Despite some big contracts and an increase in revenue for the firm, pre-tax profits fell 22%

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T Clarke won Land Securities鈥� Park House on Oxford Street

黑洞社区 services specialist T Clarke reported a 22% drop in pre-tax profits for 2010, a year which was marred by restructuring costs, poor markets and a decrease in its cash levels.

Despite reporting a 拢3.5m increase in revenue, which ended the year at 拢179m, compared with 拢175.5m in 2009, pre-tax profits at the firm fell from 拢7.3m in 2009, to 拢5.7m in 2010. Investment of 拢17m in acquisitions and working at reduced margins took its toll on the firm鈥檚 cash levels, which fell from 拢23.2m in 2009, to just 拢7.2m in 2010.

But it wasn鈥檛 all bad news for the firm, which has won prestigious contracts to work on Land Securities鈥� Park House and Sellar Property鈥檚 Shard. The firm鈥檚 two most recent acquisitions, DGR and D&S, have been integrated into its operations and are 鈥渂oth trading in line with expectations and making positive contributions to the group鈥�.

As a result of the takeovers and contract wins, its order book increased, from 拢160m in 2009, to 拢190m at the end of 2010. But its markets are not expected to improve in the immediate future.

The resurgence in the London commercial sector is expected to provide opportunities to win work, although the real benefits of this won鈥檛 be experienced until 2012.

Mark Lawrence, T Clarke chief executive, said: 鈥淭he difficult conditions that we have faced during the last two years show little sign of immediate easing. Our Scottish subsidiary encountered difficulties with a specific large contract. It also had to bear the brunt of the bad weather in December when many sites were forced to close for a considerable period.

鈥淏ut the longer-term prospects for the group are encouraging. The board remains confident in the resilience of the business
and we believe that the group will benefit from the wider range of services that we now offer to our clients.鈥�

During the year, T Clarke restructured into three distinct divisions, Scotland, the North and the South, including London.

Throughout 2010, revenue was split 拢21.2m from Scotland, 拢58.4m in the North and 拢99.5m in the South. The South was the group鈥檚 most profitable region, with operating profit during the year of 拢5.1m, beating the North into second place with 拢1.9m, while the Scotland division made an operating loss of 拢1.4m.

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