Final Results

Clarke(T.) PLC
09 March 2007


           

                       CONFIDENT T CLARKE LIFTS DIVIDEND
                              AS ORDER BOOK SWELLS


T. Clarke plc, the electrical engineering and contracting company, has announced
its preliminary results for the year ended 31 December 2006.

  • Adjusted profit before interest and non-recurring items £7.07m (2005:£7.55m)
  • Profit Before Tax £6.57m (2005: £8.55m)
  • Turnover £186m (2005: £194m)
  • Basic EPS 11.30p (2005: 14.30p)
  • Final Dividend up to 7.35p (2005: 7.0p)
  • Order book £210m (2005: £165m)
  • Total Dividend for the year up to 11.025p (2005: 10.5p)


Major completions include:  - Allen & Overy, Bishops Square, Bishopsgate, London
                            - Traction Power and LUL Sidings, White City
                            - Romford and Havering Hospital
                            - Unilever House, Blackfriars, London
                            - Nomura House, London
                            - Hilton Hotel, Tower Bridge

Current projects include:   - 02 Arena, London
                            - Shell Centre, Waterloo
                            - Mizuho International, London
                            - 201 Bishopsgate and Broadgate Tower, London
                            - White City Retail Development, London
                            - RBS, Aldgate Union, London

Major projects won include: - 02 Waterfront, London
                            - Chiswick Park, Buildings 7 & 8, London
                            - Bow Bells House, Cheapside, London
                            - Senate House, University of London
                            - Shard of Glass, enabling works, SE1

Pat Stanborough, Chief Executive commented:

' This has been a challenging year for the group. However, the future looks
bright. Our major clients are busy and we have secured a very strong order book
worth over £200million. Many of our end-users are planning major expansion and
investment programmes, which bodes well for the continued improvements in our
markets.

' We have taken steps to strengthen the management of both the core London
operations and our regional businesses. Looking to the medium term, the Group is
in very good shape and we are well positioned to deliver further improvement in
margins. Reflecting our confidence in the future, we have raised the final
dividend.'

                                     -ends-

Date: 9 March 2007
For further information contact:

T. Clarke plc                                      cityPROFILE
Pat Stanborough, Chief Executive                   Simon Courtenay
John Daly, Finance Director                        Tel: [phone]
Tel: [phone]
web: www.tclarke.co.uk





PRELIMINARY STATEMENT 

2006 proved to be a challenging year for the group. We experienced mixed
fortunes across the business. Profit before tax, interest and non-recurring
items fell by 6% to £7.07m (2005: £7.55m) on revenue that fell by 4% to £186m
(2005: £194m).

Profit before tax was £6.57m (2005: £8.55m). Earnings per share were 11.30p
(2005: 14.30p). However, despite the difficulties experienced in 2006, the
future prospects for the group are more positive. Given the Board's confidence
in a return to more favourable market conditions and an improved overall
performance in 2007, the Board recommends an increase in the final dividend to
7.35p (2005: 7.0p) giving a total dividend for the year of 11.025p (2005: 
10.5p).

We have a clear and defined strategy to deliver growth. We are striving to
improve performance throughout our group and enhance our leading position within
our market sectors. Our core business has performed well and our London
operations managed an improvement in margin and delivered an improved result.
Whilst most of our regional companies contributed good results, there were
disappointments in Scotland, Derby and East Anglia. Senior management changes
have taken place and improved financial controls have been implemented.
Administrative expenses are being addressed and we are confident in an overall
improvement in margins across our regional businesses.

BOARD CHANGES

We were pleased to announce in December 2006 that Barry DeFalco was appointed
Managing Director UK Regions and Mark Lawrence was appointed as Managing
Director for our London Operations. These appointments have been made to
increase the focus on these sectors and to establish the right platform from
which we can increase revenue and profit in 2007 and onwards.

Michael 'Mike' Crowder was appointed as an Executive Director on 1st January
2007. Mike has an excellent range of experience and as a Divisional Director of
our London core operations he played a key role in the restructuring and
improvement in the recent performance of these operations.

