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Half Yearly Report

8 Mar 2013 07:00

RNS Number : 5329Z
Airea PLC
08 March 2013
 



 

AIREA plc

 

Interim Results for the Six Months Ended 31 December 2012

 

Review of Operations

Introduction

Airea plc has delivered an increase in profitability and a healthy improvement in its cash position during the first six months of the current financial year, despite the challenging market conditions that persisted in all of its major markets. In addition, good progress continues to be made in strengthening our strategic position with a number of successful product launches completed in the period.

Residential sector sales were once again adversely affected by fragile customer demand. However, contract volumes held up well due to significant progress in a number of overseas markets, and the success of new product introductions. Improved sales margins have been driven by tight management of pricing policy, along with a strengthening of the sales mix through investment in new products with higher added value and the substitution of out-sourced products by in-house manufacture. The relentless drive for cost reduction and efficiency improvements has added significantly to profitability, and we are now benefiting from the property footprint reduction and factory reorganisation completed last year.

Group results

Revenue for the period was £13.5m (2011: £13.9m). The operating profit before exceptional items was £404,000 (2011: £156,000). The operating profit after charging exceptional operating costs of £45,000 (2011: £17,000) was £359,000 (2011: £139,000). After charging pension related finance costs of £89,000 (2011: income £16,000) and incorporating the appropriate tax charge the net profit for the period was £176,000 (2011: £114,000). Basic adjusted earnings per share were 0.45p (2011: 0.28p) and basic earnings per share were 0.38p (2011: 0.25p).

Operating profit benefited from improved sales margins and cost reduction. The increase in pension related finance costs arose from the reassessment of the pension deficit as disclosed in the last annual report.

Operating cash flows before movements in working capital were £929,000 (2011: £716,000). Working capital reduced by £1,317,000 (2011: increase £580,000) due to tight control of inventory. Expenditure on onerous leases was negligible (2011: outflow £645,000) and contributions to the defined benefit pension scheme reduced to £217,000 (2011: £300,000) in line with the agreement reached with the scheme trustees following the last triennial valuation as at 1st July 2011. Capital expenditure of £134,000 (2011: £566,000) was focussed on essential replacements and productivity improvements.

Current trading and future prospects

Whilst we can foresee little change in the trading environment in the near future, we are well placed to make further progress in the second half of our financial year based on the ongoing development of our product offer, the continuing strengthening of our trading network, particularly overseas, and ongoing cost reduction programmes. Whereas we are encouraged by the prospects for the business, and the improvement in the cash position, we feel it is right to maintain a prudent approach. As a result the board has decided that any dividend payment should be judged in the light of the financial performance for the year as a whole, and consequently we will not be making a dividend payment at the interim stage.

 

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 2012

Unaudited

Unaudited

Audited

6 months ended

6 months ended

year ended

31st December

31st December

30th June

2012

2011

2012

Note

£000

£000

£000

Revenue

13,521

13,918

26,276

Operating costs

(13,162)

(13,779)

(25,925)

Operating profit after exceptional items

359

139

351

Analysed between:

Operating profit before exceptional items

404

156

423

Exceptional operating costs

1

(45)

(17)

(72)

Finance income

-

16

32

Finance costs

(89)

-

-

Profit before taxation

270

155

383

Taxation

(94)

(41)

(114)

Profit for the period

176

114

269

Earnings per share (basic and diluted)

2

0.38p

0.25p

0.58p

All amounts relate to continuing operations

Consolidated Statement of Comprehensive Income

6 months ended 31st December 2012

Unaudited

Unaudited

Audited

6 months ended

6 months ended

year ended

31st December

31st December

30th June

2012

2011

2012

£000

£000

£000

Profit attributable to shareholders of the group

176

114

269

Actuarial losses recognised in the pension scheme

-

-

(7,572)

Related deferred taxation

-

-

1,931

Total comprehensive income/(loss) for the period

176

114

(5,372)

Consolidated Balance Sheet

as at 31st December 2012

Unaudited

Unaudited

Audited

31st December

31st December

30th June

2012

2011

2012

£000

£000

£000

Non-current assets

Property, plant and equipment

6,872

7,653

7,308

Deferred tax asset

2,495

839

2,589

9,367

8,492

9,897

Current assets

Inventories

7,501

8,148

8,661

Trade and other receivables

3,467

3,915

4,659

Cash and cash equivalents

3,090

1,542

1,342

14,058

13,605

14,662

Total assets

23,425

22,097

24,559

Current liabilities

Trade and other payables

(4,304)

