ERIC Prescott, the former chief executive of Fife furniture and interiors business Havelock Europa, received £330,000 compensation for loss of office when he left the business last year, according to the company’s annual report.

Mr Prescott, 59, left the business with immediate effect on 30 March 2015 following an announcement two months’ earlier that he intended step down as chief executive during the course of the year.

The 2015 annual report shows Mr Prescott also received salary and fees of £57,000, and pension contributions of £32,000, taking his total remuneration for the year to £420,000 – more than 62 per cent higher than his total remuneration in 2014 of £259,000.

In April, Havelock Europa reported a £2.7 million pre-tax loss for 2015 after a “challenging” 2015 which saw the axing of 135 jobs in a significant restructuring, the loss of its biggest contract and an 11 per cent fall in revenues to £70.3 million.

Reflecting this performance, chairman David MacLellan announced at the time of the results that he would be deferring £25,000 a year of his £55,000 annual salary with effect from 1 April 2016. The other two non-executive directors, Alastair Kerr and Richard Sweetman, would also defer £5,000 of their £30,000 salaries “until such time as the company returns to profit.”

According to the 2014 annual report, Mr Prescott’s contract required six months’ notice if he tendered his resignation, or 12 months if the notice of termination was from the company.

A spokesman for the business said: “The appropriate contract was paid.”

Mr Prescott was appointed chief executive in September 2010 following the departure of Hew Balfour, who had been chief executive for 21 years.

The 2015 annual report also shows that David Ritchie, who succeeded Mr Prescott as chief executive in March 2015, was paid £146,000 in 2015, including £13,000 in pension contributions.