T Clarke has posted a pre-tax profit of 拢6.8m for the year ending 31 December 2009, down almost half on the 拢13.4m reported in the previous year.
The M&E specialist was hit by 拢1.9m of bad debts (拢2008: 拢1.5m), after a number of its customers went into administration. It also incurred restructuring costs of 拢1.4m (2008: 拢400,000).
Turnover was also down at 拢178m, compared to the 拢220m posted a year ago.
T Clarke has net cash of 拢23.2m, a 24% reduction on 2008鈥檚 figure of 拢30.4m.
Its order book stands at 拢160m, identical to the previous year鈥檚 figure, and the contractor said it has a further 拢40m-worth of contracts under negotiation.
T Clarke performed strongest in its regional businesses, which delivered revenue of 拢109.8m (2008: 拢118m) and increased operating profit of 拢3.2m (2008: 拢2.4m).
It has restructured its regions into three divisions 鈥� South, North, and Scotland 鈥� after selling its Kestrel subsidiary during October, and winding down GDI.
T Clarke鈥檚 London business was badly hit by the struggling commercial sector, with revenue dropping to 拢67.1 (2008: 拢102.1m), and operating profit down by more than two-thirds at 拢2.9m (2008: 拢9.8m).
The firm also announced the acquisition of Accrington-based D&S (Engineering Facilities) for a cash consideration of 拢11.6m.
Mark Lawrence, chief executive officer, said: 鈥淭he year has proved to be challenging, but the group is in good shape. I am pleased that we have maintained our leading position in many of our markets, despite increased competition and pressure on margins. Financially the group is in good shape with a significant cash balance at the year end. This has given us the resources to consider further opportunities to grow by acquisition.
鈥淭he acquisition of D&S widens the range of services we can offer clients. It will give us the platform from which we can build a broader national facilities management business that compliments our existing activities.
鈥淟ooking forward, there are some signs of a recovery in commercial property markets. In London we are encouraged by a number of new projects getting underway, which could lead to good opportunities. Our order book is robust with some very encouraging prospects to grow from here. We are looking to the future with cautious optimism.鈥�
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