TClarke PLC on Thursday said it has raised £10.7 million through a placing, and will use the funding to advance its forward order book
The London-based engineering services firm said it has raised £10.7 million through an oversubscribed placing of new shares.
The issue price of 122 pence per share represents a discount of about 14% to the closing price of the company shares of 141.5 pence on Wednesday.
Shares in the company were down 6.4% to 132.50p each in London on Thursday around midday.
TClarke said that it currently has a forward order book that has been ‘replenished and has been strengthened significantly.’ As of June 30, the order book stands at a ‘record’ £781 million.
Based on the company’s forward order book, the net proceeds of the placing will further strengthen its balance sheet and will provide ‘additional resources with which to capture and deliver additional identified short to medium term attractive contract opportunities in the London business.’
‘Having proactively invested in resources and capacity to support the group’s growth ambitions, TClarke is well-positioned to manage these additional revenues in our chosen market sectors,’ it added.
TClarke also said trading has continued to be strong, and it remains highly confident that it will successfully deliver its growth strategy such that its revenue will exceed for the first time £500 million in the current financial year. In doing so, TClarke will be achieving the three-year revenue growth strategy set out by the board in March 2021.
The company anticipates ‘significant’ earnings accretion deployment of the net placing proceeds into the delivery of anticipated near term contract wins.
Chief Executive Officer Mark Lawrence said: ‘Today’s record forward order book which will convert to planned revenue expansion in the medium term is without doubt a significant milestone for TClarke and we are grateful for the support and trust given to TClarke and our teams to deliver for our clients.’
TClarke will be reporting its half year results for the six months ended June 30 on July 13. It will then hold a general meeting on July 24.
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