Last checked at 29 Aug 2008 07:00
T CLARKE CONFIDENT AS PRE-TAX PROFIT RISES 39%
T. Clarke plc, the electrical engineering and contracting company, has announced its interim results for the six months to 30 June 2008.
Group revenue up 13% to £109m (2007: 96.5m)
Pre-tax profits up 39% to £5.4m (2007: £3.9m)
Earnings per share up 45.5% to 9.53p (2007: 6.55p)
Group order book at £230m (2007: £205m)
Net cash up £10m from year end
Strong improvement in regional profits
London business robust
Interim dividend up 8.97% to 4.25p
Major completions include:
201 Bishopsgate and Broadgate Tower, London; Associated Press - The Interchange, Camden Lock; Golden Jubilee National Hospital, Glasgow; St. Brendan's College, Bristol; ATS Kilmarnock; Pavillion Building, Wadebridge Showground and Lindholme Prison.
Current projects include:
Westfield, White City, London; Ropemaker, London; Regents Place, London; DLR 3-car upgrade, London; BP2 Canary Wharf; CSA HQ Falkirk; Cambridge Regional College; Excelsior Academy, Newcastle; KIA Manston Airport.
Major projects won include:
NO204 office development Greenwich; One New Change, St Paul's; Deutsche Bank, London; The Fusion Housing Development, Edinburgh; 3 Waitrose Stores; MOD Tidworth Garrison; Trewarthenick House Estate, Cornwall and Harrogate Library.
Pat Stanborough, Chief Executive commented:
" This has been a period of significant progress for the Group. Despite the current backdrop of uncertainty in the financial markets, all our core operations are performing well. Our plan to diversify the business away from a dependence on the commercial property development sector has gone well and we have a steady flow of work across all the regions we operate in."
" Our forward order book is in excellent shape with a strong mix of work due for completion both in the current year and beyond. We have the skills and the reputation to continue to deliver value for our shareholders."
" Looking forward, the future for the Group remains solid. We have a first class team and we are regarded as one of the best operators in the sector. We have increased the dividend by 9% and our cash balance remains strong at £19.3m. We remain vigilant to the challenges we face, but we approach the future with confidence and enthusiasm."
-ends-
Date: 29th August 2008
For further information contact:
| T. Clarke plc | City Profile |
| Pat Stanborough, Chief Executive | Simon Courtenay |
| Victoria French, Finance Director | William Attwell |
| Tel: 020-7358-5000 | Tel: 020-7448-3244 |
| web: www.tclarke.co.uk |
|
Chairman's Statement
Against the current economic background, I am pleased to report that the Group has performed in line with management expectations in the first six months of the year. Revenue and pre-tax profits have grown by 13% and 39% respectively, reflecting greater activity and improved margins. At the same time we have generated net cash of over £10m from operations during the period and we retain a healthy cash balance as we move into the second half.
The core London business remains robust, whilst there has been a strong improvement in the contribution made across our regional businesses.
The Group is in excellent shape to meet the challenges ahead. We have a good mix of long term and more immediate business, across the UK. Our outlook for the full year therefore remains unchanged. In light of these encouraging figures and prospects, the Board is proposing that the interim dividend be increased by 8.97 % to 4.25p per share.
At the end of July, Len Arnold retired from the Board having served for ten years as a non executive director, latterly as the senior independent director. Len brought considerable industry knowledge to the Board, and we have benefited tremendously from his contribution during a period which has seen a major expansion in the business of your company. We wish him well in his retirement.
The Board has begun the process of interviewing potential candidates for the position of non executive director, and expects to make an appointment towards the year end.
Russell Race
Chairman
28th August 2008
Business Review
Operations review
Our core operations in London and the South East are operating at around 90% capacity and we are expecting to report a turnover of £100m from this division for the year. We remain confident that the business will continue to grow with a lesser dependence on the commercial property development sector. We have, in recent times, taken steps to increase our capacity in anticipation of increases in our workload; we are continuing our apprentice intake and have 100 apprentices in various stages of training. The core operations are in excellent shape and we are well positioned to meet the challenging demands of the current market and the run-up to the 2012 London Olympics.
