Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Airea Plc LSE:AIEA London Ordinary Share GB0008123027 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 31.00 30.00 32.00 31.00 31.00 31.00 200 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Household Goods & Home Construction 19.3 2.6 8.2 3.8 13

Airea PLC Interim report for the six months ended 30 June 19

02/08/2019 7:00am

UK Regulatory (RNS & others)


Airea (LSE:AIEA)
Historical Stock Chart


From Jun 2019 to Jun 2020

Click Here for more Airea Charts.

TIDMAIEA

RNS Number : 6405H

Airea PLC

02 August 2019

AIREA PLC

(the "Group")

Interim report for the six months ended 30 June 2019

The principal activity of the group is the manufacturing, marketing and distribution of commercial floor coverings.

Chairman's Statement

The six months ended 30 June 2019 continued the strategic progress made in recent periods; however, high levels of market uncertainty within the economy resulted in tougher market conditions during the second quarter slowing the Group's financial performance.

Despite strong growth in the order book and increased sales internationally, revenue and operating profit are below the corresponding period driven by the uncertainty in the market and the economic environment. This affected the timing of customer call offs within the order book and the Group's decision to increase inventory to prepare for potential Brexit challenges, had the UK left the EU on 31 March 2019, had a significant financial impact on operating profit and cash flow.

These challenges have not held back our strategic development with further strengthening of the sales and design teams. In addition the Group has taken the opportunity to invest in the infrastructure of the business with new on site storage facilities and a new finance and operating system to be put in place by the fourth quarter increasing our operational capabilities.

Group Results

Revenue for the period was GBP8.9m (2018: GBP9.1m). The operating profit was GBP1,085,000 (2018: GBP1,481,000). After charging pension related finance costs of GBP143,000 (2018: GBP158,000) and incorporating the appropriate tax charge the net profit for the period was GBP935,000 (2018: GBP955,000). Basic earnings per share were 2.26p (2018: 2.31p).

There were no losses and related costs for the discontinued Ryalux business (2018: GBP359,000 loss).

Operating cash flows before exceptional items and movements in working capital were GBP1.3m (2018: GBP1.7m). Working capital increased in the period by GBP0.8m (2018: GBP0.5m) mainly as a result of the timing of stock build. Contributions to the defined benefit pension scheme were GBP200,000 (2018: GBP200,000) in line with the agreement reached with the scheme trustees following the last triennial valuation as at 1 July 2017. Capital expenditure of GBP236,000 (2018: GBP61,000) was made in renovating additional storage facilities, renewing and enhancing manufacturing plant and equipment and supporting product launches.

Outlook

Although disappointed with the sales performance during the last six weeks of the first half we are pleased by the progress made during the period improving the foundations of the Group. Sales growth will continue to be challenging given the uncertainty that remains whilst awaiting the outcome of Brexit negotiations; however, as a UK manufacturer with a strong position in the UK and internationally and an ever increasing product portfolio, we are well placed to moderate these risks and take advantage of growth opportunities as they arise.

Given the financial performance of the Group and resulting cash flow we are pleased to be able to maintain the policy introduced in 2017 of paying an interim dividend of 0.8p (2018: 1.75p) to be paid on the 24 October 2019 to shareholders on the register at close of business on 20 September 2019. The ex-dividend date is 19 September 2019.

Martin Toogood

Chairman

2 August 2019

 
 Consolidated Income Statement 
 6 months ended 30 June 2019 
                                       Unaudited          Unaudited                  Audited 
                                            6 months        6 months               12 months 
                                               ended           ended                   ended 
                                         30 June            30 June              31 December 
                                            2019               2018                     2018 
                                          GBP000             GBP000                   GBP000 
 
 Continuing Operations 
 Revenue                                   8,890              9,132                   19,260 
 Operating costs                         (7,945)            (7,787)                 (16,536) 
 Other operating income                      140                136                      291 
 Operating profit before 
  exceptional 
  items                                    1,085              1,481                    3,015 
 Exceptional costs                             -                  -                        - 
 Unrealised valuation gain                     -                  -                      250 
------------------------------  ---   ----------      -------------       ------------------ 
 Operating profit                          1,085              1,481                    3,265 
 Finance income                                3                  -                        1 
 Finance costs                             (143)              (158)                    (355) 
 Finance costs relating to 
  GMP Equalisation                             -                  -                    (299) 
                                                      -------------       ------------------ 
 Profit before taxation                      945              1,323                    2,612 
 Taxation                                   (10)                (9)                      785 
                                      ----------      -------------       ------------------ 
 Profit attributable to shareholders 
  of the group from continuing 
  operations                                 935              1,314                    3,397 
                                      ==========      =============       ================== 
 
 Discontinued Operations 
 Loss attributable to shareholders 
  of the group from discontinued 
  operations                                   -              (359)                  (1,389) 
 
 Profit attributable to shareholders 
  of the group for the period                935                955                    2,008 
                                      ==========      =============       ================== 
 
 Earnings per share (basic 
  and diluted) for continuing 
  operations                               2.26p              3.18p                    8.21p 
 Earnings per share (basic and 
  diluted) for the group                   2.26p              2.31p                    4.86p 
 
