25th Jun 2008 12:15
Wednesday 25 June 2008
HAVELOCK EUROPA PLC - AGM STATEMENT
At this afternoon's AGM of Havelock Europa, the Educational and Retail Interiors and Point of Sale Group, the Chairman, Malcolm Gourlay, will make the following remarks with regard to current trading and prospects.
The Group has made a satisfactory start to the year. Revenues in the first half are expected to be ahead of those for the first six months of last year with a particularly strong performance from the point of sale printing business.
Within the educational furniture and supplies business, order flow is up on last year in both the PFI and Direct to Schools sectors. The focus in this area continues to be the improvement of operational performance where progress continues to be made, the financial benefits of which will fall entirely in the second half.
Within the retail sector, order intake has continued to be well ahead of last year, although the revenues arising from completed work will be at a similar level to those for the first six months of 2007, with the positive impact on revenues from the higher order intake being felt in the second half. The Group's largest customer this year will be House of Fraser, for which two new stores have already been completed in the first half, in Belfast and in High Wycombe, with two more to follow in the second half, in Bristol and at White City in London. Orders from retail banks and other major High Street retailers, including Marks and Spencer and Boots, remain at a satisfactory level and in line with expectations.
Within the point of sale sector, Showcard Print has achieved a record order intake from both existing customers and new customers, including Signet and TMobile. The additional capacity installed at Letchworth last year has been fully utilised throughout the first half.
As part of its strategy of focusing resources on those areas of its business with higher growth potential, the Group has undertaken a review of its Showcard Display business which manufactures acrylic display stands and forms part of the Point of Sale Display division. This business, which generated revenues of £4.9m in 2007, has suffered from declining margins and sales in recent years. The Group decided to exit this business sector and, on 8 May 2008, concluded contracts for its sale to SDI Displays Limited, which generated cash proceeds of £0.3m plus the release of some £0.4m in working capital. This resulted in a loss on sale of £0.3m which will be included in the results for the half year to 30 June 2008.
In summary, on the basis of trading in the year to date and current orders for the second half, the Board anticipates further progress in the full year.
Enquiries:
Havelock Europa PLC 01383-820 044
Hew Balfour (Chief Executive) 07801-683 851
Grant Findlay (Finance Director) 07768-745 960
Bankside Consultants Limited
Charles Ponsonby 020-7367 8851
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