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YEAR END UPDATE

TClarke plc ("TClarke" or the "Group"), the Building Services Group, announces a year end trading update ahead of its preliminary results for the year ended 31st December 2016, which will be announced on Tuesday 28th March 2017. 

The Board is pleased to report that underlying profits are substantially ahead of last year. The Group has entered 2017 in a strong, confident position, supported by an improved net cash balance and improved forward order book.

Further to our announcement on 31st October 2016, the 2016 results will include exceptional charges and provisions in relation to the internal fraud at our DGR subsidiary. These are estimated at £2.2m, including a provision for professional costs of £0.4m directly associated with our efforts to recover the misappropriated funds. Profits for the year are expected to be in line with market expectations after reflecting the full impact of the accounting adjustment for the fraud in the period, other than the provision for related professional costs referred to above. Legal proceedings to recover the misappropriated funds are ongoing.

The Group's year end net cash position improved for the fourth successive year to £9.2m (31st December 2015: £6.6m), an increase of 39% on the previous year.

Supporting our growth, our banking facilities with NatWest were renewed successfully as planned. The Group now has access to an increased three year £10m (previously £5m) revolving credit facility and a £5m (previously £8m) overdraft facility.

Our forward order book as at 31st December 2016 has strengthened to £330m (31st December 2015: £300m).

Notable new project wins include two significant London office fit out projects for a social media client and a major asset manager client, along with projects at The University of Gloucester Business School & Growth Hub and The Plymouth History Centre.

The exceptionally strong underlying trading performance for the 2016 financial year and the year end cash position are, to an extent, a reflection of the timing of major project completions and stage payments received in the second half. Nonetheless, the cautious improvements in the Group's core markets, supported by a strong forward order book that has seen no project cancellations, together mean that we enter the 2017 financial year in optimistic mood. It is the Board's expectation that the Group's actual performance will exceed current market expectations for the year.

We look forward to updating shareholders further on 28th March 2017 with the announcement of our full year results.

-ends-

Date: 27th January 2017

For further information contact:

TClarke plc

Mark Lawrence - Chief Executive

Martin Walton - Finance Director

Alexandra Dent - Company Secretary

Tel: 020 7997 7400

www.tclarke.co.uk

N+1 Singer (Financial Adviser and Broker)

Sandy Fraser

Rachel Newton

Tel: 020 7496 3000

www.nplus1singer.com

RMS Partners

Simon Courtenay

Tel: 020 3735 6551