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24 Mar 2009 07:00
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AIREAΒ plc
Interim Results for the six months endedΒ 31stΒ December 2008.
Introduction
The six month period to 31st December 2008 has been one of difficult trading conditions and considerable uncertainty. During this period we have undertaken a fundamental review of our manufacturing operations in order to reduce costs and simplify our business.
Sales declined in the period mainly due to the erosion of consumer confidence as a consequence of growing economic uncertainty. Towards the end of the period there was a similar, but less pronounced, decline in confidence in the commercial sector as a result of the tightening in credit facilities.
As foreshadowed in the announcement in December 2008, the group has incurred an operating loss in the period. Following a critical review of our asset base these accounts include significant provisions for impairment of property, plant and equipment, surplus inventories, onerous leases and impairment of goodwill.
During the period we have invested heavily in new product development, particularly in the residential sector. By the end of the financial year the vast majority of our product range will have been redesigned and relaunched into the market.
The results
Within continuing operations, sales of floor covering products reduced by 9% to Β£23.0m (2007: Β£25.4m) in the period, with maintained sales in commercial products combined with a decline in sales of residential products. The operating result was a loss of Β£9.0m (2007: operating profit Β£9.9m) but the period to 31st December 2008 includes exceptional operating costs of Β£4.1m (2007: Β£0.3m) and a provision for impairment of goodwill of Β£4.0m (2007: Β£nil). The period to 31st December 2007 included an exceptional profit on sale of property of Β£9.6m. After excluding these items, the operating result from continuing activities was a loss of Β£0.9m (2007: profit Β£0.6m).
After accounting for modest levels of finance income and finance costs, minor costs in connection with discontinued activities and incorporating the appropriate credit or charge for taxation, the result for the period was a loss of Β£8.8m (2007: profit Β£4.7m). The loss per share was 18.99p (2007: earnings per share 10.14p) and the adjusted lossΒ per share, after excluding the effect of the exceptional operating costs, the provision for impairment of goodwill this year and the exceptional profit on sale of property, the related release of deferred tax and the loss on sale of the specialist yarns business last year, was 1.53p (2007: earnings per share 1.54p).
There was a cash outflow from operating activities of Β£2.9m (2007: Β£4.3m), due to a combination of the operating loss, an increase in working capital, net of provisions,Β and the continuing contributions to the defined benefit pension scheme. There was a decrease in cash and cash equivalents of Β£2.9m (2007: increase Β£7.8m). Total cash and cash equivalents at the end of the period amounted to Β£3.2m down from Β£6.1m at the start of the period.
As we announced in December 2008, the board are not intending to pay an interim dividend for the current financial year.
Management and personnel
Carolyn Tobin stepped down from the board on 31st December 2008 after several years' service as a non-executive director. We are pleased to announce that Martin Toogood will join the board on 1st April 2009 as a non-executive director. Martin has considerable experience at executive and non-executive level, most recently with ILVA in Scandinavia andΒ theΒ UKΒ andΒ with Carpetright in theΒ UKΒ andΒ Europe. He brings considerable knowledge of retail markets which will be of great assistance in these difficult times.
Current trading and future prospects
Like-for-like sales in the early part of 2009 are around 23% below last year. Although both segments are down, the effect is more significant within residential carpets.
In the current challenging conditions, we are focussed on reducing the cost base to position the business for the future. There has been a significant reduction in headcount since the start of the financial year and numbers are expected to fall further as the year progresses.
Our cost reduction programme has resulted in a much leaner manufacturing operation, particularly in the residential sector. In recent months, we have started to see the benefits of a streamlined manufacturing footprint and this enables us to look forward with cautious optimism despite uncertainties in the market place. We have been encouraged by the sales growth from new products and have therefore accelerated our new product development plans.
In the meantime, we are looking to conserve cash and will be reducing both our working capital and capital expenditure going forward. In view of this need to conserve cash, the board do not expect to recommend the payment of a final dividend for the current financial year.
