T Clarke lifts interim pre-tax profit to £5.4m

T Clarke, the electrical specialist contractor, has enjoyed a 39% rise in interim pre-tax profit as it unveiled a figure of £5.4m this morning.

Clarke’s profit in the first half of 2007 was £3.9m.

The latest results, covering the six months to 30 June, show turnover ahead at £110m (comparable figure from the previous year: £100m).

Pat Stanborough, chief executive, said: “Despite the current backdrop of uncertainty, all our core operations are performing well.

“Our plan to diversify the business away from a dependence on the commercial property development sector has gone well and we have a steady flow of work across all the regions we operate in.

“Our forward orderbook is in excellent shape with a strong mix of work due for completion in the current year and beyond. Our cash balance remains strong at £19m.”

Clarke has two operating divisions and their contribution to turnover was:

• £64m – UK Regions
• £45m – London

Pre-tax profit achieved in each of the two parts of the group was:

• £2.8m – UK Regions (previous year: £1.4m)
• £2.3m – London (previous year: £2.4m)

Clarke said that its operations in London and the south east are operating at around 90% capacity and turnover in the full year should run to £100m.

Plans have been put in motion to boost capability in anticipation of increases in workload and the group has 100 apprentices in various stages of training. “We are well positioned to meet the demands of the current market and the run-up to the 2012 London Olympics,” said Stanborough.

The forward orderbook stands at £135m of which £55m is scheduled for completion this year.

Among the regional businesses there were strong contributions from Derby, Leeds, Newcastle and Scotland. Prior-year legacy issues have been eliminated and margins have jumped significantly.

Some regions are experiencing a slight slowdown in residential and small commercial developments while others are benefiting from increased demand in retail, public sector and educational facilities.

The net cash from operating activities was £11m higher at £14m though there was an increase in creditors over the past 12 months, from £2m to £12m.