Building services contractor TClarke plc has reported record revenue and anticipates continued growth, driven by the thriving data center market.
In the fiscal year ending December 31, 2023, TClarke experienced a 15% increase in revenue, reaching £491 million compared to £426 million in 2022. Despite a 26% decrease in pre-tax profit to £7.6 million (from £10.3 million in 2022), other key indicators showed positive trends.
The net cash position at the end of the year rose to £19.3 million, up from £7.5 million the previous year, and the forward order book surged by 70% to £943 million (compared to £555 million in 2022).
Significantly, orders for data centers saw a substantial increase, reaching £346 million, up from £88 million in 2022. CEO Mark Lawrence highlighted the growing demand for data center services, citing an impending “iPhone moment” driven by accelerating AI adoption.
Although TClarke narrowly missed its £500 million revenue target and its 1.9% operating margin fell short of the 3% goal, the company largely achieved its growth objectives.
Mark Lawrence remarked, “Initiated in March 2021, our ambitious journey aimed to double our revenues through organic expansion. It is very pleasing to report that in 2023 we successfully achieved these growth plans. Our growth reflects the high quality of our operations and the talent and commitment of our people, supply chain partners, and the ongoing support of our clients.
“The group boasts a robust forward order book comprising top-tier projects in our target sectors, underpinned by a strong balance sheet with our net assets having increased by 38% compared to 2022, reflecting our financial strength.
“Looking forward, we are poised to maintain our progress in our targeted markets, positioning us favorably to achieve our growth plans for 2024 and beyond.”
Additionally, the company’s commitment to the future is evident in its growing apprenticeship program, which now counts 247 apprentices, representing 18% of the workforce, up from 210 in 2022.
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