TIDMAIEA
RNS Number : 7399H
Airea PLC
26 March 2020
AIREA PLC
(the "Group")
COVID-19 Trading update, dividend and Annual General Meeting
The principal activity of the Group is the manufacturing,
marketing and distribution of commercial floor coverings.
2020 Trading and Full Year expectations
Trading to date including the majority of Q1 2020 has been in
line with our expectations and reasonably resilient to the
unprecedented events that have unfolded in recent weeks; however,
following the recent guidance issued by the government in response
to COVID-19 the Group expects an overall reduction in demand for
flooring products. At this stage it is not possible to estimate
what the financial impact will be for the financial year ending 31
December 2020.
Working capital, cash flow and liquidity
Until government restrictions are lifted the Group is focused on
cash and overhead management in preparation for an expected
reduction in market activity.
All non-critical expenditure has halted whilst planning is
ongoing with our supply chain to phase orders in line with our
order expectations but mindful of the fact we will be looking to
fulfil orders as usual as and when they are received.
The Group is confident in the strength of its balance sheet and
cash reserves and can point to the following as reported at 31
December 2019:
-- Cash of GBP3.0m with current cash YTD slightly ahead of the year-end balance
-- GBP5.5m of inventory which will enable the Group to fulfil
demand in the near term from its facility in Ossett, which remains
open
-- An overdraft facility increased from GBP0.5m at 31 December
2019 to GBP1.0m should this be required by the Group
-- Freehold property valued at GBP7.0m included within net assets of GBP13.9m
In addition the Group is assessing the range of COVID-19
financial support packages announced by the government and believes
it will be eligible for most of the support available.
People
The board would like to praise the commitment and contribution
of its employees during this difficult time and intends to protect
the wellbeing of its people and preserve employment in line with
the UK Governments aim. Employees impacted by the change in
operations due to COVID-19 will be paid an enhanced form of the UK
Governments Coronavirus Job Retention Scheme.
2019 Final Dividend - Resolution 2
Notwithstanding the current balance sheet strength and liquidity
headroom, the board has taken the difficult decision to withdraw
resolution 2 that was proposed in the Group's Annual General
Meeting ("AGM") notice dated 4 March 2020 in relation to the
proposed final dividend of 1.3p payable on 20 May 2020.
The board recognises that this is a significant step to take,
but given the unprecedented and unpredictable situation we face,
considers it to be the right and prudent course of action to
protect the Group's cash position and maintain financial
flexibility in the interests of all the Group's shareholders.
AGM change of venue
The board is reviewing the options available to the Group in
terms of the AGM which is to be held on 14 May 2020. The Waterton
Park Hotel has closed in line with government guidance so the venue
has been changed to the Airea plc head office at Victoria Mills,
The Green, Ossett, West Yorkshire, WF5 0AN.
Shareholder and Board attendance at the AGM
Given the recent UK government advice in relation to Covid-19,
we strongly discourage shareholders from attending the upcoming AGM
in person and advise all shareholders to vote via proxy as an
alternative, to minimise any potential risks to yourselves and
others as a result of attending the Company's AGM.
The use of the proxies should enable the meeting to proceed with
as few people physically present as are necessary to meet the
quorum whilst following the government guidelines limiting public
gatherings to no more than 2 people.
We have decided to limit the attendance of the Board to one
director and the Company's secretary. No other directors will be
present in person.
The AGM will be held for the sole purpose of approving the
formal business as set out in the Resolutions contained in the
Notice of AGM (save as indicated below in relation to Resolution
2). There will be no update on trading or other management
statements and no opportunity for networking. We will not be
hosting refreshments on this occasion.
Immediately after the formal business of the meeting any
shareholders in attendance will be required to vacate the venue to
minimise physical contact time between shareholders and our Board
members
We propose to provide an opportunity for shareholders to listen
in to the AGM by telephone, but please note you will be unable to
exercise your voting rights via telephone. Please do vote via proxy
in advance of the meeting.
By way of a reminder, a link to the Form of Proxy is available
at www.signalshares.com
We strongly encourage you that if you decide to attend the AGM
that you follow the latest NHS advice at that time:
-- Please do not attend if you have any symptoms of COVID-19 or
have been in contact with someone who does.
-- Please practice social distancing.
-- Please wash your hands thoroughly for at least 20 seconds before entering the AGM venue.
-- Please cover your mouth and nose with a tissue or your sleeve
(not hands) when coughing or sneezing.
-- Please avoid handshaking.
-- Please use the hand sanitiser and tissues available at the venue.
We do apologise for any inconvenience caused by these changes
and arrangements but the Board considers it the most appropriate
way for the Company to hold its AGM in the circumstances. The
results of the AGM will be published via regulatory news service as
soon as possible after the meeting and published on our website
www.aireaplc.com/investors
Martin Toogood
Chairman
26 March 2020
Enquiries:
Neil Rylance 01924 266561
Chief Executive Officer
Paul Stevenson 01924 266561
Group Finance Director
Peter Steel / Ben Farrow 020 7496 3000
N+1 Singer
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Article 7 of EU Regulation 596/2014
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END
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