Financial Review

Revenue and Operating Profit

The Group's revenue increased in 2007 by 4% to £193.8m (2006: £186.3m). Turnover in the London business decreased to £77.2m (2006: £80.4m) as a result of some slippage on major projects, but revenue in the UK regional businesses increased to £116.6m (2006: £105.9m).

Group operating profit increased by 20.8% to £8.1m (2006: £6.7m) and operating margin increased to 4.2% from 3.6% in 2006. The London business achieved a 6.7% operating margin (2006: 4.6%) and showed a 39% increase in operating profit to £5.2m (2006: £3.7m) due to favourable final account completions and an improvement in margins. Regional operating profit was flat at £2.5m (2006:
£2.5m) due to the problems flagged at the half year in two regional companies (Anglia Electrical Services Limited and J.J. Cross Limited). As a result, regional operating margins decreased slightly from 2.4% to 2.1% in 2007 and management changes and closer monitoring of specific projects were put in place to address the problems. Group administrative expenses were broadly static compared with 2006.

Profit Before and After Tax

Group profit before tax was £8.2m (2006: £6.6m), a 24.2% increase from prior year. Group profit after tax increased £1.2m (26.8%) to £5.7m (2006: £4.5m) after taxation of £2.4m (2006: £2.1m). The effective tax rate was 30% (2006: 31%). Net profit margin was 2.95% in 2007 compared with 2.42% in the prior year.

Earnings per Share and Dividends

Earnings per share increased 3.03p (26.8%) to 14.33 pence per share (2006: 11.30p) in 2007. The board has taken into consideration the increased earnings and improved cash position of the group and proposes a final dividend of 8.10p (2006: 7.35p). This brings the total dividend in 2007 to 12p (2006: 11.025p), an 8.84% increase from 2006. The dividend per share is covered 1.2 times by earnings per share (2006: 1 times). The final dividend will be paid, subject to shareholder approval, on 9th May 2008 in respect of shareholders on the register
as at 11th April 2008. Further information regarding a dividend reinvestment plan (DRIP) which is available to shareholders is included in Note 5

Cash Flow

Cash generation is improved, with net cash from operating activities generated during the year increasing £5.8m to £11m for the year ended 31st December 2007.
Cash and cash equivalents as at 31st December 2007 were £9.0m compared with  £2.9m net of overdrafts as at 31st December 2006.

Equity and Capital Structure

Equity was £26.2m (2006: £22.8m) with £2.2m of the £3.4m increase in total equity as at 31st December 2007 due to the actuarial gain on the defined benefit pension scheme, net of deferred tax. The number of shares in issue at 31st December 2007 was 39,947,889 (2006: 39,947,889).

Notes :-

1. The earnings per share figure represents the profit for the year on ordinary activities after taxation divided by the number of ordinary shares in issue. The numbers of ordinary shares, being a weighted average, for the purpose of this calculation, is 39,947,889 (2006: 39,947,889).

2. The figures for the year ended 31 December 2007 have been extracted from the unaudited financial statements of T. Clarke plc for the year ended 31st December 2007 which will be delivered to the Registrar of Companies in due course. The auditors expect to give an unqualified opinion on the financial statements of T. Clarke plc for the year ended 31 December 2007. The figures have been prepared and compiled in accordance with International Financial Reporting Standards. The
comparative figures for the year ended 31 December 2006 have been taken from, but do not constitute, the group's statutory accounts for the year. Those statutory accounts have been reported on by the group's auditors and have been delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985.

3. Copies of the annual report and accounts will be posted to shareholders shortly. Further copies can be obtained from the Company's registered office:
Stanhope House, 116-118 Walworth Road, London, SE17 1JY.

4. The Company's Annual General Meeting will be held at Savoy Place, 2
Savoy Place, London WC2R 0BL on Friday 2nd May 2008 at 12 noon.

5. Subject to the approval of shareholders the final dividend of 8.10
pence per share will be paid on 9th May 2008.

The shares will go ex-dividend on 9th April 2008.

The records will close on 11th April 2008.

A dividend reinvestment plan is available to shareholders. Those shareholders who have not elected to participate in the plan, and who would like to do so in respect of the 2007 final payment, may do so by contacting Capita Registrars on 0875 162 3151 (calls cost 10 p per minute plus network charges).

The last day for the final dividend reinvestment election is 14th April 2008 and any requests should
be made in good time ahead of that date.