Although there is considerable uncertainty about future market conditions, we expect the commercial market to hold up reasonably well and the residential market to start to flatten out. As a consequence of our reduced operational base and an unprecedented level of new product development, we are well placed to withstandΒ the current challengesΒ and enjoy the benefits of an improvement in market conditions when this occurs.
Following a period of unsatisfactory results, our major priority has been to stabilise the residential carpets business and then return it to profitability. We are encouraged by the positive effects of our cost reduction programme and by consumer reaction to our new product launches and as a result of these major changes we believe that this return to profitability can be achieved in the near future. However we remain realistic about the difficulties we are all experiencing as a result of conditions in the global economy.
Enquiries:
Neil Rylance 01924 266561
Chief executive officer
Kevin Henry 01924 266561
Group finance director
Andrew Kitchingman 0845 270 8610
Managing Director - Corporate Finance
Brewin Dolphin
|
Consolidated Income Statement |
|||||
|
6 months ended 31st December 2008 |
|||||
|
Unaudited |
Unaudited |
Audited |
|||
|
6 months ended |
6 months ended |
year ended |
|||
|
31st December 2008 |
31st December 2007 |
30th June 2008 |
|||
|
Note |
Β£000 |
Β£000 |
Β£000 |
||
|
CONTINUING OPERATIONS |
|||||
|
Revenue |
23,040Β |
25,378Β |
48,713Β |
||
|
Operating costs |
(28,018) |
(25,073) |
(48,648) |
||
|
Impairment of goodwill |
(4,000) |
- |
(8,012) |
||
|
Exceptional profit on sale of property |
- |
9,616Β |
9,858Β |
||
|
Operating (loss)/profit after exceptional items |
(8,978) |
9,921Β |
1,911Β |
||
|
Analysed between: |
Β |
Β |
Β |
Β |
Β |
|
Operating (loss)/profit before exceptional items |
(901) |
555Β |
484Β |
||
|
Exceptional operating costs |
2Β |
(4,077) |
(250) |
(419) |
|
|
Impairment of goodwill |
(4,000) |
- |
(8,012) |
||
|
Exceptional profit on sale of property |
Β |
Β |
- |
9,616Β |
9,858Β |
|
Finance income |
41Β |
- |
383Β |
||
|
Finance costs |
(150) |
(137) |
(237) |
||
|
(Loss)/profit before taxation |
(9,087) |
9,784Β |
2,057Β |
||
|
Taxation |
363Β |
(1,905) |
(1,623) |
||
|
(Loss)/profit from continuing operations |
(8,724) |
7,879Β |
434Β |
||
|
DISCONTINUED OPERATIONS |
|||||
|
Revenue |
- |
6,097Β |
6,329Β |
||
|
Operating costs |
(57) |
(5,780) |
(6,570) |
||
|
Impairment of goodwill |
- |
(845) |
(845) |
||
|
Loss on disposal of discontinued operations |
- |
(2,668) |
(2,668) |
||
|
Operating loss after exceptional items |
(57) |
(3,196) |
(3,754) |
||
|
Analysed between: |
Β |
Β |
Β |
Β |
Β |
|
Operating profit before exceptional items |
- |
317Β |
245Β |
||
|
Exceptional operating costs |
2Β |
(57) |
- |
(486) |
|
|
Impairment of goodwill |
- |
(845) |
(845) |
||
|
Loss on disposal of discontinued operations |
Β |
Β |
- |
(2,668) |
(2,668) |
|
Finance income |
- |
168Β |
188Β |
||
|
