Engineer and contractor says 2008 results will exceed market expectations, with balance sheet strong
Electrical engineering and contracting group T Clarke has said its 2008 results will exceed market expectations, thanks to strong trading in the UK regions.
In a trading update for the period 1 July to 18 November, it said: “Our broad sector of activities and geographical spread have helped to balance the recent downturn in commercial property and residential developments in the short term.”
One recent consensus forecast figure for the UK group is for pre-tax profit of £10.5m on turnover of £218m.
The group added that the recently completed Westfield shopping centre in London and its work alongside Sir Robert McAlpine as preferred bidder for the Olympic stadium will also boost trading.
It also pointed to a strong balance sheet and net cash of £26m. The statement said: “Given the current economic climate, our strategy is to de-risk our future business and to implement sensible and realistic cost base reductions.”
T Clarke's 2009 order book stands at £180m, although the firm said it is relatively cautious about its expectations for next year.
It added: “We are of the opinion that although markets are challenging, they are likely to stabilise during late 2009 with the group seeing an upturn in market conditions in 2010.”