Investor Pack1
Investor PackInterim Results for the Six Months Ending 30th June 2009
Presentation Team
Victoria FrenchFinance Director &Company Secretary
Mark LawrenceManaging Director
Pat StanboroughChief Executive
2
Company Secretary
The Company
The UK’s Premier Electrical Contractor
Founded 1889ou ded 889
Listed since 1946 on the London Stock Exchange
12 Group Companies
Operating from 13 Locations across the UK
1400 Directly Employed Operatives
300 Apprentices
3
Review of Operations
Review of groups regional operations in line with continued slowdown.
Kestrel, Warley – To be sold. GDI, Altrincham – To be closed
Future Focus to target Major City Centres and Key Regional Locations
UK to be split into three operating divisions
4In progress the London 2012 Olympic Stadium
Creation of North, South & Scotland Divisions
5
Highlights – 6 months ended 30th June 2009
G £95 8 (30th J 2008 £109 3 )Group revenue £95.8m (30th June 2008: £109.3m)
Profit before taxation £3.1m (30th June 2008: £5.4m)
Profit before tax margin 3.2% (30th June 2008: 5.0%)
Closure or disposal of two regional subsidiaries
Effective management of cost base
Earnings per share 5.3p (30th June 2008: 9.53p)Earnings per share 5.3p (30th June 2008: 9.53p)
Robust order book £170m (30th June 2008: £230m)
N t h t t £24 0 (31 t D b 2008 £30 4 )Net cash strong at £24.0m (31st December 2008: £30.4m)
Interim dividend maintained at 4.25 pence per share
6Board confirm intention to maintain final dividend
Key financials – 6 months ended 30th June 2009
Group 30 June 2009 30 June 2008 31 Dec 2008£m £m £m
Revenue 95.8 109.3 223.7
Operating profit 3 1 5 2 12 6Operating profit 3.1 5.2 12.6
Operating profit margin 3.2% 4.8% 5.6%
Underlying operating profit* 4.5 * 5.2 14.4 **
Underlying operating profit margin* 4.7% * 4.8% 6.4% **
Profit before tax 3.1 5.4 13.4
EPS 5.3p 9.53p 22.12p
Dividend 4.25p 4.25p 13.0p
O de book 170 230 160
7
Order book 170 230 160
* Before restructuring and redundancy costs of £1.4m for the six months to 30th June 2009** Before goodwill impairment of £1.8m for the 12 months to 31st December 2008
London Operations – 6 months ended 30th June 2009
London 30 June 2009 30 June 2008 31 Dec 2008£m £m £m
Revenue 40.5 45.2 102.1
Operating profit 1.5 2.3 9.8 **
Operating profit margin 3 7% 5 1% 9 6% **Operating profit margin 3.7% 5.1% 9.6% **
Underlying operating profit* 2.6 * 2.3 9.8
Underlying operating profit margin* 6.4% * 5.0% 9.6%
Profit before tax 1.5 2.4 10.4
Order book 100 135 75
* f £ f d d d f h h 30 h 2009
8
* Before £1.1m of redundancy costs and provisions for the six months to 30th June 2009** Higher margins due to favourable contract completions in 12 months to 31st December 2008
UK Regions – 6 months ended 30th June 2009
Regions 30 June 2009 30 June 2008 31 Dec 2008£m £m £m
Revenue 55.3 64.2 121.6
Operating profit 1.4 2.7 2.4
O ti fit i 2 5% 4 2% 2 0%Operating profit margin 2.5% 4.2% 2.0%
Underlying operating profit* 1.7 * 2.3 4.2 **
Underlying operating profit margin* 3.0% * 3.6% 3.5% **
Profit before tax 1.4 2 8 2 6Profit before tax 1.4 2.8 2.6
Order book 70 95 85
9* Before £0.3m of redundancy costs and provisions for the six months to 30th June 2009
** Before goodwill impairment of £1.8m for 12 months to 31st December 2008
Property division – 6 months ended 30th June 2009
Property 30 June 2009 30 June 2008 31 Dec 2008
£m £m £m
Operating profit 0.2 0.2 0.4
Weylex holds freehold properties
Partial disposal Derby property - £850k cash
10
Cashflow
30 June 2009 30 June 2008 31 Dec 2008
£m £m £m
Operating cash flows before p gmovements in working capital 3.2 5.5 15.0
Working capital movement (4.2) 9.7 14.72008 increase in creditors; decrease in debtors
Operating cash (outflow) / inflow (1.0) 15.2 29.7
Corporation tax (2.6) (1.5) (3.2)
