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;
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.
17th November 2017
For further information contact:
Mark Lawrence - Group Chief Executive
Martin Walton - Finance Director
David Lanchester - Company Secretary
Tel: 020 7997 7400
N+1 Singer (Financial Adviser and Broker)
Tel: 020 7496 3000
Tel: 020 3735 6551