INVESTOR PACK Interim results for the 6 months ending 30th June 2011 Presentation Team T.Clarke
Mark Lawrence Martin Walton Group Chief Executive Finance Director
2 Key Financials T.Clarke Interim Results for 6 months ending 30th June 2011
Highlights 30th June 2011 30th June 2010 £m £m Revenue 92.6 85.7
Profit before tax 1.4 3.2
Profit before tax – Underlying 2.2 3.8
Underlying operating profit 2.5 3.9
Earnings per share – basic 2.38p 4.57p
Earnings per share – continuing 2.38p 5.65p
Earnings per share – underlying 3.90p 6.68p
Dividend 1.0p 4.25p
Net cash 3.4 7.2³
Order book 193 220
¹ Before £0.2m amortisation of intangible assets, £0.4m restructuring costs and £0.2m long term employee benefit costs arising on DGR acquisition ² Before £0.2m acquisition expenses, £0.1m amortisation of intangible costs and £0.2m restructuring costs ³ December 2010 3 T.Clarke The Building Services Group T.Clarke
T.Clarke the nationwide building services group
Founded 1889
Listed since 1946 on the London Stock Exchange
11 Group Companies, 15 Locations across the UK
Over 70% by turnover or 9 out of the 15 Group offices now trade as “T.Clarke”
1300 Directly Employed Operatives, 180 Apprentices
T.Clarke is a complete nationwide building services group. We deliver the highest levels of value to building projects, through the full lifecycle of design, installation, commissioning and maintenance.
Value is delivered by engineering excellence and innovative solutions. Value is also delivered by the ultimate reliability of our work quality and project delivery. Value is expressed in increased speed, reliability and cost effectiveness. All of this is made possible by the quality and commitment of our people.
T.Clarke is committed to delivering the most compelling value solutions for every project. 4 Review of Operations T.Clarke
Business focused on eight key sectors in building services that offer good growth potential
Intelligent buildings Utilities and technologies Facilities management Manufacturing Green technologies Residential and hotels Rail Mechanical and electrical contracting
Strong market presence maintained, resilient order book standing at £193m, £220m (June 2010).
New contracts secured include:
Accrington Academy Swimming Pools, Tate Modern 2, London Lancashire Treviglas Sports Hub, Newquay Detica, London & Guildford Walkergate Medical Centre, Newcastle upon Freshfields Bruckhaus Deringer , London Tyne Imperial Tobacco, Bristol London Cable Car, London North East Quadrant, London Net Park Grow-on Accommodation, County Durham
The London Cable Car 5 Key Financials T.Clarke Group
T.Clarke - Group 30th June 2011 30th June 2010 £m £m Revenue 92.6 85.7
Gross profit 12.8 13.7
Gross margin 13.9% 16.0%
Underlying operating profit 2.5¹ 3.9²
Underlying operating profit margin 2.7% 4.5%
Operating profit 1.6 3.4
Profit before tax 1.4 3.2
Earnings per share – basic 2.38p 4.57p
Earnings per share – continuing 2.38p 5.65p
Earnings per share – underlying 3.90p 6.68p
Dividend 1.0p 4.25p
Order book 193 220
¹ Before £0.2m amortisation of intangible assets, £0.4m restructuring costs and £0.2m long term employee benefit costs arising on DGR acquisition ² Before £0.2m acquisition expenses, £0.1m amortisation of intangible costs and £0,2m restructuring costs 6 Key Financials T.Clarke South
T.Clarke - South 30th June 2011 30th June 2010¹ £m £m Revenue 60.2 56.4
Underlying operating profit 1.0² 3.6³
Underlying operating profit margin 1.7% 6.4%
Operating profit 0.4 3.4
¹ 2010 restated to include Derby operations – previously reported as part of North division ² Before £0.1m amortisation intangible assets, £0.3m restructuring costs and £0.2m long term employee benefits arising from DGR acquisition ³ Before £0.2m restructuring costs 7 Key Financials T.Clarke North
T.Clarke - North 30th June 2011 30th June 2010¹ £m £m Revenue 22.7 20.0
Underlying operating profit 1.5² 1.1³
Underlying operating profit margin 6.4% 5.5%
Operating profit 1.3 0.8
