INVESTOR PACK Preliminary results for year ended 31st December 2009

T. Clarke BUILDING SERVICES GROUP

Mark Lawrence Group Chief Executive

Victoria French Finance Director

Pre

sent

atio

n Te

am

2 T

. Cla

rke

Hig

hlig

hts

3

Preliminary Results Announcement 19th March 2010 T

. Cla

rke

T. C

lark

e

The

Com

pany

Complete Building Services provider

Serving all sectors across the UK

Founded 1889

Listed since 1946 on the London Stock Exchange

13 Group Companies, Operating from 14 Locations across the UK

1300 Directly Employed Operatives, 180 Apprentices

T.Clarke - The Building Services Group

The first lighting towers on the Olympic Stadium were recently lifted into place by T.Clarke 4

Picture London 2012 Picture London 2012

T. C

lark

e

UK

Loc

atio

ns

5

T. C

lark

e

Rev

iew

Of O

pera

tions

New CEO from January 2010

Future Focus to target Major City Centres and Key Regional Locations

UK split into three operating divisions

Group Management Board replaces Regional Board

Review of groups regional operations

Kestrel, Warley – Sold. GDI, Altrincham – Wound down

Operation in Scotland rebranded T.Clarke - Scotland from March 2010

Anglia Electrical now operates as a division of Aylward EMS

New acquisition, D&S Engineering Facilities, Accrington, Lancashire

T.Clarke - The Building Services Group

6

T. C

lark

e

Key

Fin

anci

als

12 months ended 31st December 2009

7

Group - continuing operations 31 Dec 2009 31 Dec 2008

£m £m

Revenue 177.6 220.1

Underlying operating profit1 7.3 14.4

Underlying operating profit margin1 4.1% 6.5%

Operating profit 6.8 12.6

Operating profit margin 3.8% 5.7%

Net interest - 0.8

Profit before tax 6.8 13.4

EPS - basic 2 10.03p 22.12p

EPS - underlying 1 12.51p 26.67p

Final dividend 8.75p 8.75p

Order book as at 31 December 160 160 1 Underlying figures - before goodwill impairment of £0.8m (2008: £1.8m) and a property disposal profit of £0.3m (2008: £nil). 2 After loss on discontinued activities of £0.6m (2008: £nil).

T. C

lark

e

Lon

don

Ope

ratio

ns

12 months ended 31st December 2009

8

London 31 Dec 2009 31 Dec 2008

£m £m

Revenue 67.8 102.1

Operating profit 2.9 9.8

Operating profit margin 4.3% 9.6%

Restructuring costs 1.1 0.4

Bad debt (credit)/ charge (0.1) 0.6

Adjusted operating profit 3.9 10.8

Adjusted operating profit margin 5.8% 10.6%

Profit before tax 2.9 10.4

Order book as at 31 December 90 75

T. C

lark

e

UK

Reg

ions

12 months ended 31st December 2009

9

Regions - continuing operations 31 Dec 2009 31 Dec 2008

£m £m

Revenue 109.8 118.0

Operating profit 3.2 2.4

Operating profit margin 2.9% 2.1%

Goodwill impairment 0.8 1.8

Underlying operating profit 4.0 4.2

Underlying operating profit margin 3.6% 3.6%

Restructuring costs 0.3 0.0

Bad debt charge 2.0 0.8

Adjusted operating profit 6.3 5.0

Adjusted operating profit margin 5.7% 4.2%

Profit before tax 3.2 2.6

Order book as at 31 December 70 85

Continuing operations are stated before an operating loss on discontinued activities of £0.8m

T. C

lark

e

Cas

hflo

w

12 months ended 31st December 2009

10

31 Dec 09 31 Dec 2008

£m £m

Operating cash flows before movements in working capital 6.8 15.0

Working capital movement (5.5) 14.6 2008 decrease in debtors and increase in creditors boosted working capital

