Final Results

Clarke(T.) PLC
10 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 announced
its 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. Despite
continued pressure on margins, the business is well set. We are currently
enjoying an increase in quality enquiries as commercial development in our core
markets continues to recover. We anticipate that whilst our markets will remain
competitive, margins will recover during the year.

' We are delighted that the two further acquisitions we have made have bedded
down as part of the group so well. Across the group, our regional businesses are
benefiting from a steady growth in public sector projects. We are also working
hard to foster greater co-operation between our subsidiaries.

' Looking forward we are confident about the prospects for the group. Our
regional businesses are making good progress and our core operations are
enjoying a significant increase in enquiries. I look forward to reporting
further progress later in the year.'


                                     -ends-

Date: 10 March 2006

For further information contact:

T. Clarke plc                                      cityPROFILE
Pat Stanborough, Chief Executive                   Simon Courtenay
John Daly, Finance Director                        Andrew Harris
Tel: [phone]                                 Tel: [phone]
web: 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 acquisitions
during the year, turnover advanced by 13%. However, as indicated at the interim
stage and in our Trading Statement in January, there was considerable pressure
on margins throughout the period, particularly in our core operations. Pre-tax
profits, before the exceptional profit of nearly £1M achieved on property
disposals, fell by just 3% to £7.55M, a satisfactory achievement in difficult
circumstances.

Earnings per share, pre exceptional items, went from 13.39p to 12.54p. In view
of 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 on
the Register on 5th April 2006. The shares will be marked ex-dividend on 7th
April 2006.

During the year we continued to invest in new acquisitions. Together with
additional working capital requirements, we experienced a cash outflow over the
year. Our balance sheet remains strong with £4.8m of cash and cash equivalents
at year end (2004: £11.2m).


Acquisitions

We benefited during the year from two acquisitions - Smith Contracting Services
Ltd. (subsequently renamed SCS Building Services Ltd.) in January for £4.1M; and
Waldon Electrical Contractors Ltd. in May for £1.7M. These have further extended
the Groups regional coverage, into Scotland and the South-West respectively, and
we are pleased with the initial impact which both these companies have had
during their first months under our stewardship.


Organisation

Whilst a detailed Operational Review appears elsewhere it is worth highlighting
the moves being taken within the Group to foster greater co-operation between
our subsidiaries. Without removing the autonomy which each company has in
day-to-day matters, there is now a formal structure which ensures best practice
is followed in all our companies and that the maximum benefits are derived from
shared 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 anticipate
reporting 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 the
staff, together with those clients and suppliers who have continued to support
us so well.

Russell Race
Chairman
9th March 2006


OPERATING REVIEW

Our core operations continue to operate as a single business and are focused on
achieving excellence in quality, commitment and delivery with a long term and
growing client base.

All the businesses outside our core activities have been brought together under
a regional board. These businesses service a variety of markets and are
structured to be stand alone and self sufficient, whilst offering opportunities
to lower the cost base where synergies exist.

The group is now structured to react quickly to changing circumstances with
better communication and to reduce operational overheads.

During the year having acquired businesses in Scotland and Cornwall we have
taken the opportunity to review managing our businesses. This has resulted in a
simplified structure with shorter lines of communication between our businesses
and the board, and our businesses and their customers.

An additional independent non executive director was appointed and an executive
director resigned, it is not currently the intention to appoint another
executive director. The board with its changed composition will be able to focus
more clearly on the strategic direction of the company.

CONSTRUCTION

The construction industry has continued to be challenging but we expect, and are
currently experiencing, an increase in quality enquiries. There is a noticeable
upturn in commercial development in the City of London and developments in
Canary Wharf and Greenwich. Margins have been under extreme pressure and are
slow to show improvement, but we are confident of better returns in the short
term. Local authority, residential and education continue to provide steady
growth for our regional businesses along with growing potential for an entry
into 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, Kings
Lynn; Sainsbury Centre For Visual Arts, Cambridge; Brunel University Student
Accommodation, 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; Unilever
House, 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 Millenium
Dome; 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; RAF
Croughton New Sub-Station and 6 Waitrose Stores.

Overall our businesses have achieved an improvement in performance in a very
tough market place, and we expect such improvements to continue.

The forward order book increased to £165m (2004: £130m) reflecting growth within
the regional businesses.

STRATEGY

We continue to have a clear strategy for our businesses. They are tasked to
achieve excellence and customer satisfaction whilst providing earnings
sufficient to sustain dividend growth and finance investments in future
expansion. We are alert to the risk associated with a sharp upturn in demand
within the construction industry, especially with regard to 2012, and the
inevitable increases in wage demands and material costs. We have a robust
strategy in place to manage this risk, built upon our strong management team,
direct employment of labour, supplier chain and reputation for delivery.


