Clarke(T.) PLC Trading Update (5392I)

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RNS Number : 5392I

Clarke(T.) PLC

27 November 2018

TClarke plc

TRADING UPDATE

TClarke plc ("TClarke" or the "Group"), the Building Services Group, today issues a trading update for the period from 1st July 2018 to date.

Results

We stated at the half year that the Group had experienced a strong first six months of 2018 and the results delivered were in line with expectations. We are now pleased to report that the Board expects results for the full year ending 31st December 2018 to be ahead of current market expectations.

We expect an underlying operating profit before interest and taxation of circa GBP8.6m (2017: GBP7.3m) and revenue of circa GBP320m (2017: GBP311m). The implied underlying operating profit margin of 2.7% provides further evidence that we are on track to achieve our target of 3%.

Order Book

Our established strategy is to selectively target projects that we believe will add value and strengthen the margin profile of the Group. The Board is encouraged by the continued opportunities available to the Group which meet our tendering criteria, suggesting that there remains a strong demand for our services and our approach, particularly on high profile projects from clients who value our ability to deliver large, complex projects successfully.

This is reflected in our forward order book which has grown by 6% year on year and now stands at a record GBP403m against GBP380m at the same time last year. Looking ahead, revenues of GBP230m for 2019 have already been secured, against an equivalent figure of GBP190m at this time last year.

Project wins totalling GBP150m have been secured since the announcement of the half year results, which include the following:

-- Additional Works at Battersea Power Station Phase 2 with the award of the Office Shell and Core Package

   --     KGX1 Project, Kings Cross, Mechanical Shell and Core and Fit Out Packages 
   --     Global Switch Data Centre, London 
   --     Additional Works at One Bishopsgate Plaza, 160 Residential Apartment Fit Out 
   --     Forth Valley College, Falkirk 
   --     Maiden Castle Sports Park, Durham University 
   --     Royal Cornwall Hospital, Truro, Mortuary and Bereavement Centre Refurbishment 
   --     Waitrose, Portishead 
   --     Claremont Complex Refurbishment, Newcastle University 

Regional Expansion

We have recently opened new offices in Liverpool and Manchester. Building upon the Group's established relationships, bids totalling GBP40m have been submitted across a range of projects.

Banking Facilities

To support our growth ambitions and strategy we have agreed new banking facilities on improved terms. The new facilities comprise a GBP5m overdraft facility, repayable on demand, and a GBP15m revolving credit facility expiring 31st August 2022.

Outlook and Summary

This update provides clear evidence that the Group's strategy is working and underpins our confidence that our underlying operating profit margin target of 3% is attainable in the near future.

The strength and reputation of TClarke is evidenced by our record forward order book. We have maintained our market leading position in our traditional markets whilst securing Technology driven projects, where project complexity and specification levels play to our strengths.

We approach the new financial year in excellent shape, both operationally and financially.

Ends

27(th) November 2018

For further information contact:

TClarke plc

Mark Lawrence - Group Chief Executive

Trevor Mitchell - Finance Director

David Lanchester - Company Secretary

Tel: [phone]

www.tclarke.co.uk

N+1 Singer (Financial Adviser and Broker)

Sandy Fraser

Rachel Hayes

Tel: [phone]

www.nplus1singer.com

RMS Partners

Simon Courtenay

Tel: [phone]

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END

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November 27, 2018 02:00 ET (07:00 GMT)