2nd Aug 2016 07:59
LONDON (Alliance News) - TClarke PLC on Monday said demand for its services continues to be strong with opportunities across the group "encouraging", after its revenue grew in its first half.
The building services company said its pretax profit edged up to GBP1.7 million for the six months ended June 30 from GBP1.6 million a year earlier, thanks to a rise in revenue to GBP121.6 million, from GBP107.3 million.
TClarke said operating margins were slightly lower at the end of the period, at 1.7% from 1.9% a year earlier, reflecting the mix of work and stage of completion with a number of significant schemes having only recently started on site.
However, the company said it was continuing to see strong demand for its services, in particular noting the "excellent levels of activity" within its estimating teams, and said a number of notable schemes are currently being bid which will provide "good revenue" for 2017.
TClarke noted comments from "certain UK based developers" regarding the UK vote on European Union membership, but said it is "too early to evaluate" any impact and was awaiting more clarity on the terms and timing of the UK's exit from the EU.
"TClarke does procure materials from the EU and items such as cable are quoted in dollars. However currency fluctuations should not affect any current projects due to the method we use to lock in prices with our supply chain. We remain vigilant to pricing risks with current tenders and future works," the company said.
The forward order book, which reflects contracts where TClarke has a firm commitment to proceed, was fully replenished and at the period end stood at GBP320.0 million, in line with a year earlier.
TClarke maintained its interim dividend at 0.50 pence per share.
"We are pleased to be presenting a solid performance based upon our strategy of targeting quality projects and clients and are excited about current bidding opportunities that will give us good revenue opportunities into 2017 and beyond," said Chief Executive Mark Lawrence.
Shares in TClarke were up 0.6% at 68.75p on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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