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TClarke plc - Interim Management Statement

TClarke plc, the Building Services Group (the Group), announces its Interim Management Statement covering the period from 1st July 2014 to 7th October 2014. It is also providing updates regarding two specific issues referred to in its interim results issued on the 5th August 2014, both of which have now been resolved.

Insurance Claim

Shareholders will recall that a subsidiary company was one of a number of parties that were subject to a damages claim in respect of work carried out in 2007 before it was acquired by the Group. We are pleased to report that we have now reached a full and final settlement in respect of this claim. This will result in an exceptional charge of £0.2m in the second half of 2014 and brings a final resolution to this issue.

The bank has indicated that a formal waiver of the breach in our banking facilities will be forthcoming and continues to provide total facilities of £13m.

Mission Critical Project Account

We have now agreed the previously disputed final account for the major project within our Mission Critical division. As part of the agreement all outstanding monies have now been received but T Clarke will recognize a sizeable loss on the project.

Whilst convinced of the merits and strengths of our entitlement under the contract, the Board took what it believed to be a pragmatic view to avoid costly litigation. This would have distracted the business and potentially damaged ongoing relationships and, in fact may not have led to an overall improvement in the settlement. To underline the importance of achieving a constructive settlement, projects in excess of £25m have recently been secured with the principal contractor concerned.

Trading

As a consequence of the loss on the Mission Critical Project referred to above, we expect a significant reduction in profits in the current year. We now expect to report underlying profits before tax of between £0.5m and £1.0m.

Net debt reduced from £4.3m at 30 June 2014 to £2.8m at 30 September 2014, with unused facilities of £10.2m. Net debt is expected to fall further by the year end to below £2.0m.

Outlook

The forward order book as at 30th September stood at a record £280m, up from £275m at 30th June with £160m secured for 2015 and £70m for 2016 and beyond. In addition, several high value projects are in the latter stages of negotiation.

This strong order book and pipeline provides your Board with significant confidence for the future prosperity and further development of TClarke. Our markets are in good shape and we are being invited to tender for some of the most high profile projects in the UK. Our reputation for delivering exceptional quality services will also reward our shareholders through improvements in the Group's financial performance.

Board Changes

Independent Non-Executive Director

We reconfirm the appointment of Tony Giddings, a new Independent Non-Executive Director with effect from 1st October 2014, whose appointment was first announced at our AGM in May. Tony will also join the Audit, Remuneration and Nomination Committees.

No further information is required to be disclosed pursuant to LR 9.6.13 R.

Executive Director

We are also pleased toannounce the appointment of Danny Robson as an Executive Director with effect from 1st January 2015.

Danny, aged 44, sits on our Group Management Board and is the Managing Director of our London Mechanical Business, DG Robson. He also oversees TClarke East and TClarke Design and Build.

Danny brings a wealth of experience from running his own successful business that was acquired by TClarke in 2010 and from his time expanding that business within our Group. We believe his increased involvement at Board level will be of great benefit as we develop and grow.

Ends

Date 8th October 2014

For further information contact:

TClarke plcMark Lawrence Martin Walton

Group Chief Executive Finance DirectorTel: 020 7997 7400 Tel: 020 7997 7400

www.tclarke.co.uk

N+1 Singer (Financial Adviser and Broker)

Sandy Fraser

Tel: 020 7496 3000

www.nplus1singer.com

Broker Profile

Simon Courtenay

Tamsin Shephard

Tel: 020 7448 3244

www.broker-profile.com