Loss before taxation |
(57) |
(3,028) |
(3,566) |
||
|
Taxation |
- |
(162) |
(481) |
||
|
Loss from discontinued operations |
(57) |
(3,190) |
(4,047) |
||
|
(Loss)/profit for the period |
(8,781) |
4,689Β |
(3,613) |
||
|
(Loss)/earnings per share |
|||||
|
(basic and diluted) |
4a |
(18.99)p |
10.14p |
(7.81)p |
|
|
(Loss)/earnings per share from continuing operations |
|||||
|
(basic and diluted) |
4b |
(18.87)p |
17.04p |
0.94p |
|
|
Loss per share from discontinued operations |
|||||
|
(basic and diluted) |
4c |
(0.12)p |
(6.90)p |
(8.75)p |
|
|
Consolidated Balance Sheet |
||||
|
as at 31st December 2008 |
Unaudited |
Unaudited |
Audited |
|
|
31st December 2008 |
31st December 2007 |
30th June 2008 |
||
|
Note |
Β£000 |
Β£000 |
Β£000 |
|
|
Non-current assets |
||||
|
Property, plant and equipment |
7,809Β |
9,828Β |
8,865Β |
|
|
Goodwill |
- |
12,012Β |
4,000Β |
|
|
Deferred tax asset |
5a |
1,260Β |
1,780Β |
1,540Β |
|
Loan notes |
300Β |
300Β |
300Β |
|
|
9,369Β |
23,920Β |
14,705Β |
||
|
Current assets |
||||
|
Inventories |
8,249Β |
10,084Β |
10,970Β |
|
|
Trade and other receivables |
7,198Β |
8,569Β |
8,793Β |
|
|
Income tax receivable |
813Β |
348Β |
448Β |
|
|
Cash and cash equivalents |
3,171Β |
6,272Β |
6,063Β |
|
|
19,431Β |
25,273Β |
26,274Β |
||
|
Non-current assets held for sale |
- |
140Β |
452Β |
|
|
Total assets |
28,800Β |
49,333Β |
41,431Β |
|
|
Current liabilities |
||||
|
Trade and other payables |
(7,107) |
(8,682) |
(10,891) |
|
|
Non-current liabilities |
||||
|
Trade and other payables |
(1,715) |
- |
- |
|
|
Pension deficit |
(4,500) |
(5,930) |
(5,500) |
|
|
Deferred tax |
5c |
(211) |
(617) |
(252) |
|
(6,426) |
(6,547) |
(5,752) |
||
|
Total liabilities |
(13,533) |
(15,229) |
(16,643) |
|
|
15,267Β |
34,104Β |
24,788Β |
||
|
Equity |
||||
|
Called up share capital |
11,561Β |
11,561Β |
11,561Β |
|
|
Share premium account |
504Β |
504Β |
504Β |
|
|
Capital redemption reserve |
2,395Β |
2,395Β |
2,395Β |
|
|
Retained earnings |
6Β |
807Β |
19,644Β |
10,328Β |
|
15,267Β |
34,104Β |
24,788Β |
||
|
Consolidated Cash Flow Statement |
||||
|
6 months ended 31st December 2008 |
Unaudited |
Unaudited |
Audited |
|
|
6 months ended |
6 months ended |
year ended |
||
|
31st December 2008 |
31st December 2007 |
30th June 2008 |
||
|
Note |
Β£000 |
Β£000 |
Β£000 |
|
|
Operating activities |
||||
|
Cash used in operations |
8Β |
(2,856) |
(4,342) |
(4,148) |
|
Interest received |
19Β |
37Β |
187Β |
|
|
Income tax received/(paid) |
238Β |
(9) |
5Β |
|
|
(2,599) |
(4,314) |
(3,956) |
||
|
Investing activities |
||||
|
Purchase of property, plant and equipment |
(191) |
(1,603) |
(2,323) |
|
|
Proceeds on disposal of property, plant and equipment |
638Β |
15,738Β |
16,261Β |
|
|
Disposal of subsidiary undertaking |
- |
2,409Β |
2,409Β |
|
|
447Β |
16,544Β |
16,347Β |
||
|
Financing activities |
||||
|
Equity dividends paid |
3Β |
(740) |
(740) |
(1,110) |
|
Redemption of loan notes |
- |
(88) |
(88) |
|
|
Repayment of bank loans |
- |
(3,652) |
