REG - TClarke PLC - Half-year Report
14/07/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220714:nRSN3830Sa&default-theme=true
RNS Number : 3830S TClarke PLC 14 July 2022
TClarke plc
Half year results for the six months ended 30 June 2022
TClarke posts record half year results as it closes in on £500m revenue
target
TClarke plc ("the Group" or "TClarke"), the Building Services Group, announces
its half year results for the period ended 30 June 2022.
Business Highlights:
· First half year revenues exceed £200m for the first time
· 2.9% operating margin achieved
· Interim dividend increased by 67%
· Full year 2022 revenues now expected to be circa £450m, ahead of
market expectations
· Record forward order book of £586m as at 30 June 2022
· Bonding capacity increased to support £500m per annum revenues
· Bank facilities extended to August 2026
Financial Highlights:
6 months to 30 June H1 2022 H1 2021
Revenue £206.2m £138.2m
Operating profit (EBIT) £6.0m £2.4m
Operating margin 2.9% 1.7%
Profit before tax £5.5m £1.9m
Earnings per share (Basic) 10.24p 3.58p
Interim Dividend 1.25p 0.75p
Net Cash £7.2m £2.0m
Forward order book £586m £503m
Earnings per share is calculated by dividing profit after tax by the weighted
average number of shares in issue
Trading
Trading has continued to be strong for the first six months of 2022 with
revenue up 49% compared with the corresponding period last year. Revenue
growth has been experienced by all regions but has been particularly strong in
London where revenues at £125.1m are 72% higher than in 2021. This growth is
expected to continue throughout the rest of 2022 with revenues for the full
year now expected to be circa £450m.
The growth in revenues has been supported by maintaining our operating margin
close to target levels at 2.9%; again driven by the London business. London's
operating margin for the first six months of the current year is 4.6% (2021
1.4%), UK South operating margin is 2.8% (2021 3.7%) and UK North operating
margin is 2.7% (2021 3.7%). After deducting group costs of £2.0m the
overall Group operating margin during the period is 2.9% (2021 1.7%).
Cash and Facilities
Good financial discipline is at the centre of our operations. Net cash is
£7.2m as at 30 June 2022; an increase of £5.2m compared with 30 June 2021.
Average month end net cash during H1 2022 is £3m.The principal cash movements
are detailed in the banking facilities section of this report.
In support of our growth strategy we have now put in place banking facilities
with NatWest comprising a £25m revolving credit facility (RCF) which extends
to August 2026 and a £5m overdraft facility.
Many of our clients demand performance bonds to be in place as part of the
contract requirements. Due to the strength of the business TClarke has at its
disposal one of the largest bonding capacities when compared to our recognised
peer group. This too has recently been increased to provide for a total
bonding capacity of £65.1m.
Dividend
The Board proposes an interim dividend of 1.25p per share (2021: 0.75p per
share) to be paid on 30 September 2022 to shareholders on the register at 2
September 2022. TClarke has a progressive dividend policy and is also
rebalancing the split between the interim and final dividend. As a result the
interim dividend now proposed has been increased by the full amount of the
expected increase in total dividend for 2022.
Net Assets
Group net assets have increased by £8.6m in the six months to 30 June 2022
and now stand at £35.1m. This is principally due to the increase in retained
earnings and the post-tax reduction in pension deficit.
Order Book
Our future confidence is underpinned with the success of the Group's forward
order book which has been replenished and expanded and now stands at a new
record of £586m. This is an £83m increase compared to the position at 30
June 2021. In addition, TClarke has many target projects and opportunities
with our pipeline of current bids exceeding £1bn.The split of the order book
is as follows:
Market Sector 30 June 2022 30 June 2021 Increase
£m £m %
Infrastructure 141 93 52%
Technology 184 132 39%
Residential & Hotels 96 113 -15%
Engineering Services 151 153 -1%
Facilities Management 14 12 17%
Total 586 503 17%
Outlook
TClarke is moving rapidly towards achieving its 2023 £500m annual revenue
target whilst maintaining its operating margin. The Board expects based upon
the performance to date, revenues to exceed current expectations for 2022 at
circa £450m for the full year.
