Clarke(T.) PLC Trading Update (7636W)

TIDMCTO

RNS Number : 7636W

Clarke(T.) PLC

17 November 2017

TClarke plc

TRADING UPDATE

TClarke plc ("TClarke" or the "Group"), the Building Services Group, today issues a trading update for the period from 1 July 2017 to date.

We entered 2017 in an optimistic mood. Our trading performance during the period has continued to justify that optimism and the Board is pleased to report that the results for the year ending 31 December 2017 are expected to be in line with current market expectations, which are an underlying profit before taxation of GBP6.5m and revenues in excess of GBP300m.

In August we announced the acquisition of ETON Associates Limited ("ETON"), a London based privately owned control systems specialist offering a variety of Building Management Systems. The acquisition, together with investment in our new off-site, prefabrication manufacturing facility at Stansted, has entailed aggregate cash expenditure of approximately GBP3.0m in the current financial year. However, the Group's cash position remains strong with the year-end net cash position, which can be affected by timings of our stage payments, expected to be in the region of GBP9.0m.

We continue to target projects that we believe will add value and help to improve the margin profile of the Group and the Board is encouraged that, whilst maintaining our selective approach to bidding, our forward order book now stands at GBP380m against GBP320m at the same time last year and a record GBP392m at the interim stage.

Some examples of recent project wins include;

-- Our Transport Division has been awarded a place on the MAG (Manchester Airports Group) EMA Small & Medium Works Framework covering M&E projects up to GBP3.0m at East Midlands, Manchester and Stansted Airports. The Framework will run for an initial period of three years.

-- In Vauxhall, London we have secured the Electrical Shell & Core Package at One Nine Elms. The two towers on the One Nine Elms project rise to 58 storeys (City Tower) and 43 storeys (River Tower) respectively, accommodating 487 new homes. At the base of the towers, opening onto a new piazza, will be a 187-room Dalian Wanda luxury brand 5-star hotel, the first of its kind in Europe.

-- The London region has been awarded the Shell & Core package for building S9 at The International Quarter London, Stratford development. This 10 storey, 26,000m(2) office building represents the next phase of the 22 acre overall development by Lendlease (following on from the successful S5 & S6 projects). We have secured both the M&E works on this phase.

Also, our team in the North West is in final client negotiations to secure an extension to the current BAE Systems contract at Samlesbury and Warton for a further three years.

In addition, we have handed over two significant schemes in the period, Bloomberg's New European Headquarters in the City of London and Rathbone Square on Oxford Street, the new home to Facebook's London Headquarters.

We are pleased with the progress of integrating ETON into the Group and the positive reception in the market place for the acquisition along with early feedback from clients to our strategy of jointly targeting bidding opportunities.

There remains a clear demand for our specialist services in the markets in which TClarke operates. We have already secured GBP190m and GBP100m of our planned revenues for 2018 and 2019 and beyond, respectively, and we are encouraged by the number and quality of the opportunities that continue to be available both within our established M&E markets and from the new opportunities that we are pursuing, driven by sustained investment at national level in both technology and infrastructure. The future for the Group remains encouraging.

Ends

17(th) November 2017

For further information contact:

TClarke plc

Mark Lawrence - Group Chief Executive

Martin Walton - Finance Director

David Lanchester - Company Secretary

Tel: [phone]

www.tclarke.co.uk

N+1 Singer (Financial Adviser and Broker)

Sandy Fraser

Rachel Newton

Tel: [phone]

www.nplus1singer.com

RMS Partners

Simon Courtenay

Tel: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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November 17, 2017 02:00 ET (07:00 GMT)