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Havelock Europa PLC (HVE)

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Wednesday 20 September, 2000

Havelock Europa PLC

Interim Results

Havelock Europa PLC
20 September 2000


          HAVELOCK EUROPA PLC - INTERIM RESULTS
                                                         
              On track for recovery in 2000
                            
*    Havelock,  the  retail interiors and point  of  sale
     display  business, remains on track for recovery  in
     2000,  despite an increased interim pre-tax loss  of
     £1,413,000  (1999: £734,000) on turnover  of  £25.7m
     (1999:  £24.9m)  in what is traditionally  much  the
     weaker half of the year.

*    The interim dividend is maintained at 0.5p per
     share.

*    Retail  Interiors  turnover  rose  to  £14.1m   from
     £11.1m. Divisional turnover for the year is expected
     to be materially above the level achieved last year,
     particularly in the last quarter, with the  Division
     making  a  significant contribution to  the  Group's
     results.

*    Turnover  for  Point of Sale Display, where  margins
     are  traditionally higher than in Retail  Interiors,
     declined  to £10.3m from £12.9m as a result  of  the
     well-publicised   trading  difficulties  within  the
     retail  fashion  industry.  Early  contacts  in  the
     global brands sector have proved encouraging.

*    The  retail  and hotels interiors joint  venture  in
     Bahrain   performed  strongly  and   will   make   a
     significant contribution to the Group in  the  year.
     Long  term prospects in this new arena of operations
     are good.

*    Michael  Kennedy, Chairman, stated 'Whilst a reduced
     performance from the Point of Sale Display  Division
     will  have  a  significant  impact  on  this  year's
     profits,  the effect of a sharply improved level  of
     sales  from  the Retail Interiors Division,  coupled
     with  a  substantial  contribution  from  the  joint
     venture  in  Bahrain, is expected  to  result  in  a
     recovery for the Group in the current year'.

Enquiries:
Havelock Europa PLC                       01383 - 820044
Hew Balfour (Chief Executive)               07801-683851

Bankside Consultants Limited               020-7220 7477
Charles Ponsonby
  

                   HAVELOCK EUROPA PLC

                    INTERIM STATEMENT

OVERVIEW

Havelock  remains on track for recovery in 2000,  despite
an  increased interim loss, in what is traditionally much
the weaker half of the year.

The  Group recorded a loss before tax of £1,413,000 (1999
loss  before  tax:  £734,000) on  a  turnover   of  £25.7
million  (1999:  £24.9 m).  This result reflects improved
trading  in  the  Retail Interiors  Division,  profitable
trading  since  the start of the year by the  retail  and
hotels  interiors  joint venture  in  Bahrain,  but  much
slower   activity  within  the  Point  of  Sale   Display
Division, where margins are traditionally higher than  in
the Retail Interiors Division.

The  order  book  for Retail Interiors indicates  a  much
improved  picture for the second half.  Turnover  in  the
year for Point of Sale Display is expected to be down  on
1999.   The  Joint  Venture  is  likely  to  produce   an
excellent result for the year.

DIVIDEND

The  Board has declared an interim dividend per share  of
0.5p (1999:  0.5p) which will be paid on 29 December 2000
to  shareholders on the register at close of business  on
17 November 2000.

TRADING

Retail Interiors

In  line with the Group's accounting policies, sales  and
profits  are  only  taken to account upon  completion  of
contract  and,  whilst turnover rose to  £14.1  m  (1999:
£11.1 m), this did not fully reflect the underlying level
of activity, with orders received during the half year of
almost £28 m (1999:  £15m).

During the first half, Marks & Spencer returned to  its
position as the Group's largest customer.  There has also
been  a  strong resurgence in the volume of  the  Group's
business in banking and financial services markets  where
the  Group  has won a three year contract to supply  Post
Office Counters.

