bishops Square, Bishopsgate, London- 199 Knightsbridge, London- Sainsbury Centre For Visual Arts, Cambridge Major projects won include: - 02 Millennium Dome- 201 Bishopsgate and Broadgate Tower- Shell Centre, Waterloo- Bordeaux Quay, Bristol- RAF Croughton New Sub-Station Pat Stanborough, Chief Executive commented: " T.Clarke has continued to make encouraging progress during the year. Despitecontinued pressure on margins, the business is well set. We are currentlyenjoying an increase in quality enquiries as commercial development in our coremarkets continues to recover. We anticipate that whilst our markets will remaincompetitive, margins will recover during the year. " We are delighted that the two further acquisitions we have made have beddeddown as part of the group so well. Across the group, our regional businesses arebenefiting from a steady growth in public sector projects. We are also workinghard to foster greater co-operation between our subsidiaries. " Looking forward we are confident about the prospects for the group. Ourregional businesses are making good progress and our core operations areenjoying a significant increase in enquiries. I look forward to reportingfurther progress later in the year." -ends- Date: 10 March 2006 For further information contact: T. Clarke plc cityPROFILEPat Stanborough, Chief Executive Simon CourtenayJohn Daly, Finance Director Andrew HarrisTel: 020-7358-5000 Tel: 020-7448-3244web: www.tclarke.co.uk-------------------------- Chairman's Statement Results for 2005 The Group managed to achieve excellent growth in turnover from £156.6M to£194.0M during 2005. Even stripping out the sales generated by our acquisitionsduring the year, turnover advanced by 13%. However, as indicated at the interimstage and in our Trading Statement in January, there was considerable pressureon margins throughout the period, particularly in our core operations. Pre-taxprofits, before the exceptional profit of nearly £1M achieved on propertydisposals, fell by just 3% to £7.55M, a satisfactory achievement in difficultcircumstances. Earnings per share, pre exceptional items, went from 13.39p to 12.54p. In viewof our medium term confidence, a final dividend of 7.0p per share (2004: 6.67p)is being recommended, bringing the total for the year to 10.5p per share (2004:10.0p). The final dividend will be paid on 8th May 2006 to those shareholders onthe Register on 5th April 2006. The shares will be marked ex-dividend on 7thApril 2006. During the year we continued to invest in new acquisitions. Together withadditional working capital requirements, we experienced a cash outflow over theyear. Our balance sheet remains strong with £4.8m of cash and cash equivalentsat year end (2004: £11.2m). Acquisitions We benefited during the year from two acquisitions - Smith Contracting ServicesLtd. (subsequently renamed SCS Building Services Ltd.) in January for £4.1M; andWaldon Electrical Contractors Ltd. in May for £1.7M. These have further extendedthe Groups regional coverage, into Scotland and the South-West respectively, andwe are pleased with the initial impact which both these companies have hadduring their first months under our stewardship. Organisation Whilst a detailed Operational Review appears elsewhere it is worth highlightingthe moves being taken within the Group to foster greater co-operation betweenour subsidiaries. Without removing the autonomy which each company has inday-to-day matters, there is now a formal structure which ensures best practiceis followed in all our companies and that the maximum benefits are derived fromshared contacts and Group buying. Prospects We view the immediate outlook for 2006 turnover with growing confidence,supported by a current order book of some £165M. We therefore anticipatereporting further progress as the year unfolds, and beyond that in 2007. I would like to conclude by paying tribute to my fellow directors and all thestaff, together with those clients and suppliers who have continued to supportus so well. Russell RaceChairman9th March 2006 OPERATING REVIEW Our core operations continue to operate as a single business and are focused onachieving excellence in quality, commitment and delivery with a long term andgrowing client base. All the businesses outside our core activities have been brought together undera regional board. These businesses service a variety of markets and arestructured to be stand alone and self sufficient, whilst offering opportunitiesto lower the cost base where synergies exist. The group is now structured to react quickly to changing circumstances withbetter communication and to reduce operational overheads. During the year having acquired businesses in Scotland and Cornwall we havetaken the opportunity to review managing our businesses. This has resulted in asimplified structure with shorter lines of communication between our businessesand the board, and our businesses and their customers. An additional independent non executive director was appointed and an executivedirector resigned, it is not currently the intention to appoint anotherexecutive director. The board with its changed composition will be able to focusmore clearly on the strategic direction of the company. CONSTRUCTION The construction industry has continued to be challenging but we expect, and arecurrently experiencing, an increase in quality enquiries. There is a noticeableupturn in commercial development in the City of London and developments inCanary Wharf and Greenwich. Margins have been under extreme pressure and areslow to show improvement, but we are confident of better returns in the shortterm. Local authority, residential and