Revenue from our core operations increased 11% in the six months and operating margin was 5.0% (2007: 5.6% which included more contract completions). The forward order book is £135m of which £55m is scheduled for completion this year.
Overall, our regional businesses are performing well with particularly strong results from Derby, Leeds, Newcastle and Scotland. Prior year legacy issues have now been eliminated and we have seen a substantial improvement in margins and expect a continuing improvement going forward. Although some of our regional businesses are experiencing a slight slowdown in residential and small commercial developments, others are experiencing increased demand in retail, public sector and educational facilities.
Regional revenue for the six months was up 15% and operating margin was 4.2%. The forward order book is £95m of which £50m is scheduled for completion this year.
Completions
201 Bishopsgate and Broadgate Tower, London; Data Centre, London; Associated Press - The Interchange, Camden Lock; Golden Jubilee National Hospital, Glasgow; MLD School & Sports Hall, Edinburgh; Equine Hospital, Newmarket; Bluecoats Arts Centre, Liverpool; Victoria Building, Liverpool University; Grand Arcade, Cambridge; Heycock Theatre, Cambridge; Framwellgate Hotel, Durham; Medway Council Offices; St. Brendan's College, Bristol; ATS Kilmarnock; Shires Shopping Centre, Leicester, Ward K2 Addenbrookes Hospital, Cambridge; Pavillion Building, Wadebridge Showground and Lindholme Prison.
Current projects
Westfield, White City, London; Ropemaker, London; Regents Place, London; DLR 3-car upgrade, London; Central St. Giles, London; BP2 Canary Wharf; CSA HQ Falkirk; West Lothian High School; Searles Leisure Complex, Heacham; Maine Road Primary School, Manchester; Cambridge Regional College; Excelsior Academy, Newcastle; KIA Manston Airport; Gloucester Quays; East Chester Hospice; Wilton Plaza, London; South Ilford Primary Health Care Centre; Callington Community College Renaissance Building, Cornwall and Leeds Grand Theatre.
New work secured
NO204 office development Greenwich; One New Change, St Paul's; Deutsche Bank, London; The Fusion Housing Development, Edinburgh; Carstairs Mental Hospital, Lanarkshire; Mount Carmel High School; 3 Waitrose Stores; Northumbria University Sports Facility; Chatham Dockyard Boat Museum; Medway Hospital Substation; MOD Tidworth Garrison; ATS Galashiels; Nottingham High School; Stantonbury Campus, Milton Keynes; Trewarthenick House Estate, Cornwall and Harrogate Library.
Outlook
Our strategy has been to diversify our activities by market sector and geographic location. Despite the economic uncertainty in some sectors such as commercial property development and residential, we have some exciting opportunities ahead of us and remain confident that the group will continue to achieve optimum revenues and margins.
We are preferred bidder for a number of major projects with a value of circa £100m. The group's forward order book is £230m (2007: £205m), of which £105m is scheduled for completion this year. Our cash balances are robust and we are well positioned for the future.
Financial Review
Group revenue and operating profit
Revenue for the six months to 30 June 2008 increased £12.8m (13.3%) to £109.3m (2007: £96.5m).
Gross profit increased £2.3m (16.7%) to £16.6m (2007: £14.3m) reflecting a significant improvement in the results from the regional companies which was partially offset by a £1.1m (10.7%) increase in administrative expenses to £11.5m due to salary increases, new accounting system costs and bad debt expense.
Operating profit increased £1.3m (32.6%) to £5.2m (2007: £3.9m).
Profit before taxation
Profit before taxation increased by £1.5m (39.2%) to £5.4m (2007: £3.9m) after a £0.22m increase in investment income from interest received on cash deposits held.
Taxation increased by £0.3m to £1.6m for the six months to 30 June 2008. The effective tax rate reduced from 33% to 30%.
Profit after tax and earnings per share
Profit after tax increased by £1.2m (45.5%) to £3.8m for the six months to 30 June 2008.
