TClarke rides out site closures to deliver a profit

Aaron Morby 4 years ago
Share

Building services contractor TClarke expects to remain in the black this year after weathering the worst impact of coronavirus in the first-half of 2020.

Chief executive Mark Lawrence expects TClarke to remain profitable this year and is cautiously optinistic about 2021 prospects
Chief executive Mark Lawrence expects TClarke to remain profitable this year and is cautiously optinistic about 2021 prospects

The firm also reported a strong rebound in tender opportunities since April, bidding for £600m of projects, mainly in the datacentre and infrastructure markets.

Many of the specialist contractor’s key sites were closed for up to three months, knocking first-half revenue by 38% to just £106m.

TClarke enjoyed a strong first three months of 2020, maintaining its 3% underlying operating margin on a turnover of £70m.

But the lockdown impacted second quarter saw turnover fall to £36m. Even during this April – June period, TClarke achieved a small profit as it acted to swiftly to cut costs and utilise Government job retention support.

Overall underlying pre-tax profit for the half fell to £1.7m from £4.6m previously while underlying operating margins were held just above 2%.

Across the regions London and the South performed well remaining in the black with London delivering  3.2% margin.

The Northern business was the only division to fall into the red reporting a £200,000 loss mainly as a result of sites over large parts of the North West and Scotland being closed from March.

Mark Lawrence, chief executive, said: “TClarke has successfully remained profitable throughout the first half of this year.

“The group took early and decisive action to both protect and reposition our business and maximise the many opportunities available in the technology, data centre and infrastructure market sectors.

“The business has paid strict attention to cash collection and our cash position has improved to £7.5m after the cost of our restructuring programme.”

He said TClarke’s banking facilities of £25m have been renewed with the revolving credit facility  extended to August 2024.

“Our order book is strong and we have no shortage of opportunities in Data Centres and Infrastructure. Since the beginning of April we have bid £600m of opportunities,” he added.

 

Latest news

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
7 hours ago

£220m plan to restore secret wartime tunnels approved

Tunnels under High Holborn to become cultural exhibition space
6 hours ago

Student and resi developer Fortis goes under

Cheshire based developer follows construction arm into liquidation
11 hours ago

Construction output falls for third month running

Heavy rain and strong winds blamed for sharp fall in activity in April
10 hours ago

Plan in for Leeds 27-storey block of flats

390 flats planned at former Morgan Sindall office site
11 hours ago

Firms readied for £1.5bn Parliament estate upkeep deal

Invitation to tender due to go out next month
22 hours ago

Balfour wins design for £690m Skye transmission job

Main work contract for 137km power line to be awarded later this year
10 hours ago

Amey switches kit supplier

Deal with HSS was worth £24.5m a year to rental specialist
11 hours ago

Track workers scatter to avoid runaway rail trolley

Track trolley careers 1km towards work site
11 hours ago

Direct delivery model pays off as Murphy profit soars to £67m

Group operating margin jumps from 3% to 5% in record year
1 day ago

Ex-Galliard boss to lead Battersea next building phase

Don O’Sullivan joins as plans advance to start phase 3C of power station redevelopment
1 day ago

£100m Digbeth 33-storey flats job out to bid

483 flats will be delivered for Clarion housing association
1 day ago

Van Elle fined £233,000 after piling rig kills driver

Court hears how tragedy was caused by poorly maintained plant
1 day ago

Renew buys utilities contractor Excalon

Infrastructure giant expand into electricity transmission market with £26m deal
1 day ago

Planning for new homes plunges to record low

Home builders call for urgent action from incoming government
1 day ago

JTRE starts £400m 21-floor London tower scheme

Office block and 64 affordable homes to be built at 220 Blackfriars Road site
2 days ago

R G Carter construction profits up despite 24% revenue fall

Selective client choice help profit jump to £6m from £1m previously
2 days ago

Refurbs power London office work to record high

London Office Crane Survey office work starts exceed 4m sq ft for record third quarter
2 days ago

Knight Build owed money for work on UK’s poshest street

Contractor takes legal action over unpaid bills on new luxury flats complex
2 days ago

Winvic ranks top of May contracts league

Large residential scheme in Leeds caps strong haul of orders
2 days ago

Bid race starts for up £95m repairs to PFI hospital

Roseberry Park Hospital in Middlesbrough hit by serious defects
2 days ago

Building Safety changes slow down construction recovery

Confused market contains paradox of falling workload and contractors claiming they are too busy
2 days ago

Wates rejigs businesses as veteran leader retires

Wates Construction Group MD Paul Chandler to retire at end of year
6 days ago

Scaffolder dies from chemical burns

Tata Chemicals Europe fined £1.125m after death of Altrad scaffolder
5 days ago

M&E firms warn of persistent skills shortages

Shortage of adequately skilled workers blamed for slow growth
5 days ago

Southern Water names consultants for AMP8

Seven firms to share £240m in professional services spend
6 days ago

Construction buyers see momentum building

Contractors gearing-up for future growth as workloads and confidence rise
6 days ago

Bouygues bags £80m London NHS diagnostic centre job

New five-storey scanning facility to be built at West Middlesex University Hospital
6 days ago

London £3bn schools framework out to tender

SMEs allocated slots on London Construction Programme education framework refresh
6 days ago

Berkeley’s £270m Bath gas works scheme approved

House builder plans to build over 600 flats on banks of River Avon
6 days ago

Contractor services