Introduction to your presenters

Transcription

1 TClarke, London Apprentices 2018

2 Introduction

3 Introduction to your presenters Mark Lawrence Group Chief Executive Officer Appointed to Board, 2nd May 2003 Mark has had 31 years with the company and started his career here by completing an electrical apprenticeship in He progressed through the company, becoming Technical Director in 1997, Executive Director in 2003 and Managing Director, London Operations in As Group Chief Executive Officer since January 2010, Mark has led strategic changes across the group and remains a hands-on leader, taking personal accountability and pride in Clarke's performance and, ultimately our shareholders and clients satisfaction. He regularly walks project sites and gets involved personally with many of our clients, contractors and our supply chain. Trevor Mitchell Group Finance Director Appointed to the Board on 1st February 2018 Trevor is a Chartered Accountant and accomplished finance professional with extensive experience across many sectors, including financial services, construction and maintenance, education and retail, working with organisations such as Balfour Beatty plc, Kier Group plc, Rok plc, Clerical Medical Group and Halifax plc. Prior to his appointment, Trevor had been working with TClarke since October 2016, assisting with simplifying the structure and improving the Group s financial controls and procedures.

4 What we do

5 What we do ABERDEEN TClarke designs, installs, integrates and maintains the full range of mechanical and electrical services and the digital infrastructure to create a 21 st century building. Across the country, our directly employed teams lead the industry for quality and safety. TClarke works on many of the iconic buildings in London, our regions provide a balanced mix of business delivering many schools and hospital projects, residential schemes and work on a number of frameworks. Our focus is on being the partner of choice in each of the specialist areas we work in and equally on the retention and enhancement of our traditional reputation for delivering good value, total trustworthiness and excellent work quality. SCOTLAND FALKIRK NORTH DUMFRIES NEWCASTLE CHORLEY LEEDS LIVERPOOL MANCHESTER CENTRAL AND SOUTH WEST DERBY PETERBOROUGH BIRMINGHAM HUNTINGDON STANSTED COLCHESTER PORTISHEAD SITTINGBOURNE LONDON ST.AUSTELL PLYMOUTH LONDON AND SOUTH EAST

6 Target Markets and Customer Relationships Our Five Target Markets Customer Relationships Infrastructure Rail Airports Hospitals Education Prisons Healthcare Defence TClarke has deep, long-term partnerships both with major principal contractors and with property owners and developers. Below is a selection of top clients based on current revenue spend. Residential & Accommodation New build Refurbishment Hotels Student Accommodation Facilities Management & Frameworks Planned and Reactive Maintenance On Site Facilities Management Long Term Frameworks Term Contracts Technologies Data Centres IT Infrastructure and Networks Audio Visual Fire and Security Smart Buildings Manufacturing and Prefabrication M&E Contracting Commercial Offices Retail Leisure and Stadiums Museums and Galleries Design and Build

7 Financial Highlights

8 Financial Highlights Group revenue 320m Underlying operating margin 2.7% Underlying operating margin 8.6m before tax & interest m % m m % m m % m m % m m % m Underlying earning per share 15p Net cash 13.0m Forward order book 403m p m m p m m p m m p m m p m m 2018 figures represent current market expectations

9 Investment Case

10 Investment Case Cash Management Discipline & Strong Risk Control Environment Financial Strength Forward Revenue Visibility Balanced Business Improving Margin Profile & Profitability The Group s cash generation remains robust with the year end 2017 net cash improving by 26% to 11.7m the strongest closing balance recorded since Half year (June 2018) cash up 96% Year on year from 2.4m to 4.7m Targeted approach to contract tendering process and assessment and strength of potential customers. Prudent profit recognition Substantial cash balances. Planned investment for future growth funded entirely from internal resources. Commitment to progressive dividend policy. The forward order book stands at a record of 403m. 230m of revenues are already secured for Increasing exposure to long-term infrastructure work. Investing in new technologies and secular growth markets. Five Target Markets: Infrastructure, Residential & Accommodation, Facilities Management & Frameworks, Technologies and M&E Contracting. Focus on growing profits ahead of revenues. Differentiated service offering commands higher margins. Medium-term target to increase the underlying operating margin to 3%

