T Clarke  (LON:CTO)  

Share Price 78.75p     Market Cap 33m


 (Disclosure I have no position in this company)

T Clarke's 6 month results expected to be released tomorrow Tuesday 4th August. 

Interesting to speculate before the results than rather than write up after the event.  T Clarke is an UK company providing  full mechanical, electrical and ICT Services operating from 16 locations in UK.

The Company’s Outlook

“With a record order book and early signs of margins beginning to improve, we look forward to 2015 and beyond with renewed confidence”


This is the type of share I would have bought in the past.  Why not, electricians charge a fortune. Surely a big electrical contractor can charge what it likes. Only time is necessary for profits to expand.  Profits will come back as they have done before.  The company is paying a good dividend. Well know brand name. What more do I want?


Other Positive Points


  • Been in business since  1889.  Not likely to go out of business anytime soon.
  • Positive share price progression  over last few years. Revenue maintained and growing slowly. 4% growth  in 2014
  • Dividend restoredto 3.1p, shows management has confidence in the future prospects.
  • Skilled workforce employed where their might be future labour skills shortage in times ahead
  • Legal cases settled, unlikely to be repeated.


Negative Points


  • Company has chased turnover at the expense of margins. Negative net margins last year.  Low margins over many years.
  • Share price has gone nowhere since 2007.
  • Made a loss of 1.58p per share in 2014 or a positive 1.06p if you took out one-time costs.

My View Point.

I will try to be gentle as best I can.  A national babysitting service would make a bigger profit margin than T Clarke.    T Clarke seems to be more a price taker not a price setter.  It will have difficulty delivering the full expected “jam tomorrow” in terms of profits.


For a quality branded company, it does not know how to charge for its services.  I would be happier to make…

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