Havelock Europa future in doubt; shares suspended

Trading in the shares of Kirkcaldy-based shopfitter and interiors firm Havelock Europa has been suspended amid a “credit squeeze” that threatens the future of the firm.

The firm employs about 400 people.

In a stock exchange statement, Havelock Europa said: “In its announcement of its results for the year ended 31 December 2017, released on 31 May 2018, the company referred to a material uncertainty that may cast significant doubt over its ability to continue as a going concern and to realise its assets and settle its liabilities in the normal course of events.

“Since then, the company has experienced an unexpected increasing credit squeeze from its suppliers, as a result of which it has substantially utilised its available facilities following the re-financing first announced on 20 February 2018.

“The board announces that it has been in discussions with existing funders and investors in the company regarding the provision of further funding, however it became apparent yesterday evening that these were unlikely to result in a positive outcome.

“The company needs further financing for its immediate working capital needs hence the board is obliged to consider steps to protect the position of creditors and is in discussions with potentially interested parties in this regard.

“The company’s ordinary shares will therefore be suspended from trading on AIM with immediate effect pending clarification of its financial position.”