Wednesday 19 September 2007

Interim Announcement, September 2007

Continuing a five year trend of rising underlying pre-tax profits, Havelock again increased its pre-tax profit in the first half, historically much the quieter of the two halves, and continues to have good prospects for the full year to 31 December 2007, 2008 and beyond.

FINANCIAL REVIEW

Group revenue for the six months ended 30 June 2007 increased by 23% to £ 51.6 million (2006 : £42.1 million), reflecting growth in all three Divisions: the like-for-like increase was 19%. Operating profit at £1.2 million (2006 : £1.1 million) was up 14%. Profit before tax was £659,000 (2006 : £462,000), an increase of 43%. Basic and diluted earnings per share were 1.2 p (2006 : 0.9p), an improvement of 30%. Underlying pre-tax profit, after adding back the amortisation of intangibles (other than IT software), increased by 43 % to £927,000 (2006 : £646,000), whilst underlying diluted earnings per share were 1.9p (2006: 1.5p), up 32%.

Despite significantly higher activity levels, tight working capital controls, particularly on stock and debtors, resulted in net debt declining at 30 June 2007 to £16.3 million (2006 : £21.4 million), a reduction of £5.1 million, of which £1.7 million was attributable to a cash placing in February 2007. Typically, net debt is higher at the half year end than at the year end. Interest cover, excluding pension scheme interest, for the half year improved by 25% to 1.9x (2006 : 1.5x).

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