Business
Interim report for the six months ended 30 June 19
Interim report for the six months ended 30 June 19.
About this update from Airea Plc
[{"type":"text","content":"\n \nRNS Number : 6405H Airea PLC 02 August 2019 \n\nAIREA PLC \n(the \"Group\")\n \nInterim report for the six months ended 30 June 2019\nThe principal activity of the group is the manufacturing, marketing and distribution of commercial floor coverings.\nChairman's Statement\nThe 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. \nDespite 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.\nThese 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.\nGroup Results\nRevenue for the period was £8.9m (2018: £9.1m). The operating profit was £1,085,000 (2018: £1,481,000). After charging pension related finance costs of £143,000 (2018: £158,000) and incorporating the appropriate tax charge the net profit for the period was £935,000 (2018: £955,000). Basic earnings per share were 2.26p (2018: 2.31p).\nThere were no losses and related costs for the discontinued Ryalux business (2018: £359,000 loss). \nOperating cash flows before exceptional items and movements in working capital were £1.3m (2018: £1.7m). Working capital increased in the period by £0.8m (2018: £0.5m) mainly as a result of the timing of stock build. Contributions to the defined benefit pension scheme were £200,000 (2018: £200,000) in line with the agreement reached with the scheme trustees following the last triennial valuation as at 1 July 2017. Capital expenditure of £236,000 (2018: £61,000) was made in ren...