T Clarke Raises Payment Delay Concerns

LONDON (Alliance News) - Building services group T Clarke PLC Tuesday warned its contractors are increasingly struggling to meet full account settlements on time, making it difficult for the firm.

In an interim management statement for the period July 1 to November 18, the company said, "we are finding it increasingly challenging to agree final accounts promptly."

"The timing of final account payments will determine our year end cash position, but in the meantime our balance sheet strength enables us to take a robust approach to contract negotiations," it added.

Clarke said its order book is 12% ahead of 2012 at GBP253 million while tendering activities remain high with a number of schemes due to start construction in 2014.

Despite challenges in the construction market, Clarke remained optimistic.

"The board is cautiously optimistic that from the latter part of 2014, we will finally begin to see margin improvements within the business," the contractor said.

The stock was trading at 2,4561.00 pence Tuesday morning, down 19.00 pence or 0.8%.

By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews

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