Group has reduced debt and reports a stronger order book going into 2012 year
Shopfitter Havelock Europa has posted another year of pre-tax losses though it reports a stronger order book going into the current financial year.
Pre-tax losses for the year to December 31, 2011 were £4.5 million compared with a loss of £4.6 million for the previous year.
Turnover was up slightly on the previous year, from £99.2 million to £99.5 million.
And cash generated from operating activities rose to £6.2 million from £0.4 million in 2010.
The Dalgety Bay firm reports a £3.6 million impairment charge for the 2011 year relating to its educational supplies division, which it said had continued to operate in a “weak direct to school market”.
Revenue from the educational supplies division dropped seven per cent in the 2011 year to £8.6 million.
A further £1.1 million impairment charge for 2011 was down to restructuring and redundancy costs.
Havelock said it successfully re-tendered for framework agreements with Boots and Lloyds Banking Group last year and secured a new £20 million education framework agreement with Balfour Beatty Construction Scottish & Southern Limited.
The group also disposed of its point of sale division, Showcard Print, last year to focus on its core interior fittings and fit-out business which it said will reduce interest charges in 2012 and future years.
Havelock announced in April this year it had entered into a conditional contract to sell its Showcard Print business, which comprises the point of sale division, for £15.3 million on a cash and debt free basis.
That sale, concluded on April 26, generated net cash proceeds of £12.9 million, which has gone towards reducing the group's overall debt.
Net debt was reduced from £19.7 million in 2010 to £13.7 million at the 2011 year end.
Havelock said the activity levels in the retail and education sectors going into 2012 are better than in recent years.
Eric Prescott, chief executive of Havelock, said: “This has been a year of significant progress for the group.
“The strengthening of the sales and marketing team together with key operational changes has generated new business ensuring we have a solid order book for 2012.
“While we expect the market environment to remain challenging, our strategy to focus on our core activities only and with a stronger balance sheet means we are in a better position than we have been in previous years.
“We look to the future with increased confidence.”