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Wed April 08 2020

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Prestige projects deliver 3% margin for TClarke

19 Mar Building Services contractor TClarke has posted solid annual results on the back of a bumper workload in the capital.

For the year ended 31st December 2019, TClarke made a pre-tax profit of £9.0m, up 15%, on revenue up 2% to £334.6m. Underlying operating margin for the year was on target at 3%.

Roughly two-thirds of the revenue – £201m – came from London projects, including projects at Battersea Power Station, One Nine Elms, The Peninsula Hotel, KGX1 in Kings Cross and Oxford House in Oxford Street. TClarke is also involved with four separate schemes in the City at 8, 22, 100 and 150 Bishopsgate.

Chief executive Mark Lawrence said: “Whilst our margin target remains one of the cornerstones of our strategy, we also have clear objectives that will deliver revenue growth.

“In London we will continue to target larger mechanical and 'full service' M&E and technology packages. By way of an example, during 2019 we have been delivering our largest ever mechanical project – the iconic KGX1 project at Kings Cross. Our capacity to deliver M&E projects in London has more than doubled within the last five years.

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“Last year we reported exceptional growth in technologies, and this looks set to continue in the coming year. Our offerings in this sector are extensive and comprehensive. To complement our M&E installations we now offer our clients added value packages such as IT Networks, audio visual, fire and security, building control installations as well as a suite of products to make buildings more efficient and fit for the 21st century. Our in-house DfMA (Designed for Manufacture and Assembly) facility at Stansted is a TClarke USP in what we can offer our client in terms of offsite precision manufacturing embracing modular innovation and digital solutions.

“Outside London our regional businesses have been targeting larger M&E projects which fit our margin profile, taking our existing client partnerships into our new regions such as Manchester and Liverpool. Our offices in the north of the UK are particularly well positioned to take advantage of planned infrastructure investment and regeneration that schemes such as HS2 will bring to these areas.”

Chairman Iain McCusker said: “I am particularly pleased that the group achieved its target of 3% operating margin for the year and showed improvement across a number of key financial measures.”

He said: "The group is in great shape. The results for the year were very encouraging and we have an excellent platform from which we will continue to make progress. Clearly these results will be overshadowed by the global coronavirus pandemic. We as a business continue to follow the UK government's advice and direction and until the situation stabilises it is not possible to forecast the short-term impact on our industry.”

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