TClarke profit up despite multimillion-pound fraud hit

M&E specialist contractor TClarke has posted a small rise in pre-tax profit despite being hit by a multimillion-pound fraud by one of its employees.

The firm posted a 6% increase in pre-tax profit to £3.7m for 2016, up from £3.5m the previous year, while revenue increased 15% to £278.6m, up from £242.4m.

The results come after TClarke disclosed in November that it was investigating an allegation that an employee at a subsidiary firm stole more than £2.8m of company money.

TClarke chairman Iain McCusker said he was “very disappointed” to have to report the “significant fraud”. He added that the fraud had resulted in a major independent review of the group’s internal controls and procedures. Recommendations arising from the audit were in the process of being implemented, while legal proceedings are “ongoing”.

The firm said had it not been for the exceptional costs incurred from the fraud it would have posted pre-tax profit up 48% to £6.2m.

TClarke said it had enjoyed growth in all geographic regions last year, notably in London, and a “significant number of large project wins”.

Mark Lawrence, TClarke’s chief executive said the firm was making “good progress”, adding: “Our focus on improving performance and margins throughout the group continues to show through.”