Shopfitting group Havelock Europa, which employs about 500 people across the UK, today announced plans to cut 10 per cent of its workforce as a profit warning sent its shares tumbling.
The Fife-based firm also said it was selling its educational supplies business, Teacherboards, for almost £1.36 million as part of the shake-up, aimed at saving £3 million a year.
Havelock said it has started a consultation period with its workforce, which spans 500 people in Kirkcaldy, Loughborough and Mansfield.
The changes are aimed at delivering a “sustainable, consistent level of profit on a more modest sales target”, the company told investors.
But it added: “Demand in the retail and financial services sectors remains subdued and the board now considers that the results for the year ending 31 December will be materially below previous guidance.”
Shares in Aim-quoted Havelock were down about 26 per cent following the profit alert.
Chief executive David Ritchie said: “Our customer survey and review of the business demonstrates that these changes are necessary. We are rebasing the business to reflect the more competitive market place. No decision to reduce jobs is ever taken lightly, and we will do everything possible to support those colleagues affected.
“I am confident that the sale of our non-core business brings more focus to the group as a whole. The simplified business model will enable us to maximise the customer experience and allow us to continue to diversify our customer base and achieve future growth.”