Airea (AIEA)
Posted: March 5th, 2021, 3:47 pm
Firstly this is a small cap, less liquid than many, and I own (and not ramping).
Full year results released to the market yesterday.
https://www.investegate.co.uk/airea-plc ... 30061584R/
Like most companies the last year has been one affected by Covid. The share price tumbled, like many, in this case from the mid-40s, to a 20pish low, before making some recovery to about 30p ish today.
The company is a specialist flooring company mainly in the commercial space, with clients such as schools, leisure centres, as well as offices. It transverses the product from design, to manufacture to supply. Demand fell as companies and developers held off expenditure, but that appears to be coming back now as confidence both returns, and capital expenditures for repair and replacement can't be postponed indefinately. (Plus schools, hospitals etc. in the public sector aren't as budget constrained as private sector enterprises).
Revenue for the year was down 24% on the year before, and profits down 68% (operational gearing playing a part). The company is cashflow positive (and taking advantage of Covid measures), and has been in previous, profitable years (profit is real and turns to cash).
New products have been launched over the course of the year and I would hope to see traction as demand returns. Assets provide a degree of support to the share price with property on the Balance Sheet. Demand growth and operational gearing should provide a boost to profits going forward which suggests a low forward looking P/E
There is also a potential for takeover, James Halstead, a well run company in the sector looked a couple of years ago, which didn't lead to an offer
https://www.investegate.co.uk/airea-plc ... 05329357O/
With the share price around mid 60p at the time.
Full year results released to the market yesterday.
https://www.investegate.co.uk/airea-plc ... 30061584R/
Like most companies the last year has been one affected by Covid. The share price tumbled, like many, in this case from the mid-40s, to a 20pish low, before making some recovery to about 30p ish today.
The company is a specialist flooring company mainly in the commercial space, with clients such as schools, leisure centres, as well as offices. It transverses the product from design, to manufacture to supply. Demand fell as companies and developers held off expenditure, but that appears to be coming back now as confidence both returns, and capital expenditures for repair and replacement can't be postponed indefinately. (Plus schools, hospitals etc. in the public sector aren't as budget constrained as private sector enterprises).
Revenue for the year was down 24% on the year before, and profits down 68% (operational gearing playing a part). The company is cashflow positive (and taking advantage of Covid measures), and has been in previous, profitable years (profit is real and turns to cash).
New products have been launched over the course of the year and I would hope to see traction as demand returns. Assets provide a degree of support to the share price with property on the Balance Sheet. Demand growth and operational gearing should provide a boost to profits going forward which suggests a low forward looking P/E
There is also a potential for takeover, James Halstead, a well run company in the sector looked a couple of years ago, which didn't lead to an offer
https://www.investegate.co.uk/airea-plc ... 05329357O/
With the share price around mid 60p at the time.