Investor Pack - TClarke · 2016-11-19 · One Nine Elms – Current Tender 21 Moorfields, Land...
Transcript of Investor Pack - TClarke · 2016-11-19 · One Nine Elms – Current Tender 21 Moorfields, Land...
Investor Pack
Interim Results for the 6 Months ending 30th June 2016
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£320m 2015 : £320m
£124.1m 2015 : £107.3m
£1.7m 2015 : £1.6m
£1.3m 2015 : (£8.7m)
Presentation by
Interim Results for the 6 months ending 30th June 2016
Mark Lawrence, Group Chief Executive Appointed to Board: 2nd May 2003. Age 48 Relevant skills and experience: • 31 years with the company following
completion of an electrical apprenticeship with the Company in 1987.
• Progression through the Company including Electrical Engineer, Technical Director (1997), Executive Director (2003), Managing Director – London Operations (2007). Chief Executive from 1st January 2010.
• A hands-on leader who takes personal accountability and pride in TClarke’s performance and ultimately our client’s satisfaction.
• Regularly visits projects and gets involved personally with many of our clients, contractors and our supply chain.
Martin Walton, Group Finance Director Appointed to Board: 26th October 2010. Age 51 Relevant skills and experience: • Chartered accountant with over 25 years
experience in the profession and within industry.
• Worked with numerous Plcs across a range of sectors with KPMG and BDO.
• First Class Honours Degree in Accountancy and Finance from the London School of Economics.
• Joined TClarke as Group Financial Controller October 2007.
• Led the implementation of the Group’s management reporting system.
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Group Highlights
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• Leading UK provider of complete range of building services.
• Strong reputation for quality with long standing client relationships.
• Highly experienced team with nationwide strength.
• Currently onsite on some of the most significant London schemes including, Bloomberg London, London Wall Place, Principal Place, Project Nova, Rathbone Square, and Westfield London.
• Record revenues of £121.6m. • Interim dividend maintained at 0.5p. • Net cash improved to £1.3m from (£8.7m) • Access to £13m of banking facilities. • Replenished quality order book of £320m.
• 60 New apprentices recruited in 2016 across the UK.
• Opportunities for growth remain despite EU referendum uncertainty.
Profit Before Tax
£1.7m 2015: £1.6m
Net Cash
£1.3m 2015:
(£8.7m)
Revenue
£121.6m 2015:
£107.3m
Forward Order Book
£320m 2015: £320m
Financial Review
Page 6 Financial Highlights
Page 7 Income Statement
Page 8 Cash Flow
Page 9 Balance Sheet
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£9.3m
£23.4m
£30.1m £62.5m
Financial Highlights
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2016 £m
Margin %
20151
£m Margin %
Revenue1 121.6 107.3
Underlying operating profit1,2 2.2 1.8% 2.1 1.9%
Underlying profit before tax1,2 1.8 1.7
Profit before tax - reported1 1.7 1.4% 1.6 1.5%
Earnings / (loss) per share - Underlying3 - Continuing operations - Continuing operations - diluted - Basic
3.55p 3.33p 3.24p 3.00p
3.32p 3.10p 3.03p 1.85p
Interim dividend
Net cash / (debt)4
0.50p
1.3
0.50p
(8.7)
Order book 320 320
1 From continuing operations, 2015 restated to disclose Bristol and Cardiff operations as discontinued 2 Before amortisation and non-recurring costs 3 Before amortisation and non-recurring costs, and tax on these items 4 Net of £5m RCF
- 20.0 40.0 60.0 80.0
Scotland
North
Central & SW
London & SSE
Revenue
(2.0% ) - 2.0% 4.0% 6.0%
Scotland
North
Central & SW
London & SE
Operating margin
2016 2015 2014
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2.00
4.00
Underlying Continuingoperations
Basic
Earnings per share
2015 2016
Segmental Analysis1 2016 £m
20151
£m
Revenue Profit Margin Revenue Profit Margin
London & South East 62.5 0.9 1.4% 57.8 1.2 2.3%
Central & South West 30.1 0.4 1.3% 26.0 0.1 0.3%
North 23.4 0.7 2.9% 17.4 0.7 4.1%
Scotland 9.3 0.2 2.3% 6.9 0.1 0.7%
Elimination (3.7) - (0.8) -
Total revenue1 121.6 107.3
Underlying operating profit1 2.2 1.9% 2.1 0.6%
Net interest3 (0.4) (0.4)
Underlying PBT1 1.8 1.7
Amortisation (0.1) (0.1)
Profit before tax1 1.7 1.6
Income Statement
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1 From continuing operations – 2015 restated to exclude Bristol and Cardiff 2 Net interest includes £0.3m non-cash items (2015: £0.3m) re the pension scheme
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£9.3m
£23.4m
£30.1m £62.5m
Cash Flow
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2016 £m
2015 £m
Operating cash flow before working capital movements 2.1 1.7
Working capital movement (6.3) (14.2)
Operating cash flow (4.2) (12.5)
Net interest (0.1) (0.1)
Corporation tax - (0.2)
Fixed asset disposals net of additions 0.1 (0.1)
Cash outflow before financing (4.2) (12.9)
Dividends paid (1.1) (1.1)
Other movements (0.1) -
Net cash inflow (5.4) (14.0)
Opening cash 11.7 10.3
Closing cash 6.3 (3.7)
• £8m overdraft facility remains in place • £5m 3 year committed facility to March 2017, fully drawn – to be renegotiated before year-end • £20.0m bonding facilities, c£9.8m unutilised
(4.6 )
(12.8 )
(4.3 )
(15.0 )
(10.0 )
(5.0 )
-
2014 2015 2016
Cash used in operations
0.7
(8.7 )
1.3
(10.0 )
(8.0 )
(6.0 )
(4.0 )
(2.0 )
-
2.0
2014 2015 2016
Net cash
Balance Sheet
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Balance Sheet 2016 £m
2015 £m
Intangible assets 22.9 23.1
Property plant and equipment 4.3
4.8
27.2 27.9
Inventories and construction contracts 25.1 33.1
Debtors 38.1 32.5
Creditors (60.4) (52.5)
Working capital excluding cash 2.8 13.1
