Veteran returns to Havelock amid changes
New chairman plans investment in Fife business
HAVELOCK Europa, the shopfitting and interiors business, is set to receive a vote of confidence from a former director who wants to return to the board he left in 2006.
The Fife-based company said consultancy veteran Ian Godden will become chairman of the firm in January and plans to invest £300,000 to acquire a significant shareholding in the business.
The investment will allow Mr Godden to buy an additional seven per cent of the share capital of a firm which has faced trading challenges in recent times.
The company shed about 100 posts last year under a cost-cutting programme initiated by chief executive David Ritchie, who also launched a drive to diversify the customer base.
Aim-listed Havelock suffered a sharp fall in first-half revenues after a client, believed to be Lloyds Banking Group, slashed its budget for branch refurbishment.
The company’s outgoing chairman, David MacLellan, welcomed Mr Godden’s commitment to invest in the firm at what is hoped will be a point of change for Havelock.
“Ian has a good understanding of Havelock’s activities, having been a director of the company from 1995 to 2006, and a track record of helping businesses grow,” he said.
Havelock noted that, in his time on the board, Mr Godden had supported its successful expansion into the financial services and point-of-sale markets and its acquisition of the ESA McIntosh educational interiors business in 2002.
In Havelock’s interim results announcement, Mr Ritchie said strong demand from the public sector had helped to offset weakness in retail and the expected downturn in the corporate sector.
Mr Godden’s return to the board will see him working again with Huw Balfour, who led the company’s diversification drive during a 21-year stint as chief executive, which ended in 2010.
Mr Balfour became a nonexecutive director of Havelock in April.
Havelock said Mr Godden’s track record with both large and small companies and his knowledge of the firm make him very well qualified to succeed Mr MacLellan.
The University of Edinburgh engineering graduate had a successful consulting career with Booz Allen and Roland Berger after working for BP in the North Sea.
Mr Godden, 63, plans to make the £300,000 investment in Havelock through his pension fund. The company expects him to subscribe for three million shares at 10p each, subject to shareholder approval.
The planned investment will increase Mr Godden’s holding to 3,194,213 shares, or 7.69 per cent of Havelock’s enlarged share capital.
Mr Godden will become chairman following a general meeting to approve the share issue, scheduled for January 25. Mr MacLellan will then retire from the board after spending four years as chairman.
Havelock lost £700,000 in the six months to June 30, and £1.6 million in the same period last year. Sales fell to £25.4m from £28.9m.
Havelock Europa shares closed up 0.75p at 9.25p.
‘‘ Ianhasagood understanding of Havelock’s activities ... and a record of helping businesses grow