Correspondingly, earnings per share increased by 2.98p to 9.53p (2007: 6.55p).
Cash flow and dividend
Net cash from operating activities increased by £10.7m to £13.7m for the six month period ended 30 June 2008 compared to the six month period ended 30 June 2007 mainly due to an £1.3m increase in operating profit and a £9.3m net increase in working capital movements.
Net cash (including bank overdrafts) was £19.3m as at 30 June 2008, compared to £9m as at 31 December 2007. Included within £19.3m net cash was £22.7m of cash and short-term deposits and £3.4m of overdrafts held at the period end.
The interim dividend increased by 0.35p (8.97%) from 3.9p to 4.25p reflecting the improved performance in the business. The dividend will be paid on 10 October 2008 as detailed in Note 6.
Core operations
Revenue increased in London by £4.4m (10.9%) to £45.2m. Operating profit was broadly static at £2.3m and operating profit margin reduced from 5.6% to 5.0% reflecting the higher level of completions in the prior period to 30 June 2007, compared with ongoing construction activities in the current period.
Profit before tax increased slightly to £2.4m (2007: £2.2m) due to interest received resulting in a profit before tax margin of 5.4% (2007: 5.5%).
Regional operations
Revenue from regional operations increased by £8.4m (15.1%) to £64.1m.
Regional operating profit increased by £1.3m (92.7%) to £2.7m and operating profit margin increased from 2.5% to 4.2% as a result of improved profitability in a number of regional companies where legacy issues impacted prior year results. Regional profit before tax increased by £1.4m (97.4%) to £2.8m.
Pension obligations
The pension scheme deficit on the balance sheet has remained broadly static at £2.3m from £2.4m at the year end. The reduction in the pension scheme liabilities, due to the 0.9% increase in the discount rate (reflecting an increase in the yield on AA-rated corporate bonds from 5.8% to 6.7%) was offset by an increase in life expectancy assumptions of approximately two years and an increase in the inflation rate assumption of 0.8% to 4.2%. If the yield on AA-rated corporate bonds were to decrease in the future, the effect would be to increase the pension scheme deficit with the loss being recognised through reserves on the balance sheet.
The company is currently conducting a review of its defined benefit pension scheme arrangements.
Pat Stanborough Victoria French
Chief Executive Finance Director
28th August 2008 28th August 2008
| Consolidated income statement |
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| Unaudited |
| Unaudited |
| Audited | ||
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| 6 Months to |
| 6 Months to |
| 12 Months to | ||
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| 30 06 2008 |
| 30 06 2007 |
| 31 12 2007 | ||
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| £000 |
| £000 |
| £000 | ||
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| Revenue |
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| 109,342 |
| 96, 489 |
| 193,845 | ||
| Cost of sales |
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| (92,716) |
| (82,239) |
| (165,326) | |||
| Gross profit |
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| 16,626 |
| 14,250 |
| 28,519 | |||
| Other operating income |
|
| 43 |
| 33 |
| 90 | ||||
| Administrative expenses |
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| (11,478) |
| (10,368) |
| (20,493) | ||||
| Profit from operations |
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| 5,191 |
| 3,915 |
| 8,116 | ||||
| Investment income |
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| 276 |
| 58 |
| 266 | ||||
| Finance costs |
|
| (59) |
| (89) |
| (216) | ||||
| Profit before taxation |
|
| 5,408 |
| 3,884 |
| 8,166 | ||||
| Taxation |
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|
|
| (1,601) |
| (1,267) |
| (2,441) | ||
| Profit for the period from continuing operations |
|
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| 3,807 |
| 2,617 |
| 5,725 | |||
| Earnings per share |
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| 9.53p |
| 6.55p |
| 14.33p | |||
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| Consolidated statement of recognised income and expense |
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| Actuarial gains on defined benefit pension scheme |
| 47 |
| 3,394 |
| 3,173 | |||||
| Tax on items taken direct to equity |
|
| (14) |
| (1,018) |
| (1,006) | ||||
| Net income recognised directly in equity |
|
| 33 |
| 2,376 |
| 2,167 | ||||
| Profit for the period |
|
|
| 3,807 |
| 2,617 |
| 5,725 | |||
| Total recognised income & expense for the period |
| 3,840 |
| 4,993 |