Mark Lawrence, Chief Executive, commented
"With the current economic conditions, the business is rightly cautious,
however the strategy we follow is of a disciplined tendering approach with
early engagement with our supply chain partners and our clients which is
ensuring we are not exposed to unnecessary risks.
The record half year revenues and forward order book along with the current
visibility of future workloads in our target revenue streams mean TClarke now
expects to deliver £450m revenue in 2022 and achieve its £500m target in
2023."
-ends-
Date: 14 July 2022
For further information contact:
TClarke plc
Mark Lawrence
Chief Executive Officer
Trevor Mitchell
Finance Director
Tel: 020 7997 7400
www.tclarke.co.uk (http://www.tclarke.co.uk)
Cenkos Securities plc (Corporate Broker)
Ben Jeynes (Corporate Finance)
Alex Pollen (Sales)
Tel: 020 7397 8900
www.cenkos.com (http://www.cenkos.com)
RMS Partners
Simon Courtenay
Tel: 020 3735 6551
Operational Review
The Group is managed in three operational areas, London, UK South and UK
North, providing nationwide coverage from twenty locations across the UK.
We focus on repeat customers and framework contracts in the following key
markets:
· Infrastructure
· Residential & Hotels
· Facilities Management
· Engineering Services
· Technologies
TClarke - London
30 06 2022 30 06 2021
£m £m
Revenue 125.1 72.8
Operating profit 5.8 1.0
Operating profit margin 4.6% 1.4%
Order book 381 346
London is the most significant of our three operating divisions and includes
our combined engineering services London business, our London technology
business and our off-site prefabrication facility at Stansted.
The growth in revenue has been primarily driven by our success of our data
centre offering. Having successfully delivered a major data centre in the
first half of the year, we expect to continue to deliver on the remaining (and
larger) live data centre projects in the second half of the year.
Our core Engineering Services have also continued to perform strongly,
delivering a number of high profile shell and core commercial and hotel
developments, which is reflected in the 3.2% increase in operating margin from
the same period of 2021.
TClarke - UK South
30 06 2022 30 06 2021
£m £m
Revenue 43.6 35.4
Operating profit 1.2 1.3
Operating profit margin 2.8% 3.7%
Order book 86 57
UK South operates from our offices at Birmingham, Derby, Oxford, Kimbolton,
Newport, Peterborough, Portishead, Plymouth and St Austell, and is able to
target a vast range of construction and facilities management opportunities
across the region.
The first half of the year has seen good revenue growth compared to 2021, with
strong performances in both our Security and Climate divisions. Our new Oxford
office is now fully operational having started to trade in the first half of
the year and is expected to deliver a profit in its first full year. Our
expectation is for margins to recover during the second half of 2022, back to
the UK South's normal operating margin of circa 3.7%.
TClarke - UK North
30 06 2022 £m 30 06 2021 £m
Revenue 37.5 30.0
Operating profit 1.0 1.1
Operating profit margin 2.7% 3.7%
Order book 119 100
The UK North division operates from five principal locations; Liverpool,
Manchester, Leeds, Newcastle and Eurocentral Scotland.
The North West has made the most significant contribution to the £1.0m
operating profit including the successful delivery of a major engineering
services project in Manchester. The operating margin has decreased by 1%
compared to 2021 due to the business mix in the first half of the year. Our
expectation is for the UK North to maintain an operating margin of circa 2.7%
in the second half of 2022.
Pension Obligations
In accordance with IAS 19 'Employee Benefits', an actuarial gain of £5.5m,
net of tax, has been recognised in reserves during the period, with the
pension scheme deficit decreasing to £15.9m (30th June 2021: £24.5m). The
decrease in the deficit is largely the result of the discount rate increasing
to 3.82% (30(th) June 2021: 2.0%), partially offset by the hedging strategy
employed by the scheme. In accordance with the Group's agreed deficit
reduction plan, described in detail in the most recent annual report, the
annual deficit reduction contribution is set at £1.5m for the current year,
and will remain at this amount until the review of the output of the triennial
actuarial valuation of the scheme which is currently in progress.
