You are here:

T Clarke give shareholders hope

Created:
18 July 2008
Updated:
30 July 2008
Written by:
Richard Hemming

• Trading remains in line with expectations

• Order book solid at £235m, of which £100m is for this year

• Preferred bidder on several more major contracts

Advertising

During the last property recession, this electrical engineering contractor was hit hard, because landlords of shiny new half-empty office properties delayed paying their bills, or didn't pay them at all. The group's share price performance - down almost 30 per cent in the past year - suggests investors feared a re-run.

But the group seems to be doing better this time around, and it attributed its strong performance to its diversification by sector and geography. It's spent the last few years acquiring regional businesses , and companies with heavy exposure to public sector works. The benefits of this were on show in today's statement, which showed healthy order books and trading ticking along nicely.

"The pipeline remains encouraging from both private and public sources," says Andy Brown, an analyst with Panmure Gordon. The broker is forcasting before tax profit of £10.2m and EPS of 17.9p this year.

IC VIEW:

FairlyPriced

So, this year won't be a problem. But next year might. T Clarke is preferred bidder on a number of contracts, but construction activity is slowing down and much speculative office and retail development is on hold. These deals could still fail to materialise - and this risk suggests it's not yet time to turn positive. Fairly priced, at 150p.

  • Back to top

GLOBAL BANKING CRISIS

Get the latest news here!

Promotional Feature

The world's oldest pets

We all want our pets to live long and happy lives. One of the easiest ways to help your four-legged friend get over life's many hurdles is to get them covered with pet insurance.

by Sainsbury's

Promotional Feature

Turkey Resort Round-up – Beyond Istanbul

Holidays to Turkey tend to focus on the country's magnificent coastline. Dotted with coves and lined with sandy beaches, Turkey is a sun-worshipper's paradise.

by TUI