Net interest 0.1 0.2 0.8
Net receipts/(purchases) fixed assets 0 8 (0 3) (0 7)2009 partial disposal Derby property: £0 8m receiptNet receipts/(purchases) fixed assets 0.8 (0.3) (0.7) property: £0.8m receipt
Cash (outflow) / inflow (2.7) 13.6 26.5
Dividends paid (3.5) (3.2) (4.9)
Finance leases (0 2) (0 1) (0 2)Finance leases (0.2) (0.1) (0.2)
Net cash (outflow) / inflow (6.4) 10.3 21.4
Opening net cash 30.4 9.0 9.0
Closing net cash 24 0 19 3 30 4
11
Closing net cash 24.0 19.3 30.4
Balance sheet
30 June 2009 30 June 2008 31 Dec 2008
£m £m £m £m £m £m
Goodwill 12 6 14 4 12 6 £1 8m goodwill write off in 2008Goodwill 12.6 14.4 12.6 £1.8m goodwill write off in 2008
Property, plant & equipment 6.7 7.7 7.7
19.2 22.0 20.3
Inventories and construction contracts 16.2 15.3 11.5
Debtors 14.9 23.4 14.2
Net cash 24.0 19.3 30.4
Creditors (42.1) (49.0) (40.9)Working capital improved from
Working capital 13.0 9.0 15.2Working capital improved from June 2008 to December 2008
Capital employed 32.3 31.0 35.6
Retirement benefit obligation (3.7) (2.3) (1.9)Increase in pension liability ‐partly due to assumptions
Tax (1.2) (1.7) (2.9)
12Other liabilities (0.3) (0.3) (0.4)
Net assets 27.1 26.8 30.3
5 Year Record – 6 months ended 30th June 2009
13
Six Months to 30th June Turnover Analysis – by Company
14
Six Months to 30th June Turnover Analysis – by Sector
15
Current Projects in London
Regents Place, London - British Land
Central Saint Giles, London - StanhopeCentral Saint Giles, London Stanhope
One New Change, London - Land Securities
The Pinnacle, London - Arab Investments
Stratford City, London – Westfield
2012 Olympic Stadium, London - Team Stadium
16The Pinnacle
Current Projects Across the UK
5 Year Measured Term Contract renewed July 2009, USAF Bases5 Year Measured Term Contract renewed July 2009, USAF Bases
New Data Centre, Kent
University of Bedfordshire Phase 1B, Luton
Gateshead Leisure Centre, Gateshead
Longbenton Campus, North Tyneside
Northern Ballet HQ, Leeds, Leeds City Council
Northern Ballet,Leeds
17
Opportunities
OPPORTUNITY Nomura – Watermark PlaceNomura Watermark Place
CURRENT BID - Quadrant 3
OPPORTUNITYCURRENT BID
18
OPPORTUNITY Cross Rail Station, Canary WharfBid due Autumn 2009
The Heron, Moorgate
Future Opportunities
CURRENT BID - Park House, W1 CURRENT BID – Selborne House, SW1
19IN PLANNING - Arundel Great Court
Future Opportunities
National Indoor Sports Arena and Sir Chris Hoy VelodromeNational Indoor Sports Arena and Sir Chris Hoy Velodrome
Building Schools for the Future - Birmingham & BristolBuilding Schools for the Future - Birmingham & Bristol
Anglian Ruskin University Cambridge
University of East Anglia Academic Building Phase 2
Oxford Brookes University, New Student Centre Building
20
New Student Centre Building
Outlook
Increased tendering activity, but increased number of bidders per project
Highly competitive market
Activity in commercial office sector driven by Land Securities & StanhopeActivity in commercial office sector driven by Land Securities & Stanhope
Further opportunities at the Olympic Park and associated venues
Targeting funded projects such as Prisons, Schools & Healthcare
Continue to develop & explore other sectors such as Rail and TechnologiesContinue to develop & explore other sectors such as Rail and Technologies
21
Strategy
Succession plan announcedSuccession plan announced
Steps taken to slim down group businesses, confident group will emerge s stronger ready for future opportunitiess stronger ready for future opportunities
Continue to build upon existing relationships
Future Focus to target Major City Centres and Key Regional Locations
UK to be split into three operating divisions
To grow the business as opportunities ariseg pp
Take the group forward in good shape with a strong balance sheet.
