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Havelock Europa PLC (HVE)

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Tuesday 26 June, 2007

Havelock Europa PLC

AGM Statement

Havelock Europa PLC
26 June 2007

Tuesday 26 June 2007

                              HAVELOCK EUROPA PLC

                                 AGM STATEMENT

        Further overall progress in the full year is anticipated

At this afternoon's AGM of Havelock Europa, the educational furniture and
supply, point of sale display and retail interiors group, the Chairman, Malcolm
Gourlay, will make the following remarks with regard to current trading and

' Profits for the first six months of the year are expected to be a little ahead
of budget, with strong performances from Retail Interiors and Point of Sale

Revenue in the Educational Furniture and Supplies business, whilst ahead of last
year, has been a little below expectation, as a result of slower than
anticipated sales in the higher margin 'Direct to Schools' sector of education
furniture. Although orders have picked up in June, the effect of decision making
delays resulting from the Local Elections, in May, and the late release of
budgets, means that, in comparative terms, the contribution from this sector of
the division is presently a little behind that of last year. However, growth
within the PFI sector continues and ESA McIntosh has work in hand on 15 separate
PFI contracts, of which 2 are projects which had originally been 'let' to
competitors but which have subsequently been re-captured. In addition, design
work is in progress on 4 Scottish PFIs, 2 Northern Irish PFIs, 2 English PFIs
and 2 Building Schools for the Future contracts. Some of the revenue from this
design work should fall in 2007 with manufacturing and on site activity
following in 2008.

Orders and revenue at TeacherBoards, the Group's classroom accessories
subsidiary, at Clean Air, the Group's fume cupboard business, and at Stage
Systems, a business designing and producing demountable stages and postural
furniture which was acquired in February, are all running at an encouraging

The Retail Interiors Division has had a buoyant first half, helped by strong
sales to Marks & Spencer . An additional PFI education contract is also in
progress under the management of this division. With many of Britain's banks
involved in significant M & A activity, work in this sector has been quieter
than normal but is likely to be partly compensated for, in the second half of
the year, by a new stream of work targeted at the corporate office sector of
major financial institutions.

Existing customers in the point of sale display market have been extremely
active, with sizeable increases in revenue from Tesco and BHS helping to offset
a decline in revenues from Somerfield, following last year's disposal of Kwik
Save. The new KBA large format digital litho printing press started its live
testing programme last week and will play a major part, in the coming year, in
the Group's drive to expand its capacity in the point of sale display market.

The Group has continued to strengthen its senior management team and is in the
process of consolidating further the synergies available between the education,
healthcare and retail interiors operations. In this connection the programme to
relocate the Group's metal working facilities from Dalgety Bay to vacant space
at ESA McIntosh's Kirkcaldy site was completed on time in April. The Group
continues to expand its 'low cost country' procurement activities and will have
a team of 5 full time staff operating in Shanghai, by the end of the year.

The Board continues to be optimistic about the growth opportunities in the
markets in which it is active. A substantial uplift in the volume of work from
large educational furniture projects is expected in 2008, as the Building
Schools for the Future programme in England gets into full stride, alongside a
further sizeable programme of PFI work in Scotland. Within the retail sector,
there are encouraging signs of a major programme of work for 2008, particularly
in the department store sector, where several substantial new stores are under

The Board anticipates further overall progress in the full year with more growth
to follow in 2008 and 2009. The Group continues to review opportunities for
appropriate acquisitions.'

Havelock Europa PLC 01383 820 044
Hew Balfour (Chief Executive) 07801 683 851
Grant Findlay (Finance Director) 07768 745 960

Bankside Consultants
Charles Ponsonby 020 7367 8851

                      This information is provided by RNS
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