Operating cash (outflow)/inflow 1.3 29.6

Corporation tax (3.8) (3.2)

Net interest 0.2 0.8

Net receipts/(purchases) fixed assets 0.7 (0.7) 2009 partial disposal Derby property: £0.8m receipt

Cash (outflow)/inflow (1.6) 26.5

Dividends paid (5.2) (4.9)

Finance leases (0.3) (0.2)

Net cash (outflow)/inflow (7.1) 21.4

Opening net cash and bank deposits 30.3 9.0

Closing net cash and bank deposits 1 23.2 30.3

1 Includes bank deposits of £10.6m convertible into cash on 30 day's notice

T. C

lark

e

Bal

ance

she

et

12 months ended 31st December 2009

11

31 Dec 2009 31 Dec 2008

£m £m £m £m

Goodwill 11.8 12.6 £0.8m goodwill impairment  

Property, plant & equipment 6.7 7.7 Sale Derby property £0.6m impact; Kestrel disposal & GDI wind‐down £0.1m 

18.5 20.3 Inventories and construction contracts 11.5 11.5 Debtors 16.5 14.2 Net cash and bank deposits 23.2 30.4 Creditors (37.6) (40.9) Working capital 13.6 15.2

Capital employed 32.1 35.6

Retirement benefit obligation (6.0) (1.9) £4.1m increase in pension liability ‐ increase in inflation and decrease in discount rate 

Tax (0.9) (2.9) Other liabilities (0.3) (0.4) Net assets 24.8 30.3

T. C

lark

e

5 Y

ear R

ecor

d

12

T. C

lark

e

13 T

urno

ver A

naly

sis

– by

Com

pany

T. C

lark

e

Tur

nove

r Ana

lysi

s –

by S

ecto

r

14

T. C

lark

e

Tur

nove

r Ana

lysi

s –

by N

ew D

ivis

ion

15

Facilities management & engineering specialist

Mature business with excellent reputation for delivery

Blue chip client list

Key framework agreements

Broadens diversity of T. Clarke group

Synergies

Based in Accrington, Lancs

Employs 150

Strong cash generation

Strong bottom line

Earnings enhancing

Existing management to remain.

T. C

lark

e

New

Acq

uisi

tion

16

T. C

lark

e

Cur

rent

Pro

ject

s: L

ondo

n

2012 Olympic Stadium, Team Stadium

Deutsche Bank, Appold Street

Ravensbourne College, Greenwich

RBS, London Triangle Framework

One New Change, Land Securities

The Pinnacle, Arab Investments

Stratford City, Westfield

One New Change 17

Current Projects: London

T. C

lark

e

Curr

ent P

roje

cts:

UK

Reg

ions

5 Year Term Contract renewed July 2009, USAF Bases

New Data Centre, Kent

Midlothian Community Hospital, Midlothian

Longbenton Campus, North Tyneside

Machine X, Recycling Facility, Wandsworth

Northern Ballet HQ, Leeds, Leeds City Council

Speedo HQ, Nottingham

Northern Ballet, Leeds

18

Current Projects: UK Regions

T. C

lark

e

Cur

rent

Opp

ortu

nitie

s : L

ondo

n

The Heron, Moorgate

Park House, W1

New Court, fit out New Headquarters for Rothschild

19

Current Opportunities : London

T. C

lark

e

Cur

rent

Rai

l Opp

ortu

nity

PREFERRED BIDDER Redevelopment of Victoria Tube Station

£40M Programme 2010 to 2016

20

T. C

lark

e

Fut

ure

Opp

ortu

nitie

s

Glasgow 2014, Commonwealth Games

Building Schools for the Future – Birmingham, Bristol, Essex, Kent & Luton

Mechanical & Electrical Framework Contract for Addenbrookes Hospital

Newlyn Fish Market, Cornwall

Basildon Hospital A&E Refurbishment – NOW SECURED

Motorola, Swindon

Barclays Capital, Canary Wharf

Heathrow Airport, Energy Centre

Legal and General, Data Centre

Walkie Talkie Building, London

21

Future Opportunities

T. C

lark

e

Out

look

Steps taken to realign the groups cost base, group is stronger, ready for future opportunities

