TIDMCTO
RNS Number : 3845P
Clarke(T.) PLC
17 November 2016
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
2016 to date.
Fraud Update
Further to the announcement on 31 October 2016, the Company can
report that we have now commenced legal proceedings to recover
misappropriated funds. It is too early at this stage to confirm the
quantum of what will be recovered, but investigations and
proceedings are continuing in conjunction with expert professional
advisors to recover as much as practicable.
Trading
The result of the EU referendum and other developments in the
wider global environment has led to levels of uncertainty which we
are alert to, particularly movements in commodity prices and
exchange rate fluctuations which could influence tender
pricing.
Despite these uncertainties, we continue to see steady, but
cautious, improvements in our core markets, supported by a strong
forward order book that has seen no project cancellations. The
Group's underlying performance for the year continues to be in line
with the Board's expectations, with operating cash generation
improving year on year.
Order Book
Demand for our services continues to be strong and, through a
combination of repeat business and negotiated as well as
competitive bidding, we have maintained an enviable committed
forward order book in excess of GBP320 million with visibility now
stretching beyond 2019.
We are pleased to confirm that we have now signed contracts for
22 Bishopsgate, London. This major development scheme, which
includes 1.275 million sq. ft. of offices, is being developed by
Lipton Rogers in partnership with AXA IM (Investment Managers) and
is under construction by Multiplex. Our onsite activities will
commence in 2017 for completion in 2019. We have been awarded four
key packages valued at GBP56 million as follows:
-- Electrical, Shell & Core
-- Electrical, Cat "A" Fit Out
-- ELV (Systems Integration) Package, including BMS, ICT and Security
-- Fire Alarm Installation
At Stratford, Lendlease has awarded us a GBP24 million M&E
fit out project at The International Quarter, London. In the South
West, our green credentials are being put to good use at Bodmin
Road, Plymouth where we are involved with 72 Passivhaus dwellings.
Passivhaus is the fastest growing energy performance standard in
the world.
Our specialist Healthcare division has secured projects at
several hospitals across the UK including:
-- BMI The Park Hospital - IXR Upgrade, Nottinghamshire
-- Hinchingbrooke Hospital - MRI Suite, Cambridgeshire
-- Royal Devon & Exeter Hospital - Catheter Laboratory, Exeter
In Newcastle, across two new student accommodation projects, we
are working to provide over GBP6 million of electrical services to
1,609 units. At Sunderland University, The Science Complex was
handed over in July and the Enterprise Centre is due for completion
in December.
In Scotland, 75% of revenues for 2017 have now been secured
including the following notable recent wins in the residential
sector:
-- Barratt Homes West Scotland, Bonhill, Dumbartonshire
-- Barratt Homes West Scotland, Wallace Fields, Glasgow
-- Cala Homes West Scotland, Dullater Greens, Cumbernauld
-- Robertson Homes, Fair Acres, Dunbar
This success is further underpinned by project wins in the
education sector at Easter Bush Campus, University of Edinburgh and
St Joseph College, Dumfries. A recent new client is Mitsubishi
Electric Air Conditioning Europe where we will be working within
specialist Calorimeter Test Rooms at their European Manufacturing
Plant in Livingston West Lothian.
Pensions
The period has also seen renewed volatility in corporate bond
yields which, although of no direct relevance from a trading
perspective, provides the basis of calculation of the Group's
pension liabilities. However, our dividend remains secure with
corporate bond yields at their current levels.
Outlook
The Board is focused on our twin targets to improve both
absolute profitability and operating margin over the short to
medium term. We are very encouraged by the prospects for the Group
and are currently enjoying excellent levels of activity within our
estimating teams. Several notable schemes are currently being bid
across our range of target sectors which, if successful, will boost
our short-term order book for 2017 and have the potential to
provide additional forward revenue coverage. As part of our
strategy we are targeting opportunities in areas of the country
where we are underrepresented such as Birmingham, Manchester and at
major UK airports.
-ends-
Date: 17(th) November 2016
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
Capital Access Group
Scott Fulton
Tel: 020 3763 3400
This information is provided by RNS
The company news service from the London Stock Exchange
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November 17, 2016 02:00 ET (07:00 GMT)