22
Appendices
AppendicesAppendices
Appendix 1, Current Opportunities and Current Projects
Appendix 2, Health and Safety & Training
Appendix 3, plc Board StructureAppendix 3, plc Board Structure
Appendix 4, Principle Shareholders
23
Appendix One
Current Opportunities 24Current Projects
London 2012
IN PROGRESSOlympic Stadium for London 2012Due For Completion Spring 2011
CURRENT BID - The Olympic VillageProgramme 2009 - 2012
25
Major Developments
SECURED - The Pinnacle
The City of London’s Tallest Commercial BuildingThe City of London’s Tallest Commercial Building
£45M, Programme 2009 – 2012 - DESIGN WORKS COMMENCED
IN PROGRESS Central Saint GilesIN PROGRESS – Central Saint Giles
£8M, Due For Completion December 2009
26IN PROGRESS – One New Change
£15M, Programme 2009 - 2011
Major Developments
IN PROGRESS – Regents Place£8M, Due for Completion December 2009
COMPLETED – Ropemaker Place£12M, Completion May 2009
OPPORTUNITY – Future Fit Out – Bank Tokyo
27
Greenwich Peninsula
IN PROGRESS – Ravensbourne CollegeDue for Completion Summer 2010
IN PROGRESS Pier Walk, Pre let to TfL Completed April 2009
Mit P d f A t 2009Mitre Passage due for Autumn 2009
28
Westfield, Stratford City
IN PROGRESS – Stratford City£25M, Planned Completion 2011
OPPORTUNITYJohn Lewis department store witha new Waitrose as anchors toWestfield's Stratford City retailproject
29
project.
Rail – Current Projects and Opportunities
IN PROGRESSIN PROGRESS
DLR Three Car Capacity Project
BIDS SUBMITTED
Vi t i St ti L d U d dVictoria Station, London Underground
Thameslink Train Maintenance Depots
Tottenham Court Road, Cross Rail Station
30
Scotland
SECUREDSECURED Residential Projects for Persimmon Homes
Larbert, Stirling
SECURED Residential Projects for Barratt Homes
k hiLanarkshire 12 Month Contract
Ayrshire16 M h C16 Month Contract
SECUREDMidlothian Community HospitalDevelopment of a 7000m² community hospital
31
Development of a 7000m² community hospital
Leeds
SECUREDDiana, Princess of Wales Hospital
SECURED
HMP Hull
OPPORTUNITIES
HMP Acklington
HMP Buckley Hall
32SECURED - Northern Ballet Theatre, Leeds
Newcastle
SECURED
Longbenton Community College, Newcastle
Net Park SedgefieldNet Park, Sedgefield
OPPORTUNITIES
New Bridge StreetNew Bridge Street Student Accommodation, Newcastlee cast e
Felling & Dunston Pools, Gateshead
COMPLETED E l i A d N tl
Tolent Offices, York
Building Schools for the Future BSF Newcastle
33
Excelsior Academy, Newcastle Future BSF, Newcastle
The South West & Bristol
SECURED PROJECTSSECURED PROJECTS
Edginswell Business Park, Torquay Brixham Fish Harbour,Brixham St Mewan School St AustellSt Mewan School, St Austell Penwith College, Penzance
COMPLETED Gloucester Quays Shopping Centre
COMPLETED Callington
Community CollegeOPPORTUNITIES
Gloucester Quays Shopping Centre
