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Havelock Europa PLC (HVE)

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Wednesday 18 June, 2003

Havelock Europa PLC

AGM Statement

Havelock Europa PLC
18 June 2003


                              HAVELOCK EUROPA PLC
                         CHAIRMAN'S AGM STATEMENT 2003

                       'AN ENCOURAGING START TO THE YEAR'


At the AGM in Dalgety Bay, Fife this afternoon of Havelock Europa PLC, the
educational and retail interiors and point of sale display business, the
Chairman, Michael Kennedy, made the following remarks.


TRADING UPDATE


The Group has had an encouraging start to the year.


Educational Furniture


In the educational furniture sector, ESA McIntosh has continued to prosper. In
the current year, the company has won a pleasing level of new business as a
sub-contractor on PFI projects in both England and Scotland, and activity in
this area is expected to show an increase on last year. Enquiries from Local
Educational Authorities have run at record levels in the first five months of
the year.

Point of Sale Display


As anticipated at the time of the Preliminary Announcement in April, the Point
of Sale Display Division has made a slow start to the year as a result of
current corporate activity in the supermarket sector and consumer uncertainty,
both of which have affected spending on new formats.


Retail Interiors


This Division will have a much better first half year than for some time. Its
opening order book was its best for some years. Since then, the Division has
continued to grow in the department store sector with work in hand for two
stores for House of Fraser in addition to which activity in the banking sector,
where the Division is a market leader, is running at a high level. With overall
volumes showing a significant increase and with the benefits of operating from a
single site throughout the year, the Division is expected to make good progress
in the current year.



Middle East


The sale of the Middle East Joint Venture, Havelock AHI, in February will
generate an exceptional profit in the first half year of approximately £0.9m.
Trading since the sale has inevitably been affected by the war in Iraq and the
consumer uncertainty which accompanied it. As a result, the trading contribution
from the 17% shareholding, that resulted from the Group's reinvestment of part
of the proceeds of sale, is unlikely to be significant in the first half.


Prospects


Activity in both the educational and retail sectors is encouraging.
Notwithstanding the downturn of activity in the Point of Sale Display Division,
which is likely to result in a lower contribution for the full year from this
sector, the Group's overall levels of business are expected to show a
satisfactory advance on 2002 and accordingly the Board is confident of further
progress in the current year.

Enquiries:

Havelock Europa PLC                                               01383-820044
Hew Balfour (Chief Executive)                                     07801-683851
Graham MacSporran (Finance Director)                              07801-683803

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166


                      This information is provided by RNS
            The company news service from the London Stock Exchange