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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Airea PLC | AQSE:AIEA.GB | Aquis Stock Exchange | Ordinary Share | GB0008123027 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 28.00 | 26.00 | 31.00 | 28.50 | 28.00 | 28.00 | 0.00 | 16:29:51 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAIEA
RNS Number : 5207U
Airea PLC
30 July 2020
AIREA PLC
(the "Group")
Interim report for the six months ended 30 June 2020
The principal activity of the group is the manufacturing, marketing and distribution of commercial floor coverings.
Chairman's Statement
The group's performance in the six months ended 30th June 2020 was significantly affected by the COVID-19 pandemic and the subsequent nationwide lockdown. The year had started well with Q1 2020 pre-lockdown delivering sales in line with prior year and a 6.6% increase in operating profit.
In our trading update of 26th March 2020, we informed shareholders that we expected a post lockdown decrease in demand. The impact of COVID-19 was at its most significant during April and May with demand reduced by 51% against the prior year; however, we were pleased to see an improvement during June and, although still behind prior year, the reduction had improved to 9%. The group remained open for business throughout the lockdown period and we were able to support our customers whilst also looking to prioritise the well-being of our employees
During this period the group focused on cash and overhead management with all non-critical expenditure halted and our supply chain requirements re-phased to help achieve these priorities. We are pleased we successfully achieved these objectives in preparation for the challenges of H2 2020.
The group was able to take advantage of several of the COVID-19 support packages made available by the UK government and our banking partner including:
- A six year term CBILS loan of GBP2.75m with no fees, interest and repayments for the initial 12 month period
- Capital repayment holiday for 6 months on existing long-term loan - Extended overdraft to GBP1m (not yet utilised) - Q1 2020 VAT payment deferred - Furloughed employees during Q2 2020
These actions as well as continued tight credit control and resilient customer cash collection procedures has enabled the group to increase its cash reserves to GBP6.5m (GBP3.7m excluding the CBILS loan) (2019: GBP1.4m) to help mitigate the unprecedented and unpredictable market conditions the group continues to operate within.
Group Results
Revenue for the period was GBP7.1m (2019: GBP8.9m). The operating profit was GBP137,000 (2019: GBP1,085,000) with underlying product margins in line with the prior year; however, actual operating profit was adversely impacted by the inventory reduction during April and May. Profitability is expected to improve during H2 2020 as inventory levels increase. After charging pension, lease and loan related finance costs of GBP193,000 (2019: GBP143,000) and incorporating the appropriate tax credit the net loss for the period was GBP43,000 (2019: GBP935,000 profit). Basic loss per share was 0.11p (2019: EPS of 2.26p).
Operating cash flows before exceptional items and movements in working capital were GBP0.5m (2019: GBP1.3m). Working capital decreased in the period by GBP1.0m (2019: GBP0.8m increase) through reduced manufacturing output whilst employees were furloughed.
Contributions to the defined benefit pension scheme were GBP0.2m (2019: GBP0.2m) in line with the agreement reached with the scheme trustees following the last triennial valuation as at 1st July 2017. Capital expenditure of GBP0.2m (2019: GBP0.2m) was spent renewing and enhancing manufacturing plant and equipment and supporting new product development.
The pension scheme deficit increased to GBP4.9m (2019: GBP3.6m) due to the COVID-19 impact on the equity markets and reduced corporate bond yields that lowered the discount rate used and increased the value placed on the scheme liabilities. The schemes investments are continuously under review and at this stage, there is no expectation that the group's contributions to the scheme will change.
Outlook
Demand, although improving, remains lower than previous years as the impact of COVID-19 continues and therefore it is very difficult for the group to forecast the performance in the second half. However, with strong liquidity and the continued development of new products we believe the group is positioned well to take advantage of any opportunities that arise and is hopeful that the second half should deliver a modest profit whilst carefully managing cash reserves.
At this point, we must make a special reference to the magnificent efforts of all our employees who have worked in very difficult circumstances to support the business and its customers throughout.
Dividend
Given the financial performance of the group and the continued levels of uncertainty in the market and economy the group will continue to prioritise cash to ensure medium to long term stability and therefore will not be proposing an interim dividend (2019: 0.8p).
