(Alliance News) - TClarke PLC on Tuesday posted a swing to loss in the first half of financial 2020 but expressed optimism in its outlook for 2020 due to its order book and "a number of exciting opportunities".
Shares in the building services firm were trading 1.4% lower at 95.84 pence each on Tuesday afternoon in London.
For the six months ended June 30, TClarke posted revenue of GBP106.1 million, down from GBP171.3 million reported the year prior. The company swung to a pretax loss of GBP1.5 million, from a profit of GBP4.5 million the year before.
The London-based company blamed the deterioration in its earnings to the negative effects of the Covid-19 pandemic and the closure of many of its sites for up to three months.
No interim dividend was declared. However, it said it plans to consider dividends for 2020 once its results for financial 2020 can be forecast with "reasonable certainty". An interim dividend of 0.75p was paid for the first half of financial 2019.
Looking ahead, Chief Executive Mark Lawrence said: "The business has paid strict attention to cash collection and our cash position has improved to GBP7.5 million after the cost of our restructuring programme. Our banking facilities of £25million have been renewed with the revolving credit facilities being extended to August 2024. Our order book is strong and we have no shortage of opportunities in Data Centres and Infrastructure. Since the beginning of April we have bid GBP600million of opportunities. All of the above demonstrates that TClarke is a stable, safe and dependable choice for our customers."
A restructuring programme completed during the period is expected to result in cost savings of GBP4 million per year, it added.
By Ife Taiwo; ifetaiwo@alliancenews.com
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