Havelock Europa eyes Scottish investment

Deputy Business Editor

Wednesday 12 September 2012

RETAIL and education interiors group Havelock Europa is keen to invest in its Scottish facilities and take on more apprentices as it seeks a return to profit.

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GREIG CAMERON

The company, which employs more than 500 people in Scotland across sites in Kirkcaldy and Dalgety Bay, reported a 17% rise in turnover at continuing operations from £32.9 million to £38.5m in the six months to the end of June this year.

The company's pre-tax loss before exceptional items reduced from £1.6m to £1.2m and house broker Investec expects a break-even position by the close of 2012.The after-tax profit came in at £7.3m due to an £8m gain on the sale of the Hertfordshire-based Showcard Print division.Net debt was significantly reduced from £13.7m at the end of 2011 to £2.3m at the mid-way point of this year.Eric Prescott, chief executive, said: "We have worked very hard in growing the top line by doing more intelligent things for existing customers and getting new customers."We are looking to invest in the factory in both plant and apprentices in the near future. "There is no point being inefficient and trying to put more money in and growing that inefficiency."You have to get your processes right, designs right, value engineering right and the size of the organisation right. When that all comes together and the profitability starts to move forward, you can start to look at other areas where we have been lacking in investment."This is a business which has not been able to invest for many years and the fact now we are beginning to come off the bottom there are areas we can become more efficient."We are looking at one thing in the factory where we have three machines doing a particular piece of metalwork, and one machine will do that piece. "It is about increasing capacity and it secures jobs which is important locally." The main interiors division saw a 19% rise in income from £29.1m to £34.6m with losses dipping from £1.3m to £100,000.Havelock Europa said the improved performance was due to greater efficiency in its operations and a recovery in retail and education sales while there was also increasing demand from overseas.It works with Marks & Spencer in China and has also been active with Primark's expansion into Europe.The educational supplies arm saw its revenue increase from £3.8m to £3.9m.Mr Prescott said the firm hoped to grow its client list and added: "The second half is traditionally busier and this year is no different."

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Havelock Europa eyes Scottish investment

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