M&E specialist reports full-year loss, but says problem contracts were resolved last year
M&E contractor T Clarke has reported a 拢700,000 full-year pre-tax loss due to two problem contracts, in mixed results for the 2014 calendar year.
T Clarke鈥檚 profitability for the period was dragged down by costs on two problem contracts, - a damages claim on a contract acquired with one of its subsidiaries and a protacted final account settlement on a contract in its 鈥榤ission critical鈥� division. Today the firm said both problem contracts were resolved in 2014.
The pre-tax loss compared to a 拢1.7m pre-tax profit the previous year. Underlying pre-tax profit - which strips out exceptional costs - dropped to 拢0.7m in 2014, down from 拢2.6m the previous year.
T Clarke posted record revenue and order book figures for 2014, with a 5% rise in revenue to 拢227.5m, up from 拢217.1m, while its order book was north of 拢300m.
T Clarke chairman David Henderson said that aside from the problem contracts 鈥渋t was a successful year鈥� and the firm was taking advantage of 鈥渟lowly improving conditions鈥�.
He added: 鈥淚n the second half of the year, you could say 鈥榯he decks were cleared for action鈥� - and we saw action in the shape of a series of significant contract wins in London and also, though less widely reported at the time, across the rest of the UK.鈥�
Contracts secured during the year included packages of work on three BBC studios at Television Centre in west London, office building 10 Fenchurch Street in central London, the Lyell building for Herriot Watt University in Edinburgh and projects for South Nottinghamshire Academy and Sheffield College.
The firm restored a dividend payment to shareholders that it cut last August, meaning the total dividend for the year will be 3.1p.
Chief executive Mark Lawrence said: 鈥淲ith a record order book and early signs of margins beginning to improve the board looks forward to 2015 and beyond with renewed confidence.鈥�
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