This appointment is in advance of Pat Stanborough the Group's current Chief
Executive retiring from the Board in October 2008. It is currently not the
intention to appoint another Executive Director.

OUTLOOK

The business is in good shape. We have made a promising start to 2007. The Group
has enjoyed a good order intake during January and February across many of our
divisions. Our major clients in commercial property development are
exceptionally busy and there are exciting opportunities ahead of us. Our end
user clients, who include major banks and retail outlets, are currently
undertaking expansion programmes which should lead to an increase in work
through 2007/8. Our current order book stands at £210m (2005: £165m), of which
£170m is due for completion during 2007.

Overall we are confident in our strategy to deliver growth. The Board is looking
to the future with confidence.



LONDON OPERATIONS

Revenue                                        £80m  (2005: £92m)
Profit from operations                       £3.70m  (2005: £2.43m)
Margin                                         4.6%  (2005: 2.6%)
Order Book                                    £110m  (2005: £75m)


Completions during the year included:

Allen & Overy, Bishops Square; Traction Power and LUL Sidings, White City;
Romford and Havering Hospital; Unilever House, Blackfriars; Nomura House and
Hilton Hotel, Tower Bridge.

Current projects include:

02 Arena, Greenwich; Shell Centre, Waterloo; Mizuho International; Global
Switch; 201 Bishopsgate and Broadgate Tower; White City Shopping Development,
and RBS Aldgate Union.

Recently won contracts include:

02 Waterfront, Greenwich; Chiswick Park, Buildings 7 & 8; Bow Bells House,
Cheapside; University of London, Senate House and The Shard of Glass, Enabling
Works.

REGIONAL BUSINESSES

Revenue                                       £106m  (2005: £102m)
Profit from operations                       £2.86m  (2005: £4.65m)
Margin                                         2.7%  (2005: 4.6%)
Order Book                                    £100m  (2005: £90m)

Completions during the year included:

The Grand Theatre, Leeds; Drakes Circus Shopping Centre, Plymouth; Barry Town
Hall; Golden Jubilee National Hospital, Clydebank; Durham University, Student
Accommodation; Clegg Foods, Bury St. Edmunds; Norwich City Sports Club;
Warrington Bus Depot; Altrincham Girls Grammar School; KIA London Manston
Airport; and various Waitrose Supermarkets

Current projects include:

Gartnavel Hospital, Glasgow; Bluecoat Arts Centre, Liverpool; Home Office Pay &
Pensions, Liverpool; Lindholme Prison; Kestrel Court, Portishead; Grand Arcade
Shopping Centre, Cambridge; Framwell Gate Hotel, Durham; Clegg Foods, Glasgow;
Addenbrookes Rosie Maternity Unit, Cambridge; Peterborough District Hospital and
various Waitrose Stores.

Recently won contracts include:

Cala Homes, Stirling; New British Red Cross Building, Truro; Sheffield
University Arts Tower; Strode College, Worcester; Marks & Spencer, Cheshunt;
Wilton Plaza, London; Preston Hospital, JD Sports, Wigan; Pharmaceutical Unit;
Victoria Building, Liverpool and various Waitrose Stores.

PROPERTIES

Rental Income                                £0.66m  (2005: £0.64m)
Profit from operations                       £0.51m  (2005: £0.47m)
Net Gain on Disposals                        NIL     (2005: £1m)
Freehold Property (Book Values)              £5.8m   (2005: £5.94m)

All properties are currently leased to group companies.





FINANCIAL REVIEW

Revenue and Operating Profit
Revenue was down 4% to £186m (2005: £194m). London core operations revenue fell
by 13% to £80m; Regional businesses revenue increased by 4% to £106m.

