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Havelock Europa, which specialises in shop and school interiors, said revenue from its retail division was down 42 per cent in the first half and it expected activity levels in the second half to be much lower than in previous years.

Shares in the Scottish-based company closed 18 per cent lower at 46p after the group issued a profits warning and said it would consolidate manufacturing for its retail and education divisions at Kirkcaldy.

Havelock said sales in the six months to June decreased by 8 per cent to £49.2m (€56.2m, $80.2m), while the company made a pre-tax loss of £1.8m, compared with a profit of £1m at the same stage last year. Investec, the company’s broker, cut its forecast of full-year profits from £5.2m to £2.7m.

The company said the integration of the retail and educational manufacturing would lead to a one-off exceptional charge of about £2.7m this year, of which £400,000 was incurred in the first half, but was expected to yield annualised benefits of £1.4m from next year.

Revenue from Havelock’s educational interiors business rose by 37 per cent to £27.2m, and the company said activity levels remained strong.

But revenue from the point of sale printing business was down 22 per cent at £9.5m as result of lower promotional spending by customers.

Copyright The Financial Times Limited 2017. All rights reserved.

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