T Clarke’s underlying profit is comfortably ahead of our expectations (PBT of £3.7m versus our £3.3m estimate), confirming another strong improvement in performance and margins during 2015. The London market has been the major driver of the improved profitability but it is also very encouraging that order books across the regions are at their highest ever level. 2016 has begun with real momentum and we upgrade our forecasts again today, having upgraded as recently as November. In our view, the current valuation is highly attractive at <11x current year P/E, c.4% yield with scope for further upgrades as the current year progresses.
