Pre-tax profits fall of 22% blamed on challenging markets and problems with a large contract

T Clarke鈥檚 expansion plans received a setback today as results from last year revealed a 22% drop in pre-tax profits.

The building services contractor said problems with a single large contract in Scotland affected its performance. In 2009 the firm accrued pre-tax profits of 拢7.3m, decreasing to 拢5.7m in 2010.

Revenues however edged up 2% from 拢175.5m to 拢179m last year. The firm also invested 拢17m in two strategic acquisitions last year - D&S Engineering facilities and DGR. According to the company both are trading in line with expectations.

Mark Lawrence, group chief executive, said: 鈥淭he market that we operate in has continued to be challenging. However, we have made good progress to reposition the group to enable us to offer a wider range of services to our clients.

鈥淏oth our recent acquisitions have made a useful contribution to the group鈥檚 performance.鈥�

Russell Race, group chairman, said: 鈥淥perating profits in London and the North held up well under the pressures which the entire construction sector faced during 2010.

鈥淥ur Scottish subsidiary encountered difficulties with a specific large contract. It also had to bear the brunt of the bad weather in December when many sites were forced to close for a considerable period.鈥�

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