Building services contractor T Clarke expects full year results for 2010 to fall below market expectations and has warned that 2011 results could fall again.
In a trading statement released today the group warned 2011 would be a challenging year but maintained that its longer-term prospects are encouraging.
Group chief executive Mark Lawrence said: “Whilst the competitive market has adversely impacted the group’s performance, we remain confident about the long-term potential. There are a number of significant projects commencing over the next 12 months.”
The group said it continues to maintain its positive cash position and on 31 December, 2010 cash balances were in excess of £7m with no borrowings. It said: “At the end of the period under review our forward order book remains impressive, standing at £190m (£160m December 2009).
“T Clarke is well positioned for the eventual upturn, particularly in the London commercial sector which is seeing significant activity with several large office development schemes progressing.”
The firm said its £17m investment in two ‘strategic acquisitions’ were making a positive contribution to group with both businesses trading in line with expectations.
Among the projects currently being worked on by the group are the Olympic Stadium in London, new education projects and a flight crew training centre in greater Manchester for Oxford Aviation.
Three group subsidiaries have been rebranded T Clarke: Aylward EMS Ltd, based in Huntingdon and Anglia Electrical Services, based in Kings Lynn, will come together as one business under the name of T Clarke East.
Peterborough-based T Clarke Midlands will be expanded to incorporate Mitchell and Hewitt based in Derby.
T Clarke will announce its preliminary results for the year ended 31 December 2010 on 18 March.