Last checked at 10 Mar 2015 07:02
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 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. | ||||||||