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Wed September 26 2018

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Southwest losses fail to halt TClarke progress

27 Mar Building services contractor TClarke has posted increased profits for 2017 despite losses in the southwest region.

TClarke made a pre-tax profit of £7.1m in 2017, up from £3.7m in 2016, on revenue up 12% to £311.2m (2016: £278.6m).

Underlying operating profit was up a more modest 6% to £7.3m, from £6.9m the previous year.

Revenue from the Central and South West operations reduced by 7.8% to £62.6m. The underlying loss of £1.8m (2016: profit £0.9m) in this division was attributed to delayed starts in the southwest and settlement of a number of legacy jobs. It is expected to return to profit this year.

The London and South East operations contributed an underlying profit of £8.5m (2016: £3m) on revenue up 24% to £177.6m. The substantial margin improvement, up from 2.4% to 4.8%, was attributed to a number of large jobs completing in the period, including the new Bloomberg building in London.

Scotland and the North also delivered growth in profits. Scotland's revenue was £23.0m (2016: £21.0m), and underlying operating profit was £800,000 (2016: £600,000).

In the North, revenue dipped 12% to £48m (2016: £53.6m) but underlying operating profit increased to £2.4m (2016: £1.8m) due to a strong performance from the Leeds office on the back of educational projects.

Chief executive Mark Lawrence said: "I am pleased to report that TClarke is in an excellent position. We are focused on the future and have a clear strategy to deliver on our five key strategic markets.  We are confident that this will enable us to continue to drive improving returns for our shareholders, as is demonstrated by our setting ourselves the medium term target to increase underlying operating margin to 3%.

“Underlying this, TClarke shows strong and improving cash generation, rigorous risk control, excellent revenue visibility, a balanced quality order book and improving profitability. This financial and strategic strength is allowing us to invest for future growth in our markets, driven by investments in infrastructure and the digital world."

TClarke recent project wins include:

  • One Bishopsgate Plaza; 43 storey residential tower and five star hotel
  • Beaufort Park, Hendon; three further residential blocks for St George
  • John Lewis Department Store, Cheltenham
  • Ark Pioneer Academy; new secondary school in Barnet, London
  • Sedbergh Sports & Leisure Centre, Bradford
  • Bath Spa University; School of Art and Design
  • Aerohub Business Park, Newquay Airport
  • Argo Global – 1 Fen Court, London; office fit out
  • University of East Anglia, Norwich; building 60 teaching and laboratory areas
  • Edison Primary School, Hounslow, London; science specialist free school
  • Rothesay Pavilion, Bute; restoration of the 1930s building
  • Hadrian's Tower, Rutherford Street, Newcastle (residential scheme)
  • Ferry Village, Braehead (residential scheme)
  • Rolls-Royce, Derby; M&E Services to North Block, B, C, and D Buildings
  • South Gilmerton, Edinburgh (residential scheme)
  • HMP Featherstone (prison)

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