M&E contractor hit by 拢1.9m of bad debt, but says it was a 鈥榗redible performance in a challenging market鈥�

Profits at M&E contractor T Clarke have been hit by 拢1.9m of bad debt, falling from 拢13.4m to 拢6.8m in 2009.

Turnover was also down, from 拢220m to 拢178m in what the company called a 鈥渃reditable performance鈥� against the 鈥渂ackdrop of a very challenging market鈥�.

In relation to the bad debt, the company statement said: 鈥淲hile our regional business performed well its results for the year were impacted by bad debt. We carefully assess our credit risk but in these uncertain times this is challenging, particularly where established contractors' bankers and other providers of finance take increasingly demanding and short term views.鈥�

The company also announced the acquisition of Lancashire-based engineering facilities management business D&S (Engineering Facilities) for up to 拢11.6m.

Cenkos analyst Kevin Cammack said of the deal: 鈥淚t looks quite positive and should be immediately enhancing.鈥�

Mark Lawrence, chief executive, said: 鈥淟ooking forward, there are some signs of a recovery in commercial property markets. In London we are encouraged by a number of new projects getting underway, which could lead to good opportunities. In the regions we have restructured the management of our operations which should improve the performance in the future.鈥�

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