Clarke(T.) PLC Trading Update (2455V)
January 27 2017 - 1:00AM
UK Regulatory
TIDMCTO
RNS Number : 2455V
Clarke(T.) PLC
27 January 2017
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 31(st) December 2016, which will be
announced on Tuesday 28(th) 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 31(st) 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
GBP2.2m, including a provision for professional costs of GBP0.4m
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 GBP9.2m (31(st) December 2015: GBP6.6m), 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 GBP10m (previously GBP5m) revolving credit
facility and a GBP5m (previously GBP8m) overdraft facility.
Our forward order book as at 31(st) December 2016 has
strengthened to GBP330m (31(st) December 2015: GBP300m).
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 28(th) March
2017 with the announcement of our full year results.
-ends-
Date: 27(th) 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
This information is provided by RNS
The company news service from the London Stock Exchange
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