| 7,892 | |||||
| Consolidated balance sheet | |||||
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| Unaudited |
| Unaudited |
| Audited |
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| 30 06 2008 |
| 30 06 2007 |
| 31 12 2007 |
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| £000 |
| £000 |
| £000 |
| Non current assets |
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| Goodwill | 14,385 |
| 14,385 |
| 14,385 |
| Tangible fixed assets | 7,655 |
| 7,864 |
| 7,768 |
| Deferred taxation | 86 |
| 23 |
| 88 |
|
| 22,126 |
| 22,272 |
| 22,241 |
| Current assets |
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| Inventories | 267 |
| 312 |
| 287 |
| Construction contracts | 15,138 |
| 9,531 |
| 11,096 |
| Debtors | 23,426 |
| 29,500 |
| 25,072 |
| Cash and cash equivalents | 22,774 |
| 6,143 |
| 10,762 |
|
| 61,605 |
| 45,486 |
| 47,217 |
| Total assets | 83,731 |
| 67,758 |
| 69,458 |
| Current liabilities |
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| Bank overdraft and loans | 3,470 |
| 3,489 |
| 1,811 |
| Creditors and accruals | 48,963 |
| 35,608 |
| 36,934 |
| Corporation tax liabilities | 1,775 |
| 1,256 |
| 1,660 |
| Obligations under finance leases | 289 |
| 227 |
| 259 |
|
| 54,497 |
| 40,580 |
| 40,664 |
| Net current assets | 7,108 |
| 4,906 |
| 6,553 |
| Non current liabilities |
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| Retirement benefit obligation | 2,227 |
| 2,088 |
| 2,395 |
| Deferred taxation | - |
| 17 |
| - |
| Obligations under finance leases | 176 |
| 237 |
| 222 |
|
| 2,453 |
| 2,342 |
| 2,617 |
| Total liabilities | 56,950 |
| 42,922 |
| 43,281 |
| Net assets | 26,781 |
| 24,836 |
| 26,177 |
| Equity |
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| Share capital | 3,995 |
| 3,995 |
| 3,995 |
| Share premium | 1,234 |
| 1,234 |
| 1,234 |
| Revaluation reserve | - |
| 32 |
| - |
| Profit and loss account | 21,552 |
| 19,575 |
| 20,948 |
| Total equity | 26,781 |
| 24,836 |
| 26,177 |
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| Consolidated cashflow statement | |||||
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| Unaudited | Unaudited |
| Audited | |
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| 6 Months to | 6 Months to |
| 12 Months to | |
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| 30 06 2008 | 30 06 2007 |
| 31 12 2007 | |
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| |
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| £000 |
| £000 |
| £000 |
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| Net cash from operating activities (see note 8) | 13,662 |
| 3,005 |
| 10,998 |
| Investing activities |
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| Interest received | 276 |
| 58 |
| 266 |
| Purchase of tangible fixed assets | (252) |
| (267) |
| (595) |
| Receipts on disposal of fixed assets | 59 |
| 68 |
| 122 |
| Net cash from / (used in) investing activities | 83 |
| (141) |
| (207) |
| Financing activities |
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| Equity dividends paid | (3,236) |
| (2,936) |
| (4,494) |
| Repayments of obligations under finance leases | (156) |
| (182) |
| (254) |
| Net cash used in financing activities | (3,392) |
| (3,118) |
| (4,748) |
| Net increase / (decrease) in cash and cash equivalents | 10,353 |
| (254) |
| 6,043 |
| Cash and cash equivalents at beginning of period | 8,951 |
| 2,908 |
| 2,908 |
| Cash and cash equivalents at end of period (see note 8) | 19,304 |
| 2,654 |
| 8,951 |
| Consolidated statement of changes in equity |
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| Unaudited 6 months to |
| Unaudited 6 months to |
| Audited 12 Months to |
|
| 30 06 2008 |
| 30 06 2007 |
| 31 12 2007 |
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| £000 |
| £000 |
| £000 |
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| Balance at start of period | 26,177 |
| 22,779 |
| 22,779 |
| Profit for period | 3,807 |
| 2,617 |
| 5,725 |
| Interim dividend paid | - |
| - |
| (1,558) |
| Prior year final dividend paid | (3,236) |
| (2,936) |
| (2,936) |
| Actuarial gains on defined benefit pension scheme | 47 |
| 3,394 |
| 3,173 |
| Corporation tax provision on pension benefits | (14) |
| (1,018) |
| (888) |
| Effect of change in tax rate on deferred tax recognised through equity | - |
| - |
| (118) |
| Balance at end of period | 26,781 |
| 24,836 |
| 26,177 |
Notes to the interim financial statements
Note 1 - Basis of preparation
T.Clarke plc (the 'company') is a company incorporated in the United Kingdom. The consolidated interim financial statements comprise the financial statements of the company and its subsidiaries (together the 'group').