¹ 2010 restated to exclude Derby operations – now reported as part of South division ² Before £0.2m amortisation intangible assets ³ Before £0.2m acquisition expenses and £0.1m amortisation of intangible assets 8 Key Financials T.Clarke Scotland
T.Clarke - Scotland 30th June 2011 30th June 2010 £m £m Revenue 9.7 9.2
Underlying operating loss -0.2¹ -1.1
Underlying operating loss margin -2.1% -11.8%
Operating loss -0.3 -1.1
¹ Before £0.1m restructuring costs 9 Key Financials T.Clarke Property
Property 30th June 2011 30th June 2010 £m £m Operating profit 0.2 0.2
10 Key Financials T.Clarke Cashflow
Cashflow 30th June 2011 30th June 2010 31st December 2010 £m £m £m Operating cash flows before 2.1 3.2 5.7 movements in working capital Working capital movement -2.9 -7.9 -6.5
Operating cash flow -0.8 -4.7 -0.8
Corporation tax -1.1 -1.0 -2.1
Acquisitions - -6.5 -7.6
Cash outflow before financing -1.9 -12.2 -10.5
Dividends paid -1.8 -3.5 -5.3
Finance leases -0.1 -0.1 -0.2
Net cash outflow -3.8 -15.8 -16.0
Opening net cash and deposits 7.2 23.2 23.2
Closing net cash 3.4 7.4 7.2
11 Key Financials T.Clarke Balance Sheet
30th June 2011 31st December 2010 Balance sheet £m £m Intangible assets 24.3 24.5
Property, plant & equipment 6.5 6.7
30.8 31.2 Inventories and construction contracts 16.4 10.2 Debtors 23.8 23.4
Creditors -43.0 -39.1
Working capital excluding cash -2.8 -5.5
Net cash 3.4 7.2
0.6 1.7
Capital employed 31.4 32.9
Retirement benefit obligation -8.9 -9.1
Tax 1.3 0.7
Finance lease obligations -0.3 -0.3
Net assets 23.5 24.2
12 Key Financials T.Clarke 5 Year Record
13 Turnover Analysis T.Clarke By Company
14 Turnover Analysis T.Clarke By Sector
15 New Capabilities T.Clarke
The Shard, London Photovoltaics Olympic Stadium Springfield Fuels, Salwick Nr Preston
Prefabricated Multi Green Technologies Intelligent Buildings FM Capabilities Service Modules
True Nationwide Capability T.Clarke now has a truly nationwide building services operation covering the full range of mechanical, electrical and information communication technologies (ICT) services for the whole construction lifecycle of design, commissioning, installation and maintenance. New capabilities and offerings have been added across the group. 16 Current Projects T.Clarke London
The Order book for London commercial projects now extends until 2014, Projects shown here worth £85m
NEQ TATE 2 PARK HOUSE
100 BISHOPSGATE THE PINNACLE LONDON BRIDGE STATION
17 Current Opportunities T.Clarke London
Current Opportunities
5 BROADGATE 25 CHURCHILL PLACE 20 FENCHURCH STREET AMERICAN EMBASSY
30 OLD BAILEY & 60 LUDGATE HILL WALBROOK SQUARE
18 Current Projects T.Clarke United Kingdom
Accrington Academy Swimming Pools Archbishop Courtney School, Maidstone Aspire Defence, Various Locations Defence Estates Term Contract, Eastern Counties EDF Dungeness Power Station – Atos Project Gateshead International Stadium, Wear Stand and Media Centre
Imperial Tobacco, Bristol Recently Secured INTO Newcastle University, Newcastle Imperial Tobacco, Bristol Normanton Fire Station Rochdale Pioneer Museum St James Hospital, Renal Ward, Leeds Vogt Solar PV installations Kent & Isle of Wight
In Progress Durrants’ Solar Farm Isle Of Wight
19 Future Opportunities T.Clarke United Kingdom
2014 Commonwealth Games Athletes Village, Glasgow
Building Schools for the Future, Kent & Birmingham
Cornwall College Photovoltaic
FM Contracts, Rugby, Leics & Herts County Council
HMP Perth Prison, Perth
John Lewis at Home, Exeter
M&S 2012 Store allocation programme, UK
Monument Mall Shopping Centre, Newcastle upon Tyne John Lewis at Home, Exeter
Rolls Royce, Apprentice academy, Derby
Turner Broadcasting Infrastructure
Waverley Station, Edinburgh
2014 Commonwealth Games Athletes Village
20 Outlook and Strategy T.Clarke
Outlook The outlook is very much similar to this time last year which highlights the lack of recovery in our core markets. We are pleased that we have secured some of the most significant projects that have come to the market. It is a reflection of the strength and confidence that clients have with T.Clarke in terms of technical ability, the depth of management and our skilled workforce.
