Electrical engineering firm T.Clarke Plc has announced a restructuring programme.

Electrical engineering firm T.Clarke Plc has announced a restructuring programme that will see two regional offices close and the UK Managing Director step down.

In a trading update, the contractor stated that market conditions across the business remain challenging, and as a result the Board does not expect to meet current market expectations for the year.

T.Clarke was recently awarded the contract to undertake the electrical installation within the main stadium at the Olympic park, which will be the centerpiece for the London 2012 games.

Two of the Group’s smaller regional businesses will close, and Barry DeFalco, Managing Director UK Regional Operations, will stand down from the Board and leave the company on 30 September 2009.

A number of redundancies across the Group are also planned as an extension of the cost reduction process.

The statement said: “Overall the Group’s businesses continue to trade positively with our key Regional operations in Scotland, Newcastle, Leeds and Derby trading well. The Group’s order book is solid and currently stands at £170 million.

“The Group’s cash position remains robust with cash balances of £24 million as at 30th June 2009. It is currently the Board’s intention to maintain the dividend at last year’s level.  In addition, in light of the strong financial position of the Group, the Directors will consider a share buy-back scheme, if in their opinion it is in the interests of shareholders to do so whilst balancing the need to retain cash to support and underpin business growth opportunities.”

Having made provisions for bad debts, the associated costs of these initiatives will be mostly recognised in the first half results, which will be announced on 21 August 2009.