10th Mar 2015 10:08
LONDON (Alliance News) - Airea PLC saw its shares rise Tuesday morning after it reported higher profit and revenue for the first half of its financial year despite challenging markets in the UK retail sector and in mainland Europe.
The floor coverings maker reported an operating profit of GBP700,000 for the six months to end-December, up from GBP222,000 a year earlier, as revenue rose to GBP13.5 million from GBP11.6 million. Its pretax profit rose to GBP486,000 from GBP24,000.
It said the UK retail market remains challenging, although there are some signs of improved consumer confidence, while statistics for the UK non-residential construction sectors that it serves showed modest growth in refurbishment and maintenance work, a flat picture on private new build, and public sector new build remaining in negative territory.
"This picture of market conditions in the UK, combined with strengthening sterling and continuing difficulties in the Eurozone economies, meant that we continue to operate in a fiercely competitive and difficult environment," it said.
"It is therefore encouraging that our strategy of strengthening our product portfolio, investing in our sales resource and the relentless pursuit of service improvements and efficiency gains has delivered a promising advance in financial performance," it added.
It said it expects competition to remain intense, and has therefore decided to determine its dividend level for the current financial year at the end of the year. It won't therefore be paying an interim dividend.
Still, its shares were up 6.4% at 14.50 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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