TClarke ‘on track’ despite revenue failing to meet expectations

TClarke has told investors that it expects to hit its revenue target for next year despite income for 2022 being lower than anticipated.

In a trading update and outlook for the financial year, the mechanical and electrical specialist said that £40m of the £450m in revenue it had planned to book for 2022 would now be reprogrammed for next year.

However, it said it was still on track to deliver on its 2023 revenue target of £500m, despite challenging economic headwinds.

The group’s total secured order book at the end of October was £545m, up from the year-end position of £534m, with £384m already secured for next year.

“Encouragingly this is spread across a diverse range of clients in different sectors across all our UK businesses,” it said.

“Our high-quality secured order book continues to provide good forward visibility, despite a challenging market backdrop stemming from UK political instability, increased general market uncertainty, continued supply chain challenges, inflationary pressures and rising interest rates.”

Due to the strength of its balance sheet, it had at its disposal £65m of bonding capacity – one of the largest in its peer group, the firm said.

It added that it was currently tendering in excess of £1bn of opportunities and was expecting decisions on approximately £500m worth of tendered projects by early next year.

In March, the company recorded pre-tax profit of £7.8m due to surging demand for data centres on the back of the home-working boom and an increased need for cloud storage.

“The group is trading well and I am proud of the performance we are delivering,” said chief executive Mark Lawrence.

“Our teams across the country are doing a fantastic job in continuing to win and deliver record volumes of high-quality work, in spite of the challenging economic environment.

“We remain on track to deliver our strategic target of £500m revenue in 2023.”

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