Trading Update : Record Forward Order Book extends to £525m
TClarke plc (“TClarke” or the “Group”), the Building Services Group, today issues a trading update for the period from 1 July 2021 to date.
Trading Update
We are pleased to report that volumes have accelerated during the second half of the year as the Group implements its plan to achieve £500m revenue per annum by the end of 2023. As previously reported, revenue and profit for 2021 are heavily weighted to the last six months of the year, particularly in the London business, where revenue in the last quarter of 2021 is at a record high. Importantly, we are not experiencing any material shortages that impact our ability to meet delivery programmes on our projects.
As a result, the Group is pleased to report it continues to trade in line with expectations for the full year ending 31 December 2021.
Outlook and Order Book Growth
At 30 June 2021 we reported that the business had reached a significant strategic milestone with the forward order book in excess of £500m for the first time. At 31 October 2021, the forward order book had increased further to £525m; in excess of £320m as at that date (2020: £257m) was already secured for 2022 with many other significant opportunities in our bid pipeline.
As a result of the continued strength of the Group’s forward order book and the proportion of the order book already secured for 2022, the Board now expects revenue for the year ended 31 December 2022 to be ahead of market expectations at £410m.
The Group has five key market sectors: Infrastructure, Residential & Hotels, Engineering Services, Technologies and Facilities Management. Technologies is a major growth area and key to achieving £500m. It is therefore pleasing to report that the Board now expects one third of Group revenues to come from Technologies in 2022, up from under 15% in 2020.
Our long-standing, high quality reputation and the strength of the relationships with our blue-chip clients is a key asset for TClarke. Furthermore, our strong balance sheet continues to be a significant differentiator and enables us to win and deliver projects of a scale which positions us well for further growth.
We approach the new financial year in a strong position, both operationally and financially which gives the Board confidence for the Group’s prospects for delivering our £500mrevenue target by the end of 2023.
Date: 25 November 2021
Ends
The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulations (EU) No.596/2014.
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