 
 
   Consolidated Statement of 
   Comprehensive Income 
 6 months ended 30 June 2019 
 
                                       Unaudited         Unaudited                   Audited 
                                            6 months        6 months               12 months 
                                               ended           ended                   ended 
                                         30 June            30 June              31 December 
                                            2019               2018                     2018 
                                          GBP000             GBP000                   GBP000 
 
 Profit attributable to 
  shareholders 
  of the group                               935                955                    2,008 
 Actuarial loss recognised 
  in the pension scheme                        -                  -                  (1,284) 
 Related deferred taxation                     -                  -                      218 
                                                      -------------       ------------------ 
                                               -                  -                  (1,066) 
                                      ----------      -------------       ------------------ 
 Unrealised valuation gain                     -                 39                       78 
 Related deferred taxation                     -                  -                     (13) 
                                                      -------------       ------------------ 
                                               -                 39                       65 
                                      ----------      -------------       ------------------ 
 
 Total other comprehensive 
  income                                       -                 39                  (1,001) 
                                      ----------      -------------       ------------------ 
 
 Total comprehensive income 
  attributable 
  to shareholders of the group               935                994                    1,007 
                                      ==========      =============       ================== 
 
 
 
  Consolidated Balance 
  Sheet 
 as at 30 June 2019 
                                           Unaudited                   Unaudited               Audited 
                                             30 June                     30 June           30 December 
                                                2019                        2018                  2018 
                                              GBP000                      GBP000                GBP000 
 Non-current assets 
 Property, plant and equipment                 5,182                       5,107                 5,108 
 Intangible assets                                69                         114                    95 
 Investment property                           3,400                       3,150                 3,400 
 Deferred tax asset                            1,457                       1,415                 1,466 
                                                           ---------------------      ---------------- 
                                              10,108                       9,786                10,069 
 Current assets 
 Inventories                                   7,363                       6,918                 6,797 
 Trade and other receivables                   4,621                       2,870                 2,330 
 Cash and cash equivalents                     1,436                       2,448                 2,732 
                                     ---------------       ---------------------      ---------------- 
                                              13,420                      12,236                11,859 
                                                           ---------------------      ---------------- 
 Total assets                                 23,528                      22,022                21,928 
                                     ---------------       ---------------------      ---------------- 
 Current liabilities 
 Trade and other payables                    (3,614)                     (4,793)               (3,571) 
 Provisions                                    (320)                           -                 (320) 
 Obligations under finance 
  leases                                       (190)                       (185)                 (187) 
                                                           ---------------------      ---------------- 
                                             (4,124)                     (4,978)               (4,078) 
 Non-current liabilities 
 Pension deficit                             (3,625)                     (2,114)               (3,688) 
 Deferred tax                                  (304)                       (268)                 (305) 
 Loan                                        (1,551)                           -                     - 
 Obligation under finance 
  leases                                       (227)                       (417)                 (323) 
                                                           ---------------------      ---------------- 
                                             (5,707)                     (2,799)               (4,316) 
                                     ---------------       ---------------------      ---------------- 
 Total liabilities                           (9,831)                     (7,777)               (8,394) 
                                     ---------------       ---------------------      ---------------- 
                                              13,697                      14,245                13,534 
                                     ===============       =====================      ================ 
 Equity 
 Called up share capital                      10,339                      10,339                10,339 
 Share premium account                           504                         504                   504 
 Capital redemption reserve                    3,617                       3,617                 3,617 
 Revaluation reserve                           3,096                       3,165                 3,096 
 Retained earnings                           (3,859)                     (3,380)               (4,022) 
                                                           ---------------------      ---------------- 
                                              13,697                      14,245                13,534 
                                     ===============       =====================      ================ 
 
 
  Consolidated Cash Flow 
  Statement 
 6 months ended 30 June 2019 
                                                Unaudited          Unaudited               Audited 
                                                 6 months           6 months             12 months 
                                                    ended              ended                 ended 
                                                  30 June            30 June           31 December 
                                                     2019               2018                  2018 
                                                   GBP000             GBP000                GBP000 
 Cash flow from operating 
  activities 
 Profit for the period                                935              1,314                 2,008 
 Depreciation                                         157                155                   372 
 Amortisation                                          32                 28                    58 
 Finance costs                                        137                158                   654 
 Loss on disposal of property, 
  plant and equipment                                   -                  -                 (291) 
 Taxation                                              10                  9                 (785) 
 Unrealised valuation gain                              -                  -                 (250) 
                                                            ----------------      ---------------- 
 Operating cash flows before 
  movements in working capital                      1,271              1,664                 1,766 
 
 (Increase) / decrease in 
  inventories                                       (566)              (762)                   140 
 (Increase) / decrease in trade 
  and other receivables                             (291)              (700)                   581 
 Increase / (decrease) in 
  trade and other payables                             43                972                 (174) 
 Increase / (decrease) in 
  provisions for liabilities 
  and charges                                           -                  -                    20 
                                                            ----------------      ---------------- 
 Cash generated from operations                       457              1,174                 2,333 
 Income tax received                                    -                  -                     - 
 Contributions to defined 
  benefit pension scheme                            (200)              (200)                 (400) 
                                                            ----------------      ---------------- 
 Net cash generated from 
  operating 
  activities                                          257                974                 1,933 
                                      -------------------   ----------------      ---------------- 
 
