T Clarke – 84.625p

17 July 2017 – fraud update

Further to the announcement on 31 October 2016 of the discovery of financial irregularities within the accounting function of a wholly-owned subsidiary, DG Robson Mechanical Services Limited, T Clarke has reached an out-of-court settlement with a former employee and related parties in respect of the misappropriated funds.  Under the terms of the settlement agreement, the company will receive aggregate cash payments of £1.43m on or before 31 December 2017 in full and final settlement.  Other third parties are still being pursued in order to recover the balance of the misappropriated funds.  The magnitude of any further recovery is unpredictable but at least the matter is being resolved to some extent and we retain our BUY rating.

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