26th Feb 2016 09:03
LONDON (Alliance News) - Floorcoverings manufacturer Airea PLC on Friday said its pretax profit edged higher in the first half of its financial year, thanks to a one-off pension credit booked in the period, but revenue was held back by weak currencies.
The company said its pretax profit for the half year to the end of December rose to GBP513,000 from GBP486,000, as revenue fell to GBP12.7 million from GBP13.4 million but this, plus some restructuring costs, was offset by a one-off pension credit.
Airea said its revenue had been hit by the strength of sterling against other currencies, particularly the euro, which had a translation effect on its international sales. It spent a good portion of the first half focused on consolidating its manufacturing facilities from four locations into two, in Ossett and Wakefield in Yorkshire, which caused the one-off restructuring charges it booked in the half, and expects this to significant cut its operating costs moving forward.
The company said it does not expect any fundamental changes in its markets in the second half, but said its financial results should improve thanks to the reduced cost base it will be working from.
Airea shares were down 8.8% to 18.25 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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