The investment case can be summarised under these five headings:
1. Strong Cash
- The Group’s cash generation remains robust with the year end net cash improving by 26% to £11.7 million, the strongest closing balance recorded since 2009.
- Substantial and growing cash balances.
- Planned investment for future growth funded entirely from internal resources.
- Commitment to progressive dividend policy.
2. Management Discipline & Strong Risk Control Environment
- Targeted approach to contract tendering process and assessment and strength of potential customers.
- Prudent profit recognition.
3. Forward Revenue Visibility
- 66% of forecast 2018 revenues booked as at 31st December 2017.
- £100 million of revenues booked for 2019 and beyond.
4. Balanced Business and order book
- Increasing exposure to long-term infrastructure work.
- Investing in new technologies and secular growth markets.
- Five Target Markets balanced across construction cycles.
5. Improving Margin profile and profitability
- Focus on growing profits ahead of revenues.
- Differentiated service offering commands higher margins.
- Medium term target to increase the underlying operating margin to 3%.
To understand more about about the investment case for TClarke, read our Strategy for Growth
Discipline & Risk Control
Forward Revenue Visibility
Balanced Business and order book