Havelock Europa Share Discussion Threads

[mikepompeyfan] 01/10/2017 05:37

The chief executive of Havelock Europa, which fits out the interiors of banks and shops, has quit the company after its half-year losses trebled. David Ritchie was promoted to the role in May 2015 with a remit to turn it around. He oversaw a cost-cutting programme in which staff numbers fell by a fifth to 400 and he tried to reinvigorate the sales pipeline. He resigned on Tuesday with immediate effect. The Aim-listed company would not comment on whether he would receive a payoff but the annual report for 2016 says that he was entitled to a six-month notice period. He was paid a total of £179,000 last year. He has been replaced by Shaun Ormrod, who ran Farnborough International Exhibition and Conference Centre for nine years until he left in May. Ian Godden, the chairman, who owns a 7.7 per cent stake, said that Havelock Europa had been fortunate to get a replacement so quickly. “[Mr Ritchie] has done a solid job over the last two to three years,” he said. “He feels somebody else would be better placed to take it forward.” Havelock Europa’s clients include Accessorize, Primark, Marks & Spencer, Lloyds Banking Group, North Face, and Pinsent Masons, the law firm. Results for the six months to June 30 showed that revenue fell by 9 per cent to £23.2 million mainly because of a reduction in public sector work. There was growth in international sales and performance from the retail and lifestyle sectors were slightly better than expected but this was not enough to offset the decline in public sector work. Pre-tax losses increased to £2.6 million from £868,000 in the same period last year. The shares fell by as much as 25 per cent in early trading but clawed some of that back to close down 14.5 per cent at 5¼p. The shares have fallen by about 60 per cent since Mr Ritchie was appointed chief executive. Donald Borland, chief financial officer, said that he was confident that a number of long delayed public sector programmes were now coming through, particularly in the education sector. He added that Havelock’s bank of potential contracts had doubled in recent months to £50 million. Mr Godden believes that the company will trade profitably in the second half of the year and prospects are brighter as it moves into 2018. A number of banks are also back in the market for branch refurbishments. The company hopes that its new sales operation in London will help it to get more work in the south and Midlands. Mr Godden said that there were no plans to reduce the workforce in Fife, where Havelock has its headquarters and manufacturing operations. “We are looking keenly about how we can invest in manufacturing,”; he said.

[rose57] 29/9/2017 08:36

There is now finally and at last a chance for the business. It has been stated that the new man learns fast, and he will need to here as running out of time. All Non performing elements must be adressed before 2018. A more accurate and prudent budgeting introduced and costs must finally be cut to below the expected revenues. The business must play to its strengths, identify higher margin products, and bring in new and fresh blood to revitalise the business.The weakeness of sterling should be a great opportunity to expand business abroad. Given the background of new players , the Conference and Event sector, could be rich picking grounds for stands trade shows etc and this is a rapidly expanding market.The quote rate increase is very positive, as is the new framework agreements in retail. New product lines must be introduced, to deal with the seasonal nature of the current business. It is time to stop knocking the business and to restore some pride in what it has to offer.It has the potential to be a great company once again, with highly skilled personell and now ;with the new leadership this will hopefully be achieved.Hard decisions will have to be made and quickly, if this is to happen this time. It would be a good start if the remaining part of the second half year, brought a few positive surprises, and expected losses minimised.

[clocktower] 29/9/2017 07:14

lefrene, Another area that senior directors/managers have and often do the work of those on the shop floor, is in the retail industry, hence its success.

[neverforget] 29/9/2017 06:53

Compare and contrast. https://www.investegate.co.uk/styles---38--wood-group--sty-/rns/interim-results/201709290700021370S/

[lefrene] 28/9/2017 22:34

neverforget, We all have our own experiences, I have employed a lot of people and also been employed by some right horrors. I have been in two large German businesses, a large engineering firm with several plants and a brick making factory. I have also supplied labour to German building sites, and seen managers on those sites displaying their competence in the trades. In those German situations in each business the managers could do all the tasks, and indeed did so as a matter of course. Consequently their workforces had confidence in their managers and respected them. There may be the odd exception in the UK, but I have seen the inside of a great many businesses here, and the only place I see managers actually doing the job here, is on farms.

[fifeboy] 28/9/2017 21:18

I to at one time worked for this company, most of the work force on shop floor have long service , but it's the management they bring in absolutely no idea about how to run a workplace ,have no respect for the men ,as for machines they are dated ,factory in decline due to roof and up keep

[fifeboy] 28/9/2017 21:18

I to at one time worked for this company, most of the work force on shop floor have long service , but it's the management they bring in absolutely no idea about how to run a workplace ,have no respect for the men ,as for machines they are dated ,factory in decline due to roof and up keep

[goodoldays] 28/9/2017 14:38

Truthful Tommy, you have my vote o agree with your sentiments entirely. People make a busines, a healthy business will generate growth and reward its investers. Havelock have to acknowledge the root cause of its problems, PEOPLE!!!!

