Shop-fitting firm, Havelock Europa, has posted an increase in losses, but has added that business is starting to pick up.

The company, which is based in Fife, made a pre-tax loss of £2m in the first half of the year.

This compares to a loss of £1.2m in 2012.

Group debt doubled to £4.8m due to an increase in inventories to support a busy second half, as well as capital investment totalling £0.9m in new equipment for the factory.


The company said revenue fell by 9% to £34.2m.

Elsewhere, Havelock said the second half of the year was looking "encouraging" on back of higher than expected orders from retailers. It added that its operational highlights for the period include securing a contract with the Post Office, while also being appointed lead supplier to Marks and Spencer in Far East Asia. The firm also won its first orders from a major supermarket. Eric Prescott, CEO of Havelock, said: "This has been a period of progress and despite a quiet first half, we are now running again at full capacity and have a robust order book for the second half.

"Market conditions remain challenging but we believe the work we have undertaken to increase efficiency and provide value added services across our client base puts us in a strong position to deliver continued improvement."

(JP/MH)