17th Nov 2015 08:52
LONDON (Alliance News) - Furniture and interior services company Havelock Europa PLC saw its shares drop heavily early Tuesday after it was informed by its largest client in the financial services sector that it will be substantially cutting its refurbishment and development spend in 2016.
Due to this anticipated sales reduction, the company expects revenue from this client to be "negligible" in 2016 and its revenue for next year will take a "material hit" from the changes.
The group is now seeking to take mitigating actions to offset the problems and will be cutting costs, seeking to diversify its customer base and streamlining and simplifying its business model.
"Today's news is disappointing, clearly, but underlines the importance of our strategy to further diversify our customer base to become less reliant on a small number of contracts," said Chief Executive David Ritchie.
Havelock shares were down 40% to 6.85 pence on the news, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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