T Clarke profit warning as MD DeFalco leaves

Electrical contractor T Clarke issued a profit warning today following a review of the group which will result in a round of redundancies and the disposal of two regional operations.

A trading statement said: "Market conditions across the business remain challenging. A strategic review of the group's operations has recently been carried out and as a result the board does not expect to meet current market expectations for the year."

Clarke's planned restructuring programme is expected to lead to the closure or disposal of two of the group's smaller regional businesses.

The company is also extending its cost reduction process with a number of redundancies across the group including the departure of Barry DeFalco, Managing Director UK Regional Operations, who has agreed to stand down from the board and will be leaving the Company on September 30.

One industry expert said: "It's a real shock Barry is going. He's a legend in the industry. He’s been there for years and wins all their work in south east."

The statement added: "Overall the group's businesses continue to trade positively with our key Regional operations in Scotland, Newcastle, Leeds and Derby trading well. The group's order book is solid and currently stands at £170 million.

"The group's cash position remains robust with cash balances of £24m as at 30th June. It is currently the board's intention to maintain the dividend at last year's level.  In addition, in light of the strong financial position of the group, the directors will consider a share buy-back scheme, if in their opinion it is in the interests of shareholders to do so whilst balancing the need to retain cash to support and underpin business growth opportunities.

"Despite the difficult market conditions, the board remains confident that the group will come through the current turbulent trading environment and that the underlying business is strong."

Shares dropped nearly 8% in early trading following the statement