education continue to provide steadygrowth for our regional businesses along with growing potential for an entryinto commercial development in city centres. In the London region major completions during the year included BBC West One;Bishops Square, Bishopsgate; Cardinal Place, Victoria and 199 Knightsbridge,SW1. In the regions major completions included Dalmarnock Water Treatment Works,Glasgow; Albion Road, Edinburgh; Blundell Court, Sidney Sussex College,Cambridge; Cross Keys Decent Homes Programme, Peterborough; Environment Agency,Wallingford, Berks; Alcan Packaging, Bristol; Vancouver Shopping Centre, KingsLynn; Sainsbury Centre For Visual Arts, Cambridge; Brunel University StudentAccommodation, Uxbridge; Greenwich Millenium Village Residential; Greggs Bakery,Newcastle Upon Tyne; Trinity Academy, Doncaster and 19 Waitrose Stores. Current major projects include Romford and Havering Hospital; Allen & Overy,Bishopsgate; DrKW, Gresham Street; White City Shopping Development; UnileverHouse, Blackfriars; Grand Arcade, Cambridge; Drakes Circus Shopping Centre,Plymouth; Wrigleys, Plymouth; Cinema City, Norwich; Stockton Riverside College;University of Leeds, Garstang & Worsley Building and 7 Waitrose Stores. Recently won contracts include 201 Bishopsgate and Broadgate Tower; 02 MilleniumDome; LUL White City; Shell Centre, Waterloo; Bishop Aukland College, Co.Durham; Warrington Bus Terminal; HMP Lindholme; Pitoddrie Housing, Aberdeen;Homerton College, Cambridge; Bordeaux Quay, Bristol; River Usk Bridge, Newport;Dussindale New Primary School, Norwich; Headlam Carpet Warehouse, Leeds; RAFCroughton New Sub-Station and 6 Waitrose Stores. Overall our businesses have achieved an improvement in performance in a verytough market place, and we expect such improvements to continue. The forward order book increased to £165m (2004: £130m) reflecting growth withinthe regional businesses. STRATEGY We continue to have a clear strategy for our businesses. They are tasked toachieve excellence and customer satisfaction whilst providing earningssufficient to sustain dividend growth and finance investments in futureexpansion. We are alert to the risk associated with a sharp upturn in demandwithin the construction industry, especially with regard to 2012, and theinevitable increases in wage demands and material costs. We have a robuststrategy in place to manage this risk, built upon our strong management team,direct employment of labour, supplier chain and reputation for delivery. Consolidated income statementfor the year ended 31st December 2005 2004 Total Continuing 2005 Total (restated) Notes Acquisitions Operations £ £ Revenue 1 16,049,546 177,679,580 193,729,126 156,626,908Cost of sales 12,004,664 153,843,654 165,848,318 134,469,756-------------------------------------------------------------------------------- Gross Profit 4,044,882 23,835,926 27,880,808 22,157,152Administrativeexpenses 4 3,496,466 15,785,465 19,281,931 14,563,276-------------------------------------------------------------------------------- Profit from operations 548,416 8,050,461 8,598,877 7,593,836Investmentincome/ 3 (303) (44,281) (44,584) 192,803(finance cost) --------------------------------------------------------------------------------Profit beforetaxation 548,113 8,006,180 8,554,293 7,786,679Taxation 6 230,449 2,614,057 2,844,506 2,547,429-------------------------------------------------------------------------------- Profit for theperiod fromcontinuingoperations 317,664 5,392,123 5,709,787 5,239,250================================================================================ Earnings pershare(adjusted for 7 14.30pence 13.39pencebonus issue) Group statement of recognised income & expense 2004 Total 2005 Total (restated) £ £Actuarial gains/(losses) on definedbenefit pension scheme (538,000) (1,277,000)Tax on items taken direct to equity 161,000 383,000--------------------------------------------------------------------------------Net income recognised directly in equity (377,000) (894,000)Profit for the period 5,709,787 5,239,250-------------------------------------------------------------------------------- Total recognised income & expense for the period 5,332,787 4,345,250================================================================================ Consolidated balance sheetat 31st December 2005 Notes 2004 2005 (restated) £ £Non current assetsGoodwill 14,384,649 10,538,394Tangible fixed assets 9 8,384,102 6,903,146Deferred taxation 15 61,360 66,034-------------------------------------------------------------------------------- 22,830,111 17,507,574-------------------------------------------------------------------------------- Current assetsInventories 353,788 600,589Construction contracts 12 17,361,059 13,428,959Debtors 13 21,953,722 16,054,853Cash and cash equivalents 4,828,646 11,210,672-------------------------------------------------------------------------------- 44,497,215 41,295,073-------------------------------------------------------------------------------- Total assets 67,327,326 58,802,647-------------------------------------------------------------------------------- Current liabilitiesBank overdraft and loans 20 2,311,047 2,603,252Creditors and accruals 14 35,125,983 29,340,146Corporation tax liabilities 2,273,299 2,131,615Obligations under finance leases 23 338,914 270,777-------------------------------------------------------------------------------- 40,049,243 34,345,790-------------------------------------------------------------------------------- Net current assets 4,447,972 6,949,283-------------------------------------------------------------------------------- Non current