Group operating profit, before interest and non-recurring items fell by 6% to
£7.07m (2005: £7.55m). Although London operations revenue fell during the year
(due to contract slippages) there was an encouraging improvement in margin which
resulted in an increase in operating profit of 52% to £3.7m (2005: £2.4m).
Regional businesses however were badly hit by copper price escalation and
contract losses, which resulted in a fall in operating profits of 38% to £2.86m
(2005: £4.65m).

Profit Before and After Tax
Profit before tax of £6.57m was down 23% against last years £8.55m. This is
after net interest charges of £0.15m (2005: £0.05m), and non-recurring costs of
£0.35m (2005: gain on sale of properties: £1m). Non-recurring costs in the
period were legal costs relating to the tax investigation into a subsidiary
company. The tax charge was £2.06m (2005: £2.84m) giving an effective tax rate
of 31% (2005: 33%).

Earnings per Share and Dividends
Basic earnings per share fell by 21% to 11.30p (2005: 14.3p). The final dividend
is proposed at 7.35p (2005: 7.0p) giving a total dividend for the year of
11.025p which is 5% higher than last year (2005: 10.5p). The proposed dividend
will be paid on 8th May 2007 to shareholders on the register at 10th April 2007.

Equity and Capital Structure
Equity was £22.78m (2005: £22.59m). The number of shares in issue at 31st
December 2006 was 39,947,889 (2005: same).

Cash Flow and Treasury
Net cash from operating activities was £5.2m (2005: £3.5m) as a result of
improvements in working capital. Net capital expenditure was £0.3m (2005:
£4.6m). After payments for tax, dividends and servicing of finance the net
increase in cash and cash equivalents was £0.35m (2005: decrease of £6.3m)
resulting in a year end balance of £5.18m (2005: 4.83m). It is anticipated that
there will be improved cash generation in 2007.




Consolidated income statement
for the year ended 31st December 2006
                                                            2006           2005
                                                               £              £
Revenue                                              186,334,361    193,729,126
Cost of sales                                        159,217,792    165,848,318
--------------------------------------------------------------------------------
Gross profit                                          27,116,569     27,880,808
Administrative expenses                               20,393,707     19,281,931
--------------------------------------------------------------------------------
Profit from operations                                 6,722,862      8,598,877
Investment income / (finance cost)                      (146,469)       (44,584)
--------------------------------------------------------------------------------
Profit before taxation                                 6,576,393      8,554,293
Taxation                                               2,062,914      2,844,506
--------------------------------------------------------------------------------
Profit for the period                                  4,513,479      5,709,787
from continuing operations
--------------------------------------------------------------------------------
Earnings per share                                   11.30 pence    14.30 pence
--------------------------------------------------------------------------------
All the revenue & profit arose from continuing operations.

                                                
      

Group statement of recognised income & expense             2006           2005
                                                              £              £
--------------------------------------------------------------------------------
Actuarial losses on defined benefit pension scheme      (85,000)      (538,000)
--------------------------------------------------------------------------------
Tax on items taken directly to equity                    25,000        161,000
--------------------------------------------------------------------------------
Net expense recognised directly in equity               (60,000)      (377,000)
--------------------------------------------------------------------------------
Profit for the period                                 4,513,479      5,709,787
--------------------------------------------------------------------------------
Total recognised income & expenses for the period     4,453,479      5,332,787
--------------------------------------------------------------------------------





