AGM Statement

Wednesday 23 June 2010

HAVELOCK EUROPA PLC - AGM STATEMENT

At today's AGM of Havelock Europa, the Educational and Retail Interiors and Point of Sale Printing Group, Malcolm Gourlay, Chairman, will make the following statement:

"The first half of this year has been a period of change for Havelock. Management has responded positively to the recent challenges which the Company has faced and has introduced a comprehensive profit enhancement programme, Project Horizon, aimed at improving future performance.

The programme consists of a number of initiatives, which are expected to result in substantial recurring cost savings for the Company, although there will be one-off costs associated with the programme that will impact the current year. Project Horizon will also serve to reduce the amount of working capital required within the business.

With regards to current trading, the Retail Interiors Division has received an increased and encouraging level of order intake. Point of Sale Printing has also seen an improvement in sales, benefiting particularly from activity related to the World Cup. Sales in the three smaller Educational Supplies businesses have been slower to date than the comparable period last year as educational authorities are reducing orders until the impact of the new Government's policies on educational budgets becomes clear; however, ESA McIntosh continues to receive a healthy number of enquiries on PFI and BSF financed school projects that have secured firm funding. The outlook for the year as a whole remains in line with our expectations.

On 1 April 2010, the Company appointed David Hurcomb as interim Chief Executive for a period of six months. David has accepted an offer to join another company and will be stepping down from Havelock in September 2010. The Company's search for a new permanent Chief Executive is progressing well."