from iii22 Nov 2014 12:47
Havelock Europa
If Havelock Europa's crucial fourth quarter goes to plan, the interior designer will make a £0.9 million profit in 2014, up from £0.6 million the year before. Half-year results were certainly encouraging. Havelock typically loses money in the first half and broker Oriel Securities thinks it will generate almost two-thirds of sales during the final six months of the year.
In 2015, Oriel reckons Havelock could make £1.3 million. It's diversifying revenues and net debt is falling. Overseas sales are rising, too, and management expects an uptick in demand from the high street banks and retailers, student accommodation and the education sector. Clearly, the weak education market is worrying investors and the share price has fallen since September's results, but Oriel sticks with its 30p target price.