TClarke sees profit margins bounce back

Grant Prior 4 years ago
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TClarke has seen its post-lockdown recovery continue in the third quarter of this year as margins return to target levels of 3%.

An upbeat trading statement this morning saw the building services specialist predict £6m profits this year from a turnover of £240m.

It added: “TClarke has continued to deliver an encouraging trading performance; all of our sites are now open and we are pleased with improving levels of productivity being achieved.

The Group has demonstrated its resilience despite the inevitable impact on the business; by taking action so quickly TClarke remains financially strong and profitable.

“TClarke achieved its target 3% underlying operating profit (EBIT) margin in Q1, broke even on much reduced volumes in Q2 and is pleased to report that it expects to return to 3% EBIT margin in H2.”

 A restructuring programme has resulted in annual savings of £4m for a one-off cost of £3.6m.

TClarke said: “As a result of the current market conditions and activity levels, the Board is now in a position to reinstate guidance for the 2020 financial year.

“Accordingly, we currently anticipate turnover for 2020 to be circa £240m and underlying EBIT to be approximately £6m.

 “The strength of the business is underpinned by our forward order book which remains at a near record of £410m. Throughout the year there continues to be high levels of bidding opportunities.

“Assuming there are no further significant business interruptions arising from any widespread secondary lockdown the Board is cautiously optimistic for the medium term outlook and continuing to meet our 3% EBIT margin.”

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