Interim results represent another period of strong delivery against expectations. Management has reaffirmed its 3% margin target and the Group made significant progress towards this in H1, achieving a margin of 2.6% vs. 2.0% in the prior year. Adj. EBITA increased by 37.9% to £4.0m. A strong order book underpins earnings visibility, with our FY18 revenue forecast now fully covered and FY19 50% covered. In our view, TClarke is a well managed business with a focus on quality that is not reflected in the current rating (6.4x P/E, 5.4x EV/EBITDA, 4.4% yield). We see intrinsic value at 104p (25% upside), based on a blended average of peer group multiples.