(3,652) |
|
|
(740) |
(4,480) |
(4,850) |
||
|
Net (decrease)/increase in cash and cash equivalents |
(2,892) |
7,750Β |
7,541Β |
|
|
Cash and cash equivalents at start of period |
6,063Β |
(1,478) |
(1,478) |
|
|
Cash and cash equivalents at end of period |
3,171Β |
6,272Β |
6,063Β |
|
|
Statement of Recognised Income and Expense |
||||
|
6 months ended 31st December 2008 |
||||
|
Unaudited |
Unaudited |
Audited |
||
|
6 months ended |
6 months ended |
year ended |
||
|
31st December 2008 |
31st December 2007 |
30th June 2008 |
||
|
Β£000 |
Β£000 |
Β£000 |
||
|
(Loss)/profit attributable to shareholders of the group |
(8,781) |
4,689Β |
(3,613) |
|
|
Actuarial losses recognised in the pension scheme |
- |
- |
(644) |
|
|
Total recognised income and expense relating to the period |
(8,781) |
4,689Β |
(4,257) |
|
|
Notes |
|||||
|
1Β |
SEGMENTAL INFORMATION |
||||
|
Β For management purposes theΒ group is organised into three business segments. These comprise the commercial carpet operation carried out by Burmatex Limited, the residential carpet operation carried out by Ryalux Carpets Limited and a group cost centre. Β |
|||||
|
Commercial carpets |
Residential carpets |
Group cost centre |
Total |
||
|
6 months ended 31st December 2008 |
Β£000 |
Β£000 |
Β£000 |
Β£000 |
|
|
Revenue |
10,786Β |
12,254Β |
- |
23,040Β |
|
|
Operating costs |
(9,876) |
(17,768) |
(374) |
(28,018) |
|
|
Impairment of goodwill |
- |
(4,000) |
- |
(4,000) |
|
|
Operating profit/(loss)Β after exceptional items |
910Β |
(9,514) |
(374) |
(8,978) |
|
|
Analysed between |
Β |
||||
|
Operating profit/(loss) before exceptional items |
999Β |
(1,554) |
(346) |
(901) |
|
|
Exceptional operating costs |
(89) |
(3,960) |
(28) |
(4,077) |
|
|
Impairment of goodwill |
- |
(4,000) |
- |
(4,000) |
|
|
Finance income |
15Β |
26Β |
- |
41Β |
|
|
Finance costs |
(138) |
- |
(12) |
(150) |
|
|
Profit/(loss) before taxation |
787Β |
(9,488) |
(386) |
(9,087) |
|
|
Depreciation charge |
215Β |
308Β |
- |
523Β |
|
|
Capital expenditure |
69Β |
122Β |
191Β |
||
|
Segment assets/(liabilities) |
9,069Β |
8,038Β |
(1,408) |
15,699Β |
|
|
6 months ended 31st December 2007 |
Β£000 |
Β£000 |
Β£000 |
Β£000 |
|
|
Revenue |
10,822Β |
14,556Β |
- |
25,378Β |
|
|
Operating costs |
(9,546) |
(15,158) |
(369) |
(25,073) |
|
|
Exceptional profit on sale of property |
- |
- |
9,616Β |
9,616Β |
|
|
Operating profit/(loss)Β after exceptional items |
1,276Β |
(602) |
9,247Β |
9,921Β |
|
|
Analysed between |
|||||
|
Operating profit/(loss) before exceptional items |
1,299Β |
(413) |
(331) |
555Β |
|
|
Exceptional operating costs |
(23) |
(189) |
(38) |
(250) |
|
|
Exceptional profit on sale of property |
- |
- |
9,616Β |
9,616Β |
|
|
Finance costs |
- |
- |
(137) |
(137) |
|
|
Profit/(loss) before taxation |
1,276Β |
(602) |
9,110Β |
9,784Β |
|
|
Depreciation charge |
255Β |
346Β |
- |
601Β |
|
|
Capital expenditure |
153Β |
1,163Β |
- |
1,316Β |
|
|
Segment assets/(liabilities) |
10,580Β |
21,249Β |
(361) |
31,468Β |
