Tuesday 9 January 2007
Pre-Close Trading Update
Havelock, the Educational, Financial and Retail Interiors and Point of Sale
Display Group, proposes to announce its results for the year ended 31 December
2006 on Tuesday, 3 April 2007. The Board expects these results to show a fifth successive annual increase in underlying pre-tax profit and to be a little ahead
of existing market expectations.
The Education Furniture business produced a robust performance, with a
substantial increase in revenue and a marked Improvement on the previous year's
result. With solid performances in both key markets, PFI school refurbishment
and the supply of fitted furniture and equipment direct to schools and Local
Education Authorities, this improvement reflects the resumption in the growth of
Government education spend, particularly in the English and Scottish PFI
markets.
The Retail Interiors Division finished the year strongly, with increased
revenues, especially in the Financial Services Market. The Division also
provided significant management and production capacity to support the Group's
activities in the education sector and established a useful bridgehead in the
Healthcare market.
Over the winter, the Group will complete the move of its metal fabrication plant
from Dalgety Bay to Kirkcaldy, providing the Group with property savings from
the second half of 2007 whilst further enhancing the benefits arising from the
integration of the production facilities of the Education and Retail Interiors
businesses. The property exit costs of this reorganisation, amounting to £0.3m,
were provided for during the second half of 2006.
Within the Point of Sale Display Division the second half of the year proved
extremely active in respect of the levels of business transacted for both
existing and new customers. This activity, coupled with the full benefits of the
integration of the Bristol and Letchworth sites, following a programme of cost
saving measures completed in August, enabled the Division to increase revenue
and profit in 2006.
Following a year of substantial organic advance, the Group plans an increase in
its capital investment programme in 2007, to a level somewhat above its annual
depreciation charge, in order to meet growing demand and to deliver further operating efficiencies at each of its three main manufacturing sites at
Kirkcaldy, Dalgety Bay and Letchworth.
Continuing growth in the Education sector is anticipated during 2007 with an
expected involvement in some 14 PFI projects.
With many of the Group's Retail and Financial Services customers demonstrating
strong performances in 2006, and with a higher than usual opening order book for
2007, the Group also expects another good year in its other divisions. Nevertheless, as in the past, it is anticipated that the great majority of the
Group's profit will be earned in the second half of the year.
Havelock remains on track with its plan to develop its higher growth and more
profitable businesses, particularly those Serving the Education, Healthcare and
Financial Services sectors, and views 2007 with enthusiasm.
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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