AGM Statement

RNS Number : 4928L

Clarke(T.) PLC

07 May 2010

 



AGM AND INTERIM MANAGEMENT STATEMENT

Ahead of the Annual General Meeting being held today at 12.00 noon at Savoy Place, 2 Savoy Place WC2R 0BL, T.Clarke plc (the "Group") is today issuing an interim management statement for the first quarter of 2010.

Trading Update

The Group entered 2010 a leaner business as a result of tough decisions taken in 2009 and the Board is confident in the resilience of the business going forward.  Trading to date is in line with expectations and while there are some early signs of recovery emerging the main issue facing the Group is the timing and strength of the improvement in our markets.

The Group has demonstrated that it has the ability to maintain market share, with an improved forward order book that stands at £200 million (2009: £175 million).  Included within the current order book is the recently secured contract for the significant re-development of Victoria Underground Station, which demonstrates our increasing capabilities in the rail sector.

The process of integrating our recent acquisition, D&S Engineering Facilities ("D&S") into the Group is making good progress.  Since announcing the acquisition, D&S is trading in line with our expectations.  We look forward to benefiting in future from the wider customer diversification the acquisition brings to the Group.

Earlier this year, recognising the importance of our Scottish operations, we rebranded our Scottish business T.Clarke Scotland to support and underscore its position as an integral part of the Group.  We are pleased to report that the rebranding has been positively received and that we are confident the business will continue to make a significant contribution to our operations.

Our Group businesses have good forward order books, visibility for the remainder of this year is encouraging and we are seeing increased enquiry levels. We continue to bid for a broad range of projects, across many sectors for both the public and private sector, including rail and power generation infrastructure projects as well as Health, Education, Housing and Prison projects.

Contracts that illustrate the diversity of our order book include the following recently secured projects:

ITV plc, Milton Keynes; Deutsche Bank, Appold Street, London; Basildon A&E Hospital Refurbishment; John Lewis, Croydon; Waitrose Stores, Lutterworth, Leeds and Menai Bridge;  Machine X Recycling  Facility, Wandsworth;  British Energy, Dungeness;  Speedo Headquarters, Nottingham;  BAE, Salmesbury, Warton and Woodford;  RBS, London Triangle Framework; MOD Bulford & Tidworth;  Cledford Primary School, Cheshire and Christ the King Primary School, Cheshire.

Financial Position

The Group has a healthy cash position with net cash balances of approximately £11 million at 30 April 2010 (30 April 2009: £21 million) after the net £8.1m investment in D&S. The Group is vigilant with regard to credit risk and continues to maintain its focus on cash management and debtor collection. It remains a priority to focus on maintaining margins where possible, despite customer pressure and increased competition.

Outlook

Market conditions continue to be challenging, despite early indicators that suggest some restoration of confidence in the construction of significant new build commercial properties. The majority of these schemes, if secured, would form part of the Group's revenue from mid 2011 through 2012.

The Board is focused on the current year's performance, targeting work that can be delivered at acceptable margins and building on its order book visibility. The possibility remains that projects may be delayed and circumstances may change, including the priorities of the new government.

In conclusion, whilst we are cautious in the short term, we maintain that the Group, with its strong balance sheet and its experienced management team, is well placed to benefit in the longer term from restored confidence in the UK economy.

Note:

This interim management statement is being released in accordance with DTR 4.3 of the FSA Handbook and has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose. This interim management statement relates to the period from 1 January 2010 up to the date of publication of this interim management statement.

-ends-

Date: 7^th May 2010

For further information contact:

T. Clarke plc Mark Lawrence, Chief Executive   Victoria French, Finance Director Tel: [phone]	City Profile Simon Courtenay Tel: [phone]
www.tclarke.co.uk

Ordinary Shares - Listing Category: Premium - Equity Commercial Companies

 

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