Chairman's Statement

TClarke has continued to grow and deliver outstanding performance and results in 2021. Our revenue of £327m has exceeded the target of £300m that we set at the start of 2021. Our operating profit is £8.8m; over £6.5m of which was delivered in the last 6 months of the year at a margin of 3.3% as our revenues accelerated.

The success of our strategies and deliveries, the quality of our products, services and methods, and the strength and depth of our client relationships have enabled significant progress to be made in the achievement of our medium term revenue target of £500m.

While we continue to grow and deliver in our core Engineering Services markets, we are also delivering significant growth and performance in our strategic growth sectors, particularly Technology, in which we have developed capabilities, leadership and new client relationships. These are making a significant and growing contribution to our revenue growth and target. This growth and performance is supported by strong financial, management and delivery disciplines which are constantly and consistently applied across the Group. The forward order book stands at a record level of £534m, an increase of 17% on the year, of which £379m represents committed revenue for 2022. The proportion of the order book represented by Technology has risen to 25% from 10% in 2020.

We know that our shareholders and investors value our progressive dividend stream. We continue to be fully committed to a progressive dividend policy while at the same time balancing the needs and interests of all stakeholders.  We are proposing a 2021 final dividend of 4.1p per share, which together with the interim dividend paid in October 2021 brings the full 2021 dividend to 4.85p per share - an increase of 10%.

TClarke is committed to becoming a more sustainable business, delivering improved environmental and sustainability targets and performance. It is TClarke's ambition to be a Business Champion with Build UK demonstrating our commitment to the Construction Leadership Council's zero carbon change programme CO²nstruct Zero.

Our growth and success is delivered through the skills, experiences, focus and commitment of our people, subcontractors and suppliers in all areas of the business.  We continue to invest heavily in our resources to ensure we have the capacity to deliver our growth ambitions. We are strongly committed to developing and adding to the skills and experience of our people through our national apprenticeship schemes and our personal and management development frameworks, and to be the employer of choice in our markets. For example, we currently have 195 apprentices representing 16% of our people whilst the industry norm is just 5%. This is a significant investment made with the long term belief in TClarke.

I look forward to 2022 and beyond, confident in our ability to deliver our growth strategy. We have the capacity, a healthy order book and many opportunities. The TClarke brand is very strong, built upon our reputation for high quality engineering, reliability, and delivery on time. This is made possible through the collective efforts of all our people. It is their outstanding effort that has allowed us to be so optimistic for the future and I want to thank them all for their hard work and dedication.

Iain McCusker

Chairman

8th March 2022

Chief Executive's Report

Ready to Deliver

TClarke is a trusted engineering partner to blue chip clients and principal contractors. Within this report I set out our strategic plans and achievements for the past year but more importantly describe with confidence how the business is achieving its goals.

Last year we committed to a strategy of moving TClarke to the next level and we described very clearly and concisely our ambitions, whilst adapting quickly and decisively to the continually changing circumstances that the country faced.

TClarke aims to be a £500m revenue business with sustainable margins of 3% supporting a progressive dividend policy. Our business is underpinned by strict financial and operational controls and strong governance. Our growth ambitions are supported and financed without the need for often risky and distracting acquisitions.

New Revenue Streams

Within our business model we target five market sectors. Our established annual revenues for the business are around £330m and our strategy to reach revenues of £500m is based upon these five established sectors and the new revenue streams described below which should easily generate an additional £170m of annual revenues.

·    Securing larger projects outside of London with typical project values of £5m - £10m and £10m+.

·    Securing data centres particularly in the UK, with typical project values of £25m - £50m with the European data centre market remaining an aspiration.

·    Securing healthcare projects across the UK with typical project values ranging from £200k to £20m+.

·    Developing innovative smart building solutions which bring recurring revenue streams.

I am confident that our £500m revenue target can be achieved by organic growth whilst remaining true to the established engineering strengths of the business.

This strategy is evidenced by the continuous growth of our forward order book; our order book stood at a record £534m as at 31st December 2021 (£456m 31st December 2020). The order book growth has been achieved whilst continuing to follow our selective tendering approach.

Investing in the Best People

Differentiated by the quality of our people and their relentless drive to deliver the most successful projects, the ability to grow our business and meet our ambitions could not be achieved without the dedication of our great teams. Our careful attention to resource planning will ensure we always match our capacity to our available teams.