The interim financial information in this statement does not constitute statutory accounts, as defined in section 240 of the Companies Act 1985. The statutory accounts for the year to 31st December 2007 have been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under section 237 of the Companies Act 1985.
These interim financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' ('IAS 34) as adopted by the European Union, and the Disclosure and Transparency Rules ('DTR') of the Financial Services Authority. They do not include all the information required for the full annual financial statements, and should be read in conjunction with the financial statements of the group as at and for the year ended 31st December 2007.
The interim financial statements have not been audited or reviewed by the company's auditors.
Note 2 - Accounting policies
The financial statements have been prepared using the accounting policies and presentation that were applied in the audited financial statements for the year ended 31st December 2007.
Note 3 - Segmental information
The group considers that it has only one business segment, being mechanical and electrical contracting.
For management and internal reporting purposes the group is organised into two operating divisions, London and UK Regions, and an internal property division. All assets and liabilities of the group have been allocated to divisions, apart from the retirement benefit obligation and tax assets and liabilities.
| 30th June 2008 | London £000 | UK Regions £000 | Property £000 | Unallocated £000 | Elimination £000 | Total £000 |
| Revenue | 45,184 | 64,158 | 321 | - | (321) | 109,342 |
| Profit from operations | 2,277 | 2,684 | 230 | - | - | 5,191 |
| Investment income | 190 | 86 | - | - | - | 276 |
| Finance costs | (49) | (10) | - | - | - | (59) |
| Profit before tax | 2,418 | 2,760 | 230 | - | - | 5,408 |
| Taxation expense |
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| (1,601) |
| Profit for the period from continuing operations |
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3,807 |
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| Assets | 31,488 | 56,331 | 5,660 | 86 | (9,834) | 83,731 |
| Liabilities | (27,350) | (30,614) | (4,768) | 4,052 | 9,834 | (56,950) |
| Net assets | 4,138 | 25,717 | 892 | (3,966) | - | 26,781 |
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| 30th June 2007 | London £000 | UK Regions £000 | Property £000 | Unallocated £000 | Elimination £000 | Total £000 |
| Revenue | 40,756 | 55,733 | 307 | - | (307) | 96,489 |
| Profit from operations | 2,292 | 1,393 | 230 | - | - | 3,915 |
| Investment income | - | 58 | - | - | - | 58 |
| Finance costs | (37) | (52) | - | - | - | (89) |
| Profit before tax | 2,255 | 1,399 | 230 | - | - | 3,884 |
| Taxation expense |
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| (1,267) |
| Profit for the period from continuing operations |
|
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2,617 |
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| Assets | 19,703 | 49,395 | 5,900 | 23 | (7,263) | 67,758 |
| Liabilities | (16,816) | (24,724) | (5,284) | (3,361) | 7,263 | (42,922) |
| Net assets | 2,887 | 24,671 | 616 | (3,338) | - | 24,836 |
| 31st December 2007 | London £000 | UK Regions £000 | Property £000 | Unallocated £000 | Elimination £000 | Total £000 |
| Revenue | 77,210 | 116,635 | 610 | - | (610) | 193,845 |
| Profit from operations | 5,152 | 2,506 | 458 | - | - | 8,116 |
| Investment income | 97 | 218 | - | - | (49) | 266 |
| Finance costs | (141) | (124) | - | - | 49 | (216) |
| Profit before tax | 5,108 | 2,600 | 458 | - | - | 8,166 |
| Taxation expense |
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|
|
| (2,441) |
| Profit for the period from continuing operations |
|
|
|
|
|
5,725 |
|
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|
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| Assets | 22,388 | 45,013 | 5,846 | 88 | (3,877) | 69,458 |
| Liabilities | (17,707) | (20,197) | (5,199) | (4,055) | 3,877 | (43,281) |
| Net assets | 4,681 | 24,816 | 647 | (3,967) | - | 26,177 |
Note 4 - Taxation expense
The taxation charge is calculated by applying the estimated effective annual tax rate to the profit for the period.
