M&E contractor T Clarke has said its UK managing director will step down following a profit warning and what it called 鈥渢urbulent鈥� 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: 鈥淎 strategic review of the group鈥檚 operations has been carried out and as a result the board does not expect to meet market expectations for the year.鈥�

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 拢170m, compared with 拢175m in May.

It said: 鈥淒espite 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.鈥�

Kevin Cammack, an analyst at Cenkos Securities, said the action the company was taking to cut costs and offload its regional businesses made it 鈥渢he most positive profit warning imaginable鈥�.

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