24th Sep 2013 07:20
LONDON (Alliance News) - Flooring company Airea PLC Tuesday said pretax losses widened for the full year, as cash-strapped consumers decided against redecorating their homes.
The company posted pretax losses of GBP533,00 for the period ended 30 June, after a GBP383,00 loss a year earlier, due to challenging market conditions in the UK and its international markets.
Revenue dipped to GBP25.0 million, from GBP26.3 million in 2012, reflecting a broadly flat underlying sales performance, combined with a selective withdrawal from certain vinyl products.
Operating profit, however, increased during the period to GBP709,00, from GBP351,000 last year, and operating cash flows before movements in working capital stood at GBP1.8 million compared with GBP1.5 million a year earlier.
"UK consumers remain cautious about spending reflecting tight disposable incomes and although there may be some reporting of tentative signs of increasing confidence, this has yet to work through into carpet sales," Airea said.
Looking ahead, the company said it was concerned as demand from the private construction sector remained weak, with little development outside of London. Public sector construction activity remains well below pre-financial crisis levels, Airea said.
Despite no reliable signs of any significant upturn in market conditions, Airea said it was committed to strengthening its product range.
The board declared a final dividend of 0.55 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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