Half Yearly Report

RNS Number : 9625G

Airea PLC

10 March 2015

 

AIREA PLC

Interim report for the six months ended 31 December 2014

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

Chairman's statement

It is pleasing to report that the success achieved in the second half of the last financial year has been maintained and the dip in sales seen in the first half of last year has been reversed. 

The retail market in the UK continues to be challenging, however there have been some signs of improved consumer confidence. Statistics for the UK non-residential construction sectors that we serve showed modest growth in refurbishment and maintenance work, a flat picture on private new build, and public sector new build remaining in negative territory.  This picture of market conditions in the UK, combined with strengthening sterling and continuing difficulties in the Eurozone economies, meant that we continue to operate in a fiercely competitive and difficult environment.

It is therefore encouraging that our strategy of strengthening our product portfolio, investing in our sales resource and the relentless pursuit of service improvements and efficiency gains has delivered a promising advance in financial performance.

Group results

Revenue for the period was £13.5m (2013: £11.6m).  The operating profit was £700,000 (2013: £222,000).  After charging pension related finance costs of £215,000 (2013:£200,000) and the appropriate tax charge the net profit for the period was £371,000 (2013: £16,000).  Basic earnings per share were 0.80p (2013: 0.03p).

Operating cash flows before movements in working capital were £1.1m (2013: £0.6m).  Working capital increased by £400,000 (2013: £373,000) due to timing of payments to suppliers.  Payment of £115,000 was made in line with the provision made at the year end in full and final settlement of a dilapidations dispute concerning properties vacated in 2011.  Contributions to the defined benefit pension scheme were £200,000 (2013 £200,000), in line with the agreement reached with the scheme trustees following the last triennial valuation as at 1^st July 2011.  Capital expenditure of £136,000 (2013: £113,000) was focussed on productivity improvements and supporting new product launches.  

Outlook

The Board does not detect any fundamental changes in the outlook for the markets that we serve, and competition for business is likely to remain intense.   As a result the board has resolved to determine the level of dividend at the year end, and there will not be a dividend payment at the interim stage.

Martin Toogood

Chairman

10 March 2015

Enquiries:

Neil Rylance                                                                                                                  01924 266561

Chief Executive Officer

Roger Salt                                                                                                                     01924 266561

Group Finance Director

Richard Lindley                                                                                                              0113 388 4789

N+1 Singer

	Consolidated Income Statement
	6 months ended 31st December 2014
			Unaudited	Unaudited	Audited
			6 months ended	6 months ended	year ended
			31st December	31st December	30th June
			2014	2013	2014
			£000	£000	£000
	Revenue		13,514	11,555	23,342
	Operating costs		(12,814)	(11,333)	(22,736)
	Operating profit		700	222	606
	Finance income		1	2	3
	Finance costs		(215)	(200)	(279)
	Profit before taxation		486	24	330
	Taxation		(115)	(8)	(29)
	Profit attributable to shareholders of the group		371	16	301
	Earnings per share (basic and diluted)		0.80p	0.03p	0.65p
	All amounts relate to continuing operations
	Consolidated Statement of Comprehensive Income
	6 months ended 31st December 2014
			Unaudited	Unaudited	Audited
			6 months ended	6 months ended	year ended
			31st December	31st December	30th June
			2014	2013	2014
			£000	£000	£000
	Profit attributable to shareholders of the group		371	16	301
	Actuarial loss recognised in the pension scheme		-	-	(189)
	Related deferred taxation		-	-	(73)
	Total comprehensive income attributable to shareholders of the group		371	16	39
	Consolidated Balance Sheet
	as at 31st December 2014		Unaudited	Unaudited	Audited
			31st December	31st December	30th June
			2014	2013	2014
			£000	£000	£000
	Non-current assets
	Property, plant and equipment		5,427	6,165	5,704
	Deferred tax asset		1,288	1,476	1,323
			6,715	7,641	7,027
	Current assets
	Inventories		10,358	8,723	10,220
	Trade and other receivables		3,832	3,205	4,313
	Cash and cash equivalents		1,915	2,406	1,930
			16,105	14,334	16,463
	Total assets		22,820	21,975	23,490
	Current liabilities
	Trade and other payables		(4,457)	(3,797)	(5,121)
	Provisions		-	-	(115)
			(4,457)	(3,797)	(5,236)
	Non-current liabilities
	Pension deficit		(5,776)	(5,668)	(5,761)
	Deferred tax		(1)	(41)	(1)
			(5,777)	(5,709)	(5,762)
	Total liabilities		(10,234)	(9,506)	(10,998)
			12,586	12,469	12,492
	Equity
	Called up share capital		11,561	11,561	11,561
	Share premium account		504	504	504
	Capital redemption reserve		2,395	2,395	2,395
	Retained earnings		(1,874)	(1,991)	(1,968)
			12,586	12,469	12,492
	Consolidated Cash Flow Statement
	6 months ended 31st December 2014		Unaudited	Unaudited	Audited
			6 months ended	6 months ended	year ended
			31st December	31st December	30th June
			2014	2013	2014
			£000	£000	£000
	Operating activities
	Profit attributable to shareholders of the group		371	16	301
	Tax charged		115	8	29
	Finance costs		214	198	276
	Depreciation		413	377	877
	Operating cash flows before movements in working capital		1,113	599	1,483
	Increase in working capital		(400)	(373)	(1,633)
	(Decrease) / increase in provisions for liabilities and charges		(115)		115
	Contributions to defined benefit pension scheme		(200)	(200)	(375)
	Cash generated from operations		398	26	(410)
	Investing activities
	Purchase of property, plant and equipment		(136)	(113)	(153)
	Financing activities
	Equity dividends paid		(277)	(254)	(254)
	Net decrease in cash and cash equivalents		(15)	(341)	(817)
	Cash and cash equivalents at start of period		1,930	2,747	2,747
	Cash and cash equivalents at end of period		1,915	2,406	1,930
	Consolidated Statement of Changes in Equity
	6 months ended 31st December 2014
			Share capital	Share premium account	Capital redemption reserve	Retained Earnings	Total equity
			£000	£000	£000	£000	£000
	At 1st July 2013		11,561	504	2,395	(1,753)	12,707
	Profit attributable to shareholders of the group		-	-	-	16	16
	Dividend paid		-	-	-	(254)	(254)
	At 1st January 2014		11,561	504	2,395	(1,991)	12,469
	Profit attributable to shareholders of the group		-	-	-	285	285
	Other comprehensive income for the period		-	-	-	(262)	(262)
	At 1st July 2014		11,561	504	2,395	(1,968)	12,492
	Profit attributable to shareholders of the group		-	-	-	371	371
	Dividend paid		-	-	-	(277)	(277)
	At 31st December 2014		11,561	504	2,395	(1,874)	12,586
	Note
	BASIS OF PREPARATION AND ACCOUNTING POLICIES
	The financial information for the six month periods ended 31st December 2014 and 31st December 2013 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 30th June 2014 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 year ended 30th June 2014.  These policies are set out in the annual report and accounts for the year ended 30th June 2014. The interim and annual reports are available on the company's website at www.aireaplc.co.uk.

 

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