(4,442)

(5,339)

Provisions

(64)

(173)

(26)

(4,368)

(4,615)

(5,365)

Non-current liabilities

Pension deficit

(8,129)

(951)

(8,257)

Deferred tax

(41)

(149)

(41)

(8,170)

(1,100)

(8,298)

Total liabilities

(12,538)

(5,715)

(13,663)

10,887

16,382

10,896

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

Share option reserve

16

16

16

Retained earnings

(3,589)

1,906

(3,580)

10,887

16,382

10,896

Consolidated Cash Flow Statement

6 months ended 31st December 2012

Unaudited

Unaudited

Audited

6 months ended

6 months ended

year ended

31st December

31st December

30th June

2012

2011

2012

Note

£000

£000

£000

Operating activities

Cash generated from/(used in) operations

3

2,067

(809)

(867)

Investing activities

Purchase of property, plant and equipment

(134)

(566)

(708)

Proceeds on disposal of property, plant and equipment

-

100

100

(134)

(466)

(608)

Financing activities

Equity dividends paid

(185)

(231)

(231)

Net increase/(decrease) in cash and cash equivalents

1,748

(1,506)

(1,706)

Cash and cash equivalents at start of period

1,342

3,048

3,048

Cash and cash equivalents at end of period

3,090

1,542

1,342

Consolidated Statement of Changes in Equity

6 months ended 31st December 2012

Share capital

Share premium account

Capital redemption reserve

Share option reserve

Retained Earnings

Total equity

£000

£000

£000

£000

£000

£000

At 1st July 2011

11,561

504

2,395

16

2,023

16,499

Total comprehensive income for the period

-

-

-

-

114

114

Dividend paid

-

-

-

-

(231)

(231)

At 1st January 2012

11,561

504

2,395

16

1,906

16,382

Total comprehensive income for the period

-

-

-

-

(5,486)

(5,486)

At 1st July 2012

11,561

504

2,395

16

(3,580)

10,896

Total comprehensive income for the period

-

-

-

-

176

176

Dividend paid

-

-

-

-

(185)

(185)

At 31st December 2012

11,561

504

2,395

16

(3,589)

10,887

Notes

1

EXCEPTIONAL OPERATING COSTS

The exceptional costs of £45,000 (6 months ended 31st December 2011: £17,000, year ended 30th June 2012: £72,000) are severance payments relating to the ongoing streamlining of the business.

2

EARNINGS PER SHARE

The calculation of basic and adjusted earnings per share is based on the following data:

Number of shares

Unaudited

Unaudited

Audited

6 months ended

6 months ended

year ended

31st December

31st December

30th June

2012

2011

2012

Ordinary shares for the purpose of basic earnings per share

46,242,455

46,242,455

46,242,455

Earnings

Unaudited

Unaudited

Audited

6 months ended

6 months ended

year ended

31st December

31st December

30th June

2012

2011

2012

£000

£000

£000

Group results:

Earnings

176

114

269

Exceptional operating costs (net of tax)

34

17

54

Adjusted earnings

210

131

323

Group earnings per share

Unaudited

Unaudited

Audited

6 months ended

6 months ended

year ended

31st December

31st December

30th June

2012

2011

2012

pence

pence

pence

Basic adjusted

0.45

0.28

0.70

Basic

0.38

0.25

0.58

Diluted EPS

All options in issue at 30 June 2012 and 31 December 2012 were anti-dilutive.

3

RECONCILIATION OF PROFIT FOR THE PERIOD TO NET CASH GENERATED FROM OPERATIONS

Unaudited

Unaudited

Audited

6 months ended

6 months ended

year ended

31st December

31st December

30th June

2012

2011

2012

£000

£000

£000

Profit for the period

176

114

269

Tax charged

94

41

114

Finance costs /(income)

89

(16)

(32)

Depreciation

570

577

1,140

Loss on disposal of property, plant and equipment

-

-

39

Operating cash flows before movements in working capital

929

716

1,530

Decrease/(increase) in working capital

1,317

(580)

(940)

Increase/(decrease) in provisions

38

(645)

(907)

Contributions to defined benefit pension scheme

(217)

(300)

(550)

Net cash generated from/(used in) operations

2,067

(809)

(867)

4

BASIS OF PREPARATION AND ACCOUNTING POLICIES

The financial information for the six month period ended 31st December 2012 and 31st December 2011 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 2012 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 2012. These policies are set out in the annual report and accounts for the year ended 30th June 2012 which is available on the company's website at www.aireaplc.co.uk.

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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