T Clarke says impact of ISG collapse will be ‘minimal’

M&E contractor T Clarke has said that its exposure to the impact of ISG’s collapse will be “minimal”.

The firm, which was taken private over the summer, has written to staff, clients and suppliers to reassure them in the wake of ISG’s implosion. T Clarke was bought in a £90.5m deal by gas supplier Regent, which is run by long-time investor Deep Valecha.

The letter, signed by chief executive Mark Lawrence, was sent a few days after ISG went into administration on 20 September.

Lawrence wrote: “I want to take this opportunity to reassure you about the stability and strength of T Clarke plc.

“Over a year ago, the T Clarke board took the very conscious decision to limit our exposure to ISG, we withdrew from their preferred contactor scheme and no new contracts have been entered into directly with ISG for over a year, therefore the Group had minimal exposure to ISG.

“Like all in the construction sector, we will feel the impact of this administration, but I can confidently assure you that T Clarke remains in a strong and sound financial position.”

He added: “Our financial strength means T Clarke has the ability to call upon £30m of bank facilities, none of which are currently being utilised. In addition, the Surety Market supports T Clarke with a bonding capacity in excess of £100m.”

In its last set of results as a listed contractor, income at T Clarke was up 15% to £491m last year but pre-tax profit slipped 26% to £7.6m with the firm blaming challenging market conditions hitting its engineering services business for the fall.