CTO.L Regulatory News (CTO)

24 November 2022

TClarke plc

TRADING UPDATE

TClarke plc ("the Group"), the Building Services Group, today provides an update on current trading and on the outlook for the financial year ending 31 December 2022.

Group performance and outlook

Since release of the Group's half year results on 14 July 2022, trading across the Group has been strong. Our high-quality secured order book continues to provide good forward visibility, despite a challenging market backdrop stemming from UK political instability, increased general market uncertainty, continued supply chain challenges, inflationary pressures and rising interest rates.

We are pleased to report that the Group's revenues for the full year ending 31 December are expected to be in the region of £410 million; with some £40m of revenue previously expected to be delivered in 2022 now being reprogrammed into 2023.

2022 is expected to be the first time Group revenues have exceeded £400 million. Operating margins (EBIT) are anticipated to be circa 2.8%.

As a result of this strong performance, the Group's earnings per share are expected to rise by approximately 27% in 2022 when compared to the prior year.

The Group remains on track to deliver £500m revenues in 2023.

Group secured workload

Looking forward, the Group has a balanced and diverse high‐quality order book. This is testament to the strength of our reputation for delivery and the durability of our long-standing client relationships.

The total secured order book for the Group at 31 October 2022 was £545m, up from the year end position of £534m at 31 December 2021 and with £384m already secured for 2023. Encouragingly this is spread across a diverse range of clients in different sectors across all our UK businesses.

Beyond what has already been secured, the Group continues to enjoy many opportunities across all its core market sectors. We are currently tendering in excess of £1bn of opportunities and are expecting decisions on approximately £500m of tendered projects by early 2023.

Balance sheet

The Group's balance sheet remains strong and, in what is accepted is a challenging trading environment, the strength of the Company's balance sheet creates a significant competitive advantage.

The average month end net cash for the period from 1 January 2022 to 31 October 2022 was £2 million. In addition, the Group has access to bank facilities of £30 million comprising an RCF facility of £25 million maturing in August 2026 and a £5 million overdraft facility.

Many of our clients demand performance bonds to be in place as part of the contract requirements. Due to the strength of its balance sheet TClarke has at its disposal £65m of bonding capacity; one of the largest bonding capacities when compared to our recognised peer group.

Mark Lawrence, Chief Executive, said:

"The Group is trading well, and I am proud of the performance we are delivering. 

As we approach the end of the year, I expect to be reporting that 2022 will have been a great year for TClarke. Our teams across the country are doing a fantastic job in continuing to win and deliver record volumes of high quality work, in spite of the challenging economic environment. We remain on track to deliver our strategic target of £500m revenue in 2023."

-ends-

For further information contact:

TClarke plc

Mark Lawrence

Group Chief Executive

Trevor Mitchell

Finance Director

Tel: 020 7997 7400

www.tclarke.co.uk

Cenkos Securities plc (Corporate Broker)

Ben Jeynes (Corporate Finance)

Alex Pollen (Sales)

Tel: 020 7397 8900

www.cenkos.com

RMS Partners

Simon Courtenay

Tel: 020 3735 6551