Being one of the few industry trainers of apprentices across the UK leads to a wealth of future talent, designed to deliver both engineering operatives and future leaders in volume and quality to meet our needs. The ability to deliver projects primarily with a trusted reliable workforce ensures that our reputation for quality and delivery on time is more secure compared to that of our competitors whose models are dependent upon the use of sub-contractors.

Scale and Resource Across the UK

TClarke is very well established in its London heartland and 2021 has seen significant progress in ensuring that we can offer our clients the same scale and breadth of services across the UK. During 2021 we expanded our capacity in our Engineering Services Divisions in Falkirk, Peterborough and Newcastle; the increased opportunities are now translating into additional revenues for these locations.

Our teams in Manchester and Peterborough have been successful in securing four projects valued in excess of £25m for an international financial institution at several locations including two solar farm projects covering 1,800 m² and our new Oxford office celebrated its successful opening by securing a project at the prestigious Oxford Saïd Business School.

We continue to invest in our own purpose-built facility at Stansted, that supports Modern Methods of Construction (MMC). The use of offsite prefabrication benefits our clients and can bring programme certainty and factory standard quality, and by utilising less on-site resources gives us more capacity to deliver additional revenues as a part of our strategy to achieve £500m revenue.

Previously our regional teams would have focused on the smaller to medium sized projects, often teaming up with local partners. Today from our three operating divisions that serve 20 UK locations, we offer the full range of Engineering Services, alongside all the complementary technology and smart building solutions, backed up by technical expertise.

TClarke is proud to be based in the communities it serves and wants to ensure that we offer our teams the best environments to collaborate, share knowledge and build exciting careers. In October our team in Manchester moved to larger premises in Salford Quays, in early 2022 our teams in Falkirk will be moving to new offices in Eurocentral, Scotland and our London Head Office will relocate to 30 St Mary Axe whereby our teams will operate from a single productive floor space.

Exponential Growth in Data Centre Opportunities

The growth in the demand for data centres has been fuelled by the needs of cloud storage, more devices being connected to the internet (IoT), gaming, streaming services, e-commerce, the arrival of 5G and the working from home revolution.

The UK data centre market is the largest in Western Europe. Brexit and the switch to new UK specific data protection legislation has led many organisations to open or expand data centre facilities. Several large-scale developers have entered the data centre market in the last 12 months. Arizton Advisory and Intelligence predict the UK data centre market size to reach £6bn by 2026.

At the end of 2021 TClarke were active on 5 data centre projects with a collective value of £150m with further opportunities of additional phases. Depending on the pace of our clients' expansion plans this value could grow by negotiation by an additional £75m. Through 2022 we are aware of and tracking bidding opportunities of circa £900m and a further pipeline of project opportunities that will build out well into 2026.

The strength of the TClarke balance sheet and the depth of our engineering resources means we expect to see strong growth within our revenues in the technologies sector. This could represent at least 30% of our expanded annual revenues in 2022 and beyond.

Healthcare, Healthcare, Healthcare

The 2021 UK Government Spending Review confirmed a total of £100bn of investment in economic infrastructure up to 2024-25. The Chancellor of the Exchequer announced that this includes a £5.9bn capital investment in the National Health Service (NHS) in addition to the £12bn per year that was promised in September 2021. The NHS has launched a six year National Framework Agreement for the provision of Smart Building Solutions, TClarke has successfully secured a place on this framework agreement.

Secured orders in healthcare schemes now stand at £42m.  In addition, we have preferred bidder status for a further £63m of projects. Whilst it takes longer to convert a tender to a secured order in this sector there are tremendous opportunities both as a participant in one of the seven frameworks we are on, but also from standalone capital projects.

Example of secured projects within the Group include:

·    Modernising Medicine - Kings College Hospital NHS Foundation Trust

·    Emergency Department Refurbishment - Royal Devon and Exeter Hospital NHS Foundation Trust

·    New MRI and Oncology Unit - Royal Cornwall Hospitals Trust

·    Infrastructure Upgrade - University Hospitals Bristol and Weston NHS Foundation Trust

·    Emergency Department Refurbishment - Luton and Dunstable University Hospital

A Smart New World

Our clients are setting ambitious decarbonisation plans. Smart Buildings - new or retrofits - will be integral to UK plans to reduce its carbon footprint and control energy consumption. The global smart building market is projected to triple in the next decade. The increasing costs of energy and legislation related to the environment in areas such as carbon emission and pollution are all driving building owners towards smart building solutions.

