Tough trading for T Clarke

Tough trading conditions in its core markets led T Clarke to post a small drop in turnover and a 17% decline in pre-tax profit last year. Turnover slipped from £144m to £143.3m, while profit fell from £10.7m to £8.9m.

Chairman Russell Race said: "We continue to experience very different trading conditions across various parts of the group. While the regional operations are in general enjoying satisfactory levels of demand, London and the Home Counties are still patchy, with many large contracts taken to planning only to be still awaiting final approval.

"Additionally, margin pressure continues unabated throughout the country and particularly so on the larger, long-term contracts."

More positively, he noted that there was a "significant " increase in the volume of profitable smaller contracts in other regions.

Race expects this year to be similarly tough, but "the outlook for 2005 and beyond looks particularly bright".

While announcing its results, the group also revealed that it has bought Derby-based M&E contractor Mitchell & Hewitt for £5.9m. In the year to March 2003, Mitchell & Hewitt reported a turnover of £10.4m and a pre-tax profit of £701,000.

Race said further acquisitions in the regions remain a possibility.