Airea keeps earnings intact amid tough trading

Flooring specialist Airea reported tough trading in its interim results on Friday, though it did manage to keep its earnings intact.

The AIM-traded company reported revenue of £12.7m for the period, down from 2014's restated figure of £13.4m.

Operating profit before exceptional items was £730,000, marginally up from £700,000.

There was an exceptional charge of £1.3m relating to costs associated with the consolidation of manufacturing operations, as well as exceptional income of £1.3m related to the Pension Increase Exchange.

Airea's Pension Increase Exchange exercise resulted in a reduction in its pension deficit, and allowed pensioners to opt for an income stream more aligned to their personal circumstances and preferences, whilst reducing the cost of past service benefits to the scheme.

The company's operating profit after exceptional items was £759,000, also up from £700,000 in 2014.

After charging pension-related finance costs and incorporating tax charges, the net profit for the period was £372,000 - flat when compared to 2014's £371,000. Basic earnings per share totalled 0.86p, up from 0.8p.

Chairman Martin Toogood said the outlook for the second half was largely the same, with competition remaining intense.

"However, the business enters the second half of the year with a reduced cost base, simplified operation and a healthy new product pipeline," he explained.

"In line with its recent policy, the board has resolved to determine the level of dividend at the year end, and there will not be a dividend payment at the interim stage," Toogood added.