y gOPPORTUNITIES
Aspire Defence, Tidworth base and Bulford bases Bristol Schools regeneration Birmingham Schools (recently secured by Bovis/Catalyst)Birmingham Schools (recently secured by Bovis/Catalyst) University of Bath, East Building Bridgwater College, Energy Skills Centre Castle School Taunton
34
Castle School, Taunton RAF St Athen, South Wales
Huntingdon
SECURED
Scalford Court Care Home, Melton Mowbray
Genetics Research Station, Madingley Cambridge
Lord Grey School, Milton Keynes
Cloister Court Sidney Sussex College, Cambridge
l h h l b hSt Botolphs Primary School, Peterborough
OPPORTUNITIES COMPLETEDOPPORTUNITIES
Broadfield House, Boston Lincolnshire
Burrough Green Primary School Newmarket
COMPLETED
Loxford Polyclinic, South Ilford
Burrough Green Primary School, Newmarket
Decent Homes Programme for Norwich City Council
Cambridgeshire County Council Schools Framework Contract
35
Cambridgeshire County Council Schools Framework Contract
Appendix Two
Training & Health & Safety36
Training & Health & Safety
Apprenticeship Training
The Prime Minister, Gordon Browni iti th Ol i St di ivisiting the Olympic Stadium in
January, meets two T.Clarkeapprentices Hayley Phippen andMax Warnock along with ODACh i J h A ittChairman John Armitt.
Simon Hughes, MP Presenting this
UNRIVALLED COMMITMENT
g , gyear’s T.Clarke Apprentice of theYear Award.
37
UNRIVALLED COMMITMENT 300 Apprentices receiving training across the UK
Health & Safety Poster Campaign
HEALTH & SAFETY38
HEALTH & SAFETY
12 Month Safety Campaign on all our sites across the UK
Appendix Three
plc Board Structure39
plc Board Structure
Current plc Board
CHAIRMANCHAIRMAN
RUSSELL RACEINDEPENDENT
DIRECTORSSENIOR INDEPENDENT
DIRECTOR
CHIEF EXECUTIVE OFFICER
PAT STANBOROUGH
BEVERLEY STEWART
IAIN McCUSKER
BOB CAMPBELL
PAT STANBOROUGH
MANAGING DIRECTOR
MARK LAWRENCE
OPERATIONS DIRECTOR
MIKE CROWDER
FINANCE DIRECTOR
VICTORIA FRENCH
40
MIKE CROWDER VICTORIA FRENCH
plc Board From January 2010
CHAIRMAN
RUSSELL RACERUSSELL RACE
CHIEF EXECUTIVE
INDEPENDENT DIRECTORS
BEVERLEY STEWART
C S
SENIOR INDEPENDENT DIRECTOR
BOB CAMPBELL
OFFICER
MARK LAWRENCE
IAIN McCUSKER
OPERATIONS DIRECTOR FINANCE DIRECTOR
MIKE CROWDER VICTORIA FRENCH
41
Appendix Four
Principal Shareholders42
Principal Shareholders
Appendix Four
Principal Shareholders
Holder Share Holding %
Principal Shareholders
AXA S.A.* (Framlington) 5,563,349 13.93%
Liontrust 2,130,228 5.33%
Barclays plc 2,060,523 5.16%
Henderson Global Investors 1 647 437 4 12%Henderson Global Investors 1,647,437 4.12%
Legal & General 1,623,350 4.06%
32.60%
Shares in issue: 39,947,889
43Information correct as at March 2009 and included in 31 December 2008 Financial Statements, apart from AXA S.A. holding* which is as per TR1 released 21 May 2009.
www tclarke co uk44
www.tclarke.co.uk
Top Related