LONDON (Alliance News) - Building services company T Clarke PLC on Tuesday said it swung to a loss in 2014 due to one-off costs related to two contract issues which offset a rise in revenue, though the company maintained its total dividend payout on the back of confidence in its 2015 outlook.
T Clarke said its pretax loss for the year was GBP0.7 million, compared to a GBP1.7 million profit a year earlier. The loss was driven by exceptional costs related to a damages claim related to a pre-acquisition contract in one of its subsidiaries and to a protracted final account settlement in its Mission Critical business.
Revenue increased to GBP227.5 million from GBP217.1 million, with good performances in its North and Scotland arms offset by weaker revenue in its South operations, where the company said it faced fierce competition, particularly at the start of the year. North revenue was boosted by strong existing client relationships, while Scotland revenue was driven higher by improving commercial and IT revenue.
T Clarke said its total forward order book at year-end was GBP300 million, up from GBP250 million a year earlier.
T Clarke said it would maintain its final dividend despite the pretax loss, with a final dividend of 2.6 pence per share, compared to 2.1 pence a year earlier, meaning its total dividend will be flat at 3.1 pence per share.
"We are pleased to report record revenues for the group with a clear indication of our future market share that is defined by a record forward order book of over GBP300 million. Two issues impacted profitability last year; they are fully resolved and so, with improving markets, we are free to focus on rebuilding the profitability of the group," said Chief Executive Mark Lawrence.
Shares in T Clarke were up 0.3% to 68.70 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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