The company posted pretax profit of
T Clarke shares were quoted down 20% at
A T Clarke subsidiary is one of a number of parties subject to a damages claim in respect of work carried out in 2007. Damages were awarded against the company, which were settled by the company's insurers during the year. However, following an unsuccessful appeal, the apportionment of costs exceeded the insurance cover in place.
The subsidiary company has since entered into dialogue with the other party in order to negotiate a full and final settlement. T Clarke said it has received legal advice that the award notification may not, of itself, cause a breach of the group's obligations under its banking facilities.
"Whilst this legal view has not been confirmed with our bankers, they have provided us with an indication that they remain supportive and have no current intention to withdraw facilities as a consequence of the award," T Clarke said.
In addition, the company said it has still not been paid in full for a project within its Mission Critical division. In March, T Clarke had said it was making slow progress with the principal contractor on the contract concerned, but it is utilising the provisions of the contract to pursue its entitlement.
T Clarke said Tuesday that discussions are still progressing, and it also continues to progress closing out the accounts of its downstream supply chain.
In light of its woes, T Clarke cut its interim dividend in half to
T Clarke said the South Division, the largest of its three operating units, saw revenue fall by
However, the North and
T Clarke said as part of its growth strategy the Scottish unit will continue to seek opportunities in the wider mechanical and electrical sector building upon the success of the work being undertaken at First Bus in
The company said its forward order book currently stands at
Overall, 90% of the company's targeted revenues for 2014 have now been secured, and it said it is in advance stage of negotiations on a number of high-profile schemes with a significant amount in
Looking ahead, T Clarke said current trading remains "sluggish affected by the slower than anticipated progress of some projects that will fuel our wider recovery."
"Whilst there are positive signs of improvement and we expect to see continued opportunities for growth next year, we still maintain it will be late in 2015 before we begin to see the benefits of the recovery translating into improved margins," Chairman
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