|
|
Year ended 30th June 2008 |
Β£000 |
Β£000 |
Β£000 |
Β£000 |
|
|
Revenue |
21,119Β |
27,594Β |
- |
48,713Β |
|
|
Operating costs |
(18,703) |
(29,124) |
(821) |
(48,648) |
|
|
Impairment of goodwill |
- |
(8,012) |
- |
(8,012) |
|
|
Exceptional profit on sale of property |
- |
- |
9,858Β |
9,858Β |
|
|
Operating profit/(loss)Β after exceptional items |
2,416Β |
(9,542) |
9,037Β |
1,911Β |
|
|
Analysed between |
|||||
|
Operating profit/(loss) before exceptional items |
2,527Β |
(1,341) |
(702) |
484Β |
|
|
Exceptional operating costs |
(111) |
(189) |
(119) |
(419) |
|
|
Impairment of goodwill |
- |
(8,012) |
- |
(8,012) |
|
|
Exceptional profit on sale of property |
- |
- |
9,858Β |
9,858Β |
|
|
Finance income |
88Β |
- |
295Β |
383Β |
|
|
Finance costs |
(17) |
- |
(220) |
(237) |
|
|
Profit/(loss) before taxation |
2,487Β |
(9,542) |
9,112Β |
2,057Β |
|
|
Depreciation charge |
434Β |
657Β |
- |
1,091Β |
|
|
Capital expenditure |
308Β |
1,603Β |
- |
1,911Β |
|
|
Segment assets/(liabilities) |
8,814Β |
14,391Β |
(1,155) |
22,050Β |
|
|
2Β |
EXCEPTIONAL OPERATING COSTS |
||||||
|
6 months ended |
6 months ended |
Year ended |
|||||
|
31st December |
31st December |
30th June |
|||||
|
2008 |
2007 |
2008 |
|||||
|
Β£000Β |
Β£000Β |
Β£000Β |
|||||
|
Impairment of property, plant and equipment |
588Β |
- |
276Β |
||||
|
Provision against inventories |
1,071Β |
- |
10Β |
||||
|
Provision for onerous leases and related costs |
2,124Β |
- |
- |
||||
|
Severance payments and incentives |
252Β |
215Β |
459Β |
||||
|
Relocation costs |
26Β |
12Β |
101Β |
||||
|
Provision for bad debts |
37Β |
- |
24Β |
||||
|
Legal and professional expenses |
36Β |
23Β |
35Β |
||||
|
4,134Β |
250Β |
905Β |
|||||
|
The impairment of property, plant and equipment, the provision against inventories, the provision for onerous leases and related costs and part of the severance payments and incentives relate to the ongoing reorganisation of the residential carpets business. The remainder of the severance payments and incentives and part of the relocation costs relate to the commercial carpets business. The remainder of the relocation costs and the provision for bad debts relate to the discontinuation of the yarn dyeing operation. The legal and professional expenses relate to the streamlining of the group structure. Β |
|||||||
|
Β£4,077,000 (31st December 2007: Β£250,000, 30th June 2008: Β£419,000) of the exceptional operating costs related to continuing operations and Β£57,000 (31st December 2007: Β£nil, 30th June 2008: Β£486,000) related to discontinued operations. |
|||||||
|
3Β |
DIVIDENDS |
||||||
|
6 months ended |
6 months ended |
Year ended |
|||||
|
31st December |
31st December |
30th June |
|||||
|
2008 |
2007 |
2008 |
|||||
|
Β£000Β |
Β£000Β |
Β£000Β |
|||||
|
Paid during the period: |
|||||||
|
Final dividend for the year ended 30th June 2008 |
|||||||
|
- 1.60p per share |
740Β |
- |
- |
||||
|
Interim dividend for the year ended 30th June 2008 |
|||||||
|
