T Clarke profits jumping and £26m of cash in hand

T. Clarke, the electrical contracting specialist, continues to trade so strongly that profits at the end of the year are on line to exceed market expectations.

Clarke’s pile of net cash runs to £26m… and not a penny was invested (or lost) in Icelandic banks.

Clarke issued a trading statement on the Stock Exchange this morning covering the period from 1 July to 18 November.

Clarke said that the group continues to perform strongly.

There have been successful contract completions and improved trading results achieve in the regional businesses, some of which had previously needed a sort-out.

“Our broad sector of activities and geographical spread helped balance the recent downturn in commercial property and residential developments,” said Clarke.

“Westfield London was opened to the public on 30 October and we are proud to have played an integral part in a team which delivered, on time, the largest covered inner-city shopping centre in Europe.” 

The group is working alongside Sir Robert McAlpine, as preferred bidder, towards agreeing our bid for the Olympic Stadium. “We are confident that this can be achieved and we look forward to a start on site in early 2009,” said Clarke in its statement today.

An insight into Clarke’s financial details showed that “positive cash management remains our key focus”.

With £26m in hand, cash deposits are placed on instant access or short term deposit and are spread across a number of banks in order to minimise exposure, said the statement.

Victoria French, finance director, added: “It is an advantage to have a strong cash balance. Clients like that.”

Looking ahead, the group said that business remains resilient. The orderbook for 2009 stands at £180m.