Last checked at 17 Jul 2009 07:00
T. CLARKE PLC
Trading Update and Notice of Results
T.Clarke Plc, the electrical engineering and contracting company, today announces a trading update. As was highlighted at the Company's Annual General Meeting in May, market conditions across the business remain challenging. A strategic review of the Group's operations has recently been carried out and as a result the Board does not expect to meet current market expectations for the year.
Given the difficult state of the markets in which T. Clarke operates, the Group is undertaking a restructuring programme which is expected to lead to the closure or disposal of two of the Group's smaller regional businesses. The Company is also extending its cost reduction process with a number of redundancies across the Group. The Company has made provisions for bad debts and the Board is keeping a watchful eye on future credit risk. The associated costs of these initiatives will be mostly recognised in the first half results. As part of the restructuring programme, Barry DeFalco, Managing Director UK Regional Operations, has agreed to stand down from the Board and will be leaving the Company on 30th September 2009. We thank Barry for his many years of loyal service and wish him well for the future.
Overall the Group's businesses continue to trade positively with our key Regional operations in Scotland, Newcastle, Leeds and Derby trading well. The Group's order book is solid and currently stands at £170 million.
The Group's cash position remains robust with cash balances of £24 million as at 30th June 2009. It is currently the Board's intention to maintain the dividend at last year's level. In addition, in light of the strong financial position of the Group, the Directors will consider a share buy-back scheme, if in their opinion it is in the interests of shareholders to do so whilst balancing the need to retain cash to support and underpin business growth opportunities.
Despite the difficult market conditions, the Board remains confident that the Group will come through the current turbulent trading environment and that the underlying business is strong.
The Group's interim results for the six months to 30th June 2009 will be announced on Friday 21st August 2009. An analyst presentation will be held at 9.30am on the day in the offices of City Profile, Augustine House, 6A Austin Friars, London, EC2N 2HA.
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Date: 17th July 2009
For further information contact:
| T. Clarke Plc Pat Stanborough, Chief Executive Victoria French, Finance Director Tel: 020-7358-5000 www.tclarke.co.uk | City Profile Simon Courtenay William Attwell Tel: 020-7448-3244 |