Firm hit by 拢3.5m cost of dealing with reverse VAT charge
M&E contractor T Clarke returned to the black in the first half of the year with the firm reporting a record order book of more than 拢500m.
The company, which is working on the Facebook scheme at King鈥檚 Cross as well as the 8 Bishopsgate tower in the City of London, said pre-tax profit was 拢1.9m, up from the 拢1.5m interim loss it suffered last year when the firm鈥檚 workloads were ravaged by the coronavirus pandemic.
Turnover in the six months to 30 June was up 30% to 拢138m with the Clarke saying it was on track to meet its 拢500m turnover target by 2024 which it set itself earlier this year,.
It added that its order book had grown to 拢503m during the period with much of that coming from the growing technology sector which has seen it land work on three data centre schemes during the period. The increase in work from technology was 169% to 拢132m.
It said its biggest business, London, would deliver 鈥渧ery significant growth in volumes in the second half鈥� with two thirds of its income and 80% of profit from the region due to be accounted for in the six months to December.
Clarke said that a one-off 拢3.5m cost of dealing with the reverse VAT charge, which was introduced in March after being delayed by nearly 18 months, and paying back 拢1.1m in VAT deferred because of the covid-19 pandemic cut its net cash down to 拢2m from 拢7.5m.
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