TClarke PLC Trading Statement (3939H)
November 24 2022 - 1:00AM
UK Regulatory
TIDMCTO
RNS Number : 3939H
TClarke PLC
24 November 2022
24 November 2022
TClarke plc
TRADING UPDATE
TClarke plc ("the Group"), the Building Services Group, today
provides an update on current trading and on the outlook for the
financial year ending 31 December 2022.
Group performance and outlook
Since release of the Group's half year results on 14 July 2022,
trading across the Group has been strong. Our high-quality secured
order book continues to provide good forward visibility, despite a
challenging market backdrop stemming from UK political instability,
increased general market uncertainty, continued supply chain
challenges, inflationary pressures and rising interest rates.
We are pleased to report that the Group's revenues for the full
year ending 31 December are expected to be in the region of GBP410
million; with some GBP40m of revenue previously expected to be
delivered in 2022 now being reprogrammed into 2023.
2022 is expected to be the first time Group revenues have
exceeded GBP400 million. Operating margins (EBIT) are anticipated
to be circa 2.8%.
As a result of this strong performance, the Group's earnings per
share are expected to rise by approximately 27% in 2022 when
compared to the prior year.
The Group remains on track to deliver GBP500m revenues in
2023.
Group secured workload
Looking forward, the Group has a balanced and diverse
high--quality order book. This is testament to the strength of our
reputation for delivery and the durability of our long-standing
client relationships.
The total secured order book for the Group at 31 October 2022
was GBP545m, up from the year end position of GBP534m at 31
December 2021 and with GBP384m already secured for 2023.
Encouragingly this is spread across a diverse range of clients in
different sectors across all our UK businesses.
Beyond what has already been secured, the Group continues to
enjoy many opportunities across all its core market sectors. We are
currently tendering in excess of GBP1bn of opportunities and are
expecting decisions on approximately GBP500m of tendered projects
by early 2023.
Balance sheet
The Group's balance sheet remains strong and, in what is
accepted is a challenging trading environment, the strength of the
Company's balance sheet creates a significant competitive
advantage.
The average month end net cash for the period from 1 January
2022 to 31 October 2022 was GBP2 million. In addition, the Group
has access to bank facilities of GBP30 million comprising an RCF
facility of GBP25 million maturing in August 2026 and a GBP5
million overdraft facility.
Many of our clients demand performance bonds to be in place as
part of the contract requirements. Due to the strength of its
balance sheet TClarke has at its disposal GBP65m of bonding
capacity; one of the largest bonding capacities when compared to
our recognised peer group.
Mark Lawrence, Chief Executive, said:
"The Group is trading well, and I am proud of the performance we
are delivering.
As we approach the end of the year, I expect to be reporting
that 2022 will have been a great year for TClarke. Our teams across
the country are doing a fantastic job in continuing to win and
deliver record volumes of high quality work, in spite of the
challenging economic environment. We remain on track to deliver our
strategic target of GBP500m revenue in 2023."
- ends-
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)
Ben Jeynes (Corporate Finance)
Alex Pollen (Sales)
Tel: 020 7397 8900
www.cenkos.com
RMS Partners
Simon Courtenay
Tel: 020 3735 6551
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