Ahead of the Annual General Meeting being held today at 12.00 noon at Savoy Place, 2 Savoy Place WC2R 0BL, T.Clarke plc ("T. Clarke" or the "Group"), the Building Services Group, issues its Interim Management Statement covering the period from 1 January 2011 to 12 May 2011.
Since we reported our results for the year ended 31 December, the Board has seen little change from its previously reported view that the outlook for 2011 for the construction sector remains uncertain and the markets in which the Group operates continue to be competitive.
Despite the challenging markets, we are pleased that during 2011 we have continued to build our forward order book. In London we have secured significant projects where we will be undertaking the Mechanical, Electrical and ICT installations on projects including the London Cable Car and Stratford City Holiday Inn. We have also secured Tate Modern 2 and the Facilities Management contract for the London 2012 Olympic Stadium. Across Scotland, over £3 million of residential projects have been secured so far this year. Elsewhere in the UK other projects recently secured include The Archbishop Courtenay CE Primary School, Maidstone; Diana Princess of Wales Hospital, Grimsby; Waitrose Stores at Alderley Edge, Canary Wharf, Holborn, Jesmond and Newark; and the NetPark project, County Durham.
There are numerous tender opportunities available to T. Clarke and whilst we do not see any margin recovery in the short term in our core markets, the securing of valued work is important to retain our leading industry position. It has been sensible, therefore, to remain selective when choosing which projects to bid for and we will continue to focus on maintaining margins where possible,despite customer pressure and increased competition.
Following recent contract wins and further sensible reductions to our cost base since the start of the year the Group continues to trade in line with the Board's expectations.
The forward order book stands at £180 million as at 30 April 2011 (April 2010: £200 million) of which £110 million is scheduled to be completed in 2011 having completed £45 million of work so far this year.
We entered 2011 with our balance sheet in good shape and the Group has no long term debt. Cash management and a focus on debtor collection remain a key priority.
The Board has no current plans for further acquisitions and believes future growth can be best achieved by building upon the existing Group structure, with its improved service offering and by expanding existing services into areas where we do not have a local presence. An example of this was demonstrated earlier this year when we opened an office in Cardiff serving South Wales as a branch office of our Bristol operations.
The prospects for the Group remain encouraging; we believe our excellent operational capabilities and improved strategy will underpin the delivery of long-term success as we focus on key sectors in building services that offer good growth potential.
Date: 13 May 2011
For further information contact:
T. Clarke plc City Profile
Mark Lawrence, Group Chief Executive Simon Courtenay
Martin Walton, Finance Director
Tel: 020-7358-5000 Tel: 020-7448-3244
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