Trading Update for July 2017 to Present Date

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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 £6.5m and revenues in excess of £300m.

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 £3.0m 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 £9.0m.

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 £380m against £320m at the same time last year and a record £392m at the interim stage.

Some examples of recent project wins include;

  • Our Transport Division has been awarded a place on the on the MAG (Manchester Airports Group) EMA Small & Medium Works Framework covering M&E projects up to £3.0m 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, 26,000m² 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 £190m and £100m 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

17th November 2017

For further information contact:

TClarke plc
Mark Lawrence - Group Chief Executive
Martin Walton - Finance Director
David Lanchester - Company Secretary
Tel: 020 7997 7400
www.tclarke.co.uk

N+1 Singer (Financial Adviser and Broker)
Sandy Fraser
Rachel Newton
Tel: 020 7496 3000
www.nplus1singer.com

RMS Partners
Simon Courtenay
Tel: 020 3735 6551

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