RNS Number:7118O
Clarke(T.) PLC
15 August 2003
Interim Results for the six months to 30 June 2003
T. CLARKE PAYS SPECIAL DIVIDEND OF 10P
AS IT REPORTS ROBUST PEFORMANCE
T. Clarke plc, the electrical engineering and contracting company, has announced
its interim results for the six months to 30 June 2003.
Highlights:
Profit Before Tax* up 36% to #6.28M (2002: #4.6M) *Before Goodwill
Profit Before Tax up 38% to #6.0M (2002: #4.3M)
Turnover up 16% to #78M (2002: #67M)
EPS up 40% to 31.68p (2002: 22.58p)
Interim Ordinary Dividend up 14% to 8p (2002: 7p)
Special Dividend of 10p per share
Aylward Electrical acquired in July for #3.4M
Major completions include:
Imperial College of Science, London
Paternoster Square, St Paul's
Lazard & Co., Berkeley Street, W1
Visa International, Paddington
Major projects won include:
BBC West One
London Stock Exchange, Paternoster Square
Russell Race, Chairman commented:
" At the start of 2003, the outlook was challenging, however, I am delighted to
report that we have delivered a very creditable performance in the first half.
" We have continued our strategy to grow the scale of the business organically
and by further acquisitions. In July we completed the acquisition of Aylward in
Cambridgeshire for #3.4 million improving our regional coverage.
" The nature of our business enables the Group to retain a strong balance sheet,
which we are confident will assist us to continue our growth. To reflect the
Group's success in the first half and our strong financial position, we are
paying a special dividend of 10p per share, in addition to the interim dividend
which has moved ahead by 14%.
" Looking forward, the outlook for the Group remains demanding, but the Board is
confident of achieving current market expectations for the year."
-ends-
Date: 15 August 2003
For further information, please contact:
T. Clarke plc City Profile Group
Pat Stanborough, Chief Executive Simon Courtenay
John Daly, Finance Director Tel: 020-7448-3244
Tel: 020-7358-5000
web: www.tclarke.co.uk Arbuthnot
Shaun Whyte
Tel: 020-7002-4600
CHAIRMAN'S STATEMENT
Interim Results
Despite the challenging trading environment, the first half of the year
witnessed a very satisfactory advance in Group turnover and profits. Turnover
was 16% higher at #78m (2002 : #67m) whilst pre-tax profits were up 38% at #6.0m
(2002 : #4.3m ). Before goodwill write-offs, the profits grew by 36% to #6.28m
(2002 : #4.6m ). Earnings per share rose in parallel by 40% to 31.7p (2002 :
22.6p).
This performance has encouraged the Board to declare an interim dividend of 8p
per share, and increase of 14% on the 2002 interim of 7p per share. With the
continuing strength of the balance sheet, a special dividend payment of 10p per
share is also being made. Both dividends will be paid on 15th September 2003 to
those shareholders on the Register on 29th August 2003. The shares will be
marked ex-dividend on 27th August 2003.
A further stage in the development of our regional coverage was achieved in July
with the acquisition of the Aylward Electrical companies for #3.4m. Based in
Cambridgeshire, Aylward has an excellent track record and will complement our
existing operations, especially in the East Midlands and East Anglia. We welcome
the Aylward members to the Group and look forward to a mutually beneficial
relationship in the years ahead.
Current Trading
Conditions in our key commercial market place remain demanding, with a
relatively slow take up of major contracts, particularly in the South-East and
continued pressure on margins. Against this, the regional operations are
contributing well and there is an increasing availability of work generally in
the PFI and urban regeneration fields.
Major completions during the first half included Imperial College of Science,
Paternoster Square St. Paul's, Lazard & Co. W1 and Visa International at
Paddington.
Current projects in hand include BBC Mailbox Birmingham, BBC White City, The
Treasury Whitehall and Bank of America Canary Wharf.
Among the projects secured in the first half, (some of which will take us into
2004 and beyond) are BBC West One and London Stock Exchange Fit-Out at
Paternoster Square.
Prospects
We do not expect any change in our trading environment in the short term but the
Board is confident of achieving current market expectations for the full year.
Longer term I have no doubt that our excellent team, combined with our financial
strength, will stand the Group in good stead.