Current market conditions continue to be challenging

Increased tendering activity

Competitive market

London operations are currently bidding exciting opportunities, including significant rail infrastructure projects

Further opportunities with LOCOG at the Olympic Park

Target funded projects such as Prisons, Schools & Healthcare and explore opportunities in Nuclear Power

22

Outlook

A Central Strategy – Locally Managed T

. Cla

rke

Str

ateg

y

UK split into three operating divisions overseen by the Group Management Board

Future Focus to target Major City Centres and Key Regional Locations

Promote the full range of Building Services offered by the group, across the country

Continue to build upon existing relationships

To sensibly grow the business organically and as opportunities arise by acquisition

Take the group forward in good shape with a strong balance sheet

23

T. C

lark

e

App

endi

ces

Appendix 1, Current Opportunities and Current Projects

Appendix 2, Health and Safety & Training

Appendix 3, plc Board Structure

Appendix 4, Principal Shareholders

Appendices

24

T. C

lark

e

Lon

don

2012

IN PROGRESS Olympic Stadium for London 2012 Due For Completion Spring 2011

OPPORTUNITIES Various Projects for LOCOG CURRENT BIDS Park wide power supplies Fit out, Olympic Broadcast Centre

25

The first lighting towers on the Olympic Stadium were recently lifted into place by T.Clarke

Picture London 2012

T. C

lark

e

Maj

or D

evel

opm

ents

: Lo

ndon

SECURED The Pinnacle The City of London - Tallest Commercial Building £45M, Programme 2009 - 2013 Design Works Commenced

IN PROGRESS One New Change £15M Completes summer 2010

IN PROGRESS Deutsche Bank OPPORTUNITY Winchester House

26

T. C

lark

e

Rec

ent C

ompl

etio

ns -

Lond

on

Ropemaker, £13m OPPORTUNITY - Macquarie Bank

Regents Place, £9m

Pier Walk & Mitre Passage £8m

Central St Giles £9m

27

T. C

lark

e

Wes

tfiel

d, S

trat

ford

City

IN PROGRESS AND FUTURE OPPORTUNITIES

Project Master plan includes 2.9 million sq ft retail and leisure space 6.6 million sq ft office district 1.3 million sq ft hotel space John Lewis & Waitrose stores

28

T. C

lark

e

Rai

l, Cu

rren

t and

Opp

ortu

nitie

s

IN PROGRESS DLR Three Car Capacity Project

BIDS SUBMITTED

Victoria Station, London Underground

Crystal Palace, London Overground

Canterbury West, Southeastern

Marylebone Station, Network Rail

Deptford Station, Lewisham Council

29

T. C

lark

e

Sco

tland

30

COMPLETED St Kentigern’s Academy, Blackburn, West Lothian NHS Glasgow, Health & Social Care Centre, Kirkintilloch The State Hospital, Phase 1, New Build, Carstairs, Lanarkshire SECURED Midlothian Community Hospital, Bonnyrigg, Edinburgh David Walker Care Home, Rutherglen, Glasgow OPPORTUNITIES Western Isles Schools, New Build & Upgrade NHS Ayrshire & Arran Central Decontamination Unit, Irvine The State Hospital, Phase 2, Carstairs, Lanarkshire

COMPLETED St Kentigern’s Academy, Blackburn, West Lothian

OPPORTUNITY Glasgow 2014 Commonwealth Games Sir Chris Hoy Velodrome

Picture Glasgow

2014

T. C

lark

e

Lee

ds

31

SECURED Brighouse & Sowerby Bridge Leisure Centers, Calderdale

IN PROGRESS HMP Hull OPPORTUNITY Buckley Hall Prison

COMPLETED Abraham Guest High School, Orrell, Greater Manchester A variety of state-of- the-art ‘green’ technology is employed, including solar panels, heat exchangers and condensing boilers. The building is highly insulated. The ventilation is primarily passive, using opening windows and a monodraught system. Specialist areas are ventilated with mechanical assistance. ‘Grey’ water harvested from rain falling on the roof is used to flush the toilets.

