CTO.L Regulatory News (CTO)

19 Nov 2009 07:00



T.CLARKE - INTERIM MANAGEMENT STATEMENT

T. Clarke plc, ("T. Clarke") the Electrical engineering and contracting Group, announces its Interim Management Statement covering the period from 1 July 2009 to 18 November 2009.

Trading during the period was broadly in line with the Board's expectations. While the markets in which the Group operates remain challenging and competitive, the Board is encouraged that the level of tendering activity has improved. The Group's focus remains on maintaining margins where possible and we continue to seek sensible cost base reductions. By this year end we will have a leaner business and will have absorbed the cost of these efficiencies. We must, however, as a broadly based business geographically and by sector, ensure that the Group is in good shape for the expected upturn in market conditions. We are maintaining our focus on cash management, which remains important during these difficult times. We remain vigilant to the risk of bad debts and the Board is of the opinion that adequate provisions have been made for our current exposure. However, our balance sheet remains strong and we have robust cash balances of some £20 million and no significant debt.

As highlighted at our half year results, we have continued to consolidate our regional businesses and focus our efforts on the stronger operations. Our business in Altrincham has now ceased and all costs associated with the closure were provided for in the first half and our business in Rowley Regis, West Midlands has been sold.

In summary, we are trading in line with current market expectations, our order book stands at approximately £140 million and cash remains robust. The Board is confident of maintaining market share going forward and we believe that our strong balance sheet will enable us to consider opportunities as they arise.

-ends-

Date: 19 November 2009

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