 Investing activities 
 Payments to acquire intangible 
  fixed assets                                        (6)               (43)                 (399) 
 Payments to acquire tangible 
  fixed assets                                      (230)               (18)                  (29) 
 Receipts from sales of 
  tangible 
  fixed assets                                          -                  -                   513 
                                                            ----------------      ---------------- 
                                                    (236)               (61)                    85 
                                      -------------------   ----------------      ---------------- 
 
 Financing activities 
 Interest paid                                        (6)                (8)                  (14) 
 Interest received                                      3                  -                     1 
 Proceeds from loan                                 1,700                  -                     - 
 Loan to Airea Employee Benefit                   (2,000)                  -                     - 
  Trust 
 Finance lease repayments                            (93)               (91)                 (183) 
 Repayment of loan                                  (149)                  -                     - 
 Equity dividends paid                              (772)            (2,068)               (2,792) 
                                                            ----------------      ---------------- 
 Net cash used in financing 
  activities                                      (1,317)            (2,167)               (2,988) 
                                      -------------------   ----------------      ---------------- 
 
 Net decrease in cash and cash 
  equivalents                                     (1,296)            (1,254)                 (970) 
 Cash and cash equivalents 
  at start of the period                            2,732              3,702                 3,702 
                                                            ----------------      ---------------- 
 Cash and cash equivalents 
  at end of the period                              1,436              2,448                 2,732 
                                      ===================   ================      ================ 
 
 
 
 
 Consolidated Statement of 
  Changes in Equity 
 6 months ended 30 
  June 2019 
                                 Share      Share       Capital   Revaluation      Profit     Total 
                               capital    premium    redemption       reserve    and loss    equity 
                                          account       reserve                   account 
                                GBP000     GBP000        GBP000        GBP000      GBP000    GBP000 
 
 At 1st January 2018            10,339        504         3,617         3,126     (2,267)    15,319 
 
 Comprehensive income 
  for the period 
 Profit for the period               -          -             -             -       2,008     2,008 
 Actuarial loss recognised 
  on the pension scheme              -          -             -             -     (1,066)   (1,066) 
 Revaluation of property             -          -             -            65           -        65 
 Total comprehensive 
  income for the year                -          -             -            65         942     1,007 
 Contributions by and distributions 
  to owners 
 Dividend paid                       -          -             -             -     (2,792)   (2,792) 
 Revaluation reserve 
  transfer                           -          -             -          (95)          95         - 
 Total contributions 
  by and distributions 
  to owners                          -          -             -          (95)     (2,697)   (2,792) 
 At 31st December 2018 
  and 1st January 2019          10,339        504         3,617         3,096     (4,022)    13,534 
 
 Comprehensive income 
  for the period 
 Profit for the period               -          -             -             -         935       935 
 Actuarial loss recognised           -          -             -             -           -         - 
  on the pension scheme 
 Total comprehensive 
  income for the year                -          -             -             -         935       935 
 Contributions by and distributions 
  to owners 
 Dividend paid                       -          -             -             -       (772)     (772) 
 Total contributions 
  by and distributions 
  to owners                          -          -             -             -       (772)     (772) 
 
 At 30th June 2019              10,339        504         3,617         3,096     (3,859)    13,697 
 
 
 
                                       1    BASIS OF PREPARATION AND ACCOUNTING POLICIES 
 
                              The financial information for the six months ended 30 June 
                         2019 and the six months ended 30 June 2018 has not been audited 
                            and does 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 2018 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 2018. These policies are set out in the 
                           annual report and accounts for the period ended 31st December 
                 2018 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 
 
  2 DISCONTINUED OPERATIONS 
 
   The residential carpets business was closed during 2018 with 
    the below analysis for comparative purposes with no additional 
    costs incurred during the current period. 
                              Unaudited           Unaudited            Audited 
                         6 months ended            6 months          12 months 
                                                      ended              ended 
                                30 June             30 June        31 December 
                                   2019                2018               2018 
 
                                 GBP000              GBP000             GBP000 
   Discontinued 
   operations 
 
   Revenue                                              920                935 
   Operating costs                    -             (2,313)            (2,324) 
                                             --------------   ---------------- 
   Loss before 
    taxation                          -             (1,393)            (1,389) 
   Taxation                           -               1,034                  - 
                    -------------------      --------------   ---------------- 
   Loss 
    attributable 
    to 
    shareholders 
    of the group 
    from 
    discontinued 
    operations                        -               (359)            (1,389) 
                    ===================      ==============   ================ 
 
 

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 EAKPFEESNEFF

(END) Dow Jones Newswires

August 02, 2019 02:00 ET (06:00 GMT)

1 Year Airea Chart

1 Year Airea Chart

1 Month Airea Chart

1 Month Airea Chart
ADVFN Advertorial
Your Recent History
LSE
AIEA
Airea
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20200605 04:40:44