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17 Nov 2015 08:52
HAVELOCK EUROPA TRADING UPDATE
17 November 2015
Havelock Europa plc, the international interior solutions provider, has been informed by its largest financial services client that it will be substantially reducing its anticipated spend on refurbishment and development next year.
As a result, it is forecast that the contracting revenue Havelock will receive from this client for undertaking branch refurbishment and development programmes will be negligible for 2016. Havelock will, however, be retained as the preferred furniture provider to the client.
Havelock contracting revenues from these programmes for 2015 will be c.£14m and will be unaffected by the new arrangements which will take effect from 1 January 2016. There will be little financial impact on 2015 results but the impact on 2016 will be material before mitigating actions are undertaken.
On appointment to his role in May this year, chief executive David Ritchie initiated a review of the Havelock Europa business which identified the need for immediate change. In September, the company announced a right-sizing of the business, efforts to diversify its customer base, and a streamlining and simplification of the business model focused on improving the customer experience. This process remains the focus of management attention.
David Ritchie, Chief Executive, Havelock Europa plc, said:
"Today's news is disappointing, clearly, but underlines the importance of our strategy to further diversify our customer base to become less reliant on a small number of contracts. The simplified business model we are implementing will also help us maximise the customer experience across that broader portfolio of clients. We are committed to delivering that change and thus mitigating the impact of this decision in 2016 and beyond."
ENDS
Enquiries:
Havelock Europa plc
David Ritchie, Chief Executive
Ciaran Kennedy, Finance Director
Tel. 01592 648480
Stifel Nicolaus Europe Limited (Nomad)
Matthew Marshall
David Arch
Tel. 020 7710 7600
Charlotte Street Partners (media enquiries)
David Gaffney
Tel. 07854 609998
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