Business
Half Yearly Report
Half Yearly Report.
About this update from Airea Plc
[{"type":"text","content":"\n \nRNS Number : 2200Q Airea PLC 26 February 2016 \n\n \nAIREA PLC\n \nInterim report for the six months ended 31 December 2015\n \nThe principal activity of the group is the manufacturing, marketing and distribution of floor coverings.\n \nChairman's statement\n \nAirea is pleased to report earnings are broadly in line with the corresponding period last year, despite the adverse impact on international sales due to the strength of sterling against the Euro in the first half of the financial year. \nThe first half of the current financial year has seen major progress across a number of strategic objectives. Most significant has been the recently announced consolidation of manufacturing operations from four locations onto two existing sites occupied by the company at Ossett and Wakefield. The move not only delivers significant cost savings and efficiency improvements, but enhances our operational capability, reducing lead-times and thereby improving customer service. \nInevitably there have been one-off costs incurred as a consequence of the move, i.e. rationalisation of finished inventories, redundancy payments to staff who were not able to transfer, and the relocation of equipment and inventory. These exceptional costs have been highlighted in the income statement. \nOn-going costs will be significantly reduced going forward. These include cost savings following the expiry of the lease of one of the properties vacated. In addition, Airea has agreed to lease to a third party its freehold property in Bury, which is no longer required for group operations as set out above, once it has been fully vacated by the company in the third quarter of this financial year.\nThe first six months also saw a reduction in the pension deficit arising from the completion of a Pension Increase Exchange exercise. The initiative allowed pensioners to opt for an income stream more aligned to their personal circumstances and preferences, whilst at the same time reducing the cost of past service benefits to the scheme. The gain to profit is highlighted as exceptional in the income statement. \nGroup results\nRevenue for the period was £12.7m (2014 restated: £13.4m). The operating profit before exceptional items was £730,000 (2014: £700,000...