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Havelock Europa PLC (HVE)

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Thursday 24 June, 2004

Havelock Europa PLC

AGM Statement

Havelock Europa PLC
24 June 2004


                       Continued overall progress expected

At this afternoon's AGM of Havelock, the education furniture, point of sale
display and retail interiors group, the Chairman, Michael Kennedy, made the
following remarks with regard to current trading, prospects and the

'Overall, trading in the year to date is ahead of budget, with the Group's two
most profitable businesses - education furniture and point of sale display -
both performing well. However, with the return to a pronounced seasonal bias in
the Retail Interiors Division, substantially all of this year's profit will, as
intimated at the time of the Preliminary Announcement on 5 April, be earned in
the second half.

ESA McIntosh, the UK market leader in science laboratories and fitted furniture
for schools, has started the year very much in line with expectations. PFI
sub-contractor business will be broadly at the same level as last year whilst
the Local Authority business, which supplies furniture direct to schools, has
had a buoyant first six months, with both enquiries and orders running well
ahead of last year. As previously indicated, significant investment is taking
place during the course of this year in terms of training and preparations for
the substantial uplift in PFI activity expected in 2005.

The Point of Sale Display Division has had a strong start to the year, with both
orders and turnover running well ahead of budget. During the last four weeks, a
major expansion to Showcard Print's premises at Letchworth has been completed
and a new 4 colour large format screen printing line is in the process of being
commissioned along with new digital printing equipment and the latest technology
in direct imaging. The 2 colour print line, which the new printing press
replaces, will be transferred to Hartcliffe's premises at Bristol, which will
substantially enhance its capability for large format work. Recent investments
in printing machinery in both locations are already bearing fruit in terms of
enhancements to productivity.

In the Retail Interiors Division, as forecast, there has been a return to the
traditional refurbishment cycle, with much of the activity taking place in the
months from July to November, which will, as previously indicated, affect the
Group's results for the half year but, with a strong second half predicted for
all three businesses, the Board expects continued overall progress in the full

As was stated in the Preliminary Announcement, at the end of this meeting I will
retire from the Board and hand over the Chairmanship to Malcolm Gourlay, a
non-executive Director since 1999. My seven year term on the Board witnessed
mixed fortunes for Havelock, but I leave it transformed for the better by the
acquisition of ESA McIntosh in 2001 and the significant rationalisation achieved
in the Retail Interiors Division following the closure of its Nottingham factory
in 2002. The subsequent upward trend continues and 2005 is awaited with some


Havelock Europa PLC                                              01383-820 044
Hew Balfour (Chief Executive)                                    07801-683 851
Graham MacSporran (Finance Director)                             07801-683 803

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166

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