Point of Sale Display

The  level of activity in this area has been quieter than
in  previous years, with turnover down from  £12.9  m  to
£10.3 m, reflecting a substantial fall in the quantity of
business transacted by Showcard with Arcadia.  However, a
number  of  new customers have been won and over  time  a
more balanced business will emerge.

Joint Venture

The  joint  venture made an excellent start to  the  year
with  a  strong  performance in  both  retail  and  hotel
markets.   The business has generated a substantial  cash
flow  and  will  make a significant contribution  to  the
Group during the year.

INDEBTEDNESS AND INTEREST

Net  debt at £15.1 m at 30 June 2000, a high point in the
working capital cycle, compares with £15.4 million a year
earlier  and represents gearing of 65.6% (1999:  66%)  if
goodwill on acquisitions is written back.  Group interest
at  £521,000  was £16,000 lower than for the same  period
last  year,  despite a higher interest  rate,  reflecting
good management of working capital.

PROSPECTS

Retail Interiors' order book has continued to grow  since
the  half   year end and prospects for this Division  are
encouraging.   Substantial work is in hand  for  Marks  &
Spencer  in addition to that undertaken in the first  six
months  of  the year. House of Fraser has returned  as  a
major  customer with two significant store refurbishments
at  Manchester and Cardiff.  Major programmes of work are
also  in hand for Lloyds TSB, Bank of Scotland and  HSBC,
whilst Barclays Bank became a customer for the first time
in  May.   Accordingly, turnover for the year within  the
Retail  Interiors Division is expected to  be  materially
above  the level achieved last year, particularly in  the
last  quarter,  with  the Division making  a  significant
contribution to the Group result.

Within   the   joint   venture,   a   manufacturing   and
installation programme is underway for two new Debenhams'
stores  in  Riyadh and Qatar, along with the  design  and
manufacture of significant volumes of hotel furniture for
a  series  of  new holiday resorts in Saudi Arabia.  Long
term prospects in this new arena of operations are good.

As  indicated  at  the AGM in June,  the  Point  of  Sale
Display  Division continues to be adversely  affected  by
the   well-publicised  trading  difficulties  within  the
retail  fashion industry and the Division  has  therefore
extended  its efforts to develop its customer  base  away
from its dependence on a relatively small number of major
retailers.   Early contacts in the global  brands  sector
have   proved   encouraging  and  we  see  a  substantial
opportunity to provide pre-packaged point of sale display
products  to brand owners in the cosmetics, health  care,
telecommunications,   media  and  leisure   markets,   in
addition to the point of purchase material normally  sold
to our retail customers.

Whilst  a  reduced  performance from the  Point  of  Sale
Display  Division will have a significant impact on  this
year's profits, the effect of a sharply improved level of
sales from the Retail Interiors Division, coupled with  a
substantial  contribution  from  the  joint  venture   in
Bahrain,  is  expected to result in a  recovery  for  the
Group in the current year.

Michael Kennedy                        20 September 2000
Chairman
                            
                   HAVELOCK EUROPA PLC
            UNAUDITED PROFIT AND LOSS ACCOUNT
          For the six months ended 30 June 2000
                            
                                    Half     Half  Audited                    
                                    year     year    year
                                   ended    ended   ended
                                 30 June  30 June  31 Dec
                                           
                                    2000     1999    1999
                          Notes      £000     £000    £000
                         
Turnover                                                 
Group and share of Joint           25,689  24,927  58,191
Venture
Less:  share of Joint             (1,302)   (846)  (1,585)
Venture's turnover                                   
                                 --------  ------  ------
                                              
                                   24,387  24,081  56,606
                                    =====   =====   =====
Operating (loss)profit                                   
before exceptional items            (933)     248   2,578
Exceptional                             -   (177)   (183)
reorganisation costs
                                  -------  ------  ------
                                               
Operating (loss)profit                                   
after exceptional items             (933)      71   2,395
Share of Joint Venture's                                 
operating profit(loss)                 64   (259)   (386)
                                 --------  ------  ------
                                              
