T Clarke hit by increasing copper costs

The disjointed methods of buying copper in the various regions of T Clarke, the electrical specialist contractor, has magnified the stresses caused by the run-away increase in the price of copper. The impact of copper price rises on Clarke this year so far has run to £500,000. This figure could have been trimmed back if the group had been buying on a group-wide basis, as some regions have been buying badly. The group has warned that profit in the year to the end of December will fall short of expectations.

There has been slippage in the timing of two major projects, one of these being White City, which has been handed over by Multiplex, with Westfield now responsible for completing the project. The upshot is that Clarke is having to make redundancies. The number runs to less than 50.

Clarke's profit will be hit further by a £400,000 bill from the tax office. This relates to the affairs of Smith Contracting Services, bought by Clarke in January 2005. The issues took place in the period prior to the acquisition.

Smith's managing director is currently appearing in an appeal before the Employment Tribunal in Scotland against the termination of his employment.

[Contract Journal, 06  December 2006, p 3]