TClarke Boosts Dividend After Successful 2017, Outlook For 2018 Strong

27th Mar 2018 12:04

LONDON (Alliance News) - Building services firm TClarke PLC increased its annual payout to shareholders on Tuesday after posting solid 2017 results despite a challenging wider market environment.

The company's shares were up 5.9% on Tuesday at a price of 83.80 pence each.

TClarke's pretax profit on a reported basis, from continuing operations, almost doubled to GBP7.1 million in 2017 from GBP3.7 million in 2016. On an adjusted basis, stripping out the amortisation of intangible assets and non-underlying items, the figure rose 5% to GBP6.5 million.

The company's revenue increased by 12% year-on-year to GBP311.2 million.

On the back of this performance, TClarke has increased its final dividend by 7% to 2.90 pence per share. Coupled with its 0.60p interim payout, this takes 2017's total to 3.50p, up 9% year-on-year.

During the year, the company said its forward order book hit record levels, and as at the end of 2017 it had reached GBP337.0 million, 2% higher than the same time a year earlier.

In the London & South East segment, TClarke had "another" strong year, with revenue strong and looking so in 2018 as well. Revenue growth was driven in particular by monitoring & evaluation projects.

TClarke had its most successful year in Scotland to date, it said, with revenue, profit, and operating margins at record highs. In the North, results met expectations, with revenue falling slightly but operating profit maintained.

The firm now expects the South West to meet the performance of the rest of the group in 2018 after a switch in focus to projects that will run to completion beyond feasibility stages. By December, the region had secured all targeted revenue for 2018.

TClarke said it was in a strong position to meet profit expectations for 2018 after a "very good" 2017, and it has set a medium-term target for its underlying operation margin of 3%.

Chief Executive Mark Lawrence commented: "I am pleased to report that TClarke is in an excellent position. We are focused on the future and have a clear strategy to deliver on our five key strategic markets.

"Underlying this, TClarke shows strong and improving cash generation, rigorous risk control, excellent revenue visibility, a balanced quality order book and improving profitability. This financial and strategic strength is allowing us to invest for future growth in our markets, driven by investments in infrastructure and the digital world."

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