                                    (869)   (188)   2,009
Interest payable less                                    
receivable
Group                               (521)   (537)  (1,078)
                                                       
Joint Venture                        (23)     (9)    (29)
                                 --------  ------  ------
                                         
(Loss)profit on ordinary                                 
activities before                 (1,413)   (734)     902
taxation
Tax credit(charge) on                                    
(loss)profit on ordinary   3          538     163   (441)
activities
                                 --------  ------  ------
                                            
(Loss)profit for the                (875)   (571)     461
period
Dividend                            (140)   (140)   (420)
                                 --------  ------  ------
                                              
Retained (loss)profit             (1,015)   (711)      41
for the period
                                    =====   =====   =====
Basic and diluted                                        
(loss)earnings per share   4       (3.1p)  (2.0p)    1.6p
                                    =====   =====   =====
Dividend per share                   0.5p    0.5p    1.5p
                                    =====   =====   =====

     STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                                  
(Loss)profit for the                (875)   (571)     461
period
Exchange gain on                                         
investment in Joint                    16     120      25
Venture
                                 --------  ------  ------
                                             
Total recognised                                         
(losses)gains relating              (859)   (451)     486
to the period
                                   =====    =====   =====
                            
                   HAVELOCK EUROPA PLC
                 UNAUDITED BALANCE SHEET
                   As at 30 June 2000
                            
                                                   Audited
                                 30 June  30 June  31 Dec
                                    2000     1999    1999
                          Notes     £000     £000    £000
                        
                                                         
Fixed Assets                                             
Tangible assets                   13,116   13,338  13,544
Intangible asset -                   173      166     192
goodwill
Investment in Joint                                      
Venture
- goodwill                           172      196      184
- share of assets                  1,077    1,212      949
- share of liabilities             (787)    (812)    (716)
                                                         
                                     462      596     417
Investment in own shares             120        -       -
                                  ------   ------  ------
                                              
                                  13,871   14,100  14,153
                                   =====    =====   =====
Current Assets                                           
                                                         
Stocks                     5       7,122    7,176   6,604
Debtors                    6      11,000   12,589  14,399
Cash at bank and in hand              33    4,764      12
                                 -------  -------  ------
                                              
                                  18,155   24,529  21,015
Creditors - amounts                                      
falling due within one     7    (13,989)  (20,133)  (15,940)
year                                            
                                --------  -------  ------
                                               
Net Current Assets                 4,166    4,396   5,075
                                --------  -------  ------
                                             
Total Assets Less                 18,037   18,496  19,228
Current Liabilities
                                                         
Creditors - amounts                                      
falling due after more     8    (10,589)  (10,964) (10,781)
than one year                                 
                                                         
Provision for                      (610)    (352)   (610)
liabilities and charges
                                --------  -------  ------
                                             
Net Assets                         6,838    7,180   7,837
                                   =====    =====   =====
                                                         
Capital and Reserves                                     
                                                         
Share capital                      2,803    2,803   2,803
Share premium account      9         242      242     242
Revaluation reserve        9         637      637     637
Profit and loss account    9       3,156    3,498   4,155
                                --------  -------  ------
                                               
Equity Shareholders'               6,838    7,180   7,837
Funds
                                   =====    =====   =====

                   HAVELOCK EUROPA PLC
              UNAUDITED CASH FLOW STATEMENT
          For the six months ended 30 June 2000
                            
                                    Half     Half  Audited
                                    year     year    year
                                   ended    ended   ended
                                 30 June  30 June  31 Dec
                                    2000     1999    1999
                          Notes     £000     £000    £000
                         
                                                         
Cash (outflow)inflow                                      
from operating            10a       (314)   (309)    3,947
activities
                                 -------- -------  -------
                                                
Return on investments                                     
and servicing of finance
Interest received                       2       -       10
Interest paid                       (456)   (689)  (1,268)
                                 -------- -------  -------
                                               
