Havelock Europa, a retail and educational interiors group, said Tuesday that it expects its full year results for the 12 months ended December 31st to be in line with expectations, following a traditionally stronger second half.

Divisionally, activity levels in Interiors demonstrated an improvement on the prior year with good levels of activity in the autumn in what remained a difficult market for the whole of 2012.

The Educational Supply businesses also saw strengthened activity levels, with the benefit of framework agreements which have generated additional revenue particularly for Stage Systems.

In a statement the company said: "The economic outlook for the UK remains challenging particularly for the retail sector; however against this background the strength of the group's opening order book for 2013 is encouraging.

"Discussions with retail customers about activity levels are positive and the business continues to develop relationships with new customers while international activity is progressing on the back of business secured from existing customer relationships.

"Encouragingly, new projects in the educational sector under regional or local schemes continue to come to market. In addition, discussions on further framework agreements are in progress."

The group added that control of working capital will remain a key focus, and said that this, combined with the sale of Showcard Print and Clean Air during 2012, resulted in a "significant" reduction in net debt during the year.

It added: "The sale of these non-core parts of the group has the additional benefit of allowing greater focus by management on development of the core Interiors business."

The share price climbed 1.5% to 16.88p by 13:30.

NR

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