MARTIN TOOGOOD
Chairman 30th July 2020
Consolidated Income Statement 6 months ended 30th June 2020 Unaudited 6 Unaudited Audited months ended 6 months 12 months 30th June ended ended 31st 2020 30th June December 2019 2019 GBP000 GBP000 GBP000 -------------------------------------------- --------------------------- --------------- --------------------- Revenue 7,100 8,890 19,183 Operating costs (7,103) (7,945) (17,297) Other operating income 140 140 280 -------------------------------------------- --------------------------- --------------- --------------------- Operating profit before valuation gain 137 1,085 2,166 Unrealised valuation gain - - 200 -------------------------------------------- --------------------------- --------------- --------------------- Operating profit 137 1,085 2,366 Finance income 2 3 6 Finance costs (193) (143) (411) -------------------------------------------- --------------------------- --------------- --------------------- (Loss)/profit before taxation (54) 945 1,961 Taxation 11 (10) (403) -------------------------------------------- --------------------------- --------------- --------------------- (Loss)/profit attributable to shareholders of the group (43) 935 1,558 -------------------------------------------- --------------------------- --------------- --------------------- (Loss)/earnings per share (basic and diluted) for the group (0.11p) 2.26p 3.97p
Consolidated Statement of Comprehensive Income
6 months ended 30th June 2020
Unaudited Unaudited Audited 6 months 6 months 12 months ended 30th ended ended June 30th June 31st December --------------------------------------------- 2020 2019 2019 --------------------------------------------- GBP000 GBP000 GBP000 --------------------------------------------- -------------------- -------------- ---------------------- (Loss)/profit attributable to shareholders of the group (43) 935 1,558 Items that will not be reclassified to profit or loss Actuarial (loss)/gain recognised in the pension scheme (3,448) - 2,172 Related deferred taxation 655 - (369) --------------------------------------------- -------------------- -------------- ---------------------- (2,793) - 1,803 --------------------------------------------- -------------------- -------------- ---------------------- Items that will be reclassified subsequently to profit or loss when specific conditions are met Revaluation/(impairment) of property 12 - (17) Related deferred taxation (2) - 3 --------------------------------------------- -------------------- -------------- ----------------------
10 - (14) --------------------------------------------- -------------------- -------------- ---------------------- Total other comprehensive (loss)/income (2,783) - 1,789 --------------------------------------------- -------------------- -------------- ---------------------- Total comprehensive (loss)/income attributable to shareholders of the group (2,826) 935 3,347 --------------------------------------------- -------------------- -------------- ---------------------- Consolidated Balance Sheet as at 30th June 2020 Unaudited 30th Unaudited Audited June 30th June 31st December 2020 2019 2019 GBP000 GBP000 GBP000 ------------------------------ ---------------------------------- --------------- ----------------------- Non-current assets Property, plant and equipment 4,282 5,182 4,229 Intangible assets 67 69 39 Investment property 3,600 3,400 3,600 Right-of-use asset 1,126 - 1,233 Deferred tax asset 1,563 1,457 847 ------------------------------ ---------------------------------- --------------- ----------------------- 10,638 10,108 9,948 Current assets Inventories 4,728 7,363 5,461 Trade and other receivables 1,915 4,621 2,112 Cash and cash equivalents 6,451 1,436 2,957 ------------------------------ ---------------------------------- --------------- ----------------------- 13,094 13,420 10,530 ------------------------------ ---------------------------------- --------------- ----------------------- Total assets 23,732 23,528 20,478 ------------------------------ ---------------------------------- --------------- ----------------------- Current liabilities Trade and other payables (2,482) (3,614) (2,412) Provisions (320) (320) (320) Lease liabilities (213) (190) (329) Loans and borrowings (580) - (562) ------------------------------ ---------------------------------- --------------- ----------------------- (3,595) (4,124) (3,623) Non-current liabilities Pension deficit (4,888) (3,625) (1,472) Deferred tax (526) (304) (457) Lease liabilities (297) (227) (323) Loans and borrowings (3,317) (1,551) (724) ------------------------------ ---------------------------------- --------------- ----------------------- (9,028) (5,707) (2,976) ------------------------------ ---------------------------------- --------------- ----------------------- Total liabilities (12,623) (9,831) (6,599) ------------------------------ ---------------------------------- --------------- ----------------------- Net assets 11,109 13,697 13,879 ------------------------------ ---------------------------------- --------------- ----------------------- Equity Called up share capital 10,339 10,339 10,339 Share premium account 504 504 504 Own shares (1,518) - (1,839) Share-based payment reserve 141 - 85 Capital redemption reserve 3,617 3,617 3,617 Revaluation reserve 3,058 3,096 3,048 Retained earnings (5,032) (3,859) (1,875) ------------------------------ ---------------------------------- --------------- ----------------------- Total Equity 11,109 13,697 13,879 ------------------------------ ---------------------------------- --------------- ----------------------- Consolidated Cash Flow Statement 6 months ended 30th June 2020 Unaudited Unaudited Audited 6 months 6 months 12 months ended 30th ended ended 31st June 30th June December 2020 2019 2019 GBP000 GBP000 GBP000 -------------------------------------- ---------------------- --------------- --------------------- Cash flow from operating activities (Loss)/profit for the period (43) 935 1,558 Depreciation 114 157 206 Depreciation of right-of-use assets 140 - 274 Amortisation 25 32 65 Net finance costs 191 137 405 Loss on disposal of property, plant and equipment - - (12) Tax (credit)/charge (11) 10 403 Share-based payment expense 56 - - Unrealised valuation gain - - (200) -------------------------------------- ---------------------- --------------- --------------------- Operating cash flows before movements in working capital 472 1,271 2,699 Decrease/(increase) in inventory 733 (566) 1,336 Decrease/(increase) in