Shopfitting contractor Havelock Europa has plunged further into the red聽during the first half of 2010.
The Fife-based firm posted a pre-tax loss of 拢4.6m (H1 2009: loss of 拢1.8m) on turnover of 拢41.2m (H1 2009: 拢49.2m) in its latest interim results. This was partly down to exceptional refinancing costs of 拢2.5m.
Net debt spiralled up to 拢22.3m (December 2009: 拢19.4m), reflecting the losses incurred in the first six months.
In its last full year results, .
The firm has appointed a new CEO, Eric Prescott, who was formerly managing director of Balfour Beatty Rail Infrastructure Services.
It said the integration of its Retail Interiors and ESA McIntosh businesses had delivered cost savings of 拢3m a year, and that it was looking for further efficiencies within the group.
Revenue in the Interiors business was down 23% to 拢26.6m (2009: 拢34.4m), with activity on educational projects suffering chiefly, showing a decline of 50% to 拢11m (H1 2009: 拢21.7m). More positively, revenue from retail grew in the period by 22% to 拢15.6m (H1 2009: 拢12.7m).
Havelock also has an educational supplies business, where turnover was down 27% to 拢4.8m (H1 2009: 拢6.6m), and a point of sale printing division where revenues grew 11% to 拢10.5m (H1 2009: 拢9.5m) on the back of World Cup business.
Chairman Malcolm Gourlay said: 鈥淭his has been a period of substantial change for the business. Our re-financing and cost saving programme has led to non-recurring exceptional costs and further cost reductions are expected in the second half of the year. The benefits of these initiatives will fully materialise in 2011.鈥�
Looking ahead, he added: 鈥淭he long anticipated news of Government spending cuts will affect the level of work from educational customers, although not immediately since there remains a significant amount of work to win from confirmed programmes.
鈥淭he expectation of this was one reason for the decision to integrate the Retail and Educational Interiors businesses in 2009. The integrated operation will seek to offset the impact of this decline by winning more work from other business areas, including retail and banking customers.鈥�
Sign up to our or subscribe to our for regular updates on the latest , , , and .
Got a story? Email news@theconstructionindex.co.uk
