Airea PLC Proposed closure of Ryalux (3394I)
20 März 2018 - 4:30PM
UK Regulatory
TIDMAIEA
RNS Number : 3394I
Airea PLC
20 March 2018
This announcement contains information which, prior to its
disclosure, was considered inside information for the purposes of
Article 7 of Regulation (EU) No 596/2014 (MAR).
Airea Plc
Proposed closure of Ryalux Carpets Limited
Airea Plc , a leading UK specialist floorcoverings manufacturer,
is proposing to close its retail carpets business. Operating as
Ryalux Carpets Limited, the business offers high quality broad loom
carpets available through retail outlets. The Company will be
entering into a formal consultation period with circa 50 employees
concerning the proposal and is exploring opportunities for some
employees to transfer to other parts of the Group.
The closure proposal follows a period of significant loss making
despite the implementation of a range of initiatives to improve
business performance including new product development, site
rationalisations and strict cost and working capital controls. The
trading environment for residential carpets has worsened and the
ongoing trend to cheaper synthetic products has led to further
declines in demand for high quality wool carpets
The closure which is anticipated to be completed by 30 April
2018 is likely to be cash generative and proceeds will be
distributed to shareholders.
The contract flooring business, which accounts for 74% of group
turnover, operating under the Burmatex brand continues to be highly
profitable and cash generative and the Company will be able to
accelerate its investment into the development & growth of the
Burmatex business. This fits with the Company's strategy of
focusing investment behind profitable product niches to drive long
term market growth and value within the commercial flooring
sector.
Airea plc will be announcing its preliminary results for the
eighteen months ended 31 December 2017 on Wednesday 21(st) March
2018
AIREA plc
Neil Rylance, Chief Executive Officer 01924 266 561
Roger Salt, Finance Director
N+1 Singer
Richard Lindley 020 7496 3000
James White
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
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