Havelock Europa Regulatory News (HVE)

9 Jan 2007 07:01

Havelock Europa PLC09 January 2007 HAVELOCK EUROPA PLC Pre-Close Trading Update Havelock, the Educational, Financial and Retail Interiors and Point of SaleDisplay Group, proposes to announce its results for the year ended 31 December2006 on Tuesday, 2 April 2007. The Board expects these results to show a fifthsuccessive annual increase in underlying pre-tax profit and to be a little aheadof existing market expectations. The Education Furniture business produced a robust performance, with asubstantial increase in revenue and a marked improvement on the previous year'sresult. With solid performances in both key markets, PFI school refurbishmentand the supply of fitted furniture and equipment direct to schools and LocalEducation Authorities, this improvement reflects the resumption in the growth ofGovernment education spend, particularly in the English and Scottish PFImarkets. The Retail Interiors Division finished the year strongly, with increasedrevenues, especially in the Financial Services market. The Division alsoprovided significant management and production capacity to support the Group'sactivities in the education sector and established a useful bridgehead in theHealthcare market. Over the winter, the Group will complete the move of its metal fabrication plantfrom Dalgety Bay to Kirkcaldy, providing the Group with property savings fromthe second half of 2007 whilst further enhancing the benefits arising from theintegration of the production facilities of the Education and Retail Interiorsbusinesses. 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 provedextremely active in respect of the levels of business transacted for bothexisting and new customers. This activity, coupled with the full benefits of theintegration of the Bristol and Letchworth sites, following a programme of costsaving measures completed in August, enabled the Division to increase revenueand profit in 2006. Following a year of substantial organic advance, the Group plans an increase inits capital investment programme in 2007, to a level somewhat above its annualdepreciation charge, in order to meet growing demand and to deliver furtheroperating efficiencies at each of its three main manufacturing sites atKirkcaldy, Dalgety Bay and Letchworth. Continuing growth in the Education sector is anticipated during 2007 with anexpected involvement in some 14 PFI projects. With many of the Group's Retail and Financial Services customers demonstratingstrong performances in 2006, and with a higher than usual opening order book for2007, the Group also expects another good year in its other Divisions.Nevertheless, as in the past, it is anticipated that the great majority of theGroup'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 moreprofitable businesses, particularly those serving the Education, Healthcare andFinancial 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 This information is provided by RNS The company news service from the London Stock Exchange