The scheme is closed to new members and the Group continues to meet its
ongoing obligations to the scheme.
Banking Facilities and Cash Flow
The Group has recently renewed its banking facilities, which now comprise a
£5m overdraft facility (previously £10m), repayable on demand, and a £25m
revolving credit facility ("RCF") (previously £15m) expiring 31st August
2026. At 30 June 2022 the Group had drawn down £5m (2021: £15m) of the RCF
and the overdraft facility was unutilised. The gross cash balance was £11.9m,
resulting in net cash of £7.2m. The Group therefore has up to £37.2m
available to support the Group's working capital flows and funding demands
during the course of the year. The Group has £65.1m bonding facilities in
place of which £26.3m were utilised at 30 June 2022.
The net cash figure of £7.2m is £5.2m higher than at the same time in 2021
reflecting profit for the period and other non-operating cashflows, as set out
below:
£m
Balance 1 July 2021 2.0
Profit after tax 9.2
Dividends (2.1)
Pension deficit reduction (1.5)
Employee Share Trust Share Purchase (0.5)
Other 0.1
Balance at 30 June 2022 7.2
Net Assets and Capital Structure
The Group is funded by equity capital, retained reserves and bank facilities,
and there are no plans to change this. Shareholders' equity is £35.1m; an
increase of £16.1m compared to 30 June 2021.
Condensed consolidated income statement
Unaudited Unaudited Audited
6 Months to 6 Months to 12 Months to
30 06 2022 30 06 2021 31 12 2021
£m £m £m
Revenue 206.2 138.2 327.1
Cost of sales (181.5) (123.0) (286.6)
Gross profit 24.7 15.2 40.5
Administrative expenses (18.7) (12.8) (31.7)
Operating profit 6.0 2.4 8.8
Finance costs (0.5) (0.5) (1.0)
Profit before taxation 5.5 1.9 7.8
Taxation (1.1) (0.4) (1.5)
Profit for the period 4.4 1.5 6.3
Earnings per share
Attributable to owners of TClarke plc
Basic 10.24p 3.58p 14.99p
Diluted 10.17p 3.38p 13.91p
Condensed consolidated statement of comprehensive income
Unaudited Unaudited Audited
6 Months to 6 Months to 12 Months to
30 06 2022 30 06 2021 31 12 2021
£m £m £m
Profit for the period 4.4 1.5 6.3
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gain on defined benefit pension scheme, net of tax 5.5 4.4 6.0
Other comprehensive income for the period, net of tax 5.5 4.4 6.0
9.9 5.9 12.3
Total comprehensive income for the period
Condensed consolidated statement of financial position
Unaudited Unaudited Audited
30 06 2022 30 06 2021 31 12 2021
£m £m £m
Non-current assets
Intangible assets 25.3 25.3 25.3
Property, plant and equipment 12.5 7.6 7.5
Deferred taxation 4.4 5.2 6.4
Trade and other receivables 4.9 3.2 4.9
Total non-current assets 47.1 41.3 44.1
Current assets
Inventories 0.4 0.4 0.4
Amounts due from customers under construction contracts 69.8 56.4 51.7
Trade and other receivables 39.9 37.3 52.5
Current tax receivables 0.2 0.6 0.2
Cash and cash equivalents 12.2 17.0 20.3
Total current assets 122.5 111.7 125.1
Total assets 169.6 153.0 169.2
Current liabilities
Borrowings (5.0) (15.0) (15.0)
Amounts due to customers under construction contracts (2.5) (1.8) (2.9)
Trade and other payables (101.9) (85.8) (96.3)
Obligations under leases (1.8) (1.2) (1.6)
Total current liabilities (111.2) (103.8) (115.8)
Net current assets 11.3 7.9 9.3
Non-current liabilities
Obligations under leases (5.7) (2.0) (1.3)
Deferred tax liabilities - (0.2) -
Trade and other payables (1.7) (3.5) (1.7)
Retirement benefit obligation (15.9) (24.5) (23.9)
Total non-current liabilities (23.3) (30.2) (26.9)
Total liabilities (134.5) (134.0) (142.7)
Net assets 35.1 19.0 26.5
Equity attributable to owners of the parent
Share capital 4.4 4.3 4.4
Share premium 4.4 3.8 4.2
Revaluation reserve 0.7 0.9 0.7
Retained earnings 25.6 10.1 17.2
Total equity 35.1 19.0 26.5
Condensed consolidated statement of cash flows
Unaudited Unaudited Audited
6 Months to 6 Months to 12 Months to
30 06 2022 30 06 2021 31 12 2021
