Last checked at 28 Nov 2019 07:00
TClarke plc
TRADING UPDATE
TClarke plc ("TClarke" or the "Group"), the Building Services Group, today issues a trading update for the period from 1 July 2019 to date.
Trading performance
At the half year, the Group reported a 25% increase in underlying operating profit and we are pleased to report that trading has continued strongly in the second half of the year. Accordingly, the Board expects the results for the full year ending 31 December 2019 to be in-line with market expectations.
We expect to report an underlying operating profit before interest and taxation of approximately £10m (2018: £8.8m) which is in-line with our stated strategy to achieve our key financial target of an underlying operating margin of 3%.
We have made good progress in replenishing our forward order book, which currently stands at £361m. Reassuringly, revenues of £232m for 2020 have already been secured, against an equivalent figure of £230m at this time last year and up from £182m at the interims. In addition, our teams across the UK are actively negotiating a number of major schemes which provide further visibility for both 2020 and 2021.
Outlook
Our long-standing, high quality reputation and the strength of the relationships with our blue-chip clients is a key asset for TClarke. Furthermore, our strong balance sheet continues to be a significant differentiator and enables us to win and deliver projects of a scale which positions us well for further growth. We continue to adhere to a strict bidding policy supporting our sustainable operating margin at 3% going forward.
Looking ahead, we approach the new financial year in a strong position, both operationally and financially which gives the Board confidence for the Group's prospects for 2020 and beyond.
-ends-
28 November 2019
For further information contact:
TClarke plc
Mark Lawrence - Group Chief Executive
Trevor Mitchell - Finance Director
David Lanchester - Company Secretary
Tel: 020 7997 7400
www.tclarke.co.uk
Cenkos Securities plc (Corporate Broker)
Max Hartley (Corporate Finance)
Nick Searle (Sales)
Tel: 020 7397 8900
www.cenkos.com
RMS Partners
Simon Courtenay
Tel: 020 3735 6551