T Clarke announced interim results today which showed pre-tax profit dropped to £500,000 for the six months to June 30 2012 from £1.4m last time on turnover down to £90.7m from £92.6m.

Chairman Russell Race warned: “Our growing order book provides us with visibility although the margin pressures we face mean that underlying profits will remain subdued and it is highly likely that full year profits will be significantly lower than originally expected.”

T Clarke is struggling to turn a profit despite winning some of the highest profile jobs in the industry including the Shard, the Olympic Stadium and Westfield.

Intense competition in the M&E sector means T Clarke is happy to be making any money at all as rival contractors go to the wall.

Chief executive Mark Lawrence said: “I am pleased to report that T Clarke has remained profitable and cash generative in the face of extremely challenging market conditions.

“In these uncertain times clients, principal contractors and our supply chain continue to be reassured by the stability and strength of T Clarke and the diversity and resilience of our business.”

The firm was also hit by delays in contract awards as clients try to drive down prices.

It said: “Frustratingly opportunities are taking longer to convert into firm orders, often as a result of a ‘value engineering’ process.

“We are however encouraged with the opportunities in data centres, rail and new London commercial office schemes. In addition we are pursuing opportunities to grow the facilities management and green technologies businesses within the group.”