- 0.80p per share |
- |
- |
370Β |
||||
|
Final dividend for the year ended 30th June 2007 |
|||||||
|
- 1.60p per share |
- |
740Β |
740Β |
||||
|
740Β |
740Β |
1,110Β |
|||||
|
Proposed after the period end (not recognised as a liability): |
|||||||
|
Final dividend for the year ended 30th June 2008 |
|||||||
|
- 1.60p per share |
- |
- |
740Β |
||||
|
Interim dividend for the year ended 30th June 2008 |
|||||||
|
- 0.80p per share |
- |
370Β |
- |
||||
|
- |
370Β |
740Β |
|||||
|
4Β |
EARNINGS PER SHARE |
|||||||||||
|
(a) Group results |
||||||||||||
|
The calculation of basic earnings per share is based on a loss of Β£8,781,000 (31st December 2007: earnings Β£4,869,000, 30th June 2008: loss Β£3,613,000) and on 46,242,455 (31st December 2007: 46,242,455, 30th June 2008: 46,242,455) ordinary shares, being the number in issue during the period. |
||||||||||||
|
Β Adjusted earnings per share is calculated after excluding exceptional operating costs, impairment of goodwill, the exceptional profit on sale of property, the related movements on deferred tax and the loss on disposal of discontinued operations as set out below. Β |
||||||||||||
|
6 months ended |
6 months ended |
Year ended |
||||||||||
|
31st December 2008 |
31st December 2007 |
30th June 2008 |
||||||||||
|
Β£000 |
pence |
Β£000 |
pence |
Β£000 |
pence |
|||||||
|
(Loss)/earnings and basic (loss)/earnings per share |
(8,781) |
(18.99) |
4,689Β |
10.14Β |
(3,613) |
(7.81) |
||||||
|
Exceptional operating costs (net of tax) |
4,073Β |
8.81Β |
175Β |
0.38Β |
634Β |
1.37Β |
||||||
|
Impairment of goodwill |
4,000Β |
8.65Β |
845Β |
1.82Β |
8,857Β |
19.15Β |
||||||
|
Exceptional profit on sale of property (net of tax) |
- |
- |
(8,982) |
(19.42) |
(9,158) |
(19.81) |
||||||
|
Deferred tax movements on sale of property |
- |
- |
1,316Β |
2.85Β |
1,316Β |
2.85Β |
||||||
|
Loss on disposal of discontinued operations |
- |
- |
2,668Β |
5.77Β |
2,668Β |
5.77Β |
||||||
|
AdjustedΒ (loss)/earnings and basicΒ (loss)/earnings per share |
(708) |
(1.53) |
711Β |
1.54Β |
704Β |
1.52Β |
||||||
|
(b) Continuing operations |
||||||||||||
|
The calculation of basic earnings per share from continuing operations is based on a loss of Β£8,724,000 (31st December 2007: earnings Β£7,879,000, 30th June 2008: earnings Β£434,000) and on 46,242,455 (31st December 2007: 46,242,455, 30th June 2008: 46,242,455) ordinary shares. |
||||||||||||
|
Β Adjusted earnings per share from continuing operations is calculated after excluding exceptional operating costs, impairment of goodwill, the exceptional profit on sale of property and the related movements on deferred tax as set out below. |
||||||||||||
|
6 months ended |
6 months ended |
Year ended |
||||||||||
|
31st December 2008 |
31st December 2007 |
30th June 2008 |
||||||||||
|
Β£000 |
pence |
Β£000 |
pence |
Β£000 |
pence |
|||||||
|
(Loss)/earnings and basic (loss)/earnings per share |
(8,724) |
(18.87) |
7,879Β |
17.04Β |
434Β |
0.94Β |
||||||
|
Exceptional operating costs (net of tax) |
