Construction engineering company T Clarke PLC (LON: CTO) announced that their trading during the second half of the financial year had continued with the same strong momentum as the first.
Ending the first half with a 25% year-on-year increase in underlying operating profit, the Company said they expected to report an underlying operating profit before interest and taxation of approximately £10 million, following a second half where the Company had continued trading ‘strongly’.
This would reflect a jump from FY18, where the Company finished at £8.8 million, and would be in line with the Company’s strategy to achieve their ‘key financial target’ of an underlying profit margin of 3%.
Concurrently, the Board expects results for the full year ended 31 December to be in-line with market expectations.
The Company added that its order book stands at £361 million, and they have already secured £232 million of revenue for 2020.
The Company went on to finish its statement,
“In addition, our teams across the UK are actively negotiating a number of major schemes which provide further visibility for both 2020 and 2021.”
“Our long-standing, high quality reputation and the strength of the relationships with our blue-chip clients is a key asset for TClarke. Furthermore, our strong balance sheet continues to be a significant differentiator and enables us to win and deliver projects of a scale which positions us well for further growth. We continue to adhere to a strict bidding policy supporting our sustainable operating margin at 3% going forward.”
“Looking ahead, we approach the new financial year in a strong position, both operationally and financially which gives the Board confidence for the Group’s prospects for 2020 and beyond.”
Elsewhere in property and construction; AFI Development (LON: AFRB) posted underwhelming results, Schroder Real Estate Investment Trust (LON: SREI) adjusted its strategy, Land Securities Group plc (LON: LAND) disappointed and Shaftesbury plc (LON: SHB) booked robust leasing activity
Following the update, T Clarke shares rallied 2.30% or 2.61p to 116.11p per share 28/11/19 13:26 GMT. Their p/e ratio stands at 7.38, their dividend yield is 3.42%.