Russell Race
Chairman
15 August 2003
GROUP PROFIT & LOSS ACCOUNT
Unaudited Unaudited 12 Months to
6 Months to 6 Months to 31 December 2002
30 June 2003 30 June 2002
#,000 #,000 #,000
Turnover 77,885 67,122 143,990
____________ ____________ ____________
Operating Profit 5,901 4,330 10,681
Goodwill Amortisation (250) (250) (500)
Interest 375 278 615
____________ ____________ ____________
Profit on Ordinary Activities
Before Taxation 6,026 4,358 10,796
Taxation (1,966) (1,463) (3,613)
____________ ____________ ____________
Profit on Ordinary Activities
After Taxation 4,060 2,895 7,183
Dividends (2,307) (897) (3,205)
____________ ____________ ____________
Surplus Transferred to Reserves 1,753 1,997 3,978
____________ ____________ ____________
Earnings per Share 31.68p 22.58p 56.0p
____________ ____________ ____________
Special Dividend per Share 10p - -
Ordinary Dividend per Share 8p 7p 25p
____________ ____________ ____________
GROUP BALANCE SHEET
Unaudited at Unaudited at 12 Months to
30 June 2003 30 June 2002 31 December 2002
#'000 #'000 #'000
Fixed Assets
Goodwill 3,909 4,406 4,159
Tangible Fixed Assets 3,710 3,384 3,298
____________ ____________ ____________
7,619 7,790 7,457
____________ ____________ ____________
Deferred Taxation 43 43 25
____________ ____________ ____________
Current Assets
Work in Progress 4,331 4,246 4,595
Debtors 11,789 14,192 15,599
Cash at Bank and in Hand 26,956 22,170 24,930
____________ ____________ ____________
43,076 40,608 45,124
____________ ____________ ____________
Current Liabilities
Bank Overdraft 3,624 4,120 2,501
Creditors and Accruals 28,369 29,311 33,113
____________ ____________ ____________
31,993 33,431 35,614
____________ ____________ ____________
Net Current Assets 11,083 7,177 9,510
____________ ____________ ____________
Total Assets Less Current Liabilities 18,745 15,010 16,992
____________ ____________ ____________
Capital Reserves
Share Capital 1,282 1,282 1,282
Share Premium 1,047 1,047 1,047
Profit and Loss Account 16,379 12,642 14,626
Revaluation Reserve 37 39 37
____________ ____________ ____________
Equity Shareholders Funds 18,745 15,010 16,992
____________ ____________ ____________
CASH FLOW STATEMENT
Unaudited Unaudited The Year Ended
Six Months Six Months 31 December
Ended Ended 2002
30 June 2003 30 June 2002
#,000 #,000 #,000 #,000 #,000 #,000
Net Cash Inflow (Outflow) from Operating
Activities 6,435 10,167 18,760
Returns on Investments and Servicing of
Finance
Interest received (Net) 375 278 615
Taxation (1,896) (1,285) (3,465)
Capital Expenditure and Financial Investment
Purchase of Tangile Fixed Assets (594) (683) (803)
Acquisitions and Disposals
Purchase of Subsidiary Undertakings - (2,669) (2,669)
Net Cash Acquired with Subsidiaries - - 1,179 (1,490) 1,179 (1,490)
_______ ______ ________
Equity Dividends Paid (2,307) (1,923) (2,820)
________ _________ ________
Cash Inflow (Outflow) Before use of Liquid Resources 2,013 5,064 10,797
Management of Liquid Resources
Cash Placed on Short Term Deposits (26,435) (18,500) (22,802)
Cash Received from Short Term 22,802 15,000 15,000
Deposits
________ _________ ________
Net Cash Inflow (Outflow) from Management
of Liquid Resources (2,730) (3,500) (7,802)
Increase (Decrease) in Cash in The Period ________ _________ ________
Before Financing (717) 1,564 2,995
________ _________ ________
Financing
Finance Lease Payments - - (9)
Repayment of Loan Notes (1,110) (1,110) - - (1,479) (1,488)
________ _________ ________
Increase (Decrease) in Cash in (1,827) 1,564 1,507
Period
________ _________ ________
Reconciliation of Operating Profit to Net Cash
Flow
(Outflow) from Operating
Activities:-
Operating Profit 5,651 4,080 10,182
Goodwill Amortisation 250 250 500
Depreciation Charges 181 163 362
(Increase) Decrease in Work in Progress and 4,074 2,431 2,035
Debtors
Increase (Decrease) in Creditors (3,271) 3,245 5,681
________ _________ ________
6,435 10,167 18,760
________ _________ ________
NOTES:
1. The results for the half year are unaudited.
2. The accounts have been prepared using accounting consistent with those
adopted for the year ended 31st December 2002.
3. Earnings per share are calculated on the basis of the weighted average of
12,818,980 ordinary shares in issue (2002 : 12,818,980) and profit
attributable to shareholders of #4,060,000 (2002 : #2,895,000).
4. An interim ordinary dividend of 8.0p per share is proposed payable on 15th
September 2003 to shareholders on the register on 29th August 2003. The
shares will go ex-dividend on 27th August 2003.
5. This interim report will be circulated to members on 19th August 2003 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).
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