Our technologies business recently secured the Smart Buildings contract for the European Bank of Redevelopment at One Bank Street, including the role of Master Systems Integrator.

Taking part in the smart buildings revolution involves the design and installation of the building's mechanical, electrical, security and safety systems - all existing TClarke strengths.  As we move forward each project opportunity that we bid has the ability to lead to a Smart Building Opportunity for our Technologies Division. Furthermore, by utilising our shared workforce and project teams, the more of our services from our Mechanical, Electrical and Technologies teams that are selected, the more compelling the value engineering solutions we can offer to our clients.

The Specialist Contractor of Choice 

Risks and rewards are highest for larger, more complex projects such as commercial offices, luxury hotel and leisure complexes, hospitals and major education or research facilities. This drives clients and principal contractors towards engineering services providers such as TClarke which have the necessary skills, governance and financial strength required to mitigate those risks.

In London the excellent performance of our engineering services teams has not only completed significant schemes such as Project Green and 1 Newman Street, but has also been rewarded with landmark wins such as the Apple fit out at Battersea Power Station, Plot A2 at Canada Water and Building S4 at the International Quarter London, our 4th successive project win at this development in Stratford.

TClarke has experienced a mini boom in luxury and high-end hotels. We successfully completed the Pan Pacific Hotel, and the Hilton City Canopy Hotel in London and work continues on the Peninsular Hotel at Hyde Park Corner. This is another major market sector where the quality of our work and collaborative approach is highly valued and has led to TClarke becoming the preferred contractor on significant hotel schemes in London's West End.

Our UK North and UK South teams both won significant major residential projects as part of our targeted tendering approach. Building our order book with these quality residential projects and quality relationships is key to sustainable long-term growth and repeat business. The trend towards more complex, high value residential developments featuring a range of luxury facilities has substantially increased the complexity and value of package of works in those projects.

Our Infrastructure teams remain focused on the major areas of public sector infrastructure where complexity and new technologies play to our skill and quality advantages. During the year we enjoyed ongoing success in education, delivering 63 education projects and adding 36 new education projects in the forward order book.

Educational projects that were completed last year include:

·    Foxgrove School, Leatherhead

·    Nanksar Primary School, Hillingdon

·    Pinner High School, Harrow

·    Tring School, Hertfordshire

·    Turing House, Richmond

·    Uckfield College, East Sussex

In summer 2021, a further 50 new schools were announced within the second round of the UK government's School Rebuilding Programme which is due to deliver 500 rebuilding projects over the next decade we are confident that this sector will continue to be a good revenue stream.

Summary and Outlook

Our people share our vision for the future of TClarke. We are a business with people on the ground delivering our projects. Their innovation, commitment and dedication is something that this business is rightly proud of.

Our order book will translate to record revenues; TClarke can offer our clients the widest possible solutions from a single contractor, utilising our resources so that they are assured we have the ability to deliver.  That's why we believe TClarke remains the contractor of choice for so many and we remain focused on maintaining our market leading position.

We start 2022 in excellent shape and well placed to deliver a strong future performance.

Mark Lawrence

Group Chief Executive Officer

8th March 2022

Group Financial review

The Group has delivered a very strong set of results for the year, with revenue returned to 2019 levels and a record run rate in quarter 4 of £100m revenue providing confidence for our prospects for 2022 and beyond. We end 2021 with a record order book of £534m (2020: £456m), with £379m of this due for delivery in 2022 alone (2020: £257m due for delivery in 2021). The rate of growth is particularly strong within the Technologies sector where we are currently working on five large data centre schemes totalling £150m. Technologies are forecast to represent a third of the Group's turnover for 2022, up from c.15% at present. We reported at the outset that revenue and profit for 2021 would be slanted towards the last six months of the year and this has proved to be the case, with revenue and profit both accelerating rapidly during the period. The operating margin of 3.3% for the second half of the year restores profit margin. Our growth has not been driven by acquisitions and this will remain our policy going forward.

