T Clarke鈥檚 interim results for the six months to 30 June 2012 show underlying operating profits for the period were 拢1.6m, down 36% from 拢2.5m for the same period last year..
Pre-tax profit was down to just 拢500,000 (2011 H1: 拢1.4m) at a margin reduced from 1.5% to just 0.5%.
Nevertheless, chief executive Mark Lawrence was satisfied that the company had kept out of the red, given current business conditions. "I am pleased to report that T Clarke has remained profitable and cash generative in the face of extremely challenging market conditions,鈥� he said.
He added: 鈥淲e are delighted that our forward order book has strengthened to an impressive 拢230m.聽 Whilst our core markets face prolonged margin pressures, we continue to have a proven track record for delivery on the UK's most iconic projects, none more so than can be seen across the London skyline, The Emirates Cable Car, The Shard, Westfield Stratford City and the London 2012 Olympic Stadium.
鈥淚n 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."
Mr Lawrence said that a key objective for the next 18 months is to develop a 鈥榳hole life care鈥� service for homeowners whose NHBC warranty has expired. 鈥淲ith an average of 1,000residential units being completed every year we believe this could be a significant area of growth in the residential sector over the next five years,鈥� he said.
Interim results by division
T Clarke - South
Revenue in the South was 拢60.7m (2011: 拢67.1m) and operating profit was 拢0.2m (2010: 拢3.4m), reflecting the tough market conditions in the London commercial sector.聽
Underlying operating profit was 拢0.7m (2011: 拢0.6m), after adjusting for 拢0.2m restructuring costs (2011: 拢0.3m), 拢0.2m long term employee benefit charges from the acquisition of DG Robson in 2010 (2011: 拢0.2m) and 拢0.1m share based payment expenses (2011: 拢nil).聽
T Clarke - North
Revenue in the North increased by 拢7.3m to 拢23.2m (2011: 拢15.9m).聽 Operating profit decreased by 拢0.5m to 拢0.6m (2011: 拢1.1m).
Underlying operating profit was 拢0.9m (2010: 拢1.3m), after adjusting for 拢0.2m intangibles amortisation (2011: 拢0.2m) and 拢0.1m restructuring charges (2011: 拢nil).
T Clarke - Scotland
Revenue in Scotland decreased by 拢2.9m to 拢6.8m (2011: 拢9.7m), reflecting the impact of the restructuring of the business in 2011 to focus on profitable contract opportunities in its core residential, engineering and IT sectors.聽
Underlying operating losses improved to 拢0.1 million (2011: 拢0.2m) before restructuring costs of 拢0.1m (2011: 拢0.1m).聽
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