liabilitiesRetirement benefit obligation 22 4,284,000 3,830,000Deferred taxation 15 66,858 44,783Obligations under finance leases 23 337,356 263,623-------------------------------------------------------------------------------- 4,688,214 4,138,406-------------------------------------------------------------------------------- Total liabilities 44,737,457 38,484,196--------------------------------------------------------------------------------Net assets 22,589,869 20,318,451================================================================================EquityShare capital 16 3,994,789 1,314,710Share premium 17 1,233,711 2,913,790Profit and loss account 17 17,328,062 16,055,312Revaluation reserve 17 33,307 34,639-------------------------------------------------------------------------------- Total equity 22,589,869 20,318,451================================================================================ These financial statements were approved by the board on 9th March 2006P.E. STANBOROUGH / R.J. RACEDirectors Company balance sheetat 31st December 2005 2004 Notes 2005 (restated) £ £Non current assetsTangible fixed assets 89,747 140,741Investments 9 23,673,009 17,784,605Deferred taxation 15 43,000 43,000-------------------------------------------------------------------------------- 23,805,756 17,968,346--------------------------------------------------------------------------------Current assetsConstruction contracts 12 12,692,967 10,366,588Debtors 13 8,404,805 9,120,434Cash and cash equivalents 1,502,900 7,503,250-------------------------------------------------------------------------------- 22,600,672 26,990,272-------------------------------------------------------------------------------- Total assets 46,406,428 44,958,618-------------------------------------------------------------------------------- Current liabilitiesBank overdraft and loans 20 1,354,019 1,181,377Creditors and accruals 14 19,628,886 21,033,916Corporation tax liabilities 283, 357 159,310-------------------------------------------------------------------------------- 21,266,262 22,374,603--------------------------------------------------------------------------------Net current assets 1,334,410 4,615,669--------------------------------------------------------------------------------Non current liabilitiesRetirement benefit obligation 4,284,000 3,830,00--------------------------------------------------------------------------------Total liabilities 25,550,262 26,204,603--------------------------------------------------------------------------------Net assets 20,856,166 18,754,015================================================================================EquityShare capital 13 3,994,789 1,314,710Share premium 14 1,233,711 2,913,790Profit and loss account 14 15,627,666 14,525,515--------------------------------------------------------------------------------Total equity 20,856,166 18,754,015================================================================================ 2004 2005 (restated) £ £Net cash from operating activities 3,535,068 4,254,738--------------------------------------------------------------------------------Investing activitiesInterest received 243,192 383,133Purchase of tangible assets (1,438,327) (2,091,042)Receipts on disposal of fixed assets 1,531,114 137,452Acquisitions of subsidiaries (4,717,208) (4,281,791)--------------------------------------------------------------------------------Net cash (used in) investing activities (4,381,229) (5,852,248)--------------------------------------------------------------------------------Financing activitiesEquity dividends paid (4,061,369) (3,790,561)Repayments of obligations under finance leases (325,588) (51,191)Increase/ (decrease) in bank overdrafts (1,148,908) (414,660)--------------------------------------------------------------------------------Net cash (used in)/ from financing activities (5,535,865) (4,256,412)--------------------------------------------------------------------------------Net increase /(decrease) in cash and cashequivalents (6,382,026) (5,853,922)Cash and cash equivalents at beginning ofperiod 11,210,672 17,064,594--------------------------------------------------------------------------------Cash and cash equivalents at end of period 4,828,646 11,210,672-------------------------------------------------------------------------------- Consolidated statement of changes in equityfor the year ended 31st December 2005 2004 2005 (restated) £ £ Balance at start of period 20,318,451 17,863,762Profit for period 5,709,787 5,239,250Interim dividend paid (1,398,176) (1,307,095)Prior year dividend paid (2,663,193) (2,483,466)Actuarial gains/ (losses) on defined benefitpension scheme (538,000) (1,277,000)Corporation tax provision on pension benefits 161,000 383,000Shares issued on acquisition 16,886 32,812Premium on shares issued 983,114 1,867,188--------------------------------------------------------------------------------Balance at end of period 22,589,869 20,318,451-------------------------------------------------------------------------------- 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 39,938,174 (2004: 39,137,555). 2. The figures for the year ended 31 December 2005 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 2004 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 WC2, on Friday 5 May 2006 at 12:00 noon. 5. Subject to the approval of shareholders the final dividend of 7pence per share will be paid on 8th May 2006. The shares will go ex-dividend on5th April 2006. The records will close on 7th April 2006. This information is provided by RNS The company news service from the London Stock Exchange