Electrical contracter, T Clarke, has reported an increase in profit margins to 4.2% as pre-tax profit lifted to £8.2m last year, as bosses praised the contribution of its Scottish arm, SCS Building Services.

Turnover in the 12 months to 31 December 2007 was 4% higher at £190m. In the previous period (2006) a profit of £6.6m gave Clarke a margin of 3.5%. The group contracts in 2007 included the Golden Jubilee National Hospital, Glasgow and the CSA HQ in Falkirk.

Pat Stanborough, Chief Executive, said: "The group is in good shape. We have a broad spread of businesses across the UK which are trading well.

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"Despite the banking credit crunch, we are not seeing any slowdown in demand for high-density office space. We are informed from our industry contacts and the major developers that the new buildings, with which we are involved, either in contract or early discussions, are fully funded and committed for development.

"Many financial institutions continued to be busy in upgrading trading space, enhancing their data centre capabilities (throughout the UK) and updating the resilience of their electrical networks."

Clarke has two operational divisions: London where turnover of £77m was down on 2006 by £3m and UK Regions, where turnover of £117m was £11m higher.

Clarke's UK Regions operation could only hold the previous year's profit contribution of £2.5m, a performance which generated a margin of 2.1%. The problems, flagged up at the half-year stage, were in two regional companies: Anglia Electrical Services and JJ Cross.

(GK/JM)