Shares in T. Clarke PLC (LON:CTO) zipped higher on Friday morning after the building services group revealed it already expects to beat current expectations in 2017.
Underlying profits are “substantially ahead” of last year, T Clarke said, thanks in part to “cautious improvements” in its core markets and a strong forward order book of £330mln (31 December 2015: £300mln).
“We enter the 2017 financial year in optimistic mood. It is the board's expectation that the group's actual performance will exceed current market expectations for the year,” read this morning’s update.
Following the completion of several major projects in the second half of 2016, net cash rose for the fourth successive year to £9.2mln (31 December 2015: £6.6mln).
The firm’s banking facilities with Natwest have also been renewed successfully and now include an increased three-year, £10mln (previously £5mln) revolving credit facility and a £5mln (previously £8mln) overdraft facility.
Full-year results for the year just gone are expected to come in line with expectations, despite T Clarke having to take a £2.2mln hit from the internal fraud and subsequent accounting adjustments which came to light last October.
It added that legal proceedings to recover these misappropriated funds are ongoing.
Full-year results for 2016 will be announced on 28 March.
Shares were up 21% to 71.75p on Friday morning.