Performance

Underlying operating profit was £8.8m (2020: £6.0m) on revenue of £327.1m (2020: £231.9m). There have been no non-underlying items in 2021 (2020: £3.9m) and therefore underlying and reported numbers are the same for 2021. Earnings per share were 14.99p for the year (2020: 2.87p) on an operating margin of 2.7% (2020: 2.6%). TClarke remains financially secure, ending the year with net cash of £5.3m with £25m of bank facilities at its disposal.

Finance costs were £1.0m (2020: £0.9m), comprising: a £0.2m increase in bank interest and facility fees to £0.5m (2020: £0.3m); the Group's defined benefit pension scheme interest charge of £0.4m (2020: £0.5m); and an interest charge of £0.1m arising from IFRS 16 (2020: £0.1m).

The tax charge for the year was £1.5m (2020: nil), reflecting a more representative effective rate of tax for the Group, with the 2020 charge having been heavily impacted by prior year tax adjustments. TClarke maintains an open and collaborative working relationship in all interactions with HMRC.

The Group paid its 2020 final dividend in full in May 2021 and has maintained its interim dividend. The Board is proposing a final dividend of 4.1p (2020: 3.65p) which if approved at the AGM will be recorded and paid on 20 May 2022. Total proposed dividend therefore rises to 4.85p (2020: 4.4p), an increase of 10%. The dividend is covered 3 times by underlying earnings. TClarke recognises that many of its shareholders invest for dividends.

Summary of financial performance

1.        Underlying operating profit, profit before tax and operating margin are stated before amortisation of intangible assets and restructuring costs.

2.        Underlying earnings per share is calculated by dividing underlying profit after tax by the weighted average number of shares in issue.

3.        Dividend per share represents the interim and final dividend proposed or paid for the year in question.

Forward Order Book

Forward Order Book comprises jobs which are secured through contracts or letters of intent.

London

Revenue from our London operations rose to £189.4m (2020: £134.6m), generating an underlying operating profit of £6.2m (2020: £4.9m). Underlying operating margin was 3.3% (2020: 3.6%). The growth in revenue has been primarily driven by the success of our data centre offering where in addition to our current five live projects the tendering pipeline identifies many further opportunities. Our core Engineering Services have also continued to deliver strongly, with work on a number of high-profile shell and core commercial and hotel developments, with many of which offering future fit-out opportunities.

UK South

Revenue from UK South rose to £67.1m (2020: £55.1m), with the region delivering an underlying operating profit of £2.6m (2020: £2.7m) and giving rise to an underlying operating margin of 3.9% (2020: 4.9%). The region has developed a high-quality customer base providing a significant quantity of repeat business and is particularly strong in infrastructure with many projects being undertaken in defence, education and healthcare.

UK North

Revenue rose to £70.6m (2020: £42.2m) with the region delivering an underlying operating profit of £3.0m (2020: £0.7m) and giving rise to an underlying operating margin of 4.2% (2020: 1.7%). This strong performance has been driven by the completion of our first major engineering services project in Liverpool, our continued success in winning and delivering a number of educational projects through our Leeds office and Scotland's residential work. In addition our Manchester office has recently started work on a significant engineering services project for a major financial institution.

Forward Order Book

The closing Forward Order Book of £534m represents a 17% increase compared to last year's, with the largest increase being in respect of Technologies (up 188%), driven by the success of our data centre business. 

Cash Flow and Funding

Cash balances totalled £20.3m at 31 December 2021 (2020: £25.2m). The £15m RCF was drawn down at both 31 December 2021 and 2020, resulting in net cash of £5.3m at the 2021 balance sheet date (2020: £10.2m). The movement in cash can be largely attributed to VAT following the introduction of the Construction Industry reverse charge VAT regime on 1 March 2021 and repayment of deferred amounts. The Group has also self-funded the increase in turnover, with working capital increasing by £6.5m over the year. 

The Group has a £15.0m revolving credit facility, which is committed until 31st August 2024, and a £10.0m overdraft facility which is repayable on demand. Interest on overdrawn balances is charged at 2.0% above base rate, and interest on balances drawn down under the revolving credit facility is charged at a margin above SONIA, fixed for the duration of each drawdown. The Group was compliant with the terms of the facilities throughout the year ended 31st December 2021 and the Board's detailed projections demonstrate that the Group will continue to meet its obligations in the future.

