Havelock floored by shock profit warning

Shares in Havelock Europa plunged in value yesterday after the Fife-based shopfitting and interiors group warned over annual profits.

The firm, which earlier this year warned of challenges ahead following the loss of a major client, said its results for the year to the end of December would fall “considerably below expectations”.

Shares closed down 37.5 per cent or 3.75p at 6.25p, having earlier halved in value to 5p.

Kirkcaldy-headquartered Havelock, led by chief executive David Ritchie, blamed the shortfall on “delays in the commencement of work for key customers and lower-thananticipated orders from the public sector”.

It added: “These developments are set against the previously announced backdrop of reduced activity in the first half and costs associated with the implementation of the enterprise resource planning system.”

Havelock said a further update will be provided alongside its half-year results, due for release on 27 September.

In April, Havelock reported a return to the black with a pretax profit before exceptional items of £400,000 for 2016, compared with an £800,000 loss the previous year.

Like-for-like revenue jumped by about a fifth to £59.4 million, excluding the loss of business from a major financial services client – believed to be Lloyds Banking Group – announced in late 2015.

Total revenue for 2016 was £60.8m, down from £70.3m in the previous year when the major client contributed £21.1m. 0 Havelock is led by chief executive David Ritchie