£m £m £m
Net cash generated by / (used in) operating activities (see note 5A) 5.3 (5.3) (0.6)
Investing activities
Purchase of property, plant and equipment (0.6) (0.1) (0.4)
Net cash used in investing activities (0.6) (0.1) (0.4)
Financing activities
New shares issued 0.2 0.5
Facility fee - - (0.1)
Repayment of bank borrowing (10.0) - -
Equity dividends paid (1.8) (1.5) (1.9)
Acquisition of shares by ESOT (0.5) (0.5) (0.9)
Repayment of lease obligations (0.7) (0.8) (1.5)
Net cash used in financing activities (12.8) (2.8) (3.9)
Net decrease in cash and cash equivalents (8.1) (8.2) (4.9)
Cash and cash equivalents at beginning of period 20.3 25.2 25.2
Cash and cash equivalents at end of period (see note 5) 12.2 17.0 20.3
Condensed consolidated statement of changes in equity
For the six months ended 30th June 2022
Revaluation reserve
Share capital Share premium Retained earnings
Total
£m £m £m £m £m
At 1st January 2022 4.4 4.2 0.7 17.2 26.5
Comprehensive income
Profit for the period - - - 4.4 4.4
Other comprehensive income
Actuarial gain on retirement benefit obligation - - 7.5
- 7.5
Deferred income tax on actuarial gain on retirement benefit obligation - - (2.0) (2.0)
-
Total other comprehensive income - - - 5.5 5.5
Total comprehensive income - - - 9.9 9.9
Transactions with owners
Share based payment debit - - - 0.8 0.8
Shares acquired by ESOT - - - (0.5) (0.5)
Allotted in respect of share option schemes - 0.2 - - 0.2
Dividends paid - - - (1.8) (1.8)
Total transactions with owners - - - (1.5) (1.3)
4.4 4.4 0.7 25.6 35.1
At 30th June 2022
Condensed consolidated statement of changes in equity
For the six months ended 30th June 2021
Revaluation reserve
Share capital Share premium Retained earnings
Total
£m £m £m £m £m
At 1st January 2021 4.3 3.8 0.9 6.8 15.7
Comprehensive income
Profit for the period - - - 1.5 1.5
Other comprehensive income
Actuarial gain on retirement benefit obligation - - 5.5 5.5
-
Deferred income tax on actuarial gain on retirement benefit obligation - - (1.1) (1.1)
-
Total other comprehensive income - - - 4.4 4.4
Total comprehensive income - - - 5.9 5.9
Total transactions with owners - - - (2.6) (2.6)
4.3 3.8 0.8 10.1 19.0
At 30th June 2021
Condensed consolidated statement of changes in equity
For the year ended 31st December 2021
Revaluation reserve
Share capital Share premium Retained earnings
Total
£m £m £m £m £m
At 1st January 2021 4.3 3.8 0.9 6.8 15.7
Comprehensive income
Profit for the year - - - 6.3 6.3
Other comprehensive income
Actuarial gain on retirement benefit obligation - - 5.6 5.6
-
Deferred income tax on actuarial gain on retirement benefit obligation - - 0.4 0.4
-
Total other comprehensive income - - - 6.0 6.0
Total comprehensive income - - - 12.3 12.3
Transactions with owners
Transfer on depreciation of freehold properties - (0.1) 0.1 -
-
Share based payment credit - - - 0.8 0.8
Shares acquired by ESOT - - - (0.9) (0.9)
Allotted in respect of share option schemes 0.1 0.4 - 0.5
Dividends paid - - - (1.9) (1.9)
Total transactions with owners 0.1 0.4 (0.1) (1.9) (1.5)
4.4 4.2 0.7 17.2 26.5
At 31st December 2021
Condensed consolidated statement of changes in equity
For the year ended 31st December 2021
Share capital
Share premium
Revaluation reserve
Retained earnings
Total
£m
£m
£m
£m
£m
At 1st January 2021
4.3
3.8
0.9
6.8
15.7
Comprehensive income
Profit for the year
-
-
-
6.3
6.3
Other comprehensive income
Actuarial gain on retirement benefit obligation
-
-
-
5.6
5.6
Deferred income tax on actuarial gain on retirement benefit obligation
-
-
-
0.4
0.4
Total other comprehensive income
-
-
-
6.0
6.0
Total comprehensive income
-
-
-
12.3
12.3
Transactions with owners
Transfer on depreciation of freehold properties
-
-
(0.1)
0.1
-
Share based payment credit
-
-
-
0.8
0.8
Shares acquired by ESOT
-
-
-
(0.9)
(0.9)
Allotted in respect of share option schemes
0.1
0.4
-
0.5
Dividends paid
-
-
-
