Last checked at 20 Mar 2018 15:30
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 21st 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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