LONDON (Alliance News) - Building services firm TClarke PLC on Tuesday reported a strong increase in profit for the first half of 2018, with all regions doing well.
For the six months to June, TClarke's pretax profit from continuing operations doubled to GBP4.1 million from GBP2.0 million, while on an underlying basis the figure increased 48% to GBP3.7 million.
Revenue from continuing operations was up 7% to GBP153.5 million, and TClarke's net cash position has almost doubled to GBP4.7 million from GBP2.4 million.
Its current order book stands at GBP370 million, 6% lower year-on-year, and all revenue for 2018 has now been secured.
The company is paying an interim dividend of 0.66 pence per share, 10% higher than the 0.60p it paid a year before.
TClarke said it was "extremely" pleased with the results, with met its own expectations.
Revenue and underlying operating profit increased 14% and 5.7% respectively in its London & South East segment, which makes up over half of group revenue.
In Central & South West, revenue increased by 51%, while it swung to an underlying operating profit of GBP800,000 from a loss of GBP2.2 million as performance improves.
In the North segment, revenue fell 39%, while underlying operating profit dipped 27%, but the division is expected to meet its profit target for 2018 overall.
TClarke's Scotland arm posted a revenue decline of 14%, with underlying operating profit slipping 40%, but the division has secured a number of new contracts during the half.
TClarke has made a strong start to 2018, it said, with core operations in London & South East performing well. As a result, pretax profit and revenue for 2018 are guided to meet expectations of GBP7.0 million and GBP300 million respectively.
In 2017, it posted pretax profit of GBP7.1 million on revenue of GBP311.2 million.
Chief Executive Mark Lawrence commented: "The board is extremely pleased with these results which demonstrate that TClarke is in excellent shape.
"The success of our strategy targeting repeat work for blue chip clients, sensible growth, focusing on improving margins and seeking new markets aligned to our core business, is beginning to be reflected in our results."
Shares were up 4.4% on Tuesday at a price of 87.40p each.