11 INVESTOR PACK Investment Case - Journey so far Revenue Operating Profit Full Year m Full Year m 207.9m 1.3m

12 Managing Risk

13 INVESTOR PACK From Tender to Contract Award Typical Tender Period Tender Received Measure Quantities Mid Bid Interview Obtain Supplier Quotations Prepare Bid Return Documentation Analyse tender, apply labour rates, fixed price, profit and identify risk items Deliver Tender Return Contract Formally Awarded Post Bid Questions & Addendums Post Bid Presentation Tender analysed by clients team Pre Construction period Mobilise Project Team Place key equipment on order to lock in price

14 Strategic Markets

15 INVESTOR PACK Sector 1: Infrastructure Infrastructure Rail Prisons Airports Healthcare Hospitals Defence Education 79m 78m Stanmore Hospital 25m Infrastructure Luton Airport H FY 2017 FOB Powerful, nationwide capabilities and reputation. The STEM Centre, University of Essex Full range of specialist accreditations for airside, underground and defence work. Strong order book visibility and client and end user relationships. Excellent streams of long term project work Cambridge Judge Business School Bank Station Capacity Upgrade

16 INVESTOR PACK Sector 2: Residential & Accommodation Residential & Accommodation New build Refurbishment Hotels Student Accommodation 60m 33m The Minories Hotel, London 16m Residential/Accommodation H FY 2017 FOB Beaufort Park, Hendon Cala Homes, Glasgow Strong and long-standing relationships with house builders and developers. Complete, integrated skillsets and innovative practices to deliver productivity and safety leadership onsite. Innovation to deliver smart and ultra low energy homes and accommodation. One Bishopsgate Plaza Heritage Grange, Edinburgh

17 INVESTOR PACK Sector 3: FM & Frameworks Facilities Management & Frameworks Planned and Reactive Maintenance On Site Facilities Management Long Term Frameworks Term Contracts Procure 22 Framework & Designed for Life Framework: Building for Wales 10m 12m 12m Springfield Nuclear Fuels FM & Frameworks H FY 2017 FOB Manchester Airport Group Highly skilled specialist FM teams across the UK serving advanced industrial, specialist building services and energy sectors Longstanding relationships and frameworks in education and defence Healthcare P22 Frameworks and agreements with Siemens, GE and Phillips UK network systems and directly employed teams to deliver nationwide contracts. EDF Nuclear Energy Defence Estates

18 INVESTOR PACK Sector 4: Technologies Technologies Data Centres IT Infrastructure and Networks Audio Visual Fire and Security Smart Buildings Manufacturing and Prefabrication Stansted Manufacturing Facility 55m 12.5m 14m Technologies H FY 2017 FOB Interxion London 3 Data Centre 22 Bishopsgate Data / BMS / Fire & Security Substantial growth opportunities Market leading in-house propositions and technology leadership Project work on most advanced developments in the market London Wall Place fire alarm Battersea Power Station - BMS

19 INVESTOR PACK Sector 5: M&E Contracting M&E Contracting Commercial Offices Retail Leisure and Stadiums Museums and Galleries Design and Build 173m 165m 78m KGX1, Kings Cross, London M&E Contracting H FY 2017 FOB Sustained reputation as UK market leader for scale, experience and innovation. Success in growing our mechanical offering to match electrical. 1 Triton Square, London Continued success winning most complex, challenging and rewarding projects in the market Strong order book visibility and client and end user relationships S9, International Quarter London Westfield London, Extension

20 Summary

21 Summary We approach the new financial year in excellent shape, operationally and financially. Board expects results for 2018 to be ahead of current market expectations. All regions profitable. Underlying operating profit before interest and taxation of circa 8.6m. Revenue of circa 320m. Implied underlying operating profit margin of 2.7% evidence that we are on track to achieve target of 3%. Debt free. Focused on Five Target Sectors. Our established strategy to selectively target projects Record forward order book 403m. Revenues of 230m for 2019 have already been secured.

22 Questions and Answers

23 TClarke plc 45 Moorfields, London EC2Y 9AE