17th Aug 2018 08:45
LONDON (Alliance News) - Airea PLC said Friday its profit and revenue for the first-half of the financial year increased after it closed its loss-making carpets business.
Shares in the company were trading up 19% at 64.70 pence each on the back of the news.
For the six months to June 30, the floor covering manufacturer reported pretax profit up by 18% to GBP1.3 million from GBP1.1 million a year ago. Meanwhile, revenue increased 12% year-on-year to GBP9.1 million from GBP8.1 million.
During the six-month period, the company closed its loss-making residential carpets business Royalux. To explain the benefit of the closure, the company said that, including Royalux operations, its pretax profit dropped to GBP700,000 from GBP1.3 million reported on a continuing basis.
Airea declared an interim dividend of 1.75p per share, unchanged from the prior year.
"We are pleased by the progress we have made in driving sales growth in the ongoing commercial flooring operation with a strengthening portfolio of products," Chairman Martin Toogood said.
"Uncertainties remain, including the outcome of Brexit negotiations, however, as a UK manufacturer with a strengthening position in the UK and internationally, we are well placed to mitigate risks and take advantage of growth opportunities," Toogood added.
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