Trading Statement

RNS Number : 7470Z

TClarke PLC

27 January 2022

 

TClarke plc

YEAR END TRADING UPDATE

NOTICE OF RESULTS

TClarke reaffirms strong second half 2021 trading as order book reaches record high

TClarke plc ("TClarke" or the "Group"), the Building Services Group, today announces a year end trading update for the full year ended 31 December 2021 ("FY2021").

Financial Results

The Board is pleased to report that trading in the second half of the year has been excellent and that the Group's financial performance for the full year is in line with its expectations.

The Group anticipates reporting turnover for FY2021 of c.£327m and underlying earnings before interest and tax (EBIT) of c.£8.8m. This represents an increase of 47% over the prior year. There are no non-underlying items in FY2021. FY2021 profit before tax is expected to be c.£7.8m (FY2020: £1.2m).

 New Order Book Record

TClarke occupies a premier position in the marketplace, particularly in London.

The Group has invested heavily in resources and capacity ensuring that the Group's growth ambitions are fully supported,   and our clients' projects continue to be delivered on time.

Our order book has now increased to a record level of £534m (2020: £456m) with projects relating to the technology sector accounting for approximately 25% (2020 10%). Importantly the Group has already secured projects worth £379m for 2022 with many more opportunities across all market sectors.

Cash Performance

Net cash at the year-end was £5.3m (2020: £10.2m) in line with our expectations. The reduction is mainly due to the Group internally funding the working capital required to support the expansion of the business and change of VAT regime. In addition to its net cash the Group has £25m of bank facilities available to it.

Outlook

Looking to the future, TClarke is focused on delivering our growth strategy. The Group is expecting turnover to exceed £400m in 2022 before achieving £500m by the end of 2023. The size of the existing order book and the number of opportunities ahead of the Group supports our expectation that we will achieve our targets.

Our growth strategy is focused on maintaining and developing our core markets whilst significantly expanding our data centre business. We are also undertaking more large projects outside of London such as those being delivered for a major financial institution by our Manchester business, expanding our healthcare offering (for example we have won a place on the NHS Smart Building framework) and expanding our energy efficient smart building solutions.

Commenting, Mark Lawrence, TClarke CEO said:

''TClarke has had a tremendous second half of the year delivering a record level of turnover for that period and ending the year with an order book exceeding £530m; another record.

During the year, the Group has broadened its offering whilst strengthening our resources so that clients can be assured in our ability to deliver their projects. We are on track to achieve our growth ambitions and I am extremely excited and confident for the outlook for TClarke.''

The Group will be announcing its FY2021 preliminary results on 9   March 2022.

-ends-

Date: 27 January 2022

For further information contact:

TClarke plc

Mark Lawrence

Group Chief Executive Trevor Mitchell Finance Director

Tel: [phone]

  www.tclarke.co.uk

Cenkos Securities plc (Corporate Broker)

Ben Jeynes (Corporate Finance)

Alex Pollen (Sales)

Tel: [phone]

  www.cenkos.com

RMS Partners

Simon Courtenay

Tel: [phone]

 

END

 

 

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