TClarke PLC Trading Update and Notice of Results (1078N)
28 January 2021 - 6:00PM
UK Regulatory
TIDMCTO
RNS Number : 1078N
TClarke PLC
28 January 2021
TClarke plc
YEAR END TRADING UPDATE
TCLARKE REPORTS STRONG TRADING AS MARGINS RECOVER AND 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(st) December 2020.
Financial Results
The Board is pleased to report that trading in the second half
of the year has continued to be encouraging and financial
performance for the year is in line with its expectations. The
Board is delighted with the resilient performance and thanks all
our colleagues across the Group for their hard work and dedication
during this most challenging of years.
The Group anticipates turnover for FY2020 to be circa GBP232m
and underlying EBIT (EBIT) to be approximately GBP6m. The Group
achieved its target 3% EBIT margin in Q1, broke even on much
reduced volumes in Q2 and, as the performance strengthened in the
second half of the year, the margin improved, and the Group is
pleased to report that margins in H2 recovered to our overall
target of 3%.
Record Order Book
Our bid teams continue to be busy. We have scaled up the size of
our team to ensure that we are maintaining our careful selection
criteria when assessing projects, to ensure they continue to meet
our margin expectations.
Since our last Trading Update announced on 26(th) November 2020,
TClarke has been extremely successful in winning new projects from
clients across a wide range of sectors. The Group's forward order
book has increased to a record level of GBP456m.
Cash Performance
We have been particularly pleased that our cash performance
during the course of the year has been strong. Net cash at the
year-end was GBP10.2m. Importantly, our average daily cash balance
was positive on each day of 2020.
Outlook
Looking to the future, TClarke is focused on driving our growth
strategy. The Group has a very encouraging level of new projects in
the order book and this bodes well for our future performance.
Our growth strategy is centred on five key pillars. Maintaining
a sustained 3% operating margin, expanding our revenue streams,
remaining the contractor of choice for landmark projects,
maintaining a balanced business and building on our long-term
relationships.
The strategy we have followed has resulted in TClarke being
particularly strong in the healthcare, education and data centre
market sectors, whilst continuing to serve the commercial office
market. We have exciting opportunities across all of these market
sectors, providing excellent opportunities for growth.
The future for the Group looks extremely promising and we face
the new year and beyond with renewed confidence that TClarke will
continue to flourish moving forward.
Commenting, Mark Lawrence, TClarke CEO said,
" I am proud of the performance that TClarke has delivered in
2020. It highlights the many strengths of the business and this
bodes well for the future.
Our markets remain strong and we are delighted that the order
book has reached a record scale and that the quality of projects
that we have won is excellent and in accordance with our margin
expectations.
The reputation that we enjoy with our clients remains extremely
positive and this is now delivering, as they turn to us to partner
with them on future projects.
I look forward to reporting on the progress that we make through
the year. We continue to look to the future and we are positioning
the Group to benefit from the many growth opportunities available
in our markets."
The Group will be announcing its 2020 preliminary results on
24(th) March 2021.
-ends-
Date: 28(th) January 2021
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)
Max Hartley (Corporate Finance)
Nick Searle (Sales)
Tel: 020 7397 8900
www.cenkos.com
RMS Partners
Simon Courtenay
Tel: 020 3735 6551
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