Trading Statement

Havelock Europa PLC

("Havelock" or the "Group")

Havelock Europa, (AIM:HVE.L), the retail and educational interiors and point of sale printing group, today provides an update on trading ahead of its final results for the year to 31 December 2010.

Group trading at the end of 2010 was affected by some delays to deliveries caused by the prolonged adverse weather conditions in November and December. This particularly affected Educational projects and as a consequence some £3m of sales slipped into 2011 and the Group now expects to report a small loss before exceptional items for the year ended 31 December 2010.

In respect of 2011, while the Group has delivered significant positive changes to the business and secured new business, it recognises that trading conditions remain difficult. Current trading in the first few weeks of January, excluding our delayed education projects, is at the expected levels with solid indications of improved order intake in the second half of the year.

During 2010, the Group made substantial changes to its business, including completing the integration of Retail Interiors and ESA McIntosh businesses, to focus on delivering overall efficiencies and offset rising costs. The benefits of these cost savings will fully materialise this year and continue to strengthen the business.

Havelock has made good progress in securing new contracts, notably with Marks & Spencer in China, and with Primark in Europe. Furthermore, the Point of Sale Printing division has continued to perform well supported by a portfolio of high street customers. Despite the termination of the Building Schools for the Future Programme, the Group has benefited from increased market share in the Education sector, providing it with new projects and good visibility beyond 2011. 

Enquiries