YEAR END UPDATE AND BOARD CHANGES
TClarke plc ("TClarke" or the "Group"), the Building Services Group, announces a year end trading update for the financial year ended 31st December 2017.
The Board is pleased to report that the expected outcome for the year is in line with current market expectations, which are an underlying profit before taxation of circa £6.5m and revenues in the region of £310m.
After an aggregate £3m investment in the ETON acquisition and at our manufacturing facility at Stansted, the Group's cash generation remains robust with the year end net cash position improving by 27% to £11.7m, the strongest closing balance recorded since 2009 (31st December 2016: £9.2m).
Our forward order book as at 31st December 2017 has strengthened to £337m compared to £330m at 31st December 2016. This has eased back from the record high reported during the course of 2017, a reflection of our selective approach to tendering rather than lack of opportunities.
Today we announce that Martin Walton, Finance Director will be leaving the business after a short handover period to a newly appointed Interim Finance Director.
The Board would like to thank Martin for his substantial contribution to the Group since he joined the business in 2007 and wish him well for the future.
Trevor Mitchell will assume the responsibilities of Finance Director having been appointed to the board effective 1st February 2018 for an interim term of one year.
Trevor is a Chartered Accountant and accomplished Finance professional with extensive experience across many sectors including financial services, construction and maintenance, education and retail, working within organisations such as Balfour Beatty plc, Kier Group plc, Rok Plc, Clerical Medical Group, Halifax plc.
Trevor, aged 57, is already familiar with the Financial Team at TClarke, where he has been working within the business since October 2016 assisting with simplifying the structure and improving the Group's financial controls and procedures.
There are no further disclosures required in connection with the appointment of Trevor John Mitchell, FCA under Listing Rules 9.6.13(1) - (6).
Mark Lawrence, CEO, commented;
"We are acutely aware of the risks associated with our industry and the damage which can be caused by bidding at unrealistic levels. The Group continues to be financially disciplined and remains well positioned and focused on future opportunities.
I am also pleased to re-confirm, further to our announcement regarding Carillion on 15th January 2018 and with the benefit of further interaction with the stakeholders concerned, that we do not expect there to be any adverse financial impact on the Group arising from any direct exposure to Carillion.
We will continue to target projects for margin growth from our core M&E markets as well as our other developing revenue streams, particularly in the areas of technology and digital integration."
The results for the year ended 31st December 2017 will be announced on Tuesday 27th March 2018.
1st February 2018
For further information contact:
Mark Lawrence - Group Chief Executive
Trevor Mitchell - 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