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Moving from four production plants to two will see delivery times come down and cash saved, says the chairman of carpet manufacturers Ryalux and Burmatex.


AIREA PLC announced the pooling of manufacturing operations last month (see related) with Martin Toogood saying the decision “delivers significant cost savings and efficiency improvements, [and] enhances our operational capability, reducing lead-times and improving customer service.”


His words came as AIREA posted half year numbers for the six months to end December 2015, during which revenue declined 5.3 per cent to £12.7m. Statutory interim pre-tax profit rose 5.6 per cent to £513,000.


The figures include a £1.3m exceptional charge relating to its manufacturing consolidation, comprising redundancy payments, stock rationalisation and the cost of moving equipment.


AIREA’s one-off items also included a £1.3m pensions gain, the result of a Pension Increase Exchange exercise, which allowed pensioners to opt for an income stream more aligned to their personal circumstances and preferences, simultaneously reducing the cost of past service benefits to the scheme.


Mr Toogood added: “The business enters the second half of the year with a reduced cost base, simplified operation and a healthy new product pipeline.”


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