Business
Interim report
Interim report.
About this update from Airea Plc
[{"type":"text","content":"\n \nRNS Number : 8939R Airea PLC 27 September 2017 \n\n \nAIREA PLC\n \nInterim report for the twelve months ended 30 June 2017\n \nThe principal activity of the group is the manufacturing, marketing and distribution of floor coverings.\nChairman's Statement\nIt is pleasing to report improved earnings for the twelve months ending 30th June 2017 and continuing strengthening of our competitive position despite challenging trading conditions.\n- Profit before tax up 8.3%\n- Basic earnings per share up 14.3%\n- Interim dividend introduced\nAs indicated in the six month review in February, we were seeing signs of increases in commodity prices. The second six months of the current accounting period has seen further margin pressure in both the contract and residential flooring market, and we are working hard to manage margins. \nNew product launches were well received in the UK contract sector, however market conditions worsened through the period as a combination of further public sector cut backs and ongoing economic and political uncertainty weighed on demand. \nRecent product launches and new routes to market led to sales growth in the residential sector. \nExports continued to grow steadily in the period as the improved exchange rate restored competitiveness and new markets came on stream. \nThe site consolidation is now fully complete and delivering both significant cost savings as well as improved service levels and reduced waste. We remain in negotiations over our remaining leasehold property. \nGroup Results\nRevenue for the period was £23.9m (2016: £24.6m). The operating profit was £2,121,000 (2016: £2,042,000). After charging pension related finance costs of £614,000 (2016: £651,000) and incorporating the appropriate tax charge the net profit for the period was £1,423,000 (2016 £1,277,000). Basic earnings per share were 3.44p (2016 3.01p) \nOperating cash flows before exceptional items and movements in working capital were £2.8m (2016: £2.8m). Working capital increased in the period by £2.0m as a result of stock build for successful product launches. Contributions to the defined benefit pension scheme were £400,000 (2016: £400,000) in line with the agreement reached with th...