AGM Statement 2017

Posted on 13th June 2017

Havelock Europa (AIM:HVE.L), the international interior solutions provider, announces that at its Annual General Meeting held at midday today, 13 June 2017, the Chairman, Ian Godden, made the following statement:

“The Group continues to make progress despite operating in a very competitive market.  As indicated in our 2016 final results, we expect 2017 performance to be significantly weighted towards the second half, but more than usually so this year, with a correspondingly weaker first half result.  For the full year, whilst activity in the Public Sector is expected to be below last year’s levels, this will be balanced by a better than expected demand  from Retail and Lifestyle and Corporate Services clients.

Forecasting for the second half year remains difficult – however, given the current order book of £38 million and existing and new framework agreements, the Board believes performance for the full year will remain in line with our expectations.

The recent launch of our new Early Years’ Education and Healthcare furniture ranges have been well received by the market and we are now in the process of updating our Secondary School range, which all augur well for the future.

The pipeline in the Retail and Lifestyle and Corporate Services sectors is encouraging.  We have been appointed exclusively by a major UK Building Society to design and deliver new-style furniture for their branch refurbishment programme, have secured new retail customers both in the UK and internationally, and have undertaken our first projects in the car showroom sector.

We remain focused on cost control and improving margins and cash flow through enhanced operational performance, strengthening the commercial team and the pursuit of further efficiencies. The recently implemented ERP system is an important step forward towards achieving these goals.  As previously announced, the Board is conducting a major review of Havelock’s strategy to re-establish market leadership which will be shared with shareholders later this year.’’

Further to the announcement made on 31 March 2017, the Company confirms that Ciaran Kennedy resigned as a director and was succeeded as Chief Financial Officer by Donald Borland with effect from 26 April 2017.  The Board would like to thank Ciaran for his valuable contribution to the business, and to welcome Donald to his first AGM.

Enquiries:

Havelock Europa PLC                                                     01592 648480
David Ritchie, CEO
Donald Borland, CFO

WH Ireland Group plc (Nomad)                               020 7220 1650
Chris Fielding

Charlotte Street Partners (media enquiries)       0131 516 5310
Rob Ballantyne
David Gaffney