Havelock Europa Regulatory News (HVE)

26 Jun 2007 12:01

Havelock Europa PLC26 June 2007 Tuesday 26 June 2007 HAVELOCK EUROPA PLC AGM STATEMENT Further overall progress in the full year is anticipated At this afternoon's AGM of Havelock Europa, the educational furniture andsupply, point of sale display and retail interiors group, the Chairman, MalcolmGourlay, will make the following remarks with regard to current trading andprospects. " Profits for the first six months of the year are expected to be a little aheadof budget, with strong performances from Retail Interiors and Point of SaleDisplay. Revenue in the Educational Furniture and Supplies business, whilst ahead of lastyear, has been a little below expectation, as a result of slower thananticipated sales in the higher margin "Direct to Schools" sector of educationfurniture. Although orders have picked up in June, the effect of decision makingdelays resulting from the Local Elections, in May, and the late release ofbudgets, means that, in comparative terms, the contribution from this sector ofthe division is presently a little behind that of last year. However, growthwithin the PFI sector continues and ESA McIntosh has work in hand on 15 separatePFI contracts, of which 2 are projects which had originally been "let" tocompetitors but which have subsequently been re-captured. In addition, designwork is in progress on 4 Scottish PFIs, 2 Northern Irish PFIs, 2 English PFIsand 2 Building Schools for the Future contracts. Some of the revenue from thisdesign work should fall in 2007 with manufacturing and on site activityfollowing in 2008. Orders and revenue at TeacherBoards, the Group's classroom accessoriessubsidiary, at Clean Air, the Group's fume cupboard business, and at StageSystems, a business designing and producing demountable stages and posturalfurniture which was acquired in February, are all running at an encouraginglevel. The Retail Interiors Division has had a buoyant first half, helped by strongsales to Marks & Spencer . An additional PFI education contract is also inprogress under the management of this division. With many of Britain's banksinvolved in significant M & A activity, work in this sector has been quieterthan normal but is likely to be partly compensated for, in the second half ofthe year, by a new stream of work targeted at the corporate office sector ofmajor financial institutions. Existing customers in the point of sale display market have been extremelyactive, with sizeable increases in revenue from Tesco and BHS helping to offseta decline in revenues from Somerfield, following last year's disposal of KwikSave. The new KBA large format digital litho printing press started its livetesting programme last week and will play a major part, in the coming year, inthe Group's drive to expand its capacity in the point of sale display market. The Group has continued to strengthen its senior management team and is in theprocess of consolidating further the synergies available between the education,healthcare and retail interiors operations. In this connection the programme torelocate the Group's metal working facilities from Dalgety Bay to vacant spaceat ESA McIntosh's Kirkcaldy site was completed on time in April. The Groupcontinues to expand its "low cost country" procurement activities and will havea team of 5 full time staff operating in Shanghai, by the end of the year. The Board continues to be optimistic about the growth opportunities in themarkets in which it is active. A substantial uplift in the volume of work fromlarge educational furniture projects is expected in 2008, as the BuildingSchools for the Future programme in England gets into full stride, alongside afurther sizeable programme of PFI work in Scotland. Within the retail sector,there are encouraging signs of a major programme of work for 2008, particularlyin the department store sector, where several substantial new stores are underconstruction. The Board anticipates further overall progress in the full year with more growthto follow in 2008 and 2009. The Group continues to review opportunities forappropriate acquisitions." Enquiries:Havelock Europa PLC 01383 820 044Hew Balfour (Chief Executive) 07801 683 851Grant Findlay (Finance Director) 07768 745 960 Bankside ConsultantsCharles Ponsonby 020 7367 8851 This information is provided by RNS The company news service from the London Stock Exchange