8th Oct 2014 06:31
LONDON (Alliance News) - Building services company T Clarke PLC Wednesday said it expects to report a significant drop in profits for the full year on the back of a big loss taken on a contract dispute in its Mission Critical arm and a smaller writedown on an insurance claim made against one of its subsidiaries.
The company said the loss from the Mission Critical project, which was not specified but which the group said would be "sizeable", will result a "significant" fall in profits for the full year, with underlying pretax profit now expected to be GBP0.5-1 million.
T Clarke said it had decided against entering litigation on the money owed under the project and said it has secured GBP25 million worth of projects with the main contractor on the scheme.
The group also said it would take a one-off hit of GBP0.2 million in the second half in order to resolve an insurance claim against an unspecified subsidiary for work carried out in 2007, prior to T Clarke acquiring the business.
The group said its order book at September 30 was at GBP280 million, up from GBP275 million at the end of June, with GBP160 million in orders for 2015 and GBP70 million for 2016 and beyond. It also said it was in the latter stages of negotiation on other high-value projects.
By Sam Unsted; [email protected]; @SamUAtAlliance
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