Havelock Europa Regulatory News (HVE)

HAVELOCK EUROPA PLC

("Havelock" or the "Company")

Trading Statement and Directorate Change

Havelock Europa (HVE.L), the international interior solutions provider, announces a trading update in respect of the year ended 31 December 2014.

The Board expects the results for the year ended 31 December 2014 to be in line with its expectations at the time of the trading update given on 28 November 2014.

Turnover and profit are both expected to be lower than prior year levels but progress was achieved in improving the underlying strength of the business during the year. We continued to diversify the base of the business and lay the foundations for the future. Diversification of our revenue streams both within sectors and in overseas markets has been a key objective for Havelock and our International business has delivered more than the original target of 10% of FY2014 turnover. In Healthcare we have won our first two significant orders, which will be supplied largely during 2015, and we will continue to invest in developing our business in this sector.

In Retail we have delivered a number of significant initiatives for our existing customer base, whilst at the same time developing new customer relationships from which we expect to benefit during the coming year. A number of our Financial Services customers are reevaluating their estates strategy which resulted in reduced opportunities during 2014. In 2015 we expect to benefit from the new framework contract secured with ISS and our success in being reappointed to the Post Office framework contract for a further three years. 

As expected, Education activity is beginning to show signs of recovery and this is reflected in our total order book of £25m at 31 December 2014, £5m of which is for 2016 delivery. 2014 order book was £14m all for in year delivery.

The new Enterprise Resource Planning ("ERP") system has entered its build stage and we remain on course for implementation in Q4 2015. Planning for the head office relocation, which was announced in December 2014, is gathering momentum and is on schedule.

Control of working capital continues to be a priority and it is particularly pleasing to report that, at 31 December 2014,the Group had net cash at the bank of £1.4m and hire-purchase/leasing debt of £1.2m. We do, however, expect our pension deficit to increase significantly due to the decline in corporate bond yields across the market.

The Board of Havelock also announces that Eric Prescott has agreed with the Board to step down as Chief Executive Officer of the Company during the course of 2015. A comprehensive search for his successor is being initiated and a further announcement will be made in due course.

The Company is expected to announce Preliminary Results for the financial year ended 31 December 2014 on Friday 17 April 2015.

Cautionary Statement

This announcement contains certain forward-looking statements with respect to the financial condition and operational results of Havelock Europa plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events, and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Havelock Europa plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.

Enquiries

Havelock Europa 01383 820044

Eric Prescott, Chief Executive

Ciaran Kennedy, Finance Director

Oriel Securities Limited (Nomad) 020 7710 7600

James Grace

David Arch

Cardew Group 020 7930 0777

Shan Shan Willenbrock

Tom Horsman

www.havelockeuropa.com