trade and other receivables 197 (291) 221 Increase/(decrease) in trade and other payables 70 43 (1,159) -------------------------------------- ---------------------- --------------- --------------------- Cash generated from operations 1,472 457 3,097 Contributions to defined benefit pension scheme (200) (200) (400) -------------------------------------- ---------------------- --------------- --------------------- Net cash generated from operating activities 1,272 257 2,697 -------------------------------------- ---------------------- --------------- --------------------- Investing activities Payments to acquire intangible fixed assets (33) (6) (9) Payments to acquire tangible fixed assets (156) (230) (378) Receipts from sales of tangible fixed assets - - 136 -------------------------------------- ---------------------- --------------- --------------------- (189) (236) (251) -------------------------------------- ---------------------- --------------- --------------------- Financing activities Interest paid on lease liabilities (8) (6) (21) Interest paid on borrowings (18) - (34)
Interest received 2 3 6 Proceeds from loan 2,750 1,700 1,700 Purchase of own shares by the EBT - (2,000) (2,000) Principal paid on lease liabilities (177) (93) (343) Repayment of loan (138) (149) (448) Equity dividends paid - (772) (1,081) -------------------------------------- ---------------------- --------------- --------------------- Net cash used in financing activities 2,411 (1,317) (2,221) -------------------------------------- ---------------------- --------------- --------------------- Net increase/(decrease) in cash and cash equivalents 3,494 (1,296) 225 Cash and cash equivalents at start of the period 2,957 2,732 2,732 -------------------------------------- ---------------------- --------------- --------------------- Cash and cash equivalents at end of the period 6,451 1,436 2,957 -------------------------------------- ---------------------- --------------- ---------------------
Consolidated Statement of Changes in Equity
6 months ended 30th June 2020
Share Share-based Capital Profit Share premium Own payment redemption Revaluation and Total capital account Shares reserve reserve reserve loss equity account -------------- GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 -------------- ------------ ------------ ------------- --------------- --------------- ------------- ----------- ------------- At 1st January 2019 10,339 504 - - 3,617 3,096 (4,028) 13,528 Comprehensive income for the year Profit for the year - - - - - - 1,558 1,558 Actuarial gain recognised on the pension scheme - - - - - - 1,803 1,803 Impairment of property - - - - - (14) - (14) -------------- ------------------------------------------------------------------------------------------ ----------- --------------- Total comprehensive income for the year - - - - - (14) 3,361 3,347 Contributions by and distributions to owners Dividend paid - - - - - - (1,081) (1,081) Purchase of own shares by EBT - - (2,000) - - - - (2,000) Share-based payment - - - 85 - - - 85 Own share transfer - - 161 - - - (161) - Revaluation Reverse Transfer - - - - - (34) 34 - ---------------------------- ------------ ------------- --------------- --------------- ------------- ----------- --------------- Total contributions by and distributions to owners - - (1,839) 85 - (34) (1,208) (2,996) ---------------------------- ------------ ------------- --------------- --------------- ------------- ----------- --------------- At 31st December 2019 and 1st January 2020 10,339 504 (1,839) 85 3,617 3,048 (1,875) 13,879 ---------------------------- ------------ ------------- --------------- --------------- ------------- ----------- --------------- Comprehensive income for the year Loss for the year - - - - - - (43) (43) Actuarial loss recognised on the pension scheme - - - - - - (2,793) (2,793) Revaluation of property - - - - - 10 - 10 -------------- ------------------------------------------------------------------------------------------ ----------- --------------- Total comprehensive income for the year - - - - - 10 (2,836) (2,826) Contributions by and distributions to owners Share-based payment - - - 56 - - - 56 Own Shares Transfer - - 321 - - - (321) - ---------------------------- ------------ ------------- --------------- --------------- ------------- ----------- --------------- Total contributions by and distributions to owners - - 321 56 - - (321) 56 ---------------------------- ------------ ------------- --------------- --------------- ------------- ----------- --------------- At 30th June 2020 10,339 504 (1,518) 141 3,617 3,058 (5,032) 11,109 ---------------------------- ------------ ------------- --------------- --------------- ------------- ----------- ---------------
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The financial information for the six months ended 30th June 2020 and the six months ended 30th June 2019 have not been audited and do not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006.
The financial information relating to the year ended 31st December 2019 does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006. This information is based on the group's statutory accounts for that period. The statutory accounts were prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") and received an unqualified audit report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. These financial statements have been filed with the Registrar of Companies.
These interim financial statements have been prepared using the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union ("IFRS"). The accounting policies used are the same as those used in preparing the financial statements for the period ended 31st December 2019. These policies are set out in the annual report and accounts for the period ended 31st December 2019 which is available on the company's website at www.aireaplc.co.uk.
Further copies of this report are available from the Company Secretary at the registered office at Victoria Mills, The Green, Ossett, Wakefield, West Yorkshire WF5 0AN and are also available, along with this announcement, on the company's website at www.aireaplc.co.uk.
Enquiries:
Neil Rylance 01924 266561
Chief Executive Officer
Paul Stevenson 01924 266561
Group Finance Director
Peter Steel / Ben Farrow 020 7496 3000
N+1 Singer
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR SEMFIUESSEEW
(END) Dow Jones Newswires
July 30, 2020 02:00 ET (06:00 GMT)
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