| Current taxation | Unaudited 30 06 2008 £000 | Unaudited 30 06 2007 £000 | Audited 31 12 2007 £000 |
| Current year | 1,566 | 1,277 | 2,653 |
| Prior year | - | - | (81) |
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| 1,566 | 1,277 | 2,572 |
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| Deferred taxation |
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| Arising on: |
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| Current year timing differences | 35 | (10) | (137) |
| Changes in tax rates | - | - | 6 |
|
| 35 | (10) | (131) |
| Taxation expense | 1,601 | 1,267 | 2,441 |
Note 5 - Earnings per share
Earnings per share are calculated on the basis of the weighted average of 39,947,889 ordinary shares in issue (30th June 2007: 39,947,889; 31st December 2007: 39,947,889) and profit attributable to shareholders of £3,807,000 (30th June 2007: £2,617,000; 31st December 2007: £5,725,000).
Note 6 - Interim dividend
An interim dividend of 4.25p per share (2007: 3.9p) was approved by the board on 28th August 2008 and has not been included as a liability as at 30th June 2008. The shares will go ex-dividend on 10th September 2008 and the dividend will be paid on 10th October 2008 to shareholders on the register as at 12th September 2008. A dividend reinvestment plan is available for shareholders. Those shareholders who have not elected to participate in this plan, and who would like to participate with respect to the 2008 interim dividend, may do so by contacting Capita Registrars on 0870 162 3131. The last day for election for the interim dividend reinvestment is 15th September 2008 and any requests should be made in good time ahead of that date.
| Dividends paid in year | Unaudited 30 06 2008 £000 | Unaudited 30 06 2007 £000 | Audited 31 12 2007 £000 |
| Final dividends in respect of previous year | 3,236 | 2,936 | 2,936 |
| Interim dividend in respect of the current year | - | - | 1,558 |
| Dividends recognised in the year | 3,236 | 2,936 | 4,494 |
Note 7 - Pension commitments
The present value of the defined benefit pension scheme and the related past and current service costs were measured using the projected unit credit method. The amount included in the balance sheet arising from the group's obligations in respect of its defined benefit retirement scheme is as follows:
|
| Unaudited 30 06 2008 £000 | Unaudited 30 06 2007 £000 | Audited 31 12 2007 £000 |
| Present value of defined benefit obligations | 22,139 | 21,925 | 22,290 |
| Fair values of scheme assets | (18,977) | (18,942) | (18,963) |
| Deficit in scheme | 3,162 | 2,983 | 3,327 |
| Related deferred tax asset | (885) | (895) | (932) |
| Liability recognised in the balance sheet | 2,277 | 2,088 | 2,395 |
| Key assumptions used: |
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| Rate of increase in salaries | 5.20% | 4.50% | 4.40% |
| Rate of increase of pensions in payment | 3.70% | 3.10% | 3.00% |
| Discount rate | 6.70% | 5.80% | 5.80% |
| Inflation assumption | 4.20% | 3.50% | 3.40% |
| Expected return on scheme assets | 6.90% | 7.40% | 6.90% |
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Mortality assumptions (years): |
Unaudited 30 06 2008 |
Unaudited 30 06 2007 |
Audited 31 12 2007 |
| Life expectancy at age 65 for current pensioners: |
|
|
|
| Men | 23.7 | 21.9 | 21.9 |
| Women | 26.8 | 24.8 | 24.8 |
| Life expectancy at age 65 for future pensioners (current age 45) |
|
|
|
| Men | 24.8 | 23.0 | 23.0 |
| Women | 27.8 | 25.8 | 25.8 |