T. C

lark

e

New

cast

le

COMPLETED Haymarket Hub, Newcastle

COMPLETED

Bede Academy, Northumberland

SECURED

Longbenton Community College, Newcastle

Heworth Pool, Gateshead

OPPORTUNITIES

New Bridge Street Student Accommodation, Newcastle

Building Schools for the Future BSF, Newcastle

Dunston Pool, Gateshead

COMPLETED Whitley Bay Playhouse, Whitley Bay

32

T. C

lark

e

Ken

t

33

SECURED Machine X, Recycling Facility, Wandsworth

IN PROGRESS Medway Hospital HV Infrastructure KCC, Kent International Airport HV Infrastructure BT Aylesford Industrial workshop

OPPORTUNITIES Maidstone NHS Hospital Cellular Pathology Maidstone Museum Gravesend library Aylesham & Snowdon Sports Centre British Energy, Dungeness HVAC installation

OPPORTUNITIES Newlyn Fish Market Stannary Surgery, Tavistock Pelynt Children's Centre, Looe Cornwall Council contracts for testing, maintenance and security

SECURED Buckfast Winery, Buckfastleigh Penlee House, Tregony Newham Farm, Lostwithiel Stephens & Scown, St Austell Camborne and Redruth Hospital Works

T. C

lark

e

The

Sou

th W

est &

Bri

stol

34

CURRENT BID Finzels Reach, Bristol

T. C

lark

e

Mid

land

s, D

erby

and

Eas

t Ang

lia

35

IN PROGRESS Bellbird Primary School, Sawston, Cambridge

COMPLETED Loxford Polyclinic, South Ilford

SECURED PROJECTS Norwich / University East Anglia RAF Lakenheath and Mildenhall Taxi track lighting RAF Mildenhall, HV switchgear upgrade

COMPLETED

Waitrose Stores;

Headington

Croydon

Stamford

Alcester

Altrincham

Glasgow

SECURED Speedo HQ, Nottingham

T. C

lark

e

App

rent

ices

hip

Trai

ning

Appendix One 36

UNRIVALLED COMMITMENT 180 Apprentices receiving training across the UK

The Prime Minister, Gordon Brown visiting the Olympic Stadium in January 2009, meets two T.Clarke apprentices Hayley Phippen and Max Warnock along with ODA Chairman John Armitt.

Simon Hughes, MP Presenting a T.Clarke Apprentice of the Year Award.

T. C

lark

e

Hea

lth &

Saf

ety

Post

er C

ampa

ign

Appendix Two 37

T. C

lark

e

plc

Boa

rd

Appendix Three 38

CHAIRMAN

RUSSELL RACE

GROUP CHIEF EXECUTIVE

MARK LAWRENCE

INDEPENDENT DIRECTORS

BEVERLEY STEWART

IAIN McCUSKER

SENIOR INDEPENDENT DIRECTOR

BOB CAMPBELL

MANAGING DIRECTOR

MIKE CROWDER

FINANCE DIRECTOR

VICTORIA FRENCH

T. C

lark

e

Pri

ncip

al S

hare

hold

ers

Appendix Four 39

Holder Share Holding %

AXA S.A.* (Framlington) 5,405,036 13.53%

Liontrust Investment Services 2,130,228 5.33%

Henderson Global Investors 2,127,502 5.33%

Legal & General Group plc 1,637,895 4.10%

Brewin Dolphin ltd 1,366,313 3.42%

Barclays plc 1,331,640 3.33%

35.04%

Shares in issue: 39,947,889 Information correct as at March 2010.

www.tclarke.co.uk