Fit-out services provider Havelock Europa is improving its performance so far this year.
The order book has risen by £6m since April to £38m and combined with framework agreements suggests that this year’s figures will be in line with expectations. Retail and corporate clients remaking up for weaker public sector demand. The new ranges of educational and healthcare furniture have been successfully launched.
Net debt was £2.74m at the end of 2016 and the bank facilities have been extended until April 2018. The gross pension deficit was £9.4m and deficit funding payments of £700,000 for 2017 have been deferred to 2018.
Havelock was loss-making last year. A pre-tax profit of £600,000 is forecast for this year, rising to £900,000 in 2018.
At 12p a share, Havelock is valued at £5m. The shares are trading on 12 times prospective earnings, but that could fall to seven in 2018. NAV was 14.1p a share at the end of 2016. Although there are net liabilities excluding intangible assets.
The strategic review continues.
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