Clark Contracts pre-tax profit dives to just £160,000

Clark Contracts’ latest financial results show a steep dive in profitability - the latest figure of £160,000 is less than a quarter of the pre-tax profit figure in the previous year.

While profitability dived, Clark’s turnover shot ahead in the 12 months to 31 October 2006 to reach £45m, representing a rise of £15m on the previous year’s figure of £30m.

Steve Clark, executive chairman, said: “Unfortunately growth has not been without problems. We entered into, let’s say, some less than perfect contracts last year, and with some staff appointments which did not work out, this has resulted in a difficult year.

“However, we go forward with our usual positive but measured outlook, looking to achieve a similar turnover to 2006 but with a greater emphasis on quality.

“As you know, it is all about leadership. I have tremendous faith in my current directors, senior managers and staff.”

After paying out a dividend of £340,000 in 2005, there was no dividend last year.

Cash stands at £2.6m which is slightly down on the previous figure of £3.0m.

Clark’s highest-paid director received a £130,000 salary payment. The group has 230 employees and the company contributed a total of £450,000 towards their pension scheme.

Clark was a one-man business when founded in 1978. It now undertakes contracts worth up to £7m and is particularly active in the leisure, retail, office and public sectors.

When asked further as to the reason for the drop in profitability, the company issued a statement saying: "The results reflect a pension fund contribution of £410,000 made to our chairman, Steve Clark."