Business
Preliminary results
Preliminary results.
About this update from Airea Plc
[{"type":"text","content":"\n \nRNS Number : 6989O Airea PLC 24 September 2013 \n \n\nAIREA plc\nPreliminary results for the year ended 30th June 2013\nReview of Operations\nOverview\nAirea plc is once again able to report an improvement in profitability along with a strong cash flow in a year which saw challenging market conditions both in the UK and many of our international markets. We have successfully managed selling prices in the face of stiff competition and this along with the introduction of new products with higher added value, rigorous product re-engineering and close control of overhead costs has driven profitability. Cash flow benefited from the rationalisation of lease hold properties and factory reorganisation undertaken last year, and we continue to make good progress in our strategic objectives of strengthening the product portfolio and constantly improving customer service through the development of a responsive manufacturing and logistics capability.\nThe year saw double digit percentage growth in our international sales, which benefited from the introduction of new products with international appeal together with a strengthening of channels to market. In the UK, demand for contract flooring products reflected a lack lustre construction market across both new build and refurbishment, exacerbated by cuts in public sector expenditure. This general state of demand weighed against the success achieved in the sale of new products and continuing improvement in our profile with the architect and design community as demonstrated by an increasing success rate in the winning of larger specifications. We have yet to see any improvement in underlying trading activity in the retail flooring market, as consumers continue to be squeezed by austerity, a stagnant economy and weak wage growth. Successful initiatives in luxury carpets and own label ranges were launched against a back drop of low retail footfall and a general trading down by consumers.\nGroup results\nRevenue for the period was £25.1m (2012: £26.3m) reflecting a broadly flat underlying sales performance, combined with a selective withdrawal from certain vinyl products. The operating profit was £709,000 (2012: £351,000). After accounting for pension related finance costs and incorporating the appropriate tax charge the pro...