                                    (454)   (689)  (1,258)
                                 -------- -------  -------
                                              
Taxation                            (171)   (195)    (368)
                                 -------- -------  -------
                                             
Capital expenditure and                                   
financial investment
Purchases of tangible               (614) (1,059)  (1,907)
fixed assets
Sales of tangible fixed                 -     300      356
assets
                                 -------- -------  -------
                                               
                                    (614)   (759)  (1,551)
                                --------- -------  -------
                                               
Acquisitions                                              
Acquisitions of business                -   (177)    (640)
Joint Venture costs                     -   (162)    (162)
                                 -------- -------  -------
                                              
                                        -   (339)    (802)
                                 -------- -------  -------
                                               
Equity dividends paid                   -       -    (351)
                                 -------- -------  -------
                                              
Cash outflow before use                                   
of liquid resources and           (1,553) (2,291)    (383)
financing
                                --------- -------  -------
                                              
Financing and management                                  
of liquid resources
Repayment of loan notes                                   
issued on acquisition of             (95)   (100)    (130)
subsidiaries
Loan to ESOP Trust                  (120)       -        -
Capital element of                                        
finance lease rental                (175)   (190)    (370)
payments
                                 -------- -------  -------
                                               
                                    (390)   (290)    (500)
                                 -------- -------  -------
                                              
Decrease in cash for the  10(b)   (1,943) (2,581)    (883)
period                     
                                  ------- -------  -------
                                                  
                            
                   HAVELOCK EUROPA PLC
                            
                 NOTES TO THE STATEMENT
                            
                            
1.   The figures for the financial year ended 31 December
     1999 are extracted from the statutory accounts for that
     year  on  which an unqualified report was made  by  the
     Auditors and which have been delivered to the Registrar
     of Companies.  The summarised results for the half year
     to 30 June 2000 and the comparative results for the half
     year  to 30 June 1999 are non-statutory accounts within
     the meaning of section 240 of the Companies Act 1985.

2.   All operations are continuing.

3.    A  credit  for  taxation has been included  at  37%
     (1999:   35%),  being the effective rate likely  to  be
     applied to the UK result for the full year to 31 December
     2000.  The results of the Middle East joint venture are
     not estimated to be subject to taxation in this year.

4.    (Loss)earnings per share is calculated by  dividing
     the  loss  or  profit  after tax by  28,033,849  (1999:
     28,033,849) being the average number of shares in issue
     during  the  period.   There is no dilutive  effect  of
     unexercised share options.

                                                         
5.   Stocks                   30 June   30 June    31 Dec
                                 2000      1999      1999
                                 £000      £000      £000
  Raw material and               2,182     1,558    2,320
  consumables
  Work in progress               2,248     2,004    1,346
  Less: payments to account       (15)      (83)      (4)
  Finished goods                 2,707     3,697    2,942
                                ------     -----    -----
                                 7,122     7,176    6,604
                                 =====     =====    =====
                                                         
6.   Debtors                                             
  Trade debtors                  9,338    11,136   13,221
  Other debtors                    530       316      206
  Prepayments                    1,132     1,137      972
                                 -----    ------   ------
                                11,000    12,589   14,399
                                 =====     =====    =====
                                                         
7.Creditors:   
  amounts                             
  falling due within one year 30 June   30 June    31 Dec
                                 2000      1999      1999
                                 £000      £000      £000
                                                         
  Bank advances (secured)        2,948     7,434      984
  Loan notes                     1,264     1,389    1,359
  Trade creditors                5,501     6,478    7,864
  Corporation tax                    -       172      343
  Other  taxes and  social         879     1,165    2,241
  security
  Accruals                       2,602     2,789    2,511
  Dividends:                                             
  -   Final                        280       211      280
  -   Interim                      140       140        -
  Obligations under finance        375       355      358
  leases
                                ------    ------   ------
                                13,989    20,133   15,940
                                 =====     =====    =====
                                                         
