PwC appointed administrators at Havelock Europa as sale saves Fife fit-out business

Havelock, a provider of interior solutions providing the full spectrum of services from design, through to manufacture and installation, said the deal secures over 300 jobs and the firm’s manufacturing sites, providing financial stability for the business.

The assets of Havelock Europa Plc have been bought by Rcapital, while the firm which previously owned them has gone into administration. Havelock’s management team will work in partnership with Rcapital to restructure and invest in the business.

With its head office and manufacturing facility based in Kirkcaldy, Fife, the business has offices in Mansfield, Loughborough and internationally, in Shanghai.

It employs more than 300 staff, and its customers include major retailers, banks, construction companies and commercial organisations.

Havelock was founded as a family joinery business in 1869, and has its heritage in the ESA McIntosh and Havelock Europa names. In 1987 the business was listed on the AIM market.

Mark Addley, restructuring partner for PwC in Scotland, said: “We are delighted to have secured a future for the business and employees of Havelock. 2017 was a very difficult trading year for the business and a combination of the associated losses and tightening credit in recent weeks rapidly led to a liquidity crunch.

“It has proved very difficult to secure a sale against such a backdrop so to have managed to complete a transaction and preserve the employment of over 300 staff in an area where there are very few substantial employers is particularly pleasing.”

Josie Richardson, Director at Rcapital, said: “The underlying Havelock business is strong and provides refits for some of the UK’s best-known high street brands. “We fully support the management and operational teams and will work with them to ensure the best possible customer service and sustainable growth.”

In a statement to the stock exchange this morning, the firm said: “Havelock announces that, further to its announcement on June 27, 2018, the Company has today appointed Graham Douglas Frost, and Toby Scott Underwood, both of PricewaterhouseCoopers LLP as administrators to the Company.

“The company now in administration is Havelock Europa plc. Administrators have not been appointed to any other companies in the group.

“The Company continues to trade with its customers.

“The administrators will provide further updates in due course.

“Furthermore, with agreement of the Board, WH Ireland Limited has resigned as Nominated Adviser and Broker to the Company with immediate effect. Pursuant to AIM Rule 1, if a replacement Nominated Adviser is not appointed within one month, the admission of the Company’s securities will be cancelled on AIM. The Company has no current intention of appointing a replacement Nominated Adviser. “The Company’s shares remain suspended pending further notice.”

Havelock chief executive Shaun Ormrod added: “It has been a very difficult period for employees, customers and our supply chain. However the PwC team have worked tirelessly to secure this sale which provides an opportunity for Rcapital to support the management team to implement its turnaround plan. With the ongoing support of our workforce, customers and suppliers I am looking forward to Havelock becoming a profitable, secure business with long term growth prospects.”