REG - Airea PLC - Half Yearly Report <Origin Href="QuoteRef">AIEA.L</Origin>

AireaAnnouncement

10/03/2015 07:13

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 1st 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 incomeattributable 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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