T Clarke has revealed an employee has stolen more than £2.8m from the business.
The group issued a statement to the City this morning in which it said “financial irregularities” had been uncovered, with funds in excess of £2.8m “misappropriated” by an employee over a number of years.
T Clarke said the issue related to activity within its subsidiary DG Robson Mechanical Services.
It said: ”From initial investigations it would appear that funds in excess of £2.8m have been misappropriated by an employee over a number of years. The company has taken appropriate action, including the appointment of expert professional advisers to assist with our investigations and to recover the stolen funds.”
T Clarke said it believed the group’s historic trading results and balance sheet net worth “may be understated”, meaning the amounts in question are recoverable.
It said the group is in line to meet market expectations for the year.
The group will transfer the business operations of DGR to its main London M&E business by the end of this year.
In its first-half results, the M&E firm had revenue of £121.6m to 30 June 2016, up from £107.3m in H1 2015, with underlying operating profit (restated following its decision to exit Bristol and Cardiff) of £2.1m, up from £2m.
Its net cash position increased to £1.3m, from a net debt of £8.7m at the same time last year.
Its next planned trading statement will be issued on 17 November 2016.