Flooring firm is eyeing up rival

Flooring specialist James Halstead has confirmed it is considering making an offer for rival business Airea.

The Radcliffe firm said in a statement to the Stock Exchange it is “at the very early stages” of putting together a bid for Airea – which is based in the Wakefield area.
James Halstead released the statement after Airea’s shares went up by 15 per cent.

The statement read: “James Halstead notes the recent movement in the share price of Airea and confirms that the board of directors is at the very early stages of evaluating making an offer for Airea which could lead to an offer being made for the entire issued and to be issued share capital of Airea.

“As a consequence of this announcement, an Offer Period has commenced in respect of Airea in accordance with the rules of the City Code on Takeovers and Mergers.”

Under the rules of the Stock Exchange James Halstead has to state whether or not it intends to make an offer by May 2.

The company added that the announcement does not amount to a firm offer, and that “there can be no certainty that any possible offer will be made, nor as to the terms”.

Airea made a pre-tax loss last year of £1.5m and it has also announced it is planning to close its loss-making carpets business Ryalux.

Last month James Halstead published its interim results. The AIM listed business saw its pre-tax profits increase by two per cent to £23.7m in the last six months.

The company saw a 5.4 per cent increase in revenues to £126m and its operating profits increased by 1.6 per cent to £23.9 million.

Mark Halstead, the chief executive of the company, said he was delighted with the performance of the business.

He added: “Yet another record half-year for sales and profit and once again an increase in dividend.”