(1.9)
(1.9)
Total transactions with owners
0.1
0.4
(0.1)
(1.9)
(1.5)
At 31st December 2021
4.4
4.2
0.7
17.2
26.5
Notes to the condensed consolidated financial statements for the six months to
30 June 2022
Note 1 - Basis of preparation
TClarke plc (the 'Company') is a company incorporated and domiciled in the
United Kingdom. The nature of the Group's operations and its principal
activities are set out in Note 2 below and in the interim management report.
The consolidated interim financial statements comprise the condensed financial
statements of the Company and its subsidiaries (together the 'Group').
These condensed interim financial statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act 2006. The
statutory accounts for the year ended 31 December 2021 were approved by the
Board of Directors on 08 March 2022 and have been delivered to the Registrar
of Companies and a copy has been made available on the Company's website at
www.tclarke.co.uk (http://www.tclarke.co.uk) . The auditors' report on those
accounts was unqualified and did not contain any statement under section 498
of the Companies Act 2006.
These condensed interim financial statements for the half year ended 30 June
2022 have been prepared in accordance with the UK-adopted International
Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority. They do not include all the information required for the
full annual financial statements and should be read in conjunction with the
financial statements of the Group as at and for the year ended 31 December
2021.
The interim financial statements have not been audited or reviewed by the
Company's auditors.
Accounting policies
Except as described below, the financial statements have been prepared using
the accounting policies and presentation that were applied in the audited
financial statements for the year ended 31 December 2021.
Taxes on income in the interim periods are accrued using the estimated
effective tax rate that would be applicable to expected total annual earnings.
Estimates and financial risk management
The preparation of interim financial statements requires the Directors to make
judgements, estimates and assumptions about the carrying amounts of assets and
liabilities at the reporting date and the amounts of revenue and expense
incurred during the period that may not be readily apparent from other
sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.
In preparing these interim financial statements, the significant judgements
made by the Directors in applying the Group's accounting policies and the key
sources of uncertainty together with the Group's financial risk management
objectives and policies were the same as those that applied to the financial
statements as at and for the year ended 31st December 2021. The principal
risks and uncertainties continue to be those which are set out on pages 26-29
of the Group's annual report and accounts for the year ended 31st December
2021.
Going concern
The Group has recently renewed its banking facilities, which now comprise a
£5m overdraft facility repayable on demand, and a £25m revolving credit
facility ("RCF") expiring 31st August 2026. At 30 June 2022 the Group had
drawn down £5m (2021: £15m) of the RCF and the overdraft facility was. The
gross cash balance was £12.2m, resulting in net cash of £7.2m. The Group
therefore has up to £37.2m available to support the Group's working capital
flows and funding demands during the course of the year.
After making appropriate enquiries, the Directors are satisfied that the
Company and Group have adequate resources to continue their operations for the
foreseeable future. Accordingly, the Directors continue to adopt the going
concern basis in preparing the financial statements.
Note 2 - Segmental information
The Group provides electrical and mechanical contracting and related services
to the construction industry and end users.
