黑洞社区

黑洞社区 services specialist T Clarke鈥檚 pre-tax profit has tumbled 75% in the first half of 2014 after it was forced to pay 拢600,000 in legal costs over a contract dispute.

In its results for the six months 30 June 2014, published today, the firm reported a pre-tax profit of 拢200,000, down from 拢800,000 over the same period of 2013.

However, the fall in pre-tax profit was largely due to paying out 拢600,000 in legal costs because of a contract dispute.

Without these costs pre-tax profit would have remained flat at 拢800,000.

In the accounts, the firm said one of its subsidiary companies was 鈥渙ne of a number of parties鈥� that were subject to a damages claim for work carried out in 2007, before T Clarke bought the firm.

It said: 鈥淒amages were awarded against the company, which were settled by the company鈥檚 insurers. However, following an unsuccessful appeal the apportionment of costs exceeded the insurance cover in place.鈥�

T Clarke said it had received legal advice that the award of costs against it would not result in it breaching its 鈥渙bligations under its banking facilities鈥�.

It added that while its banks had not confirmed this view they remained supportive of the firm.

T Clarke also reported a fall in revenue to 拢110m in the first half of 2014, down from 拢115m in the first half of 2013.

Mark Lawrence, chief executive, of T Clarke, said the firm鈥檚 order book currently stands at 拢275m of work 鈥渙ffering visibility for the second half of 2014 and through into 2015 and beyond鈥�.

He added: 鈥淭he group is seeing early signs of a return to an environment where sustainable growth can be achieved, although there still remain pockets of the market where unsustainable bidding practices by others continue.

鈥淲e are already seeing far less fixed price bids being demanded by clients and more opportunities to negotiate and lock in our resources鈥