Trading Statement

Clarke(T.) PLC 01 December 2006 T Clarke plc TRADING STATEMENT The Directors of T. Clarke plc, ('T. Clarke') the Electrical engineering and contracting Group, are today updating shareholders on recent trading. The Board has concluded that a combination of adverse factors will mean that the results for the financial year to 31 December 2006, will fall short of market expectations. The Company stated in its Operations Review in its Interim Results announcement made in August that its core operations, although key to the Group's growth, were operating at only around 75% of capacity. It added that at the time, it was reluctant to make reductions to its skilled workforce. The Group also made reference to slippage in the timing of two major projects. The Board is disappointed to report that the Group has recently experienced further programme amendments to certain projects and it has therefore been necessary to make a number of redundancies in the period since August. Turnover contribution for these projects is now focused on 2007-2008. Furthermore, the Group has identified a number of issues in the management of some of its regional businesses, which has caused the Board to review its expectations for these businesses. Remedial action is being taken in the form of management changes, the introduction of additional reporting systems and the strengthening of the role of the Regional Board. Profits in 2006 will also be affected by costs of £400,000 incurred in respect of an investigation by HM Revenue and Customs into the affairs of the business of Smith Contracting Services Ltd. ('SCS') relating to the period before it was acquired by T Clarke on 7th January 2005 and other matters concerning SCS including the termination of employment of Mr AJ Smith its Managing Director. Mr. Smith has appealed to the Employment Tribunal and the hearing has yet to be completed. Looking forward, the medium term prospects for the Group remain encouraging. Work in Hand for 2007 and 2008 currently stands at around £150m and prospects for continuing the momentum of new business remains good, particularly in the Group's core operations. The Directors are confident that the actions taken will enable the Group resume a more stable performance in 2007 and beyond. Accordingly, it is the Directors' intention to propose a 5% increase in the final dividend for 2006, which will be paid to shareholders in May 2007. -ends- Date: 1 December 2006 For further information contact: T. Clarke plc cityPROFILE Pat Stanborough, Chief Executive Simon Courtenay John Daly, Finance Director Tel: 020-7448-3244 Tel: 020-7358-5000 Web: www.tclarke.co.uk This information is provided by RNS The company news service from the London Stock Exchange

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