Consolidated balance sheet
at 31st December 2006
                                                       2006               2005
                                                          £                  £
--------------------------------------------------------------------------------
Non current assets                               14,384,649         14,384,649
Goodwill                                          7,965,150          8,384,102
Tangible fixed assets                                66,034             61,360
Deferred taxation
--------------------------------------------------------------------------------
                                                 22,415,833         22,830,111
--------------------------------------------------------------------------------
Current assets                                      370,424            353,788
Inventories                                      14,000,680         17,361,059
Construction contracts                           23,025,127         21,953,722
Debtors                                           5,182,287          4,828,646
Cash and cash equivalents
--------------------------------------------------------------------------------
                                                 42,578,518         44,497,215
--------------------------------------------------------------------------------
Total assets                                     64,994,351         67,327,326
--------------------------------------------------------------------------------
Current liabilities                               2,274,000          2,311,047
Bank overdraft and loans                         33,127,135         35,125,983
Creditors and accruals                            1,768,501          2,273,299
Corporation tax liabilities                         310,624            338,914
Obligations under finance leases
--------------------------------------------------------------------------------
                                                 37,480,260         40,049,243
--------------------------------------------------------------------------------
Net current assets                                5,098,258          4,447,972
--------------------------------------------------------------------------------
Non current liabilities                           4,441,000          4,284,000
Retirement benefit obligation                        73,878             66,858
Deferred taxation                                   220,302            337,356
Obligations under finance leases
--------------------------------------------------------------------------------
                                                  4,735,180          4,668,214
--------------------------------------------------------------------------------
Total liabilities                                42,215,440         44,737,457
--------------------------------------------------------------------------------
Net assets                                       22,778,911         22,589,869
--------------------------------------------------------------------------------
Equity                                            3,994,789          3,994,789
Share capital                                     1,233,711          1,233,711
Share premium                                        31,975             33,307
Revaluation reserve                              17,518,436         17,328,062
Profit and loss account
--------------------------------------------------------------------------------
Total equity                                     22,778,911         22,589,869
--------------------------------------------------------------------------------





Consolidated cash flow statement

for the year ended 31st December 2006
                                                          2006            2005
                                                             £               £
--------------------------------------------------------------------------------
Net cash from operating activities                   5,201,113       3,535,068
--------------------------------------------------------------------------------
Investing activities                                   114,495         243,192
Interest received                                     (470,636)     (1,438,327)
Purchase of tangible fixed assets                      195,613       1,531,114
Receipts on disposal of fixed assets                         -      (4,717,208)
Acquisition of subsidiaries
--------------------------------------------------------------------------------
Net cash used in investing activities                 (160,528)     (4,381,229)
--------------------------------------------------------------------------------
Financing activities                                (4,264,437)     (4,061,369)
Equity dividends paid                                 (385,460)       (325,588)
Repayments of obligations under finance leases         (37,047)     (1,148,908)
Decrease in bank overdrafts
--------------------------------------------------------------------------------
Net cash used in financing activities               (4,686,944)     (5,535,865)
--------------------------------------------------------------------------------
Net increase / (decrease) in cash and cash
equivalents                                            353,641      (6,328,026)
Cash and cash equivalents at beginning of period     4,828,646      11,210,672
--------------------------------------------------------------------------------
Cash and cash equivalents at end of period           5,182,287       4,828,646
--------------------------------------------------------------------------------




Consolidated statement of changes in equity
for the year ended 31st December 2006
                                                            2006          2005
                                                               £             £
--------------------------------------------------------------------------------
Balance at start of period                            22,589,869    20,318,451
Profit for period                                      4,513,479     5,709,787
Interim dividend paid                                 (1,468,085)   (1,398,176)
Prior year final dividend paid                        (2,796,352)   (2,663,193)
Actuarial losses on defined benefit pension scheme       (85,000)     (538,000)
Corporation tax provision on pension benefits             25,000       161,000
Shares issued on acquisition                                   -        16,886
Premium on shares issued                                       -       983,114
--------------------------------------------------------------------------------
Balance at end of period                              22,778,911    22,589,869   
--------------------------------------------------------------------------------



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 39,947,889 (2005: 39,938,174).

2. The figures for the year ended 31 December 2006 have been extracted from the
full unaudited accounts for the year. The figures have been prepared and
compiled in accordance with International Financial Reporting Standards. The
comparative figures for the year ended 31 December 2005 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 have been
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 at Savoy Place,
London WC2 on Friday 4th May 2007 at 12 noon.

5. Subject to the approval of shareholders the final dividend of
7.35 pence per share will be paid on 8th May 2007. The shares will go
ex-dividend on 4th April 2007. The records will close on 10th April 2007.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
 END
FR GGGGFRRLGNZM