T Clarke logs £3.9m interim pre-tax profits

T Clarke, the electrical specialist contractor, has made a £3.9m interim pre-tax profit. Chief executive Pat Stanborough said that the result was achieved “despite the recent difficulties the group has faced”.

Turnover (six months to 30 June) was slightly down at £96m (figure in comparable period last year: £100m). Profit in the first half of 2006 ran to £4.0m.

Stanborough said that the outlook is encouraging. The group’s forward orderbook has grown to £205m, of which £105m is scheduled for completion this year.

T Clarke’s core operations in London and the South East are currently operating at around 80% of capacity and this division is expected to generate a turnover of £90m in the full year.

“We are taking steps to increase our capacity in anticipation of an increase in our workload,” said Stanborough. “We expect to have over 100 apprentices in training by the year end.

“Operations are in excellent shape and well positioned to take on the current commercial property development boom.”

Most of T Clarke’s regional businesses are performing well, though two of them are apparently still a headache – Stanborough did not reveal which.

Senior management changes have taken place and performance is still under review. “We are confident the problems will be overcome and overall, our regional business revenues and margins will be much stronger going forward,” said Stanborough.

Turnover from T Clarke’s regional businesses this year is expected to run to £110m. Their forward orderbook stands at £90m, with £55m of this scheduled for completion during 2007.

The group’s net cash generated in the first half of 2007 from operating activities was £3m compared with net cash absorbed of £500,000 in the same period last year.

Net cash rose by £1m, after a £2.8m decrease last year, thanks in part to the regional companies “pursuing debt collection”.