26th Sep 2014 07:02
LONDON (Alliance News) - Floor coverings company Airea PLC Friday said it managed to increase its pretax profit in its last financial year, despite a fall in revenue, due to lower finance costs
The company posted a pretax profit of GBP330,000 for the year ended June 30, up from GBP170,000 a year earlier.
Although revenue decreased to GBP23.3 million, down from GBP25.0 million a year earlier due to a "challenging first half," the company said lower revenue and exceptional costs were more than offset by a reduction in finance costs, alongside lower operating costs.
Airea said improved trading in the second-half of the year more than offset a difficult first-half.
"However, the long anticipated recovery in the residential carpet market is still awaited. Although there were some indications of a modest general improvement in market sentiment, the ongoing squeeze in disposable incomes, continuing austerity in the public sector, and problems in the euro zone combined to give a mixed picture. Competition for business remained fierce throughout the year," the company said in a statement.
The company said its now investing in working capital to support new products and the sales recovery, alongside its efforts to maintain the financial headroom to operate debt free.
"We approach the new year recognising that competition will remain fierce, but with the confidence that the development of our strategy continues to improve our competitive position. We are encouraged by the progress we have delivered in the second half of the year just ended. As a result, and given the continuing health of our financial resources, the board is pleased to declare a final dividend of 0.6p per share," the company said.
Airea declared a final dividend of 0.55 pence last year.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
AIREA