Tendering activity and opportunities remain high across the group, and the prospects for the Group remain encouraging despite the challenges in the short term. The Board is focused on delivering value for our customers and shareholders. The steps we have taken to reduce our cost base and reposition the business as a more broadly based service provider will fuel the future profitability of the business.
Strategy A very clear strategy for the business has now been developed - one that builds on T. Clarke‟s reputation for quality work delivered by excellent people. This enables us to focus on a truly integrated, nationwide organisation around the key growth opportunities in the market today namely:
Intelligent buildings Utilities and technologies Facilities management Manufacturing Green technologies Residential and hotels Rail Mechanical and electrical contracting
The construction industry is changing rapidly and T.Clarke has transformed itself from an Electrical contractor with major regional presence, into a nationwide Building Services organisation adding powerful mechanical and ICT (information communications technology) capabilities.
21 22 Appendices T.Clarke
Appendix 1, Current Opportunities and Current Projects
Appendix 2, Health and Safety Training and Initiatives
Appendix 3, plc Board Structure
23 Recently Secured T.Clarke London
Secured St Pauls School, Hammersmith In Progress Park House
Redevelopment Programme 2011 - 2018 Victoria Tube Station Appendix One 24 T.ClarkeMajor Developments T.Clarke London
Secured The Pinnacle
Preferred Bidder 100 Bishopsgate
Completed Olympic Stadium 25 Project Examples T.Clarke London
COMPLETED
Westfield Stratford City Shopping Centre
OPPORTUNITIES
2012 Olympic Hospitality Infrastructure
26 Rail, Current and Opportunities T.Clarke
COMPLETED DLR Three Car Capacity Project Marylebone Station, Network Rail DLR East Route, DLR HV / LV Upgrade
IN PROGRESS Victoria Station, London Underground London Bridge Concourse, Network Rail DLR Custom House Escalators DLR Cable Car back up supply London Cable Car
OPPORTUNITIES Waverley Station, Edinburgh, Network Rail Crossrail: Abbey Wood, Canary Wharf, Pudding Lane, Custom House Ipswich Station, Network Rail Custom House, Crossrail Canary Wharf, Crossrail Thameslink Enabling London Bridge Pudding Mill Lane, DLR
27 Scotland T.Clarke
COMPLETED Barratt Homes West Scotland, Heathfield, Dennyloanhead Barrhead Health & Social Care Centre, Glasgow Cala Homes East, Hopefield, Bonnyrigg The State Secure Hospital, Carstairs West Lothian Council, Periodic Inspection & Testing Works
SECURED Cala Homes East Scotland, Grovewood Hill Phase 5, Edinburgh Cala Homes East Scotland, Larkfield, Eskbank Secured Collegelands Office Development, Glasgow Collegelands, Glasgow Barratt East Scotland, The Beeches, Kirkliston Barratt Homes North Scotland, Innes Park, Inchture
OPPORTUNITIES Cala Homes East Scotland, Trinity College, Edinburgh Detica, Avalon House Phase 2, Leeds Miller Homes East Scotland, Telford South Block C, Edinburgh Taylor Wimpey East Scotland, Armadale Waverley Station, Edinburgh Completed Barrhead Health & Social Care Centre, Glasgow 28 South T.Clarke
