CTO.L Regulatory News (CTO)

19 Nov 2008 07:00



Trading Update

T. Clarke plc, ("T. Clarke") the Electrical engineering and contracting Group, announces its Interim Management Statement for the period between 1st July 2008 and 18th November 2008 as required by the UK Listing Authority's Disclosure and Transparency Rules.

Trading

The Group has continued to perform strongly, and the Board now expects, as a result of successful completions and improved trading results from the Regional businesses, to exceed market expectations for the year.

Our broad sector of activities and geographical spread have helped to balance the recent downturn in commercial property and residential developments in the short term. Westfield London was opened to the public on 30th October 2008, and we are proud to have played an integral part in a team which delivered, on time, the largest covered inner-city shopping centre in Europe. 

We are working alongside Sir Robert McAlpine, as preferred bidder, towards agreeing our bid for the Olympic Stadium. We are confident that this can be achieved and we look forward to a start on site in early 2009.

The market is challenging but we are still tendering for some important projects across the UK.

Financial Performance

Positive cash management remains our key focus. We have a strong balance sheet with net cash of £26m after the interim dividend paid in October 2008. Our dividend policy remains both committed and progressive as a sign of our confidence. Cash deposits are placed on instant access or short term deposit and are spread across a number of banks in order to minimise exposure and have cash on hand if opportunities arise.

Given the current economic climate, our strategy is to 'de-risk' our future business and to implement sensible and realistic cost base reductions. 

Outlook

Overall, the Group is in good health and the business remains resilient. We have good visibility, albeit at lower levels than at the same time last year, and the order book for 2009 going forward stands at £180m. The Group has a strong balance sheet and we are dedicated to returning value to our shareholders.

In light of the uncertainty in the financial markets, the Board is taking a more cautious view with regard to expectations for 2009. We are of the opinion that although markets are challenging, they are likely to stabilise during late 2009 with the Group seeing an upturn in market conditions in 2010.

Board and Management

As announced previously, Len Arnold, Senior Independent Director stepped down from the Board on 31st July 2008. Bob Campbell took over the role of Senior Independent Director and Chair of the Audit Committee for 2008.

The Board is pleased to announce that Iain McCusker has been appointed as Non-Executive Director and will join the Group on 1st January 2009. Iain is a Chartered Accountant and was previously a partner at Deloitte until 1994. He then held senior Managing Principal and Director positions within Unisys and Xerox, respectively, and was Managing Director of ACCA (the Association of Chartered Certified Accountants) from 2004 to 2007. Iain will join the Remuneration and Nominations Committee and will chair the Audit Committee. There are no further disclosures relating to Iain McCusker required by paragraph 9.6.13R of the Listing rules.

-ends-

Date: 19th November 2008 

For further information contact: