Havelock Europa is to part company with chief executive Eric Prescott and has begun the hunt for his successor.

The Fife-based storefitter and schools supplier has said Mr Prescott had "agreed with the board to step down.....during the course of 2015".

The former Balfour Beatty executive has led a recovery which saw Havelock last year post its first profit in five years, and its broker had been forecasting a near 50per cent jump in underlying profits to £900,000 for 2014. But two months ago Havelock warned that "deferred orders" from retailers meant profits would actually come in below the previous year's £632,000.

Havelock's AIM-listed shares trebled between Mr Prescott's arrival in September 2010 and last August when they hit 24p, only to drift lower again. They were unchanged at 15.5p yesterday, valuing Havelock at £6m.

His regime has seen Havelock raise £13m from a disposal to slash its debt, move into new markets particularly overseas, and centralise operations on one site at Kirkcaldy.

The company said: "Turnover and profit are both expected to be lower than prior year levels but progress was achieved in improving the underlying strength of the business during the year. We continued to diversify the base of the business and lay the foundations for the future. Diversification of our revenue streams both within sectors and in overseas markets has been a key objective for Havelock and our international business has delivered more than the original target of 10per cent of 2014 turnover."

It noted first orders in the healthcare sector, new relationships with retailers, and contracts with ISS and the Post Office, and said the education order book was up from £14m to £19m on a calendar year basis. Some banks however were "re-evaluating their estates strategy which resulted in reduced opportunities during 2014".

The group said it was "particularly pleasing" to have £1.4m cash at the bank and only £1.2m of leasing debt, but warned of a "significant increase" in its pension fund deficit.