T Clarke has seen its forward order book increase by £50 million in the last year but has announced plans to wind down its operations in Preston.
In a trading update issued today, the building services contractor said it was trading in line with expectations as its forward order book now stands at £220m compared to £170m in 2009.
The firm said that it will now serve the North West region from a single division - therecently acquired D&S Engineering Facilities – in Lancashire. As a result T Clarke will wind down a smaller operation, J.J. Cross, based in Preston.
The statement said: “We operate in highly competitive markets where margins continue to be placed under pressure and the final award of a project in this current climate can be protracted.
“Our strategy is to focus on existing relationships with clients and contractors whose developments and projects are not affected by current government spending plans, whilst seeking out new and further opportunities in the markets we do not currently fully serve.
“Whilst remaining cautious, our outlook for the remainder of 2010 remains unchanged and the Board continues to be confident in the long term strengths and resilience of the business.”
T Clarke’s interim results for the six months to 30th June 2010 will be announced on 27 August.