COMPLETED Ebbsfleet Solar Farm EDF Dungeness DPCS phase 1 Casepak Recycling Plant Mount Carmel, Nursing Home Nottingham University Humanities Building Rocket House Apartments, Newquay Waitrose, Jersey, Knutsford and Alderley Edge
SECURED 5-Island School Solar PV, Isles of Scilly Archbishop Courtney School, Maidstone Completed Brent Civic Center, London Waitrose, Jersey Darrents Solar Farm, Isle of Wight Ebbsfleet Solar Farm, Kent KCC Head Ofice, Maidstone Treviglas Sports Hub, Newquay Turner Broadcasting infrastructure system upgrade
OPPORTUNITIES Bedford University, Luton Hub Phase 2 Cambridge University New sports Facility College of West Anglia New Technology Buildings M&S 2012 Store allocation programme PCMD Treliske Hospital doctors & student accommodation Solar PV Energy Partnership St Austell & Polperro Completed Stanground and Nene Academy, Peterborough Ebbsfleet Solar Farm Tremough Student Accommodation 29 North T.Clarke
COMPLETED 3 Primary School Extensions, Sheffield Broadfield House, Boston HMP Buckley Hall. New accommodation and associated infrastructure ITV Project Farm, Emmerdale Studios RAF Marham, Kings Lynn Shirley School, Cambridgeshire USAF Lakenheath SECURED Derby Fire Station HSDU Colchester Hospital, Sterile Disinfectant Unit INTO Newcastle University LSU Broomfield Hospital, low Rochdale Pioneer Museum Roecroft School, Hertfordshire St James Hospital, Renal Ward St Catherines College, Cambridge Thornton Primary School, Extension and Alterations OPPORTUNITIES College of West Anglia, Kings Lynn De Warren Academy, Doncaster Dixons Academy Bradford HMP Lindholme New kitchens and associated infrastructure Completed HSBC Tankersley Data Centre ITV, Project Farm, Emmerdale Studios Hyperpolarisation Unit, York University Smarte East Framework Projects: Stantonbury Campus Re-development, Milton Keynes 30 Training T.Clarke Apprenticeships
T.Clarke continue to place great emphasis on the „Future‟ and as such apprentices form a key part of the Organisation‟s aspirations. The certificate below is testament to the 34 apprentices who were given the opportunity to work on the Olympic Park as part of the London 2012 Apprenticeship Programme.
Hayley Phippen Team Stadium Appendix Two 31 Health and Safety T.Clarke
YOU SEE, YOU SAY!
The YOU SEE, YOU SAY boards and cards are all about transferring important Health & Safety information to „the right people at the right time‟. The YOU SEE, YOU SAY backboard has re-writable boxes to ensure that operatives are aware of the „Hot Topics‟ (H&S concerns for the coming week) and there is also a section for the Weeks Top Activities in order to focus the operatives minds on the weeks key undertakings.
Operatives use the YOU SEE, YOU SAY! Cards to report any unsafe conditions or Near Misses in order to ensure that any potential issues which may cause an accident or incident is negated and the collation of the information received helps the Organisation with regards to its Near Miss reporting duties, but more importantly identifying any underlying trends or potentials to cause harm on a project.
32 Plc Board T.Clarke
Structure
RUSSELL RACE CHAIRMAN BOB CAMPBELL BEVERLEY STEWART SENIOR INDEPENDENT IAIN McCUSKER DIRECTOR INDEPENDENT DIRECTORS MARK LAWRENCE GROUP CHIEF EXECUTIVE
MIKE CROWDER MARTIN WALTON MANAGING DIRECTOR FINANCE DIRECTOR
Appendix Three 33 Office Locations T.Clarke
www.tclarke.co.uk