Note 8 - Notes to the cash flow statement
| a - Reconciliation of operating profit to net cash from operating activities | Unaudited 30 06 2008 £000 | Unaudited 30 06 2007 £000 | Audited 31 12 2007 £000 |
| Profit from operations | 5,191 | 3,915 | 8,116 |
| Depreciation charges | 430 | 450 | 857 |
| Defined benefit pension scheme change | (129) | 5 | 110 |
| Loss on sale of fixed assets | 16 | 33 | 16 |
| Operating cash flows before movements in working capital | 5,508 | 4,403 |
9,099 |
| Decrease in inventories | 20 | 58 | 83 |
| Decrease / (increase) in debtors | 1,647 | (6,533) | (2,228) |
| (Increase) / decrease in contract balances | (4,043) | 4,528 | 2,905 |
| Increase in creditors | 12,030 | 2,398 | 3,808 |
| Cash generated by operations | 15,162 | 4,854 | 13,667 |
| Corporation tax paid | (1,452) | (1,766) | (2,499) |
| Interest paid | (48) | (83) | (170) |
| Net cash from operating activities | 13,662 | 3,005 | 10,998 |
b. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and other short-term highly liquid investments with a maturity of three months or less, less bank overdrafts, and are analysed as follows:
|
| Unaudited 30 06 2008 £000 | Unaudited 30 06 2007 £000 | Audited 31 12 2007 £000 |
| Cash and cash equivalents | 22,774 | 6,143 | 10,762 |
| Bank overdrafts | (3,470) | (3,489) | (1,811) |
|
| 19,304 | 2,654 | 8,951 |
Note 9 - Related party transactions
Transactions between the company and its subsidiary undertakings, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Full disclosure of the group's other related party transactions is given in Note 19 to the group's financial statements for the year ended 31st December 2007. There have been no material changes in these relationships in the six months ended 30th June 2008 that have materially affected the financial position or performance of the group during that period.
Note 10 - Risks and uncertainties
Details of the key risks facing the group are included on pages 4 to 5 of the group's financial statements for the year ended 31st December 2007 which are mainly market conditions and economic risk, operational risk and commodity price risk. Further steps have been taken with regard to 'upfront' payments from clients to minimise the impact of material price increases on tender values. Details of further potential risks and uncertainties arising since the issue of the previous financial statements are included within the Chairman's statement, the Business and Financial reviews as appropriate.
Statement of directors' responsibilities
The directors confirm that the interim financial management report includes a fair review of the information required by DTR 4.2.7 (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year) and DTR 4.2.8 (disclosure of related party transactions and changes therein). The directors also confirm that the interim financial statements have been prepared in accordance with IAS 34 as adopted by the European Union and present a true and fair view of the assets, liabilities, financial position and profit of the group.
The directors of T.Clarke Plc during the six months to 30th June 2008 were:
R J Race (Non-Executive Chairman)
P E Stanborough (Chief Executive)
B V DeFalco
M Lawrence
V R French (Finance Director)
M Crowder
L Arnold (Non-Executive Director) resigned 31st July 2008
B A Stewart (Non-Executive Director)
R H Campbell (Non-Executive Director)
On behalf of the Board
R J Race Chairman
P E Stanborough Chief Executive
V R French Finance Director
28th August 2008