Consolidated income statement
for 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    156,626,908
Cost 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     22,157,152
Administrative
expenses         4       3,496,466     15,785,465     19,281,931     14,563,276
--------------------------------------------------------------------------------                      
Profit from 
operations                 548,416      8,050,461      8,598,877      7,593,836
Investment
income/          3            (303)       (44,281)       (44,584)       192,803
(finance cost)            
--------------------------------------------------------------------------------
Profit before
taxation                   548,113      8,006,180      8,554,293      7,786,679
Taxation         6         230,449      2,614,057      2,844,506      2,547,429
--------------------------------------------------------------------------------                       
Profit for the
period from
continuing
operations                 317,664      5,392,123      5,709,787      5,239,250
================================================================================                     
Earnings per
share
(adjusted for    7                                    14.30pence     13.39pence
bonus issue)


Group statement of recognised income & expense                       2004 Total
                                                      2005 Total      (restated)        
                                                               £              £
Actuarial gains/(losses) on defined
benefit 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 sheet
at 31st December 2005

                                   Notes                                   2004
                                                            2005      (restated)
                                                               £              £
Non current assets
Goodwill                                              14,384,649     10,538,394
Tangible fixed assets                  9               8,384,102      6,903,146
Deferred taxation                     15                  61,360         66,034
--------------------------------------------------------------------------------  
                                                      22,830,111     17,507,574
--------------------------------------------------------------------------------     
Current assets
Inventories                                              353,788        600,589
Construction contracts                12              17,361,059     13,428,959
Debtors                               13              21,953,722     16,054,853
Cash and cash equivalents                              4,828,646     11,210,672
--------------------------------------------------------------------------------
                                                      44,497,215     41,295,073
--------------------------------------------------------------------------------    
Total assets                                          67,327,326     58,802,647
--------------------------------------------------------------------------------    
Current liabilities
Bank overdraft and loans              20               2,311,047      2,603,252
Creditors and accruals                14              35,125,983     29,340,146
Corporation tax liabilities                            2,273,299      2,131,615
Obligations 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 liabilities
Retirement benefit obligation         22               4,284,000      3,830,000
Deferred taxation                     15                  66,858         44,783
Obligations 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
================================================================================
Equity
Share capital                         16               3,994,789      1,314,710
Share premium                         17               1,233,711      2,913,790
Profit and loss account               17              17,328,062     16,055,312
Revaluation 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 2006
P.E. STANBOROUGH / R.J. RACE
Directors

Company balance sheet
at 31st December 2005

                                                                           2004
                                   Notes                    2005      (restated)
                                                               £              £
Non current assets
Tangible fixed assets                                     89,747        140,741
Investments                            9              23,673,009     17,784,605
Deferred taxation                     15                  43,000         43,000
--------------------------------------------------------------------------------                                        
                                                      23,805,756     17,968,346
--------------------------------------------------------------------------------
Current assets
Construction contracts                12              12,692,967     10,366,588
Debtors                               13               8,404,805      9,120,434
Cash and cash equivalents                              1,502,900      7,503,250
--------------------------------------------------------------------------------   
                                                      22,600,672     26,990,272
--------------------------------------------------------------------------------                     
Total assets                                          46,406,428     44,958,618
--------------------------------------------------------------------------------    
Current liabilities
Bank overdraft and loans              20               1,354,019      1,181,377
Creditors and accruals                14              19,628,886     21,033,916
Corporation tax liabilities                             283, 357        159,310
--------------------------------------------------------------------------------
                                                      21,266,262     22,374,603
--------------------------------------------------------------------------------
Net current assets                                     1,334,410      4,615,669
--------------------------------------------------------------------------------
Non current liabilities
Retirement benefit obligation                          4,284,000       3,830,00
--------------------------------------------------------------------------------
Total liabilities                                     25,550,262     26,204,603
--------------------------------------------------------------------------------
Net assets                                            20,856,166     18,754,015
================================================================================
Equity
Share capital                         13               3,994,789      1,314,710
Share premium                         14               1,233,711      2,913,790
Profit 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 activities
Interest received                                        243,192        383,133
Purchase of tangible assets                           (1,438,327)    (2,091,042)
Receipts on disposal of fixed assets                   1,531,114        137,452
Acquisitions of subsidiaries                          (4,717,208)    (4,281,791)
--------------------------------------------------------------------------------
Net cash (used in) investing activities               (4,381,229)    (5,852,248)
--------------------------------------------------------------------------------
Financing activities
Equity 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 cash
equivalents                                           (6,382,026)    (5,853,922)
Cash and cash equivalents at beginning of
period                                                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 equity
for the year ended 31st December 2005
                                                                           2004
                                                            2005      (restated)
                                                               £              £

Balance at start of period                            20,318,451     17,863,762
Profit for period                                      5,709,787      5,239,250
Interim dividend paid                                 (1,398,176)    (1,307,095)
Prior year dividend paid                              (2,663,193)    (2,483,466)
Actuarial gains/ (losses) on defined benefit
pension scheme                                          (538,000)    (1,277,000)
Corporation tax provision on pension benefits            161,000        383,000
Shares issued on acquisition                              16,886         32,812
Premium 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 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 39,938,174 (2004: 39,137,555).

2. The figures for the year ended 31 December 2005 have been extracted from the
full audited accounts for the year, which have not yet been delivered to the
Registrar of Companies. The figures have been prepared and compiled in
accordance with applicable accounting standards under the historical cost
convention. The comparative figures for the year ended 31 December 2004 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
will be 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 5 May 2006 at 12:00 noon.

5. Subject to the approval of shareholders the final dividend of 7
pence per share will be paid on 8th May 2006. The shares will go ex-dividend on
5th 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