M&E contractor T Clarke has said its UK managing director will step down following a profit warning and what it called “turbulent” market conditions
The firm, which is electrical contractor on the London Olympics stadium, will also close or sell two of its smaller regional businesses.
In a trading update, the contractor said: “A strategic review of the group’s operations has been carried out and as a result the board does not expect to meet market expectations for the year.”
Barry DeFalco, the UK managing director, will leave the company on 30 September as part of a restructure that will involve an undisclosed number of redundancies.
The company has also made an undisclosed provision for writing off bad debts.
The news comes despite T Clarke reporting in May that there were signs of life returning to the commercial sector. It has a forward order book of £170m, compared with £175m in May.
It said: “Despite 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.”
Kevin Cammack, an analyst at Cenkos Securities, said the action the company was taking to cut costs and offload its regional businesses made it “the most positive profit warning imaginable”.