TClarke PLC Trading Statement (5273G)
November 26 2020 - 2:00AM
UK Regulatory
TIDMCTO
RNS Number : 5273G
TClarke PLC
26 November 2020
TClarke plc
TRADING UPDATE
ORDER BOOK STRENGTHENS AT TCLARKE AS MARGINS MAINTAINED
TClarke plc ("TClarke" or the "Group"), the Building Services
Group, today issues a trading update for the period from 1 October
2020 to date.
2020 trading update
The Group is pleased to report that it continues to trade in
line with expectations for the full year ending 31 December 2020.
The Board is encouraged by the resilient performance that the Group
has delivered.
As stated previously, we anticipate turnover for 2020 to be
circa GBP240m and underlying EBIT (EBIT) to be approximately GBP6m.
TClarke achieved its target 3% EBIT margin in Q1, broke even on
much reduced volumes in Q2 and expects to deliver a 3% margin for
H2.
During the second half of the year, TClarke has been successful
in winning new projects from clients across a wide range of
sectors. Our forward order book has increased to GBP422m. This is a
significant result for the Group and is GBP61m (17%) higher than at
the same point in 2019. Reassuringly, revenues of GBP257m for 2021
have already been secured, against an equivalent figure of GBP232m
at this time last year and up from GBP191m when we announced the
Group's interim results in August. This is testament to our strong
reputation among our clients and we have been consistent in
maintaining our strict tendering assessments, to ensure that we are
accepting work that meets our margin expectations.
In addition, TClarke is pleased to be assisting with the rapid
delivery of COVID-19 Testing Stations across the UK. New Test
Centres are constructed within 24 Hours and our teams across the
country are assisting with maintenance of the sites when in
use.
Outlook
TClarke has demonstrated its resilience and agility during 2020.
As a Board, we are grateful to all the TClarke team for their hard
work and dedication during this challenging period.
Looking beyond 2020 our proven strategy remains to focus on
projects and markets that meet our margin and growth criteria. The
strategy we have followed has resulted in TClarke being
particularly strong in the healthcare, education and data centre
market sectors, whilst continuing to serve the commercial office
market.
We have exciting opportunities across all of these market
sectors, providing excellent opportunities for growth over the next
few years.
TClarke approaches the new financial year in a strong position,
both operationally and financially.
Commenting, Mark Lawrence, TClarke CEO said,
" TClarke has once again demonstrated the direct benefits of our
excellent reputation within our industry that has helped drive our
clients' continued confidence to work with us and award the Group
significant new projects.
Looking to the future, we have a well-balanced approach to
winning work with projects from a range of sectors and I am
delighted that we have been so successful in the Healthcare and
Technology sectors in particular.
The UK Government recently announced a long-term commitment to
developing further green initiatives covering clean energy,
transport, nature and innovative technologies, that will help the
UK to forge ahead with eradicating its contribution to climate
change by 2050. TClarke is well positioned to benefit from these
initiatives and is already working on a wide range of exciting
projects that support these moves."
Date: 26th November 2020
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)
Max Hartley (Corporate Finance)
Nick Searle (Sales)
Tel: 020 7397 8900
www.cenkos.com
RMS Partners
Simon Courtenay
Tel: 020 3735 6551
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