For management and internal reporting purposes the Group is organised
geographically into three regional divisions; London, UK South & UK North,
reporting to the Chief Executive, who is the chief operating decision maker.
30 June 2022 London UK South UK North Group costs and Unallocated Total
£m £m £m £m £m
Revenue from contracts with customers 125.1 43.6 37.5 - 206.2
Operating profit 5.8 1.2 1.0 (2.0) 6.0
Finance costs - - - (0.5) (0.5)
Profit/(loss) before tax 5.8 1.2 1.0 (2.5) 5.5
Taxation expense - - - (1.1) (1.1)
Profit/(loss) for the period 5.8 1.2 1.0 (3.6) 4.4
London UK South UK North Total
£m £m £m £m
Business sector
Engineering 38.2 10.5 9.3 58.0
Facilities Management 1.5 9.7 5.8 17.0
Infrastructure 9.8 21.0 8.6 39.4
Residential 16.9 1.0 11.7 29.6
Technologies 58.7 1.4 2.1 62.2
Total revenue 125.1 43.6 37.5 206.2
30 June 2021 London UK South UK North Group costs and Unallocated Total
£m £m £m £m £m
Revenue from contracts with customers 72.8 35.4 30.0 - 138.2
Operating profit 1.0 1.3 1.1 (1.0) 2.4
Finance costs - - - (0.5) (0.5)
Profit/(loss) before tax 1.0 1.3 1.1 (1.5) 1.9
Taxation expense - - - (0.4) (0.4)
Profit/(loss) for the period 1.0 1.3 1.1 (1.9) 1.5
London UK South UK North Total
£m £m £m £m
Business sector
Facilities Management 1.0 1.1 4.4 6.5
Infrastructure 9.3 22.8 12.2 44.3
Engineering Services 37.2 6.0 1.8 45.0
Residential & Hotels 12.6 5.3 11.0 28.9
Technologies 12.7 0.2 0.6 13.5
Total revenue 72.8 35.4 30.0 138.2
31 December 2021 London UK South UK North Group costs and Unallocated Total
£m £m £m £m £m
Revenue from contracts with customers 189.4 67.1 70.6 - 327.1
Operating profit/(loss) 6.2 2.6 3.0 (3.0) 8.8
Finance costs - - - (1.0) (1.0)
Profit/(loss) before tax 6.2 2.6 3.0 (4.0) 7.8
Taxation expense - - - (1.5) (1.5)
Profit/(loss) for the year 6.2 2.6 3.0 (5.5) 6.3
London UK South UK North Total
£m £m £m £m
Business sector
Facilities Management 2.7 13.6 9.7 26.0
Infrastructure 15.1 34.4 29.3 78.8
Engineering Services 91.7 14.3 10.9 116.9
Residential & Hotels 31.5 4.8 19.6 55.9
Technologies 48.4 - 1.1 31.5
Total revenue 189.4 67.1 70.6 327.1
Note 3 - Taxation expense
The effective corporation tax rate applied for the period is 19.0% (30 June
2021: 19.0%).
Note 4 - Earnings per share
A. Basic earnings per share
The earnings per share represent the profit for the period divided by the
weighted average number of ordinary shares in issue.
Unaudited Unaudited
30 06 2022 30 06 2021 Audited
£m £m 31 12 2021
£m
Earnings
Profit attributable to owners of the Company 4.4 1.5 6.3
Weighted average number of ordinary shares (000s) 42,988 41,898 42,284
Basic earnings per share 10.24p 3.58p 14.99p
B. Diluted earnings per share
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. The Company has two categories of dilutive
potential ordinary shares: share options granted under the Company's SAYE
schemes, and conditional share awards granted under the Long-Term Incentive
Plan. Further details of these schemes are given in note 18 of the 2021
annual report and financial statements.
