High Street woes hammer Havelock

SHOPFITTER Havelock Europa plunged into the red as its traditional retail and banking customers slashed their spending in response to difficult High Street trading during 2001.

One of Havelock's biggest customers, Marks & Spencer, cut its orders significantly, and turnover in the shopfitting division fell 37% to £29.5 million.

As a result, Havelock closed its Nottingham factory at a cost of £3.75 million, leaving a loss before tax of £2.64 million for 2001 compared with profits of £1.51 million the previous year.

But Havelock reported encouraging figures from last year's acquisition, ESA McIntosh, which fits out school science labs. The Scottish company hit profit targets and contributed £1.22 million at the operating level.

Chairman Michael Kennedy said today that he expects considerable progress in 2002 and announced a 20% rise in the final dividend, bringing the total to 2p, up 14%.