  The loan notes are repayable at par on the holder giving
  one month's notice.  In so far as the notes have not
  already been redeemed, they will be redeemed in full by
  the Company on 5 January 2003 at par.
                                                         
8.Creditors:   amounts                              
  falling due after more than
  one year
                              30 June   30 June    31 Dec
                                 2000      1999      1999
                                 £000      £000      £000
                                                         
  Bank loans (secured)          10,000    10,000   10,000
  Obligations under finance        589       964      781
  leases
                                ------    ------   ------
                                10,589    10,964   10,781
                                 =====     =====    =====
                                                         
9.   Reserves                                            
                                                   Profit
                                 Share  Revalua- and Loss
                                            tion
                               Premium   Reserve  Account
                                  £000      £000     £000
                                                         
  At 1 January 2000                242       637    4,155
  Exchange gain on                   -         -       16
  investment
  Result for the period              -         -  (1,015)
                                 -----     -----    -----
      At 30 June 2000              242       637    3,156
                                  ====      ====     ====
                                                         
10.  Cash Flow Statement          Half      Half  Audited
                                  year      year     year
                                 ended     ended    ended
                               30 June   30 June   31 Dec
                                  2000      1999     1999
                                  £000      £000     £000
                                                         
a) Reconciliation of operating                              
  (loss)profit to net cash
   flow from operating
   activities
                                                           
  Operating (loss)profit                                   
  after exceptional items          (933)        71   2,395
  Depreciation and                1,073        989   2,065
  amortisation charges
  Gain on disposal of fixed            -       (13)    (22)
  tangible assets
  (Increase)decrease in            (518)       (35)    588
  stocks
  Decrease in debtors              3,765     3,542   1,732
  Decrease in creditors           (3,701)   (4,863) (2,811)
                                 -------   -------   -------
  Net cash (outflow)inflow                                 
  from operating activities        (314)     (309)   3,947
                                 -------   -------  -------
                                                           
b)Reconciliation of net cash                               
 flow to movement in net
 debt
                                                           
  Decrease in cash for the        (1,943)   (2,581)    (883)
  period
                                                           
  Finance lease payments             175       190      370
                                                           
  New finance leases                   -      (188)    (188)
                                                           
  Loan notes redeemed                 95       100      130
                                 -------   -------  -------
  Movement in net debt in the     (1,673)   (2,479)    (571)
  period
                                                           
  Opening net debt               (13,470)  (12,899) (12,899)
                                 --------  -------- --------
  Closing net debt               (15,143)  (15,378) (13,470)
                                   =====     =====    =====
                                                    
c)Analysis of net                                   
funds
                                             Other   
                             At               non-      At
                          1 Jan       Cash    cash  30 June
                           2000       flow  changes    2000
                           £000       £000     £000    £000
                                                           
  Free cash                  12         21        -      33
                                                           
  Overdraft               (984)    (1,964)        - (2,948)
                          -----    -------     ---- -------
  Total                   (972)    (1,943)        - (2,915)
                           ====     =====     ====   =====
                                                           
  Debt due within one                                      
  year
                                                           
  Loan notes            (1,359)         95        - (1,264)
                                                           
  Finance lease           (358)        175    (192)   (375)
  creditor
                        -------    -------  ------- -------
                        (1,717)        270    (192) (1,639)
                        -------    -------  ------- -------
                                                           
  Debt due after one                                       
  year
                                                           
  Bank loans           (10,000)          -       - (10,000)
  Finance lease           (781)          -      192   (589)
  creditor
                        -------    -------  ------- -------
                        (10,781)         -      192 (10,589)
                         -------    -------  ------- -------
  Total net debt        (13,470)    (1,673)       - (15,143)
                         =======     ======   ====== =======

11.  The interim statement for the six months ended 30
     June 2000 was approved by the Directors on 20 September
     2000.