T Clarke issues profit warning and fears for 2011

Grant Prior 14 years ago
Share

Electrical specialist T Clarke issued a profit warning today and predicted that 2011 could be even tougher than last year.

In a trading update to the city this morning the firm said: “The Board believes that results for 2010 will be below current market expectations.

“The Board also expects the trading environment and consequently the outlook for 2011 will be challenging and as a result the Group’s performance for 2011 could be below that of 2010.”

T Clarke said margins remain “under extreme pressure” and that dividends to shareholders will be reduced.

The announcement led to a 27% slump in the firm’s share price during early trading.

But the company believes an upturn is in sight led by the commercial market in London.

The statement said: “T.Clarke is well positioned for the eventual upturn, particularly in the London commercial sector which is seeing significant activity with several large office development schemes progressing.

“The Group is confident that it will win a number of these new projects, albeit we will see limited revenue benefit until 2012 on any schemes that we are successful in securing.”

Mark Lawrence, Group Chief Executive said: “Whilst the competitive market has adversely impacted the Group’s performance, we remain confident about the long-term potential.  There are a number of significant projects commencing over the next 12 months.

“T.Clarke is a profitable business and extremely well placed to benefit from this upswing in work and this underpins our strategy for organic growth and our unstinting commitment to deliver long-term value for all our shareholders.”

Latest news

Beck Interiors files administration notice

Supply chain has suffered delayed payments from £139m-turnover luxury fit out specialist
14 hours ago

Green light for York Central civil service office hub

£60m office project accelerates York Central goods yard redevelopment
11 hours ago

Blenheim House Construction enters administration

Administrators looking at options on present projects
1 day ago

Profits rise at Esh Group with more to come

Contractor confident about year ahead as market conditions move in right direction
14 hours ago

Piling specialist Van Elle sees housing orders rise 30%

Mark Cutler says firm on course to deliver 10% annual sales growth
13 hours ago

HS2 to spend £100m shutting sites where work never started

Remediation of sites no longer needed for cancelled Phase 2 will take three years
1 day ago

Willmott Dixon wins £61m deal for new Army dog unit

Contractor to revamp Kendrew Barracks in Rutland
13 hours ago

Stockport advances 4,000-home Town Centre East plan

Council seeks consultants to steer plan for 280-acre area in the city
14 hours ago

ISG sale imminent as buyers set-up UK holding company

South African nutrition entrepreneur and Australian partner primed to take over
2 days ago

CR Construction wins £210m Manchester towers

Construction to start next year on four blocks ranging from nine to 34-storeys
2 days ago

Southern Housing to rationalise supply chain following merger

Firms put on alert for £1.7bn construction framework renewal
2 days ago

Decision delayed on 52-storey Isle of Dogs tower

Hong Kong developer plans 460 flats block next to Millwall Inner Dock
2 days ago

Go-ahead for £850m North London estate rebuild

Flagship Edmonton housing estate redevelopment will deliver 2,000 new homes
2 days ago

Mace lands £184m Oxford Science Park contract

Contractor to build trio of laboratory and office buildings
2 days ago

Worker paralysed in 30ft fall during electricity pylon demolition

Specialist firm fined £240,000 after court hears linesman attached lanyard to a loosened steel section
2 days ago

Sir Robert McAlpine clinches £4bn Somerset gigafactory

2.6m sq ft car battery plant will require over 2,000 workers at peak construction
3 days ago

House builder Hill Group tops £1bn turnover

Group's controlled development pipeline stands at £10bn
3 days ago

Higgins wins 360 new homes job in south London

Firm will now work up planning for phase 2 of Brixton housing project
3 days ago

Kier starts £48m Ealing high school job

Northolt High School to be rebuilt for 1,130 pupils
3 days ago

Plans in for £64m Suffolk A12 upgrade

Work to start next summer on dualling and junction upgrades
3 days ago

Man suffers multiple fractures in HS2 accident

Engineering firm fined after fall leaves worker in hospital for two months
3 days ago

Go-ahead for Milton Keynes’ largest private rental project

Platform_ to build 20-storey scheme of 335 flat next to train station
6 days ago

A2Dominion reins in new-build and cuts development team

Housing association to stop private new build sales in big strategy switch
6 days ago

Sellafield partnership appoints final key delivery partners

Altrad and Kaefer bag £180m access, insulation and painting deal
6 days ago

Health centre canned as build costs double in four years

Devon NHS stands down plans for Health and Wellbeing Centre in Teignmouth
6 days ago

Family confirm death of Des O’Rourke

Deputy chair and co-founder of Laing O'Rourke dies aged 75
6 days ago

Plans approved for major phase of £2.5bn Salford Crescent

Crescent Innovation will help create global research hub
6 days ago

Deal to kick-start 3,000-home Northstowe town centre

Labour Government acts to unlock next phase of new town near Cambridge
6 days ago

Striking new-look for Canary Wharf HSBC tower

Large chunks of upper floorplate to be removed in major overhaul
7 days ago

Kier halves debt to £115m after strong trading year

Order book up 7% to £10.8bn with 85% of work secured for year ahead
7 days ago

Contractor services