TClarke PLC Trading Statement (8629N)

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RNS Number : 8629N

TClarke PLC

26 January 2023

26 January 2023

TClarke plc

YEAR END TRADING UPDATE

NOTICE OF RESULTS

Record revenues achieved in 2022

TClarke plc ("TClarke" or the "Group"), the Building Services Group, today announces a year end trading update for the full year ended 31 December 2022 ("FY2022").

Financial Results

The Board is pleased to report that trading in the second half of the year has continued strongly and that the Group's financial performance for the full year is in line with market expectations.

The Group anticipates reporting turnover for FY2022 of c.GBP425m and earnings before interest and tax (EBIT) of c.GBP11.5m. FY2022 profit before tax is expected to be c.GBP10.3m (FY2021: GBP7.8m). Revenue has increased by almost GBP100m (or 30%) compared to FY2021 and earnings per share are anticipated to rise by approximately 30% over FY2021 levels as a result.

Order Book Record

TClarke occupies a premier position in the marketplace, particularly in London. The Group has invested heavily in resources and capacity, ensuring that the Group's growth ambitions are fully supported, and our clients' projects continue to be delivered on time. Our order book has now increased to GBP555m (2021: GBP534m).

Cash Performance

Cash at the year-end was GBP22.5m (2021: GBP20.3m) with GBP15m (2021: GBP15m) drawn down on the Group's revolving credit facility. Net cash was therefore GBP7.5m and our average month end net cash during FY2022 was GBP2.6m. As at 31 December 2022 the Group has a further GBP10m of revolving credit facility and an overdraft facility of GBP5m available to it. Bank facilities are committed until 31 August 2026.

Balance Sheet

Building on our existing balance sheet strength is another key part of our strategy as we grow the business. Net assets of the Group are expected have grown by c.40% during 2022 and now amount to c.GBP38m .

Outlook

Looking to the future, TClarke is focused on delivering its growth strategy. The Group is expecting to achieve its target turnover of GBP500m in 2023. The size of the existing order book and the number of opportunities ahead for the Group supports the expectation that TClarke will achieve its targets.

The Group's growth strategy is focused on maintaining and developing our core markets whilst significantly expanding our data centre business. The Group is also undertaking more large projects outside of London, expanding its healthcare offering and energy efficient smart building solutions.

Commenting, Mark Lawrence, TClarke CEO said:

"TClarke has had a tremendous year delivering a record level of turnover for the period and ending the year with an order book at a level that supports our GBP500m turnover target. We are on track to achieve our growth ambitions and I am extremely excited and confident for the outlook for TClarke."

The Group will be announcing its FY2022 preliminary results on 8 March 2023.

-ends-

For further information contact:

TClarke plc

Mark Lawrence, Group Chief Executive

Trevor Mitchell, Finance Director

Tel: [phone]

www.tclarke.co.uk

Cenkos Securities plc (Corporate Broker)

Ben Jeynes (Corporate Finance)

Alex Pollen (Sales)

Tel: [phone]

www.cenkos.com

RMS Partners

Simon Courtenay

Tel: [phone]

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January 26, 2023 02:00 ET (07:00 GMT)