The Board's projections show that TClarke is expected to maintain a healthy cash position throughout the next three-year period, and we do not anticipate seeking any additional facilities during this time.

The Group also has in place £50.1m of bonding facilities (2020: £40.1m), of which £24.3m were unutilised at 31st December 2021 (2020: £27.0m).

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 structure or to raise new capital. Shareholders' equity is £26.5m (2020: £15.7m).

Goodwill stood at £25.3m at the year-end (2020: £25.3m). The Board has undertaken an impairment review in respect of goodwill and has concluded that no impairment is necessary.

Defined Benefit Pension Scheme Obligations

The most-recent formal actuarial valuation of the Group's defined benefit pension scheme at 31st December 2018 showed a deficit of £24.9m, representing a funding level of 59%. Following the valuation the Group committed to a deficit reduction plan to eliminate the deficit over a 12 year period, and throughout 2021 it continued to make additional contributions at the agreed rate of £1.5m per annum. The Group also continues to provide security to the pension scheme in the form of a charge over property assets up to a combined market value of £3.1m. A new formal funding valuation is being carried out as at 31 December 2021 and the results will be reported in next year's Annual Report & Financial Statements.

The methodology underlying the formal valuation differs from that used for the annual IAS 19 valuation included in these financial statements, particularly in respect of the calculation of financial assumptions. When calculated in accordance with IAS 19 the deficit stood at £23.9m at 31st December 2021, representing a reduction of £6.3m over the year, recognised primarily through the Statement of Comprehensive Income. The reduction was predominantly driven by an increase in the discount rate applied.

Financial Risk Management

The Group's main financial assets are contract and other trade receivables, and bank balances. These assets represent the Group's main exposure to credit risk, which is the risk that a counterparty will fail to discharge its obligations, resulting in financial loss to the Group. The Group may also be exposed to financial and reputational risk through the failure of a subcontractor or supplier.

The financial strength of counterparties is considered prior to signing contracts and reviewed as contracts progress where there are indications that a counterparty may be experiencing financial difficulty. Procedures include the use of credit agencies to check the creditworthiness of existing and new clients and the use of approved suppliers' lists and Group-wide framework agreements with key suppliers.

We have performed a thorough analysis of our supply chain during the year to ensure we comply with the Government's new IR35 off payroll working requirements, a process which will continue in the future.

Accounting Policies

The Group's consolidated financial statements are prepared in accordance with the requirements of the Companies Act 2006 and in accordance with UK-adopted international standards. There have been no new accounting policies adopted in the year.

Trevor Mitchell

Group Finance Director

8th March 2022

Consolidated income statement

for the year ended 31st December 2021

Consolidated statement of comprehensive income

for the year ended 31st December 2021

Consolidated statement of financial position

as at 31st December 2021

Consolidated statement of cash flows

for the year ended 31st December 2021

Consolidated statement of changes in equity

for the year ended 31st December 2021

Notes to the preliminary financial information

Note 1 - Basis of preparation

TClarke plc is a public limited company listed on the London Stock Exchange, incorporated and domiciled in the United Kingdom. The nature of the Group's operations and its principal activities is providing electrical and mechanical contracting and related services to the construction industry and end users. The Company is limited by shares.

This preliminary financial information has been prepared in accordance with the Disclosure and Transparency Rules of the UK Financial Conduct Authority, and the principles of UK-adopted international accounting standards and has been prepared on a going concern basis under the historical cost convention as modified by the revaluation of land and buildings.

This preliminary financial information does not constitute the statutory financial statements of the Group. The financial statements themselves were approved by the Board on 8th March 2022. The report of the auditor on those financial statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006. The Annual Report and Financial Statements will be filed with the Registrar in due course. This preliminary financial information has been prepared in accordance with the accounting policies disclosed in the full financial statements.

Note 2 - Significant judgements and sources of estimation uncertainty

The preparation of this financial information in conformity with UK-adopted international standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial information are set out below. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Revenue and margin

The recognition of revenue and profit on construction contracts is a key source of estimation uncertainty due to the difficulty of forecasting the final costs to be incurred on a contract in progress and the process whereby applications are made during the course of the contract with variations, which can be significant, often being agreed as part of the final account negotiation.

