31 Oct 2016 16:37
This announcement contains inside information
TClarke plc
Investigation
TClarke plc ('the Company') announces that it has uncovered financial irregularities within the accounting function of a wholly owned subsidiary, DG Robson Mechanical Services Limited ('DGR'). From initial investigations it would appear that funds in excess of £2.8 million have been misappropriated by an employee over a number of years. The Company has taken appropriate action, including the appointment of expert professional advisers to assist with our investigations and to recover the stolen funds.
Investigations indicate that the incident is limited to DGR and does not impact the wider TClarke Group. Our findings to date suggest that if anything the Group's historic trading results and balance sheet net worth may be understated to the extent that any of the misappropriated funds are recoverable. The Board believes that any necessary accounting adjustments in the current period are unlikely to have a material adverse effect on the Group's results taken as a whole and, overall, the Group remains on track to meet market expectations for the year.
As part of a planned reorganisation the business operations of DGR are in the process of being transferred to our main London M&E business where additional control measures are already in place. This process will now be accelerated and DGR's operations will be fully integrated into the London M&E business by the end of this year.
In the absence of further material developments in the meantime, an update will be provided within our next planned trading statement on 17th November 2016.
-ends-
Date: 31st October 2016
For further information contact:
TClarke plc
Mark Lawrence - Group 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
Capital Access Group
Simon Courtenay
Tel: 020 3763 3400
Tclarke (CTO)