Proposed closure of Ryalux

RNS Number : 3394I

Airea PLC

20 March 2018

 

This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR).

Airea Plc

Proposed closure of Ryalux Carpets Limited

Airea Plc , a leading UK specialist floorcoverings manufacturer, is proposing to close its retail carpets business. Operating as Ryalux Carpets Limited, the business offers high quality broad loom carpets available through retail outlets.  The Company will be entering into a formal consultation period with circa 50 employees concerning the proposal and is exploring opportunities for some employees to transfer to other parts of the Group.

The closure proposal follows a period of significant loss making despite the implementation of a range of initiatives to improve business performance including new product development, site rationalisations and strict cost and working capital controls. The trading environment for residential carpets has worsened and the ongoing trend to cheaper synthetic products has led to further declines in demand for high quality wool carpets

The closure which is anticipated to be completed by 30 April 2018 is likely to be cash generative and proceeds will be distributed to shareholders.

The contract flooring business, which accounts for 74% of group turnover, operating under the Burmatex brand continues to be highly profitable and cash generative and the Company will be able to accelerate its investment into the development & growth of the Burmatex business. This fits with the Company's strategy of focusing investment behind profitable product niches to drive long term market growth and value within the commercial flooring sector.

Airea plc will be announcing its preliminary results for the eighteen months ended 31 December 2017 on Wednesday 21^st March 2018

AIREA plc

Neil Rylance, Chief Executive Officer                                                    01924 266 561

Roger Salt, Finance Director

N+1 Singer

Richard Lindley                                                                                    020 7496 3000

James White

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