Net cash / (debt) 1.3 (8.7)
4.1 4.4
Pension scheme (21.9) (15.7)
Tax - current and deferred 3.6 2.6
Finance lease obligations (0.1) -
Net assets 12.9 19.2
Net current assets (excluding RCF) 8.8 9.5
• Pension scheme deficit increased due to lower discount rate caused by falling bond yields • Cash contributions to pension scheme c£1.3m pa, triennial valuation in progress • Cash stated net of £5m RCF repayable 31/03/2017 – reclassified as current at 30/06/2016
Operational Review
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Page 11 Nationwide Coverage
Page 12 TClarke - Scotland
Page 13 TClarke - North
Page 14 TClarke - Central & South West
Page 15-16 TClarke - London & South East
Page 17 Summary and Outlook
Order Book - Nationwide Coverage
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£9.3m
£23.4m
£30.1m £62.5m
Forward Order Book
£320m
H1 Revenues
Scotland
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2016 Scotland - £9.3m
Barratt Homes, The Botanics, Glasgow
Key Developments
Excellent forward order book for 2016, target revenues secured. 600 new homes completed to date 1200 forecast for year end. A number of developments award winning. Strong progress with AV / IT installations delivered as part of our Intelligent Building Division.
North
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2016 North - £23.4m
Key Developments
98% of target revenues now secured. All three business units now overseen by a common MD, providing integrated management across the North. Strategy to secure works in Manchester successful - Projects secured at Manchester Airport and in the City. Veale Nixon in Newcastle to rebrand TClarke in September.
Recently Completed: Great Yorkshire Showground, the Yorkshire Event Centre
Central and South West
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MRI 2 Kettering General Hospital
2016 Central and South West - £30.1m
Key Developments
96% of targeted revenues for 2016 are now secured, Plymouth and St Austell are slightly lower at 75%. Our Healthcare business continues to strengthen its market presence across the UK with close partnerships with the likes of GE, Phillips and Siemens where we act as principal contractor on highly complex installations. Undertaking a number of residential schemes across the southern part of the country, including schemes at Fulham Reach and Hendon - no shortage of future opportunities in this market.
London and South East
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2016 London and South East - £62.5m
TClarke is seen as the partner of choice demonstrated by current London projects - 86% of 2016 Revenues secured.
Current Projects
1 Angel Court 10 Fenchurch Avenue 100 Bishopsgate Bank Underground Station Bloomberg London LIQ – London International Quarter London Wall Place Principal Place Rathbone Square Ruskin Square Selfridges Tate Modern Victoria Underground Station Westfield London, Extension
LIQ – London International Quarter
London and South East
Royal Albert Dock
Broadgate 2020, British Land – Current Opportunity Facebook, Rathbone Square Hanover Square, Great Portland Estates – Current Tender Schroders, London Wall Place – Current Tender Westfield Croydon, Westfield / Hammerson
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Future Opportunities
One Nine Elms – Current Tender 21 Moorfields, Land Securities Albert Dock - Current Tender Amazon, Principal Place – Current Opportunity Aykon Tower – Nine Elms – Current Opportunity Broadgate 2020, British Land – Current Opportunity
Outlook
Market conditions continue to present bidding opportunities that will give us good revenues into 2017. The Company is focused on improving performance and margins throughout the Group despite the uncertainty as a result of EU referendum. We remain alert to any challenges that we may face in the near future.
Josh Bourne gaining recognition for his work as a ‘Rising Star, Health and Safety Awards’ Excel Centre.
Our Daily Priority Is Safety Health and safety is paramount to our business and our safety performance remains strong. Safety is our number one daily priority. Partner of Choice Our first class team has the knowledge, skills and reputation to continue to be regarded as one of the best contractors in the sector. This key advantage helps to drive our business forward and deliver value for our shareholders.
Outlook
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www. .co.uk
THE
WAY
Appendices
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Page 20 PLC Board
Page 21 The TClarke Academy
Page 22 Health and Safety
Page 23 TClarke Founded 1889
PLC Board
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The TClarke Academy
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Our intake of 75 apprentices was supported from day one in London by an innovative ‘buddy’ scheme, pairing new joiners with experienced apprentices – our aim is to make their experience as good as possible.
The picture below is Apprentices Day at Moorfields, London, September 2015. 60 New apprentices will be joining the Group in September 2016
Health and Safety
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EARLY
ACCESS TO
C650
in line with
the overall
Crossrail
master
programme
TClarke and Co. Founded 1889 Became a Limited Company 1911 Listed on London Stock Exchange 1948 53% of shares acquired by Electrowatt Engineering Services, Zürich Electrowatt acquired by Siemens in 1998 and 53% holding placed with institutions UK presence expanded by acquisition and organically Top 5 Investors (July 2016) Miton 17.66% JP Morgan 8.41% Barclays Stockbrokers 5.44% Walker Crips Stockbrokers 5.28% Hargreaves Lansdown 4.63%
TClarke Founded 1889