Interior solutions provider Havelock Europa, which announced 100 redundancies towards the end of last year, is beginning to reap the benefits of its cost cutting exercise.

Shares in the Fife-based manufacturer made progress after the group said full-year trading was likely to be in line with revised forecasts.

The company announced a major cost-cutting exercise in September, including the loss of 50 jobs, in a bid to save £3 million on an annualised basis.

But the axe fell on another 50 jobs in November after the company missed out on renewing a key £14 million contract with Lloyds Banking Group.

Havelock said in a trading statement yesterday: “The business “right sizing” and simplification programme, announced on 1 September 2015, is gaining momentum and the cost reductions identified as a result of the programme were achieved by 31 December 2015.”

The company said it continued to focus on careful management of its working capital, and at December 31 it was debt free with net cash of £1m.

David Ritchie, chief executive, said: “We are beginning to see the benefits of the measures taken in late 2015 and, although trading continues to be challenging, particularly in the retail sector, we are encouraged to enter 2016 with an order book of £23m for in-year delivery which is 15 per cent up on 2015.”