Unaudited Unaudited
30 06 2022 30 06 2021 Audited
£m £m 31 12 2021
£m
Earnings
Profit attributable to owners of the Company 4.4 1.5 6.3
4.4 1.5 6.3
42,988 41,898 42,284
Weighted average number of ordinary shares in issue (000s)
Adjustments
SAYE Share Options (000s) 278 451 471
Long-Term Incentive Plan Conditional share awards (000s) - 1,982 2,790
Weighted average number of ordinary shares for diluted earnings per share 43,266 44,331 45,545
(000s)
Diluted earnings per share 10.17p 3.38p 13.91p
Note 5 - Notes to the consolidated statement of cash flows
Unaudited Unaudited Audited
A. - Reconciliation of operating profit to net cash from operating activities 30 06 2022 30 06 2021 31 12 2021
£m £m £m
Operating profit 6.0 2.4 8.8
Depreciation charges 1.1 1.0 2.0
Equity settled share based payments 0.8 (0.6) 0.8
Additional pension contributions (0.8) (0.8) (1.5)
Defined benefit pension scheme movement 0.2 0.2 0.4
Operating cash flows before movements in working capital 7.3 2.2 10.5
Increase in contract balances (18.1) (14.0) (8.2)
Decrease / (Increase) in operating trade and other receivables 11.3 (2.4) (18.8)
Increase in operating trade and other payables 5.0 9.2 16.4
Cash generated by / (used in) operating activities 5.5 (5.0) (0.1)
Interest paid (0.2) (0.3) (0.5)
Net cash generated by / (used in) operating activities 5.3 (5.3) (0.6)
B. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank less bank overdrafts.
Note 6 - Related party transactions
Transactions between the Company and its subsidiary undertakings, which are
related parties, have been eliminated on consolidation and are not disclosed
in this note. Full disclosure of the Group's other related party transactions
is given in Note 21 to the Group's financial statements for the year ended 31
December 2021. There have been no material changes in these relationships in
the six months ended 30 June 2022 that have materially affected the financial
position or performance of the Group during that period.
Note 7 - Pension commitments
The present value of the defined benefit retirement benefit scheme and the
related past and current service costs were measured using the projected unit
credit method. The amount included in the statement of financial position
arising from the Group's obligations in respect of its defined benefit
retirement benefit scheme is as follows:
Unaudited Unaudited Audited
30 06 2022 30 06 2021 31 12 2021
£m £m £m
Present value of defined benefit obligations 51.2 69.9 73.4
Fair value of scheme assets (35.3) (45.4) (49.5)
Deficit in scheme recognised in the statement of financial position 15.9 24.5 23.9
Key assumptions used
Rate of increase in salaries 2.49% 2.90% 3.39%
Rate of increase of pensions in payment 3.11% 3.10% 3.15%
Discount rate 3.82% 2.00% 1.89%
Inflation assumption (RPI) 3.19% 3.20% 3.25%
Inflation assumption (CPI) 1.99% 2.40% 2.05%
Unaudited Audited
Mortality assumptions (years) 30 06 2022 Unaudited 31 12 2021
30 06 2021
Life expectancy at age 65 for current pensioners:
Men 21.2 21.8 21.5
Women 23.2 24.1 23.4
Life expectancy at age 65 for future pensioners
(current age 45)
Men 22.1 22.8 22.5
Women 24.3 25.3 24.6
Statement of Directors' responsibilities
The Directors confirm that the condensed interim financial statements have
been prepared in accordance with International Accounting Standard 34 'Interim
Financial Reporting' and that the interim management report includes a fair
review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the
first six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the year; and
· material related party transactions in the first six months and
any material changes in the related party transactions described in the last
annual report.
On behalf of the Board
Iain McCusker - Chairman
Mark Lawrence - Chief Executive
Trevor Mitchell - Finance Director
14 July 2022
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR ZZGMNFFDGZZMRecent news on Tclarke
See all newsREG-Samson Rock Capital LLP: Form 8.3 - TClarke Plc
AnnouncementREG-Samson Rock Capital LLP: Form 8.3 - TClarke Plc
AnnouncementREG - Cavendish Securities TClarke PLC - Form 8.5 (EPT/NON-RI)
AnnouncementREG - Barclays PLC TClarke PLC - Form 8.3 - TCLARKE PLC
AnnouncementREG-Samson Rock Capital LLP: Form 8.3 - TClarke Plc
Announcement