4,016Β |
8.69Β |
175Β |
0.38Β |
293Β |
0.63Β |
||||||
|
Impairment of goodwill |
4,000Β |
8.65Β |
- |
- |
8,012Β |
17.33Β |
||||||
|
Exceptional profit on sale of property (net of tax) |
- |
- |
(8,982) |
(19.42) |
(9,158) |
(19.81) |
||||||
|
Deferred tax movements on sale of property |
- |
- |
1,316Β |
2.85Β |
1,316Β |
2.85Β |
||||||
|
AdjustedΒ (loss)/earnings and basicΒ (loss)/earnings per share |
(708) |
(1.53) |
388Β |
0.85Β |
897Β |
1.94Β |
||||||
|
(c) Discontinued operations |
||||||||||||
|
The calculation of basic earnings per share from discontinued operations is based on a loss of Β£57,000 (31st December 2007: loss Β£3,190,000, 30th June 2008: loss Β£4,047,000) and on 46,242,455 (31st December 2007: 46,242,455, 30th June 2008: 46,242,455) ordinary shares. |
||||||||||||
|
Adjusted earnings per share from discontinued operations is calculated after excluding exceptional operating costs, impairment of goodwill and the loss on disposal of discontinued operations as set out below. |
||||||||||||
|
6 months ended |
6 months ended |
Year ended |
||||||||||
|
31st December 2008 |
31st December 2007 |
30th June 2008 |
||||||||||
|
Β£000 |
pence |
Β£000 |
pence |
Β£000 |
pence |
|||||||
|
(Loss)/earnings and basic (loss)/earnings per share |
(57) |
(0.12) |
(3,190) |
(6.90) |
(4,047) |
(8.75) |
||||||
|
Exceptional operating costs (net of tax) |
57Β |
0.12Β |
- |
- |
341Β |
0.74Β |
||||||
|
Impairment of goodwill |
- |
- |
845Β |
1.82Β |
845Β |
1.82Β |
||||||
|
Loss on disposal of discontinued operations |
- |
- |
2,668Β |
5.77Β |
2,668Β |
5.77Β |
||||||
|
Adjusted earnings/(loss)Β and basic earnings/(loss)Β per share |
- |
- |
323Β |
0.69Β |
(193) |
(0.42) |
||||||
|
5Β |
DEFERRED TAX |
||||||
|
31st December |
31st December |
30th June |
|||||
|
2008 |
2007 |
2008 |
|||||
|
Β£000Β |
Β£000Β |
Β£000Β |
|||||
|
(a) Deferred tax non-current asset |
|||||||
|
Brought forward |
1,540Β |
2,520Β |
2,520Β |
||||
|
Movement during the period |
(280) |
(740) |
(980) |
||||
|
Carried forward |
1,260Β |
1,780Β |
1,540Β |
||||
|
The above amounts are in respect of the deferred tax asset relating to the gross pension deficit. |
|||||||
|
(b) Deferred tax current asset |
|||||||
|
Brought forward |
- |
1,260Β |
1,260Β |
||||
|
Movement during the period |
- |
(1,260) |
(1,260) |
||||
|
Carried forward |
- |
- |
- |
||||
|
The above amounts are in respect of the deferred tax asset relating to the assets previously held for sale. |
|||||||
|
(c) Deferred tax current liability |
|||||||
|
Brought forward |
252Β |
738Β |
738Β |
||||
|
Movement during the period |
(41) |
(121) |
(386) |
||||
|
Disposal of subsidiary undertaking |
- |
- |
(100) |
||||
|
Carried forward |
211Β |
617Β |
252Β |
||||
|
The above amounts are in respect of accelerated capital allowances and other timing differences. |
|||||||
|
Β Β 6Β |
RETAINED EARNINGS |
||||||
|
31st December |
31st December |
30th June |
|||||
|
2008 |
2007 |
2008 |
|||||
|
Β£000Β |
Β£000Β |
Β£000Β |
|||||
|
