“While the recession may appear to be officially over, its effects were still being felt in construction throughout 2013,” said chairman Russell Race, prior to stepping down this year. “Demand from the public sector remained suppressed and private sector confidence, though returning, was by no means translated into the demand that is a feature of buoyant markets.”
Group revenue was up 12% to £217.1m (2012: £193.8m), underlying operating profit was up 10% to £3.2m (2012: £2.9m) and profit before tax was up 42% to £1.7m (2012: £1.2m).
It would have been better but for a dispute with one particular main contractor client, as the chairman explains. “In January 2014 we reported that one major contract was nearing completion but the final account settlement remained outstanding. We can confirm that the project, within our Mission Critical Division, has now achieved practical completion, however it is disappointing that while TClarke complied with its contractual obligations diligently and proactively, the principal contractor continues to frustrate the account settlement process. The board, having reviewed an independently produced assessment of our account, continues to believe that we should vigorously pursue our full entitlement. At this stage we continue to recognise no profit or loss on this contract. As a result our year end cash position was also impacted but we recorded a net cash position of just over £1m as at 31st December 2013.”
Commenting on the year’s performance, chief executive Mark Lawrence said: "The company performed strongly last year, despite continuing challenges facing the construction sector. We were pleased to secure a number of new prestigious projects throughout the UK and our order book now stands at £250m. I still believe there are considerable opportunities in the UK construction market. Looking ahead for the rest of this year, as our markets recover we feel confident that we are well positioned to resume our growth. As a sign of our confidence we have increased the final dividend by 5%."
Russell Race retires as chairman at the company’s AGM on 9th May. He will be succeeded by David Henderson, a former banker.
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