[truthful tommy2] 28/9/2017 14:05

pied wagtail. Its reported Ritchie received 419 thousand pound pay off for failing. The 3 employees tasked with looking after the Lloyds account failed. Havelock did not secure / win the account. Do not listen to Havelock propaganda. Prescott is reported to have received 350 thousand pounds for failing. The share price is on the floor. There losing money hand of fist. They cant win work. Havelock reward failure. Its not bah humbug but the truth.

[biggerpicture] 28/9/2017 10:56

Sounds promising and hopefully with proper investment havelock can become successful company. It definitely has the potential to be the one.

[pied wagtail] 28/9/2017 08:25

As usual TT2 , load of tosh coming from your posts ,, the Lloyds account was not lost due to senior or project managers failures, try to be positive for a change or is this not in your nature ,, bah humbug

[neverforget] 28/9/2017 05:39

Very interesting http://www.heraldscotland.com/business_hq/15562957.Havelock_installs_new_CEO_in_bid_to_reverse_losses/

[neverforget] 27/9/2017 15:57

Was replying to lefrenes comment about UK executives Isn't farnborough one of the largest air shows in the UK? That is all about delivery! Looks like IG is bringing in people he knows. Red IG experience also Frnborough. In 2006, Ian Godden retired from full time consulting and, from 2007 to 2013, he was chairman of Farnborough International Limited (which organises the Farnborough and Bahrain airshows).

[tocsin] 27/9/2017 15:56

This site is becomming like the share price dull and going nowhere fast !

[goodoldays] 27/9/2017 15:29

Never forget, have you got the right person, his last appointment was Farnborough Airshow!!!

[neverforget] 27/9/2017 15:01

Lefrene - WTF - Dyson, Virgin, Sorrell just to name 3 off the top of my head Goodolddays isn't it about delivery? Which this guy seems all about

[goodoldays] 27/9/2017 13:51

Further to my previous post, I have now researched Mr Ormrods past achievements, very impressive if you want a manager to run large scale projects and manage a number of contractors, however, Havelock requires a CEO/MD that has relationships and a network of potential clients & specifiers and has a reputation and credibility in the market. I am sorry to say that this maybe the last CEO appointment for this company, as yet again I think they have got it wrong!!!!

[goodoldays] 27/9/2017 13:28

I hope that the new CEO Mr Ormrod is on an incentive based remuneration package and is not yet another passenger on the Havelock management Gravy Train!!! How can a company of the much diminished size of Havelock bear the top heavy salaries of a PLC board & senior management !!! I am sorry to say that the sums do not add up.

[lefrene] 27/9/2017 12:26

The UK suffers from a scorn of trades skills by management. If you go into German or Japanese businesses you will find management who can do every job in the place, and certainly in Germany managers are expected to spend one day a month on the shop floor. There is mutual respect and problems get noticed and fixed quickly. It's those who have political skills rather than useful skills, that seem to rise to the top of UK businesses, except perhaps where there is an individual entrepreneur owner? But then the vast majority of those seldom get to any great size, often due to lack of available capital.

[truthful tommy2] 27/9/2017 12:06

Havelock Europa reward failure. Ritchie will have walked away with at least a years salary. In 2015 when they lost the Lloyds account. A third of the revenue.The Project director changed job title. The senior project man who went to every meeting weekly who was tasked as being Lloyds Havelock contact kept his job. The Account director kept his job. The majority of the Lloyds team left. They employ second rate Project Managers to run contracts some have never even been in the building trade never mind the shopfitting industry. If the new CEO is to turn this mess around major surgery will be required or he will end up like Prescott and Ritchie.

[biggerpicture] 27/9/2017 11:46

I am an ex employee I've been working there for a wee while so I know thing or two. I can also say that company is losing best tradesmen down to low wages as it pays less than £10 p/h when joiners on site make at least 50% more.

[gleach23] 27/9/2017 11:40

This Board is full of them Ed 123...I say them, it could just be one person lol

[biggerpicture] 27/9/2017 11:35

Don't get me wrong I am not saying that it's true all I am saying is that the stat of the building requires serious investment and company can not afford it. Other thing is that contracting part of the business is doing pretty well opposite to manufacturing.

[ed 123] 27/9/2017 11:24

And another one ........ "biggerpicture" is also a new identity created today and has only submitted the one post.