Brought forward |
10,328Β |
15,695Β |
15,695Β |
||||
|
(Loss)/profit for the period |
(8,781) |
4,689Β |
(3,613) |
||||
|
Other recognised losses |
- |
- |
(644) |
||||
|
Equity dividends paid |
(740) |
(740) |
(1,110) |
||||
|
Carried forward |
807Β |
19,644Β |
10,328Β |
||||
|
7Β |
STATEMENT OF CHANGES IN TOTAL EQUITY |
||||||
|
31st December |
31st December |
30th June |
|||||
|
2008 |
2007 |
2008 |
|||||
|
Β£000Β |
Β£000Β |
Β£000Β |
|||||
|
Brought forward |
24,788Β |
30,155Β |
30,155Β |
||||
|
(Loss)/profit for the period |
(8,781) |
4,689Β |
(3,613) |
||||
|
Other recognised losses |
- |
- |
(644) |
||||
|
Equity dividends paid |
(740) |
(740) |
(1,110) |
||||
|
Carried forward |
15,267Β |
34,104Β |
24,788Β |
||||
|
8Β |
RECONCILIATION OF (LOSS)/PROFIT FOR THE PERIOD |
|||||||||
|
TO NET CASH USED IN OPERATIONS |
||||||||||
|
6 months ended |
6 months ended |
Year ended |
||||||||
|
31st December |
31st December |
30th June |
||||||||
|
2008 |
2007 |
2008 |
||||||||
|
Β£000Β |
Β£000Β |
Β£000Β |
||||||||
|
(Loss)/profit for the period |
(8,781) |
4,689Β |
(3,613) |
|||||||
|
Tax (credited)/charged |
(363) |
2,067Β |
2,104Β |
|||||||
|
Finance costs/(income) |
109Β |
(31) |
(334) |
|||||||
|
Impairment of property, plant and equipment |
588Β |
- |
276Β |
|||||||
|
Exceptional profit on sale of property |
- |
(9,616) |
(9,858) |
|||||||
|
Impairment of goodwill |
4,000Β |
845Β |
8,857Β |
|||||||
|
Loss on disposal of discontinued operations |
- |
2,668Β |
2,668Β |
|||||||
|
Depreciation |
523Β |
749Β |
1,245Β |
|||||||
|
(Profit)/loss on disposal of property, plant and equipment |
(49) |
(16) |
38Β |
|||||||
|
Current service pension cost |
- |
130Β |
- |
|||||||
|
Decrease/(increase) in inventories |
2,721Β |
153Β |
(733) |
|||||||
|
Decrease/(increase) in receivables |
1,553Β |
(2,289) |
(2,747) |
|||||||
|
(Decrease)/increase in payables |
(2,007) |
(1,091) |
1,609Β |
|||||||
|
Contributions to defined benefit pension scheme |
(1,150) |
(2,600) |
(3,660) |
|||||||
|
Net cash used in operations |
(2,856) |
(4,342) |
(4,148) |
|||||||
|
9Β |
BASIS OF PREPARATION AND ACCOUNTING POLICIES |
|||||||||
|
Β The financial information for the six months ended 31st December 2008 and the six months ended 31st December 2007 is unreviewed and unaudited. The comparative figures for the financial year ended 30th June 2008 are not the statutory financial statements of AIREA plc for that financial year. Those financial statements have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. Β |
||||||||||
|
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 2008. These policies are set out in the annual report and accounts for the year ended 30th June 2008 which is available on the Company's website at www.aireaplc.co.uk. Β |
||||||||||
|
Further copies of this report are available from the Company Secretary at the registered office at Victoria Mills, The Green, Ossett, Wakefield, West Yorkshire WF5 0AN. |
||||||||||
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