REG - TClarke PLC - Trading Update

TclarkeAnnouncement

30/11/2023 07:00

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RNS Number : 1128V  TClarke PLC  30 November 2023

30 November 2023

TClarke plc

TRADING UPDATE

 

High Quality Order Book Now Exceeds £1.1bn

 

 

TClarke plc ("the Group"), the Building Services Group, today provides an
update on current trading and on the outlook for the remainder of the
financial year ending 31 December 2023.

 

The Group remains firmly on track to achieve its three-year growth plan target
of £500 million revenues in 2023 and expects its year end net cash position
to surpass £15 million at 31 December 2023, an increase of £6 million over
current market expectations. The Board's revenue and profit expectations for
2024 and 2025 remain unchanged.

 

In addition, the Group is pleased to confirm that its forward order book stood
at more than £1.1bn at 31 October 2023; double that of the previous year.
This increase in size of order book is reflected across our key market sectors
as illustrated below.

 Market Sectors                   Forward Order Book  Forward Order Book  %

                                  (as at Oct 2023)    (as at Dec 2022)    Increase

                                  £m                  £m
 Engineering                      489                 225                 117%
 Technologies (inc data centres)  355                 111                 220%
 Infrastructure                   167                 121                 38%
 Residential                      66                  73                  -10%
 FM                               29                  25                  18%
 Grand Total                      1,106               555                 99%

 

Beyond that already secured in the order book, TClarke continues to see
significant additional opportunity across all of its core market sectors and
the Group is currently selectively tendering for in excess of £1.0bn of
additional potential opportunities - providing exceptional further forward
visibility and instilling confidence in the Board that the business will
continue to expand rapidly into 2024 and 2025 and beyond.

 

 

Notwithstanding the strength of the Company's forward order book, the Group is
cognizant that the turbulent prevailing construction sector environment is
impacting a number of market participants. As a result, TClarke has made a
number of strategic decisions to preserve the business's strong market and
financial position. These decisions have included, inter alia:

 

·    early contract agreements;

·    the changing of some supply chain partners mid contract to protect
project completion dates;

 

It is anticipated that projects will continue to be delivered to their project
programmes and, as a result of the actions taken in the second half, the
Group's 2023 operating profit (EBIT) is now expected to be in the range of £9
million - £10 million.

 

 

Mark Lawrence, Chief Executive, said:

 

"We have now achieved a significant milestone with our secured order book
surpassing £1 billion for the first time. This substantial growth positions
us well for future success and provides the Board with continued confidence in
our ability to deliver a strong performance into 2024 and 2025".

 

-ends-

 

For further information contact:

 

TClarke plc

For further information contact:

 

TClarke plc

Mark Lawrence
 

Group Chief Executive

Trevor Mitchell

Finance Director

Tel: 020 7997 7400

www.tclarke.co.uk (http://www.tclarke.co.uk)

 

Cavendish Capital Markets Limited (Corporate Broker)

Ben Jeynes (Corporate Finance)

Dale Bellis / Jasper Berry / Andrew Burdis (Sales and ECM)

Tel: 020 7220 0500

www.cavendish.com (http://www.cavendish.com)

 

RMS Partners

Simon Courtenay

Tel: 020 3735 6551

www.rmspartners.co.uk (http://www.rmspartners.co.uk)

 

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