One of the UK’s leading specialist contractors, TClarke, has issued a trading update covering the third quarter 2020 (Q3) from 30 June 2020 to date. The firm revealed that it has continued to deliver an encouraging trading performance and is on target to deliver a EBIT profit of £6 million for the year.
TClarke achieved its target 3% underlying operating profit (EBIT) margin in Q1, broke even on much reduced volumes in Q2 and is now reporting that it expects to return to 3% EBIT margin in H2.
The Group said that it has demonstrated its resilience despite the impact of the pandemic on the business. The business undertook a swift restructuring programme that has resulted in savings in excess of £4 million per annum, with 2020 benefitting from £2.5 million of these savings. The cost of the restructuring programme is £3.6 million.
The Board anticipate turnover for 2020 to be circa £240 million and underlying EBIT to be approximately £6m.
In a statement this morning the Group said: “The strength of the business is underpinned by our forward order book which remains at a near record of £410 million. Throughout the year there continues to be high levels of bidding opportunities. Assuming there are no further significant business interruptions arising from any widespread secondary lockdown the Board is cautiously optimistic for the medium term outlook and continuing to meet our 3% EBIT margin.
“Looking beyond 2020 our proven strategy remains to focus on projects and markets that meet our margin and growth criteria. The business is resilient and is agile, being able to shift its resources and focus accordingly. The strategy we have followed has resulted in TClarke being particularly strong in the healthcare, education and data centre market sectors, whilst continuing to serve the commercial office market.”