Commercial reviews of all live contracts are undertaken on a regular basis, with all significant contracts being reviewed on a monthly basis. The Directors also take into account the recoverability of contract balances and trade receivables, and allowances are made for those balances which are considered to be impaired. The Group only recognises revenue once there is a formal contractual entitlement and the recognition criteria of IFRS 15 have been met. As at 31 December 2021 the Group had approximately £25m (2020: £15m) of formally instructed, unagreed variations, of which £15m (2020: £9m) satisfy the highly probable test under IFRS 15 and as such have been taken to revenue.

Retirement benefit obligations

The costs, assets and liabilities of the defined benefit scheme operated by the Group are determined using methods relying on actuarial estimates and assumptions, which are largely dependent on factors outside the control of the Group. Details of the key assumptions are set out in note 7, and include the discount rate, expected return on assets, rate of inflation and mortality rates. The Group takes advice from independent actuaries relating to the appropriateness of the assumptions. Changes in the assumptions used may have a significant effect on the income statement, statement of comprehensive income and the statement of financial position.

Note 3 - Segment information

(i) Reportable segments

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 and UK North, reporting to the Board who represent the "Chief Operating Decision-Maker" as per IFRS 8. The measurement basis used to assess the performance of the divisions is underlying operating profit, stated before amortisation of intangible assets and other non-underlying items.

All transactions between segments are undertaken on normal commercial terms. All the Group's operations are carried out within the United Kingdom, and there is no significant difference between revenue based on the location of assets and revenue based on location of customers. The accounting policies for the reportable segments are the same as the Group's accounting policies disclosed in note 1. Segmental information is based on internal management reporting.

(ii) Segment information and revenue analysis - year ended 31st December 2021

(iii) Segment information and revenue analysis - year ended 31st December 2020

Note 4 - Taxation

Note 5 - Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of Ordinary shares in issue during the year.

(ii) 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 Save As You Earn Schemes and options granted under the Long-term Incentive Plan.

For the share options, a calculation is made to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

(iii) Underlying earnings per share

Underlying earnings per share represents profit for the year adjusted for amortisation of intangible assets and other non-underlying items and the tax effect of these items, divided by the weighted average number of shares in issue. Underlying earnings is the basis on which the performance of the operating divisions of the business is measured. There have been no underlying items in 2021 and therefore underlying and reported numbers are the same for 2021.

Note 6 - Dividends

The Directors are proposing a final dividend of 4.1p (2020: 3.65p) per ordinary share totalling £1.8 million (2020: £1.6 million). The dividend has not been accrued at the reporting date.

Subject to approval at the Annual General Meeting, the final dividend will be paid on 20th May 2022 to shareholders on the register as at 22^nd April 2022. The shares will go ex-dividend on 21^st April 2022. 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 2021 final payment, may do so by contacting Link Asset Services on 0371 664 0381. The last day for election for the final dividend reinvestment is 29^th April 2022.

Note 7 - Pension commitments

The present value of the defined benefit obligation, the related current service cost and the past service cost were measured using the projected unit credit method. The amounts recognised in the consolidated statement of financial position are as follows:

Key assumptions used:

Note 8 - Notes to the statement of cash flows

(i) Reconciliation of operating profit to net cash (outflow)/inflow from operating activities

(ii) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and other short-term highly liquid investments that are readily convertible into cash, less bank overdrafts, and are analysed as follows.

Net cash after deducting total borrowings was as follows:

Note 9 - Related party transactions

(i) Key management personnel

The key management personnel of the Group comprise members of the TClarke plc Board of Directors and the Group Management Board. The key management personnel compensation is as follows:

Further disclosures, including details of the highest-paid Director, are included in the Directors' remuneration report in the latest annual report.

Transactions between the Company and its subsidiary undertakings, which are related parties, have been eliminated on consolidation and are not disclosed in this note. There were no other related party transactions requiring disclosure.

Note 10 - Annual General Meeting

The Annual General Meeting of the Company will be held at 200 Aldersgate, St Pauls London EC1A 4HD at 10am on Wednesday 11th May 2022.